Decision details

This report presents the Cabinet's revenue and capital budgets for the 2016/17 financial year together with a proposal for a Council Tax level for 2016/17.

The budget was approved at Council – see minutes for further details.

RESOLVED (unanimously) that the Cabinet agreed to recommend:

1)  That the Council approve:

a) The General Fund net revenue budget for 2016/17 of £115.729m and the associated Council Tax increase of 1.25% plus a further 2% for Adult Social Care, as set out in Appendix 2.

b) That no Special Expenses be charged other than Town and Parish Council precepts for 2016/17.

c) The adequacy of reserves at Appendix 2 Table 10 with a risk-assessed level of £10.5m.

d) The individual service cash limits for 2016/17 summarised at Appendix 2 Table 6 and detailed in Annex 1.

e) That the specific arrangements for the governance and release of reserves, including invest to save proposals, be delegated to the Council’s Section 151 Officer in consultation with the Cabinet Member for Finance & Efficiency and the Chief Executive.

2)  That the Council include in its Council Tax setting, the precepts set and approved by other bodies including the local precepts of Town Councils, Parish Councils and the Charter Trustees of the City of Bath, and those of the Fire and Police Authorities.

3)  That the Council notes the Section 151 officer's report on the robustness of the proposed budget and the adequacy of the Council's reserves (Appendix 2, Annex 2) and approves the conditions upon which the recommendations are made as set out throughout Appendix 2.

4)  That in relation to the capital budget the Council:

a) approves a capital programme of £58.063m for 2016/17 and notes items for provisional approval in 2016/17 and the programme for 2017/18 to 2020/21 as shown at Appendix 2, Annex 3 including the planned sources of funding .

b) delegates implementation, subject to consultation where appropriate, of the capital programmes set out in Annex 3i to Annex 3iv to the relevant Strategic Director in Consultation with the appropriate Cabinet Member.

c) approves all other delegations as set out in the budget report.

d) approves the Minimum Revenue Provision Policy as shown at Appendix 2, Annex 4

e) approves the Capital Prudential Indicators as set out in Appendix 2 Table 8.

5)  That the Council agree the Council’s proposed pay policy statement, including the provision in respect of minimum pay rates in 2016/17 as set out at Appendix 5 delegating implementation arrangements to the Employment Committee where appropriate.

6)  Authorise the Council’s Section 151 Officer, in consultation with the Cabinet Member for Finance & Efficiency, to make any necessary changes and presentational improvements to the draft budget proposal for submission to Council.

7)  The Final Settlement for local government includes the provision of a new “one off” Transitional Grant for the Council of £936K in 2016/17 and £930K in 2017/18.  The underlying Settlement remains the same and the previously indicated reductions in Revenue Support Grant are confirmed. That means the Council has the same longer term financial challenge as before but has some short term funding mainly to help manage risk and the transition.

 In light of this it is proposed that the budget recommended to Council is amended, and that Council is provided with a short supplementary paper, to reflect the following use of the Transitional Grant funding in 2016/17:

1.Adjustments to Existing Budget Proposals

£25K - Widening of Gull Strategy trial and additional enforcement work

£62K - Increase transition support for Freight Consolidation from 6 to 12 months

2.New Provisions

£50K – Support and advice for B&NES Council financial planning and a submission to government - to inform planned changes to local government finance nationally, including a new system of needs assessment and tariffs, which will be offsetting business rates retention proposals

3.Service Transition Support

£799K – Corporately held transition funding to assist in the delivery of savings targets and other pressures as required in year and as a contingency relating to income growth targets in 2016/17

The rationale for the recommendations is contained in the supporting paper to this report.

The Council’s Section 151 Officer is the Divisional Director – Business Support. As Section 151 Officer his duties include ensuring a prudent and balanced budget is set on time which properly takes into account the financial constraints and risks facing the Council.

The supporting paper and appendices also contain the other options that can be considered in making any recommendations.