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Agenda item
Revenue Budgets 2015/16 (Revised) and 2016/17, Plus Capital Programme 2016/17 to 2018/19
Minutes:
It was proposed that the recommendations set out in minute number 47 of the meeting of Cabinet held on 15 February 2016, be approved.
Councillor Dowling, the Right Worshipful the Mayor, proposed a motion, seconded by Councillor Roberts, and agreed unanimously, as follows: -
RESOLVED – that in order to facilitate full discussion on Cabinet’s proposal for the budget and any proposed amendments to Cabinet’s recommendations; Council suspends Rule 16.6(b) of Council Procedure Rules (only one amendment may be moved and discussed at any one time. No further amendment may be moved until the amendment under discussion has been disposed of) to permit the Leader’s motion and all amendments to be on the table and open for discussion at the same time.
Councillor Atkins proposed an amendment to the revenue budget forward plan, Appendix G, seconded by Councillor Clarke, as follows: -
Ref
Original
2016/17 Budget £000’s
Conservative Amendment
Comment
1
Net Service Expenditure
15,367
15,367
11a
PPS Costs
50
Cost of externally managed PPS
11b
Reallocated Priorities
250
Extra costs of new PPS initiatives
11c
Regen Investment
250
Extra costs of business regeneration
11d
PPS Savings
-700
Savings in employee and service costs by reallocating priorities to PPS (in addition to PIER savings)
11e
Extra Contribution to Reserves
27
30
Freeze on Council tax (2.08% offset)
123
No Council Tax increase for HBC in 2016
42
Contribution to General Fund
15,048
15,048
Under rule 16.14 of the council’s constitution, the Mayor proposed that the council proceed as if in committee during the debate on this item, except when a vote took place, when the meeting returned to Full Council.
The amendment was lost by 8 votes to 22 with 1 abstention. Councillors Atkins, Beaver, Charlesworth, Clarke, Cooke, Edwards, Lee and Pragnell voted in favour of the proposed amendment to the revenue budget. Councillors Batsford, Beaney, Cartwright, Charman, Chowney, Clark, Davies, Dowling, Fitzgerald, Forward, Howard, Poole, Roberts, Rogers, Sabetian, Scott, Sinden, Street, Turner, Webb, Westley and Wincott voted against the proposed amendment. The Mayor abstained from the vote.
Councillor Chowney proposed approval of the Revenue Budgets 2015/16 (Revised) and 2017/18, plus Capital Programme 2016/17 to 2018/19, subject to an amendment to the draft budget deleting a proposed saving by no longer sending out neighbour notification letters for planning applications.
Councillors Batsford, Beaney, Cartwright, Charman, Chowney, Clark, Davies, Dowling, Fitzgerald, Forward, Howard, Poole, Roberts, Rogers, Sabetian, Scott, Sinden, Street, Turner, Webb, Westley and Wincott voted for approval of the Revenue Budgets 2015/16 (Revised) and 2016/17, plus Capital Programme 2016/17 to 2018/19. Councillors Atkins, Beaver, Charlesworth, Clarke, Cooke, Edwards, Lee and Pragnell voted against the motion. The Mayor abstained from the vote.
RESOLVED (by 22 votes for, 8 against with 1 abstention) that Council:-
1) Approve the revised revenue budget for 2015/16 (Appendix A);
2) Approve the draft 2016/17 revenue budget (Appendix A);
3) Approve a 2.08% (£5 for Band D property) increase in the borough council’s part of the council tax;
4) Agree that the absolute minimum level of reserves that shall be retained be increased to £5m (plus general fund balance) from the current level of £4m;
5) Approve the capital programme 2015/16 (revised) to 2018/19 (Appendix P);
6) Approve the proposed expenditure from the Renewal and Repairs Reserve, and Information Technology Reserve (Appendices J and I respectively) and those items from other reserves shown in Appendix H that can proceed without further reference to Cabinet or Council;
7) Approve that the use of monies identified in the budget for invest to save schemes be determined by the Assistant Director for Financial Services and Revenues in consultation with the Leader of the Council;
8) Approve the revised Land and Property Disposal Programme (Appendix L) and agree that disposals can be brought forward if market conditions make it sensible to do so;
9) Agree that schemes marked with an asterisk in the capital programme can proceed without further reference to Cabinet or Council;
10)Agree work on the Priority Income and Efficiency Reviews (PIER) should continue and where possible identify a sustainable budget for a period in excess of 1 year. A mid-year review, for members and officers, to be undertaken in light of the continuing severe government grant reductions;
11)Agree the establishment of a Hardship Fund in respect of Council Tax Support;
12)Approve the detailed recommendations in Appendix M, which relate to the setting of council tax in accordance with Sections 31 to 36 of the Local Government Act 1992, and;
13)Approve that the budget be amended as necessary to reflect the final grant figures from government (once revised) in respect of Benefit Administration Grant
The reason for this decision was:
1) Major reductions in funding in 2016/17 are set to continue to 2019/20 and possibly beyond and this will impact heavily upon the council’s ability to provide services and grants across all areas of existing activity.
2) Since 2010/11 funding has been reduced by more than 54% in cash terms on a like for like basis. To ensure key corporate priorities are achieved it remains imperative that the limited resources available are properly targeted.
3) The council needs to be in a position to match its available resources to its priorities across the medium term and to maintain sufficient reserves and capacity to deal with potentially large and unexpected events in addition to fluctuations in income and expenditure levels.
4) The council is exposed to a much greater degree of volatility in the level of funding it receives through Non Domestic rates. In addition it is also exposed to a much higher degree of volatility in terms of Council tax Support claims –the council now receiving an upfront sum as part of the annual grant settlement rather than reimbursement of actual costs.
5) Further reductions in grant funding have major implications for the council and as such work needs to continue to identify and make savings in order to produce balance budgets in 2017/18 and beyond.
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