Issue - meetings

(To consider a report from the Executive Director of Finance and Public Protection, which invites the Executive to consider its final proposals for the Council's budget and council tax in light of consultation comments on its initial proposals)

That the Executive:

(1) Consider the effect of the updated funding available and revenue expenditure as noted in paragraphs 1.2 to 1.22 and Appendix A of the report;

(2) Consider the Equality Impact Analysis at Appendix B and the consultation comments as shown in Appendix H and presented at the meeting;

(3) Subject to recommendation 4 below approve for recommendation to full Council:

a) the revenue budget shown in Appendix C of the report;

b) the capital programme shown in Table A and Appendix D of the report;

c) the levels of council tax proposed in Table B of the report including the increasing of council tax in 2017/18 by 3.95%;

d) the prudential indicators shown in Appendix F of the report; and

e) the Flexible Use of Capital Receipts Strategy attached at Appendix G of the report.

(4) Request the Leader, to review and amend the Executive's budget recommendations to the County Council, as appropriate, in light of the final Local Government Settlement, council tax and business rates information from the Lincolnshire District Councils if received between the Executive meeting and the County Council on 24 February 2017.

Consideration was given to a report from the Executive Director of Finance and Public Protection, which invited the Executive to consider its final proposals for the Council's budget and council tax in light of consultation comments on its initial proposals.  The Executive was also asked to consider prudential targets in relation to capital financing and other treasury management matters and to recommend to full Council the Flexible Use of Capital Receipts Strategy for 2017/18.

The County Finance Officer introduced the report to the Executive and guided them through those updates to the Council Budget 2017/18, tabled at the meeting, which had taken place since the meeting on 4 January 2017.  Some of the changes included the following: -

• Members were reminded that this was a one year budget only for 2017/18;

• The current net increase in income from growth in the council tax base, plus the surplus on the council tax collection fund, less the deficit on the business rates collection fund had increased the Council's income for 2017/18 by £9.586m (previously £6.397m);
• The changes to grants and revenue expenditure, as detailed within the tabled update, had added additional costs of £1.527m to the Council's budget;
• The government grant allocations assumed in the budget proposals were those announced in the Provisional Local Government Finance Settlement and therefore may be subject to change.  The Final Settlement was expected on 20 February 2017;
• Consultation comments on the budget proposals were detailed at Appendix H to the report.

The Executive was asked to consider the potential use of the net additional income of £8.059m.  The following three options were put to the Executive: -

·         To reduce the amount of funding required from the Financial Volatility Reserve to set a balanced budget in 2017/18;

·         To fund additional spending by the Council or reduce the savings required to be made; or

·         To reduce the planned increase in Council Tax of 3.95%.

The Executive supported the recommendation that the net additional funding was used to reduce the contribution required from the Council's Financial Volatility Reserve to meet the 2017/18 budget shortfall. 

The Chairman of the Overview and Scrutiny Management Committee advised that comments from the overview and scrutiny committees on the Council Budget 2017/18 were detailed at Appendix H.

Members were provided with an opportunity to ask questions where the following points were noted: -

·         The Adult Care budget was set in the context of increasing demographic pressure and cost pressures related to service provider fee increases in order to accommodate the increasing cost of employment, as a result of the National Living Wage.  This resulted in a cost pressure of £6.670m in 2017/18.  Therefore the income from the Adult Care element of the precept of £5.2m would not cover the cost pressure;

• Members recognised the importance of adding any additional income to the Volatility Reserve, as it had proved vital in balancing the budget in previous financial years;
• Overall levels of funding to local government were reducing  ...  view the full minutes text for item 54