The Portfolio Holder for Finance introduced the report and set out that the first stage of the budget process was the ‘Financial Prospects and Budget Strategy’ report to the Finance Advisory Committee and Cabinet in September.   The report had taken the budget agreed by Full Council in February and updated it, which included rolling the 10-year budget on a further year.

He set out that the report under consideration set out progress made in preparing the 2017/18 budget since then.  All seven Advisory Committees had discussed growth and savings suggestions relating to services within their terms of reference. 

The Portfolio Holder was pleased to report that it remained very likely that the Council would continue to have a balanced 10-year budget and be financially self-sufficient from direct government funding.

The Chief Finance Officer then explained the latest 10-year budget position.  He then updated Cabinet on the budget reports which had gone through the Advisory Committees.  He reported that since the last report there had been no major changes which affected the 10-year budget position. 

However, based on a recent government consultation question it seemed likely that the Council Tax Band D increase referendum limit would be £5 rather than 2%, which would be the same as the late change made by government last year.  If this change did occur and Members chose to take the £5 increase, this would result in an additional £50,000 of Council Tax income per annum.

He reported that the Council had also received summary details of the superannuation fund triennial valuation.  He was pleased to report that the funding level had increased and that the full amount assumed in the 10-year budget should not be required for this purpose.

He stated that changes to the Council Tax Reduction Scheme were approved by Council on 22 November 2016, a prudent view has been taken to not make any budgetary changes for the scheme in 2017/18 so that the real implications could be included from 2018/19.

The Chief Finance Officer then reported that the Autumn Statement announced in the previous week had not included anything in detail that was likely to have a major effect on the Council’s budget.  The Provisional Local Government Finance Settlement was expected to be announced in mid December.

He then summarised that if the net savings target of £100k were achieved the council would continue to have a balanced 10-year budget and remain self-sufficient from direct government funding, which would still be a unique achievement in local government.

The Chief Finance Officer then indicated that he had taken a budget report to all of the Advisory Committees.  Each of the growth and savings proposals presented to the Advisory Committees were being recommended to Cabinet (listed in Appendix D of the report with further details in Appendix E).

However, he stated that for SCIA 2 – ‘Distribution of Planning Applications to Town and Parish Councils’ (p.29 of the report), the Planning Advisory Committee had requested that Town and Parish Councils provide their views on the potential change prior to Cabinet.  All 33 Town and Parish Councils had been contacted and 19 had responded.  All of those that had responded did not agree with the proposed change.

The Chief Finance Officer continued and explained that if Cabinet did agree all of the growth and savings proposals that had been presented to the Advisory Committees, then the net savings target of £100,000 would have been achieved.

The Advisory Committees had also discussed many other ideas and a number of those were being put forward to Cabinet for debate (listed in Appendix F of the report).

The Chief Finance Officer therefore asked Cabinet to decide whether they approved the growth and savings proposals listed in Appendix D of the report (with further details in Appendix E) and secondly whether they wished to progress any of the further suggestions put forward by the Advisory Committees in Appendix F.

Cabinet considered the report and debated the savings proposed in SCIA 2 (distribution of planning applications to Town and Parish Councils).  Cabinet considered representations against the proposal and that the responding Town and Parish Councils had been unanimous in their opposition.  The Portfolio Holder for Planning made clear his opposition to the proposal and explained that when Planning Advisory Committee had considered growth and savings options they were keen that Cabinet should hear from Town and Parish Clerks as to the implications of ceasing paper notification of planning applications before deciding on the proposal.

Cabinet also considered SCIA 3 (elimination of the duty planner service).  It was debated whether the service could be replicated by the contact centre and the relaunched website.  However, Members were not content to agree to SCIA 3.

The Chief Finance Officer reminded Cabinet that if any of the SCIAs were not approved further savings may be required.  He asked whether Members had any preferences for where those savings could come from and stated that if they did not an increase in Band D Council Tax of £5 instead of 2% could cover the required savings, or officers could consider the issue further. 

Members considered that any shortfall could partially be made up by further increasing the pre-application charges proposed in SCIA4.  They also proposed that Band D Council Tax could increase by £5 instead of 2%.

Cabinet then discussed the further growth and savings items suggested by Advisory Committees set out in Appendix F and indicated that some items would be worth bringing forward in future years.

Public Sector Equality Duty

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

Resolved:  That

a)     the savings item relating to the distribution of planning applications at SCIA 2 be removed;

b)     the savings item relating to the duty planner service at SCIA 3 be removed;

c)     an increase in the savings proposed by the savings item at SCIA 4 relating to charges for pre-application advice be sought;

d)     an increase in Council Tax of £5 rather than 2% for a Band D property be sought.