Issue - meetings
Council Budget 2019/20
Meeting: 05/02/2019 - Executive (Item 47)
47 Council Budget 2019/20 PDF 253 KB
(To receive a report by the Executive Director Finance and Public Protection which asks the Executive to propose to Full Council the Council's budget and council tax in light of the provisional local government settlement and consultation comments on its initial proposals)
Additional documents:
- Appendix A Council Budget 2019-20 Executive 18 Dec 18, item 47 PDF 435 KB
- Appendix A1 Commissioning Strategies Glossary, item 47 PDF 18 KB
- Appendix A2 Budget Briefing Sessions December 2018 Notes, item 47 PDF 250 KB
- Appendix B Update to Council Budget 2019_20 after Provisional Local Government Finance Settlement, item 47 PDF 112 KB
- Appendix C - Council Tax Impact Analysis 2019_20 v3, item 47 PDF 608 KB
- Appendix D - Revenue Table 2019_20, item 47 PDF 7 KB
- Appendix E - Capital Programme, item 47 PDF 168 KB
- Appendix F - Council Tax 2019_20 by Property Band, item 47 PDF 5 KB
- Appendix G - Prudential Indicators 2019_20, item 47 PDF 119 KB
- Appendix H - Flexible Use of Capital Receipts 2019-20, item 47 PDF 132 KB
- Appendix I - Consultation Comments 2019_20, item 47 PDF 465 KB
- Further Update on Budget 2019-20, item 47 PDF 275 KB
- Updated Appendix I - Consultation Comments 2019/20 Update, item 47 PDF 646 KB
Decision:
(2) That the Equality Impact Analysis, as detailed at Appendix C to the report, and the consultation comments as shown in Appendix I to the report and presented at the meeting be noted.
(3) That, subject to recommendation 4 below, the following be recommended to the County Council for approval:
a) the revenue budget for 2019/20, as detailed in Table C of the Further Update to the Council Budget 2019/20;
b) the capital programme for 2019/20, as detailed at Table A and Appendix E to the report;
c) the levels of council tax proposed in Table B of the report, including the increasing of council tax in 2019/20 by 4.95%;
d) the prudential indicators for 2019/20, as detailed at Appendix G to the report; and
e) the Flexible Use of Capital Receipts Strategy for 2019/20, as detailed at Appendix H to the report.
(4) That the Leader of the Council be given delegated authority 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 22 February 2019.
(5) That a Business Rates Volatility reserve be established for the County Council's share of the surplus for 2019/20 of Business Rates Collection Funds operated by the District Councils, which could then be used to offset Business Rates Collection Fund deficits in future years or for other purposes approved by the Council.
Minutes:
The County Finance Officer introduced the report to the Executive and guided them through those updates to the Council Budget 2019/20, tabled at the meeting, which had taken place since the meeting on 18 December 2018. The tabled information provided a further update to the Executive to take account of the following subsequent events: -
- The decisions taken by the Executive on 18 December 2018;
- The Final Local Government Finance Settlement published on 29 January 2019;
- Confirmation from District Councils of Council Tax bases;
- Confirmation from District Councils of Council Tax Collection Fund surpluses;
- Confirmation from District Councils of Business Rates Collection Fund surpluses; and
- Confirmation from District Councils of Business Rates Section 31 grant funding.
An updated Appendix I to the report was also tabled at the meeting, which included budget consultation feedback from scrutiny committees; members of the public; and the notes from the consultation meeting with external stakeholders.
In relation to the Business Rates Collection Funds (BRCF) operated by the District Councils, the Executive was advised that the collective position for the Council's share of the District Councils' BRCF had traditionally been a deficit in historic terms, mainly owing to the need to set aside provisions for appeals. The number of appeals against the more recent revaluation was considerably lower due to the introduction of a new appeals process. This had resulted in the District Councils re-evaluating the amount of provision to be set aside and this had resulted in a reduction in this sum. The reduction in the provision had, in turn, caused the District Councils' BRCFs to be in surplus for 2019/20.
The County Council's share of the collective surplus position was £6,156,613 for 2019/20 but this was a one-off gain based on a reassessment of an accounting estimate. The Executive supported the suggestion for a Business Rates Volatility reserve to be established for the County Council's share of the surplus for 2019/20 of Business Rates Collection Funds operated by the District Councils, which could then be used to offset Business Rates Collection Fund deficits in future years or for other purposes approved by the Council.
In response to a question, it was highlighted that the future certainty of the Better Care Fund beyond 2019/20 was still unknown, which presently amounted to circa £48m per year in Lincolnshire. It was hoped that the Green Paper: Future Funding of Adult Care would explain how the funding gap would be addressed but it was yet to be published. A further comprehensive spending review ... view the full minutes text for item 47