Agenda item - Annual Budget and Council Tax 2019/20 and Medium Term Financial Strategy (MTFS) Update

Key Decision

Portfolio Holder: Cabinet Member (Inward), Councillor Robert Sears-Piccavey

That Cabinet recommends to Council that:

a) the level of the District’s own Council Tax for 2019/20 be frozen, setting the Band D equivalent at £185.46; the same as in 2018/19.

b) the proposed Revenue (General Fund) and Housing Revenue Account 2019/20 Budgets, as set out at Sections 3 and 4 of the officer’s report be approved.

c) the proposed Capital Programme and associated borrowing 2018/19 to 2022/23, as set out at Section 5 of the officer’s report be approved.

d) the 2018/19 Revised Housing Revenue Account and Capital Budgets, as set out at Sections 4 and 5 of the officer’s report be approved.

e) the precept figures from Nottinghamshire County Council, Nottinghamshire Fire and Rescue Authority, Police and Crime Commissioner and the two Parish Council’s within the District, be incorporated, when known, into the Council Tax recommendation to Council on 4 March 2019.

f) the estimated financial challenge in the Medium Term Financial Strategy for 2020/2021 and 2021/22, and the planned approach to address the challenge as set out at Section 6 of the officer’s report be noted.

g) an updated Medium Term Financial Strategy be brought back to Cabinet after the 2018/19 Accounts have been closed and audited.

h) the proposed use of reserves, as set out at (Table 6 Revenue) and Table 11 (Housing Revenue Account) of the officer’s report be approved.

i) the comments and advice of the Corporate Finance Manager (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the 2019/20 Budget and the adequacy of the reserves for which this budget provides (Section 7) be accepted and noted.

j) the Fees and Charges set out at paragraphs 3.10, 3.11, 3.12 and 3.13 of the officer’s report, which were not available for inclusion in the Fees and Charges report submitted to Cabinet on 26 November 2018, be approved.

k) the use of in-year Capital Receipts up to 2020/21 to maximise capitalisation opportunities arising from service transformation to deliver efficiencies and improved services to residents and clients, and thereby minimise the impact of costs on the revenue budget, as included in the Flexible Use of Capital Receipts Strategy 2018/19 approved by Council on 11 October 2018, be approved.

REASON FOR DECISIONS

In accordance with the Local Government Finance Act 1992 the Council must set its annual budget by 10 March in the preceding financial year.

ALTERNATIVE OPTIONS CONSIDERED AND REASONS FOR REJECTION

The District Council is able to set a Council Tax increase of up to the greater of 2.99% or £5 per annum without triggering a referendum. The proposal to freeze the level of District Council Tax for 2019/20 was recommended as the Council is able to set a balanced budget for 2019/20 without increasing the District’s Council Tax level.

Careful consideration has been given to each of the proposed investments included in this report. The investments proposed will support the Council in delivering its Corporate Plan priorities and will further facilitate the progression of the Council’s Digital Transformation Programme for the benefit of residents and customers.

The Corporate Finance Manager submitted a report detailing the:

· 2019/20 Annual Revenue (General Fund) and Housing Revenue Account Budgets and the Capital Programme for 2018/19 to 2022/23

· 2018/19 In-Year Revised Budgets (Housing Revenue Account and Capital)

· 2019/20 District Council Tax

· Fees and Charges for 2019/20 for those services where this information was unavailable for publication when the Fees and Charges report was considered by Cabinet on 26 November 2018.

The report also set out the estimated financial challenge in the Medium Term Financial Strategy for 2020/21 and 2021/22 and the Chief Finance Officer’s advice regarding the robustness of the estimates included in the proposed 2019/20 Budget and the adequacy of reserves for which the proposed budget provided.

The report noted that since 2010 Local Government had seen an unprecedented reduction in the level of funding from the UK Government, and that 2019/20 would be the final year that the Council would receive a Revenue Support Grant, but that despite these challenges the Council had in past years been able set an annual budget and deliver an Outturn within the budget set. It was noted that it would be essential that following the May 2019 District elections that the elected Administration would need to work with the Council’s management to identify and agree options to address the estimated financial challenge in the Medium Term Financial Strategy for 2020/21, 2021/22 and beyond to ensure that the Council had a sustainable financial future. It was proposed that it be recommended to Council that the level of District Council Tax for 2019/20 be frozen at the 2018/19 level.

The Leader welcomed the proposal to freeze the level of District Council Tax for 2019/20 as the Council was able to set a balanced budget for 2019/20 without increasing the District’s Council Tax level. The Leader thanked the Cabinet Member (Inward Focus), Councillor Robert Sears-Piccavey, the Corporate Finance Manager and other officers for their work in producing such a positive and forward looking budget in the context of the challenging financial situation that local authorities currently faced.

RESOLVED