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 2016/17.

 

It was noted that, at the time of writing the report, the Cheshire Police and Crime Commissioner, the Cheshire Fire Authority and Daresbury Parish Council 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 2016/17 on 9 February 2016, which was in line with the Provisional Settlement announced on 17 December 2015. The Business Rates Retention Scheme allowed 49% of the business rates generated within the Borough to be retained, with the Council in receipt of a Top Up grant and Revenue Support grant.

 

The 2015 Spending Review also announced that local authorities responsible for adult social care would be given an additional 2% flexibility on their current council tax referendum threshold, which was to be used towards the funding shortfall for adult social care.

 

The Board was advised that the Medium Term Financial Strategy, approved on 10 December 2015, had identified a funding gap of around £18m in 2016/17, £16m in 2017/18 and £7m in 2018/19. 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.

 

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 its 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.

 

          On 14 October 2015 and 9 December 2015, the Council approved initial budget savings totalling £11.5m for 2016/17, 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 £98.465m.

 

The Board was advised that the proposed budget incorporated the grant figures announced in the Final Grant Settlement, and included £0.5m for the New Homes Bonus Grant, payable to local authorities based on the net increase in the number of homes in their area.

 

Further information was provided in respect of the budget outlook. As part of the Local Government Provisional Finance Settlement for 2016/17, the Government had published indicative Settlement Funding Allocations for the three years up to 2019/20. In addition, a consultation had been published on the future of the New Homes Bonus grant, which looked to reduce the number of years this grant was paid from six to four years. 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 £34m.

 

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.

 

Reason(s) For Decision

 

To seek approval for the Council’s revenue budget, capital programme and council tax for 2016/17.

 

Alternative Options Considered and Rejected

 

In arriving at the budget saving proposals set out in Appendix B, numerous proposals had been considered, some of which had been deferred pending further information or rejected.

 

Implementation Date

 

2 March 2016.

 

RESOLVED: That Council be recommended to adopt the resolution set out in Appendix A of the report, which included setting the budget at £98,465m, the Council Tax requirement of £41.217m (before Parish, Police and Fire Precepts) and the Band D Council Tax for Halton of £1,250.97.