Agenda item

The Board considered a report of the Operational Director, Finance, which outlined a recommendation to Council in respect of the Budget, Capital Programme and Council Tax for 2015/16.

It was noted that, at the time of writing the report, the Cheshire Police and Crime Commissioner and the Cheshire Fire Authority had not set their budgets and Council Tax precepts. However, final figures would be reported to Council when the information was available.

The Government announced the Final Local Government Finance Settlement figure for 2015/16 on 5 February 2014, which was in line with the Provisional Settlement announced on 18 December 2014.

In terms of consultation, it was noted that the Council used various methods to listen to the views of the public and Members’ own experiences through their Ward work was an important part of that process. Budget presentations had taken place at all of the Area Forums and details of the comments made were tabled at the meeting. In addition, individual consultations would take place in respect of specific budget proposals and equality impact assessments would be completed where necessary.

The Board was advised that the Medium Term Financial Strategy, approved on 20 November 2014, had identified a funding gap of around £19m in 2015/16, £13m in 2016/17 and £10m in 2017/18. The Strategy had the following objectives:

·       Deliver a balanced and sustainable budget;

·       Prioritise spending towards the Council’s five priority areas;

·       Avoid excessive Council Tax rises;

·       Achieve significant cashable efficiency gains;

·       Protect essential front line services; and

·       Deliver improved procurement.

          On 10 December 2014, the Council approved initial budget savings of £11.332m for 2015/16, and further proposed savings were shown at Appendix B. The Departmental analysis of the budget was shown in Appendix C and the major reasons for change from the current budget were outlined for Members’ information in Appendix D. It was noted that the proposed budget total was £101.188m.

The Board was advised that the proposed budget incorporated the grant figures announced in the Provisional Grant Settlement, and included £440,000 for the New Homes Bonus Grant, payable to local authorities based on the net increase in the number of homes in their area. The grant was payable at this amount for six years.

It was noted that from 1 April 2013, the Local Government funding regime changed significantly with the introduction of the Business Rates Retention Scheme, as outlined in the report.

Further information was provided in respect of the budget outlook, although it was difficult to forecast resources over the following two years given the uncertainties caused by the current economic climate and the Government’s continuing austerity measures and the national election in May 2015. The Medium Term Financial Forecast had been updated and was attached at Appendix E. It was noted that the resultant funding gap over the next two years was forecast to be in the region of £31.9m.

Further information was provided in respect of Halton’s Council Tax, Parish Precepts, Capital Programme, the Prudential Code and school budgets.

Members wished to place on record their thanks to all members of the Budget Working Group, Policy and Performance Board Chairs and staff for their hard work in producing this year’s budget.

RESOLVED: That Council be recommended to adopt the resolution set out in Appendix A of the report, which included setting the budget at £101.188m, the Council Tax requirement of £38.649m (before Parish, Police and Fire Precepts) and the Band D Council Tax for Halton of £1,204.01.