Agenda item

The Committee considered the report for the Medium Term Financial Strategy 2016/17 onwards with a view to recommending a balanced budget to full Council on the 2 March 2016 including a proposed level of council tax.

The Committee were provided with the following briefing notes which gave further details but did not change anything in the report published with the agenda:

·  Consequence of a £5.00 council tax increase;

·  Status on Efficiency Statement;

·  Reversal of Bulky Refuse Fee Increase.

The Committee were given with an overview of the report and briefing notes.  Most of the work before them had been reported to committee before with some exceptions.

The major changes were proposals that would alleviate the immediate budget pressures over the period of the strategy considered by the Committee in January 2016, but not the long term pressures. 

One permanent change was the council tax increase referendum arrangements, where the council was now able to approve an increase at Band D of £5.00 or less than 2%, which ever was greater.  The impact of this on the Medium Term Financial Strategy was included in the briefing note.

A further temporary change was the transitional funding that the report recommended be set aside to mitigate against risk.  The briefing note on Efficiency, paragraph 8, was more specific than the recommendation in the report regarding the one-off grant of £330,000 to aid transition.  This would enable the Council to invest in the activities necessary to progress the efficiency plan and achieve the necessary savings through investment in the actions required to achieve the savings.

The final settlement also impacted on parish councils.  Funding arrangements in relation to support for parish councils for local council tax support targeted the expected date of final loss at the same time as the Council ceased to receive the grant in 2017.  Parish councils were aware their funding would cease.

The business rates were also slightly amended due to more recent data, with the final figures for growth being lower than expected.  This had no negative impact as growth had not been taken into account in the base budget.

The report was developed on the basis of a £5.00 increase in council tax at Band D for 2016-17 only and options were detailed in the report.  The briefing note showed comparisons between a £5.00 increase and 1.99% increase for four years and the impact on the budget.  The calculation had been done using £4.95 as all other Band increases are derivatives 9 of the increase at Band D, and £4.95 was easier to divide by 9.

The Committee went on to discuss the increase in council tax and whether to agree a percentage increase or an increase of £4.95 at Band D.

The Committee also discussed the ceasing of the freighter service and an increase in the charge for bulky waste collection.  There was some opposition to the ceasing of the freighter service, however, it was acknowledged that there would need to be a good reason not to accept the decision of another Committee.

The Committee agreed it was not unreasonable to hold the 50p increase in the charge for bulky waste collection as its effect on the budget could be mitigated.

RESOLVED:  That:

1.  The increase in bulky waste collection charges be removed until better mitigation is evidenced.

Voting:  For – 14  Against – 0  Abstentions – 1

2.  The previously set grants to parish councils under the local council tax support scheme as set out in paragraph 2.21 not be amended.

Voting:  For – 14  Against – 0  Abstentions – 1

3.  Payment of the local council tax support grant to parish councils cease from 1 April 2017.

Voting:  For 10  Against – 4  Abstentions – 1

4.  The results of the consultation exercises detailed in section 5 of the report be noted.

5.  The views of the Employment Committee and Democracy Committee set out in section 5 of the report be noted.

6.  The transitional grant, to be received in 2016-17 and 2017-18 as set out in paragraph 2.15 of the report, be set aside as a reserve against delivery risk.

Voting:  For – 15  Against – 0  Abstentions – 0

7.  The Revised Estimate 2015-16 as set out in Appendix C be recommended to Council for adoption.

Voting:  For – 15  Against – 0  Abstentions – 0

8.  The Estimate 2016-17 as set out in Appendix C be agreed.

Voting:  For – 15  Against – 0  Abstentions – 0

9.  A minimum balance of £2,000,000, as set out in paragraph 2.64a of the report, be recommended to Council for adoption.

Voting:  For – 14  Against – 0  Abstentions – 1

10.  That working balances set at £300,000 above minimum balances, which would currently be £2,300,000, be recommended for approval by Council.

Voting:  For – 14  Against – 0  Abstentions – 1

11.  The capital programme set out in Appendix D be recommended to Council for approval.

Voting:  For – 15  Against – 0  Abstentions – 0

12.  The level of council tax increases for 2016-17 of £4.95 at Band D be recommended to Council for approval.

Named vote, Councillor:

Mrs Blackmore  For

Mrs Brice  For

Cox  Against

Garland  For

Mrs Joy  Against

McKay  Against

McLoughlin  For

D Mortimer  Against

Munford  For

Naghi  Against

Ross  For

Round  For

Sargeant  Against

Stockell  For

Mrs Wilson  Against

Voting:  For – 8  Against – 7  Abstentions – 0

13.  The medium term financial strategy statement for revenue and capital as set out in Appendices F and G of the report be agreed.

Voting:  For 15  Against – 0  Abstentions – 0