Agenda item

This report presents the Cabinet's revenue and capital budgets for the 2017/18 financial year together with a proposal for a Council Tax level for 2017/18.

The Council considered a report presenting the Cabinet’s revenue and capital budgets for the 2017/18 financial year together with a proposal for a Council Tax level for 2017/18.

In addition to the reports circulated with the agenda, all Councillors had received a copy of the draft minute of the Resources Policy Development and Scrutiny Panel meeting held on 30^th January with the Panel’s comments on the budget proposals.  Councillors also received Appendix 7 – Formal Council Tax Setting resolutions (incorporating precepts from Parishes, Fire and Police).

On a motion from Councillor Tim Warren, seconded by Councillor Dine Romero, it was RESOLVED that the Council suspends Council rule 42, Content and Length of Speeches, for the duration of this debate so as to enable variations to be permitted to the length of speeches by the Cabinet Member for Finance and Efficiency, the Liberal Democrat, Labour and Independent Group Leaders and the Chair of the Resources Policy Development and Scrutiny Panel.

On a motion from Councillor Gerrish, seconded by Councillor Tim Warren, it was

RESOLVED

1.  To approve:

a)  The General Fund net revenue budget for 2017/18 of £112.889m and the associated Council Tax increase of 1.50% plus a further 2% precept 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 2017/18.

c) The adequacy of reserves at Appendix 2 Table 10 with a risk-assessed level of £13.5m.

d)  The individual service cash limits for 2017/18 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.  To 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.  To note 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 £56.083m for 2017/18 and notes items for provisional approval in 2017/18 and the programme for 2018/19 to 2021/22 (including invest to earn) 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 3iii to the relevant Strategic Director in Consultation with the appropriate Cabinet Member.

c)  approves the CIL allocations as set out in Appendix 2 and the proposed arrangements for agreeing the use of CIL for the unparished area of Bath.

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

e)  approves the revised Minimum Revenue Provision Policy as shown at Appendix 2, Annex 4 with the changes to become effective immediately.

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

5.  To agree the Council’s proposed pay policy statement as set out in Appendix 5.

6.  To note the issues raised in Appendix 6 and agree that the proposals in the budget properly reflect the Council’s duties under the Equalities Act 2010.

7.  That the Council approves the technical resolutions that are derived from the budget report, and all figures in that report, including the precepts for towns, parishes and other precepting bodies as set out in Appendix 7.

THE COUNCIL APPROVES THE BUDGET AND COUNCIL TAX FOR 2017/18 AS INDICATED ABOVE AND ACCORDINGLY RESOLVES:

8.  That the 2017/18 revenue expenditure is funded as follows:

* Before Tariff Payment of £29.139m 

9.  a) That it be noted that on the 20th December 2016 the Divisional Director of Business Support (as authorised section 151 officer) agreed 63,996.16 Band D property equivalent as the Council Tax Base for the year 2017/18 in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992 made under Section 35(5) of the Local Government Finance Act 1992.

b) The amounts calculated by the Council, in accordance with Regulation 6 of the Regulations, as the amount of its Council Tax Base for the year for dwellings in those parts of its area to which one or more special items relate is given as Annex 1 (1).

[Annex 1 (1) gives Band D Tax base by parish]

10.  That the following amounts be now calculated by the Council for the 2017/18 financial year in accordance with Sections 31 to 36 of the Local Government and Finance Act 1992, as amended:

a) £332,437,276 (=£330,033,500 (gross expenditure) +£2,403,776 (Parish precepts))being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the 1992 Act.

[This is the gross expenditure incurred in performing functions and charged to the revenue account, contingencies for revenue, any financial reserves to be raised, financial reserves to meet prior year deficit not yet provided for, any amounts transferred from its general fund to its collection fund in accordance with section 97(4) of the Local Government Finance 1988 Act, and any amounts transferred from general fund to collection fund under section 98(5) of 1988 Act.]

b) £247,841,300 (gross income including use of reserves) being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the 1992 Act.

[This is the income estimated to accrue which will be credited into the revenue account for the year in accordance with proper practices, any amounts transferred in the year from the collection fund to the general fund in accordance with section 97(3) of the 1988 Act, any amounts which will be transferred from the collection fund to the general fund pursuant to a direction under section 98(4) of the 1988 Act and will be credited to the revenue account for the year, and financial reserves used to provide for items in Section 31A(2)]

c) £84,595,976  being the amount by which the aggregate at 10(a) above exceeds the aggregate at 10(b) above calculated by the Council in accordance with Section 31A(4) of the 1992 Act as its Council Tax requirement for the year.

d) £ 1,321.89  being the amount at 10(c) above divided by the amount at 9(a) above, calculated in accordance with Section 31B of the 1992 Act, as the basic amount of Council Tax for the year.

[This is the average Council tax including B&NES and parish precepts]

e) £ 2,403,776  being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the 1992 Act.

[This is the total of parish precepts]

f) £1,284.33  being the amount at 10(d) above less the result given by dividing the amount at 10(e) above by the amount at 9(a) above, calculated by the Council, in accordance with Section 34(2) of the 1992 Act, as the basic amount of its council tax for the year for dwellings in those parts of its area to which no special item relates.

[This is the B&NES Council tax only excluding parish precepts]

g) The amounts given by adding to the amount at 10(f) above the amounts of special items or items relating to dwellings in those parts of the Council's area mentioned above divided in each case by the amount at 9(b) above, calculated by the Council, in accordance with section 34(3) of the 1992 Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which one or more special items relate are given at Annex 1 (3).

[Annex 1 (3) gives the Band D Council tax for each area including the parish precepts]

h) The amounts given by multiplying the amounts at 10(g) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the 1992 Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands are given in Annex 1 (4).

[Annex 1 (4) shows the B&NES and parish Council Tax for all bands.]

Precepting Authorities

11.  That it be noted that for the year 2017/18 the Police & Crime Commissioner for Avon and Somerset has determined the amount in precepts issued to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings shown below:-

12.  Avon and Somerset Police

Valuation Bands

13.  That it be noted that for the year 2017/18 Avon Fire Authority met on 10th February 2017 to determine the amounts in precepts issued to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings shown below:-

14.  Avon Fire Authority

Valuation Bands

15.  That, having calculated the aggregate in each case of the amounts 12, 14 and 10(h) above, the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992 hereby sets the following amounts as the amounts of Council Tax for the 2017/18 financial year for each of the categories of dwellings shown, as listed in Annex 1 (5).

16.  On average (for a Band D, 2 adult household) the Council Tax for 2017/18 will be as follows:

[Overall annual increase in average Band D Council Tax is £49.09]

* The percentage figures represent the number of percentage points which increases for the Adult Social Care precept and the B&NES general expenditure charge each contribute to the overall increase set by the Council in 2017/18.

17.  The Council’s basic amount of Council Tax for 2017/18 is not determined to be excessive in accordance with principles approved under section 52ZB Local Government Finance Act 1992.

[Notes;

1.  During debate, an unsuccessful amendment was moved by Councillor Joe Rayment and seconded by Councillor Robin Moss, calling for the Council to defer setting a budget until the provisional Council date of 23^rd February 2017 to allow time for the Leader to demand from Government a reversal of cuts to the core grant.  This was lost on a recorded vote with 9 Councillors voting in favour, 40 Councillors voting against and 10 abstentions, as set out below;

Councillor voting in favour; - Councillors John Bull, Chris Dando, Doug Deacon, Liz Hardman, Eleanor Jackson, Robin Moss, Lin Patterson, June Player, Joe Rayment.

Councillors voting against; - Councillors Patrick Anketell-Jones, Colin Barrett, Cherry Beath, Jasper Becker, Sarah Bevan, Lisa Brett, Anthony Clarke, Matt Cochrane, Fiona Darey, Matthew Davies, Sally Davis, Emma Dixon, Michael Evans, Charles Gerrish, Lizzie Gladwyn, Bob Goodman, Francine Haeberling, Deirdre Horstmann, Steve Jefferies, Lew Kew, Marie Longstaff, Barry Macrae, Paul May, Paul Myers, Michael Norton, Lisa O’Brien, Bryan Organ, Chris Pearce, Vic Pritchard, Liz Richardson, Mark Shelford, Brian Simmons, Peter Turner, Martin Veal, David Veale, Karen Walker, Geoff Ward, Tim Warren, Karen Warrington, Chris Watt.

Councillors abstaining; - Councillors Rob Appleyard, Neil Butters, Paul Crossley, Andy Furse, lan Gilchrist, Alison Millar, Nigel Roberts, Dine Romero, Will Sandry, Shaun Stephenson McGall.

2.  The substantive motion was carried with 36 Councillors voting in favour and 24 Councillors voting against, as set out below;

Councillors voting in favour: - Councillors Patrick Anketell-Jones, Colin Barrett, Jasper Becker, Anthony Clarke, Matt Cochrane, Fiona Darey, Matthew Davies, Sally Davis, Emma Dixon, Michael Evans, Charles Gerrish, Lizzie Gladwyn, Bob Goodman, Francine Haeberling, Deirdre Horstmann, Steve Jefferies, Les Kew, Marie Longstaff, Barry Macrae, Paul May, Paul Myers, Michael Norton, Lisa O’Brien, Bryan Organ, Chris Pearce, Vic Pritchard, Liz Richardson, Mark Shelford, Brian Simmons, Peter Turner, Martin Veal, David Veale, Geoff Ward, Tim Warren, Karen Warrington, Chris Watt.

Councillors voting against; - Councillors Rob Appleyard, Cherry Beath, Sarah Bevan, Lisa Brett, John Bull, Neil Butters, Paul Crossley, Chris Dando, Doug Deacon, Andy Furse, Ian Gilchrist, Liz Hardman, Eleanor Jackson, Alison Millar, Robin Moss, Lin Patterson, June Player, Joe Rayment, Caroline Roberts, Nigel Roberts, Dine Romero, Will Sandry, Shaun Stephenson McGall, Karen Walker.]

3.  During debate, a successful motion was moved by Councillor Tim Warren, seconded by Councillor Dine Romero and agreed, to extend the meeting until 10.30pm if business was not concluded by 10pm (in accordance with Council rule 4A, 48.]