Agenda item

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.

Councillor Dine Romero said that the Cabinet should be mindful of Council’s ability to generate more income taking into consideration that people have less money.  Councillor Romero expressed her concern in risks, in particular that we, as a Council, would have to pay more at later stages.  Councillor Romero also expressed her concerns in efficiency savings in Connecting Families programme and in remodelling of the Public Mental Health, especially since many young children had suffered from mental health issues.  Councillor Romero also questioned if the £1m spent on Schools Capital Maintenance had come straight from the Department of Education.

Councillor Andrew Furse expressed his concern in the risk on delivery by saying that proposed budget had had ambitious saving targets without much detail on what those savings were.  Councillor Furse also said that the Council had received £1.8m of Transitional Funding over two years, which was much less than some other authorities in the country received.  Also, as per Councillor Furse, it would be a big challenge in delivering service with so many redundancies expected to happen in near future.  Councillor Furse concluded his statement by expressing his concern in reduction of recycling centres opening hours and also in Highways Maintenance budget cut.

Councillor Robin Moss questioned how much of the Central Government grant the Council get would over four years.  Councillor Moss also questioned issue of planning department fees and concluded that despite of an effort that officers had put in this report, there was no enough detail for him to vote on.

Councillor Joe Rayment expressed his concerns in cuts within drug and alcohol services, sexual health and health improvement programme.

Councillor Lisa Brett commented that schools would face 4.4% increase in their pay bill, which would be huge blow to their budgets.  Councillor Brett questioned how the Cabinet would respond to cuts in schools; whether it was responsible to protect school improvement services on the expense of other Council services; and, what had been done to include the Education Minister in a review of Council’s statutory obligation to schools.

Councillor Eleanor Jackson expressed her concerns in cuts on Public Health and also in wasting resources in projects that had not been done right at first time.

Councillor Charles Gerrish said that the Council had received the final figures from the Central Government, and that they were unchanged from what was originally envisaged, though the Council would still have to make some significant savings.  The Transitional Funding allocated to this Council had been on par with other neighbouring authorities and similar Councils, which indicated that a visit from the Leader of the Council and Councillor Gerrish to the relevant Minister in January this year had been successful. 

Councillor Charles Gerrish highlighted these Key Priorities within the budget:

·  Tackling waste and increasing efficiency

·  Improving transport

·  Delivering new homes and jobs

·  Investing in young people

·  Supporting cleaner, greener and healthier communities

·  Promoting choice and independence for older people.

Councillor Charles Gerrish also said that the Final Settlement for local government had included 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 had remained the same and the previously indicated reductions in Revenue Support Grant had been confirmed. That meant the Council had had the same longer term financial challenge as before with some short term funding mainly to help manage risk and the transition.

In light of this, Councillor Gerrish had 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

Councillor Charles Gerrish moved the recommendations as amended.

Councillor Tim Warren seconded the motion by saying that this was one of the most challenging budgets ever.  Councillor Warren welcomed these detailed plans to invest in the area, as part of a balanced budget that would continue to protect essential frontline services and focus on the priorities that matter the most to local people.  Through driving greater efficiencies, as well as looking at innovative ways to continue delivering services, the Cabinet had been able to set aside funds for investment in the future of Bath and North East Somerset.

The Cabinet had identified specific investment priorities, following detailed Spending Review, as part of the commitment to delivering three core aims, to ensure the Council:

o  Is efficient and well run;

o   Invests in the future of the area; and

o  Puts the interests of residents first

Councillor Tim Warren also said that this budget would help in continuing delivery of key priorities including improving transport, creating homes and jobs, supporting young and older people alike, and investing in cleaner, greener and healthier communities.

The rest of the Cabinet unanimously welcomed the budget by highlighting key aims and priorities within their portfolio, as per report.

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