Agenda item

To consider the Executive Committee’s proposals for the Council’s budget, as detailed in the Medium Term Financial Plan 2016/17 to 2018/19, and to determine whether to endorse these proposals and / or to make alternative budget proposals for the consideration of Council.

(Members may also wish to refer to the minutes from the meeting of the Executive Committee held on 2nd February 2016 – specifically minute 89 - when considering this item).

(Capital Programme attached)

The Chair informed Members that the report provided an opportunity to view the proposals made by the Executive Committee in respect of the budget and to make any recommendations to Council on 22nd February 2016.   Members were also referred to Minute No. 89 of the Executive Committee minutes from 2nd February during consideration of this item.

Officers gave a detailed summary of both the report within the agenda pack together with the updated information provided in additional papers 1 and 2, covering the changes which had taken place since the Committee had considered the initial report at its meeting held on 1st February 2016.  In particular the following areas were highlighted for Members’ consideration:

·                The change in methodology in respect of funding allocations and the Revenue Support Grant (RSG) changes, leading to a negative grant payment to Government, from 2019/20.

·                A cumulative reduction in core funding of -19.2% across local government.

·                Central Government encouraging the implementation of a four year financial plan by local authorities.

·                The impact of the significant funding reductions over the four year period for Redditch in comparison to other Councils.

·                The consultation and proposed changes in respect of New Homes Bonus (NHB) which was due to finish on 10th March 2016 and the impact any changes could have on the Council.

·                Formal confirmation being received that the Council would receive a slight increase in its proposed settlement from Central Government and the impact on the overall budget position.

·                The impact following the addition of all Shire Districts (and Borough Councils) being given the flexibility to increase Council Tax by £5 per B and D equivalent properties.

·                Additional income identified relating to rental revenue from Redditch Town Hall Crèche and Woodrow Library.

·                The final recommended balanced budget for 2016/17 taking into account the changes discussed and additional income identified.

·                The need to address the additional cuts identified in future years, to ensure that quality of service provision was maintained in the Borough.

Following presentation of the report Members discussed the following areas in detail:

·                The value of an additional column to take the budget position up to 2019/20 in line with the suggested four year plan.

·                The terms of the lease for the Town Hall Crèche.

·                The source of the graph, provided in the main report, in respect of the impact of the significant funding reductions for Redditch compared to other Councils.  Officers confirmed that this had been provided by LG Future on behalf of the Local Government Association.

Members thanked Officers for preparing numerous reports on the subject of the Medium Term Financial Plan over proceeding months and for providing a good explanation of a complicated subject.

RESOLVED that

the report Medium Term Financial Plan 2016/17 – 2018/19 be noted.