Decision details

To note the council’s deliberations for the 2019-20 general fund revenue budget and agree the next step in the budgeting process and the 2019-20 fees and charges

This report had not been circulated five clear days in advance of the meeting. The chair agreed to accept the report as urgent as the council were committed to publishing budget proposals at the earliest possible opportunity to ensure they were available to the public for comments and questions. Presenting the report to cabinet on 12 December 2018 gives the opportunity for debate prior to presentation of budget figures to cabinet on 22 January 2019. Also under the council’s constitution, there is a requirement for the overview and scrutiny committee to review and challenge budget proposals and this is due to take place on 28 January 2019.

RESOLVED:

1.  That it be noted that the government’s budget statement was presented by the Chancellor of the Exchequer on 29 October 2018, key headlines being set out in the report (paragraphs 26 – 27 of the report).

2.  That it be noted that the provisional local government finance settlement, due to be announced on 6 December 2018, has been delayed until after the Brexit vote on Tuesday 11 December (paragraphs 28 – 29 of the report).

3.  That it be noted, as reported to cabinet in September 2018 and recognising continued uncertainty for local government funding, that the intention remains for the council to prepare a balanced one-year 2019-20 budget for approval by cabinet in advance of council assembly in February 2019 (paragraph 19 of the report).

4.  That the current budget options proposed to help achieve a balanced budget 2019-20 (Appendices C to F of the report) be noted.

5.  That the budget proposals for 2019-20 contained within the report be noted, which include:

·  Estimated general grant resources likely to be available arising from the provisional settlement (Appendix A of the report), a reduction of £8.647m from 2018-19

·  Improved Better Care Fund resources totalling £15.752m, an increase of £3.168m from 2018-19

·  Additional one-off social care grants of circa £4.254m announced in the Autumn 2018 budget

·  Retained business rates growth of £25.0m (paragraph 41 to 44), an increase of £3.250m over 2018-19 arising from proceeds generated by continued regeneration in the borough; plus an estimated surplus brought forward of £1.158m

·  Estimated council tax revenue of £107.322m, including £2.476m additional income arising from growth in the tax base and £0.4m from increased premium on long-term empty properties; an estimated collection fund surplus of £3.500m

·  Planned contingency to be maintained at £4m to mitigate underlying budget risks. (Paragraph 74 of the report).

6.  That it be noted that the following savings, commitments and pay and price pressures have been proposed to help ensure the delivery of a balanced budget in 2019-20 (Appendices C – F of the report):

·  Efficiency savings of £14.005m

·  Income generation of £3.050m

·  Savings impacting on services of £0.900m

·  Commitments and growth of £14.236m

·  Pay Award and contractual inflation of £8.450m

·  Debt financing costs of £3.809m.

7.  That it be noted that, in order to ensure that the base budget is on a secure financial footing a number of commitments are proposed for 2019-20 totalling £14.236m, including:

·  £8.072m for children’s and adult’s services funded principally from the growth in the Improved Better Care Fund (£3.168m) and additional social care funding (4.254m)

·  A net increase of £2.7m to further support spending pressures on Temporary Accommodation and £0.7m No Recourse to Public Funds (NRPF).

8.  That the ongoing negotiations regarding the continuation of the London Business Rates Pool arrangement into 2019-20 (paragraphs 45 – 48 of the report) be noted and that:

·  Authority be delegated to the strategic director of finance and governance in consultation with the cabinet member for finance, performance and Brexit to agree the operational details of the pooling arrangements with the participating authorities

·  Authority be delegated to the strategic director of finance and governance, in consultation with the director of law and democracy, to make any amendments as may be required by the Secretary of State, and to enter into the final Memorandum of Understanding on behalf of the council.

9.  That the updated budget gap for 2019-20 of £3.853m be noted and that it also be noted that this budget gap would reduce by £3.2m should the council decide to increase council tax by 2.99%, in line with the government threshold. Officers will complete further work to present a fully balanced budget position for cabinet on 22 January 2019.

10.  That the departmental narratives (Appendix B of the report) and the equality analysis provided for the budget proposals be noted.

11.  That the consultation that took place prior to agreeing the indicative budget options for 2017-18 and 2018-19 be noted and that officers be instructed to undertake further consultation for new budget options where necessary or appropriate (paragraphs 75 – 76 of the report).

12.  That it be noted that the report to cabinet on 22 January 2019 will be considered by overview and scrutiny committee on 28 January 2019 and that any recommendations arising will be incorporated into the final report to cabinet on 5 February 2019 for recommendation to council assembly on 27 February 2019 (paragraph 77 of the report).