Agenda item

To enable Members to consider the revenue budget for 2014/15 and set the council tax.

 

(Report attached)

The Committee considered a report which represented the culmination of the budget setting process for the 2014/15 financial year. As was clarified by Officers, the present report focussed on the initial one year period, following which a further report would be forthcoming that detailed the financial plan for the period to the end of 2016/17.

 

The background to the budget was explained in some detail, with a demonstration provided showing the very significant fall in central Government Formula Grant funding over recent years. This was at a time when service demand was expected to increase, in part because of the withdrawal of service provision or funding by other public sector partners. Other financial pressures were arising through factors such as the Public Sector Compliance work which the Council was having to undertake, the revaluation of the Abbey Stadium and the costs associated with the Council’s Pension Fund.

 

Given the Council’s financial circumstances, only one bid was being recommended and this was in respect of an economic development project being promoted by a number of local authorities but which would have a disproportionately positive impact on Redditch. A significant amount of money was being taken from reserves, savings were to be realised through vacancy management and further savings realised through a six month plan to drive forward transformation. The inclusion £1/2M of unidentified savings was not considered ideal and Officers echoed the concern expressed by the Council’s External Auditors around the authority’s financial resilience.

 

It was noted that 2014/15 was going to be a difficult year for public sector finance generally and the Financial Services Team was thanked by the Leader of the Council for the work it had undertaken in preparing a budget. The Committee was also advised that a Council Tax rise of 1.9% was being recommended, a level which would generate an increase in income of over £100K over the previous four years during which Council Tax had remained static. The Leader also noted that the Council would continue to provide free concessionary bus travel before 9.30am, free swimming for the under-16s and over-60s and free car-parking in Council car parks.

 

RECOMMENDED that

 

1)            the bid for £25K for the Eastern Gateway be approved;

 

2)            the budget for 2014/15 of £11.331M be approved;

 

3)            the use of earmarked reserves of £1,196K be approved;

 

4)            the unavoidable pressures detailed in appendix 2 of £335K be approved;

 

5)            the savings detailed in appendix 3 of £786K be approved;

 

6)            the Council Tax be increased by 1.9% for 2014/15;

 

7)         it be noted that at its Executive Committee meeting on the 14th of January 2014 Council calculated the following amounts for the year 2014/15 in accordance with regulations made under Section 33 (5) of the Local Government Finance Act 1992:

 

a)            24,656.96

 

Being the amount calculated by the Council, in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992, as its Council Tax Base for the year (item T in the formula in Section 31B of the Local Government  Finance Act 1992 as amended (the ‘Act’));

 

b)         Feckenham Parish – 364.78

 

being the amount 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 (item TP in the formula in Section 34(3) of the Act);

 

8)         the following amounts be now calculated by the Council for the year 2014/15 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992:

 

a)         £88,769,043

 

being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account the precept issued by Feckenham Parish Council.

 

(2014/15 Gross General Fund Expenditure)

 

b)         £83,504,930

 

being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

 

(2014/15 Gross General Fund Income)

 

c)         £5,264,113

being the amount by which the aggregate at 2(a) above exceeds the aggregate at 2(b) above, calculated by the Council in accordance with Section 31A (4) of the Act as its Council Tax requirement for the year (item R in the formula in Section 31B of the Act).

 

(2014/15 Council Tax Requirement)

 

d)         £213.49

being the amount at 2 (c) above (item R) divided by the amount at 1 (a) above (item T), calculated by the Council, in accordance with Section 31B (1) of the Act, as the basic amount of Council Tax for the year (including parish precept).

 

(The average amount Band D properties pay for Redditch Borough Council services)

 

e)         £8,300

being the aggregate amount of all special items(Parish precepts) referred to in Section 34 (1) of the Act;

                       

(Feckenham Parish Precept)

 

f)        £213.16

being the amount at 2(d) above less the result given by dividing the amount at 2(e) above by the amount at 1(a) (item T) above, calculated by the Council, in accordance with Section34 (2) of the Act, as the basic amount of Council Tax for dwellings in those parts of the area to which no special item relates.

 

(The amount Band D properties pay (except within the Parish of Feckenham) for Borough Council Services)

 

g)         £235.91

being the amount given by adding to the amount at 2(f) above, the amount of the special item relating to the Parish of Feckenham, divided by the amount in 1(b) above (item TP), calculated by the Council, in accordance with Section 34 (3) of the Act, as the basic amount of its Council Tax for the year for dwellings in the Parish of Feckenham;

 

(The amount Band D properties pay within the Parish of Feckenham for Borough Council Services including the Parish Precept)

 

h)

Valuation Band	Proportion of Band D tax paid	Part of Council’s area
		Parish of Feckenham   £		All other parts of the Councils area                 £
A	6/9	157.27		142.10
B	7/9	183.49		165.79
C	8/9	209.70		189.47
D	1	235.91		213.16
E	11/9	288.34		260.53
F	13/9	340.76		307.89
G	15/9	393.18		355.26
H	18/9	471.82		426.31

 

                                                                 being the amounts given by multiplying the amounts at 2(f) and 2(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 Act, as the amounts to be taken into account for the year in respect of categories of dwelling listed in different valuation bands;

 

9)         it be noted that, for the year 2014/15, Worcestershire County Council, the Police & Crime Commissioner for West Mercia and Hereford and Worcester Fire and Rescue Service have stated the following 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 dwellings shown below:

 

 

Valuation Band	Proportion of Band D tax paid	Precepting Authority
		Worcestershire County Council                                                         £	Police  & Crime Commissioner for West Mercia £	H & W Fire & Rescue Authority          £
A	6/9	706.15	121.52	50.04
B	7/9	823.84	141.77	58.38
C	8/9	941.53	162.02	66.72
D	1	1,059.22	182.28	75.06
E	11/9	1,294.60	222.78	91.74
F	13/9	1,529.99	263.29	108.43
G	15/9	1,765.37	303.80	125.10
H	18/9	2,118.44	364.55	150.11

 

10)      having calculated the aggregate in each case of the amounts at 2(h) and 3 above, the Council, in accordance with Section 30 (2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2014/15 for each of the categories of dwellings shown below:

 

Valuation Band	Proportion of Band D tax paid	Part of Council’s area
		Parish of Feckenham             £	All other parts of the Council’s area   £
A	6/9	1,034.98	1,019.81
B	7/9	1,207.48	1,189.78
C	8/9	1,379.97	1,359.74
D	1	1,552.47	1,529.72
E	11/9	1,897.46	1,869.65
F	13/9	2,242.47	2,209.60
G	15/9	2,587.45	2,549.53
H	18/9	3,104.92	3,059.41

 

11)      the level of General Fund balances to be utilised in 2014/15 be  zero;

 

12)      the Council’s relevant basic amount of Council Tax for 2014/15 is not excessive in accordance with the principles determined for the year by the Secretary of State under Section 52ZB Local Government Act 1992; and

 

13)      as the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2014/15 is excessive and the billing authority is not required to hold a referendum in accordance with Section 52ZK Local Government Act 1992.