Agenda item

(To receive a report by David Forbes (County Finance Officer) which provides the budget proposals, agreed by the Executive at its meeting on 19 December 2017, and includes the implications of the Provisional Local Government Finance Settlement which were received following that meeting)

Consideration was given to a report by the Executive Director of Finance and Public Protection which provided the budget proposals, agreed by the Executive at its meeting on 19 December 2017, and included the implications of the Provisional Local Government Finance Settlement.

David Forbes (County Finance Officer) introduced the report and referred the Board to the document tabled which replaced Table 2 on pages 48 and 79 of the agenda pack.  This table was the definitive version and the one which the Board gave consideration to.

All areas of service expenditure had been reviewed to identify cost pressures which must be funded and savings which could be made, through efficiencies and by reducing the level of service provided.  The Council remained aware of its high priority areas but no service had been exempt from helping the Council to deliver its savings target.  The Board was reminded of the high priority areas:-

·       Safeguarding children and adults;

·       Maintaining and developing highways and infrastructure;

·       Managing flood risks;

·       Supporting communities to support themselves; and

·       Fire and rescue services.

The Multi Year Funding Settlement provided the Council with confirmed minimum funding for Revenue Support Grant, Transitional Grant and Rural Services Delivery Grant from 2016/17 to 2019/20.  This was indicated in Table 1 on page 44 of the agenda pack with the level of funding for 2018/19 and 2019/20 having been built in to the Council's budget proposal.  The Government was to honour this agreement with one exception.  The Rural Services Delivery Grant had been expected to reduce for 2018/19 to £4.281m but this was now to be maintained at £5.565m.

The Better Care Fund (BCF) had three main funding streams – an element from Lincolnshire Clinical Commissioning Groups (CCGs); the Improved Better Care Fund grant from central government; and the (Supplementary) Improved Better Care Fund grant, also from central government.  These funding streams combined would provide the Council with £40.044m in 2018/19 and £46.343m in 2019/20 to fund Adult Care Services.  The Board was asked to note that the BCF would cease to exist in March 2020 and, if not replaced, would leave a £46m shortfall in the budget.

To avoid any confusion, the County Finance Officer explained that there had now been three versions of Table 2 (Summary Revenue Budget) circulated to the Board.  The version tabled at the meeting was the definitive version and the change from version to version was in relation to the use of reserves and income lines.  The Executive had wished to scale down the use of reserves and this was now proposed as £48m over two years as opposed to £77m over two years.

The table also incorporated the following information which was received from the District Councils in Lincolnshire in relation to Council Tax and Business Rates:-

·       Growth in the Council Tax base for all seven Lincolnshire Districts of 1.27% (£3.488m);

·       A surplus on the Council Tax element of the Collection Fund for all seven Lincolnshire Districts (£2.641m);

·       A deficit on the Business Rates element of the Collection Fund for just one of the Lincolnshire Districts (-£0.099m);

·       An estimate of the S31 grant linked to Business Rates capping and Rate Relief's offered by central government (£2.293m).  As with the Business Rates element of the collection fund, this figure would be revised once the six final returns from Districts had been received;

·       An estimate of the additional income expected to be generated by the Council's membership of the Business Rates Pilot (£4.300m); and

·       Increase in the General Fund balance to maintain this at 3.5% of the Council's budget requirement (£0.400m).

It was reported that District Councils had been given a deadline of 31 January 2018 to provide this information.

Two bids had been made to government.  The first was for a Business Rates Pilot for the 100% retention of business rates schemes.  The second was for Business Rates Pooling in 2018/19.  Since the report was published, the Board was advised that the bid for a Business Rates Pilot had been successful.

The intention was to use the reserves in order to balance the budget over the next two years whilst building up further reserves to assist in balancing the budget for the third year.

Members were invited to ask questions, during which the following points were noted:-

·       It was reported that the Highways and Transport Scrutiny Committee had supported an additional 1% on Council Tax;

·       A recommendation had been made to the Executive by the Highways and Transport Scrutiny Committee to request that the frequency of weed control be increased to at least two or three times per year.  The Chairman of the Highways and Transport Scrutiny Committee was pleased to report that the Executive had agreed to this request and had made provision to put £150k into the budget;

·       One member of the Board expressed concern in relation to the reduction in the grant to the Citizens Advice Bureaux (CAB).  It was confirmed that it had been agreed to allocate £277k to support the CAB for core services for the next financial year;

·       The ability of District Councils to use discretionary powers to waive council tax for care leavers up to the age of 21 had been discussed at the Children and Young People Scrutiny Committee.  The Board supported this council tax scheme and asked officers to confirm which District Councils, if any, had implemented this type of scheme for 2018/19.  The Board was advised that this information should be available no later than 31 January 2018;

·       The Board supported the proposed increase to Council Tax by the maximum amount allowed, without the need to hold a referendum (4.95%), to protect the level of reserves.  Members stressed the importance of keeping reserves healthy in order to respond to any future cost pressures; and

·       It was reported that the Adults and Community Wellbeing Scrutiny Committee had been reassured by the budget in their area.  This had been balanced over the last six years and services delivered within the budgets allocated.  Concern was noted, however, that the BCF may cease in 2020 and that this fund currently provided a significant contribution to the funding for the adult care budget.

RESOLVED

1.    That the report be noted; and

2.    That the comments noted below be passed to the Executive for consideration prior to its meeting on 6 February 2018:-

o       A member commented that it made sense to increase Council Tax by the maximum allowed without holding a referendum (4.95%) to protect the level of reserves;

o       A member supported a request from the Highways and Transport Scrutiny Committee for the Council to fund an increase in the frequency of weed spraying;

o       In answer to concern expressed by a member of the Board about guts to the grant to the Citizens Advice Bureaux (CAB), officers confirmed that it had been agreed to allocate £277,000 to support the CAB for their core services;

o       A member stressed the importance of keeping reserves healthy to respond to any future cost pressures; and

o       The Chairman of the Children and Young People Scrutiny Committee requested that clarification be provided on which District Councils had implemented a council tax scheme, where District Councils could use their discretionary powers to waive council tax for care leavers up to the age of 21.  The Board supported this type of scheme and officers were asked to confirm which District Councils, if any, had implemented this type of scheme for the 2018/19 financial year.