The Portfolio Holder for Finance presented the report which followed on from the report to Cabinet on 6 December 2018 and contained changes resulting from the Provisional Local Government Finance Settlement which was announced on 13 December.

The Portfolio Holder indicated that he was pleased to report that there was presently only a £3,000 per annum budget gap, subject to later discussions on SCIAs.  He highlighted the Council Tax increase options.  The current assumption in the budget was a 2% increase for 2019/20 as that was the expected referendum limit at the time of the assumptions.  In the settlement, the referendum limit was increased to the higher of 3% of £5 for districts. By implementing the maximum increase for this council of £6.21 per annum for a Band D property, an additional £103,000 of Council Tax income per annum could be raised.

The Portfolio Holder indicated his hope that the Council would remain financially self-sufficient from direct Government funding and once again have a balanced 10-year budget. 

The Chief Finance Officer reiterated that the Provisional Local Government Finance Settlement had been published on 13 December and further detail had been announced since. The most relevant points in the settlement were that negative Revenue Support Grant (RSG) had been removed, the Business Rates Retention Pilot for 2019/20 was not successful but that the Council would still receive more than the safety net assumed in the 10-year budget and that the Council Tax referendum limit had been increased from 2% to the higher of 3% or £5.

The Advisory Committees had put forward a number of growth and savings proposals which were discussed by Cabinet in December.  He set out that these would need to be considered and that there were three potential resolutions in respect of each.  He also explained that Cabinet needed to recommend the Council Tax increase for 2019/20 and depending upon that resolution to issue further instructions if necessary.

Public Sector Equality Duty

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

Resolved:  That

a)     Members gave consideration to each of the growth and savings proposals in Appendix E and made the following recommendations:

                               i.       The following SCIAs were supported and were to be included in the budget:

·      SCIA16 – Asset Maintenance: an ongoing growth item of £100,000 be included in the 2019/20 budget with a review to be carried out each year as part of the budget process taking into account any changing asset maintenance requirements and other funding demands within the Council.

·      SCIA17 – Parish Projects (capital): any unused capital budget will not be carried forward.

                              ii.       The following SCIAs should be investigated further and considered for the 2020/21 budget setting process.

·      SCIA19 – Agenda printing, delivery and postal arrangements: a Member Working Group to be set up.

·      SCIA20 – Training for taxi knowledge test: investigate a trial at this council only.

·      SCIA21 – MOT testing: investigate advertising and the potential financial benefits.

                            iii.       The following SCIAs should be kept on the list for possible future investigation.

·      SCIA18 – Responding to legislation

b)     A Council Tax increase of 2.97% for 2019/20 be recommended to Council.