Agenda item

Executive Committee Medium Term Financial Plan and Council Tax Resolutions

Note that under the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Council is required to take a named vote when a decision is made on the budget calculation or Council tax at a budget decision meeting of the Council.

Under Section 106 of the Local Government Act 1992, any Councillor who is 2 or more months in arrears with their Council tax payments cannot participate in any item at the Council meeting concerning the budget.

To receive the minutes and consider the recommendations from the meeting of the Executive Committee held on 7^th February. The reports to the meeting of the Executive Committee on 7^th February are enclosed with this agenda, together with the minutes of the meeting. Also to consider any recommendations arising from the meeting of the Executive Committee immediately before the Council meeting.

The Executive Committee makes recommendations to the Council on the following:

Meeting of the Executive on 7^th February:

Minute no. 86 – Shopmobility Service

Minute no. 87 – Medium Term Financial Plan

Meeting of the Executive on 20^th February:

The Committee is likely to recommend to the Council:

The Pay Policy Statement.

Council tax resolution - the Council Tax resolution will follow.

The Overview and Scrutiny Committee is considering the Medium Term Financial Plan at its meeting on 14^th February and may make recommendations to the Executive Committee.

All Councillors have been provided with a copy of the agenda and reports for the Executive Committee meeting on 20^th February. Please bring these with you to the Council meeting.

Minutes:

The Council received the minutes and considered the recommendations from the meeting of the Executive Committee held on 7th February 2017 in relation to the Shopmobility Service and the Medium Term Financial Plan, together with the recommendations of the Executive Committee meeting of 20th February which had taken place immediately preceding the meeting of the Council in relation to the Pay Policy Statement and Council Tax Resolutions. The Council Tax Resolutions appeared in Additional Papers 1 to the 20th February Executive Committee.

7th February 2017

Shopmobility Service

Councillor Greg Chance proposed, Councillor Bill Hartnett seconded, the recommendations relating to charging for the Shopmobility Service.

It was noted that a charging structure for the Shopmobility Service had been proposed in order to ensure that the Service was sustainable for the future. The annual cost to the Council of the Service after voluntary contributions and funding from the Kingfisher Shopping Centre was £69k, which in light of further funding cuts from central government was deemed unsustainable. It was noted that in addition to the proposed charges recommendation, the Executive Committee had resolved that Officers explore opportunities for additional financial contributions to the delivery of the Service with the Kingfisher Shopping Centre and Town Centre Partnership, and that, subject to the approval by Council of the proposed charging structure, a further report on the operation of the Service be taken to the Executive within 12 months and to report on the options for its future delivery.

Councillor Anita Clayton proposed, Councillor Tom Baker-Price seconded, the following amendment:

“That the proposed £5 and £10 registration fees be removed from the proposed charges.”

Councillor Clayton stated that she did not support either the £10 Annual Membership Fee or the £5 ‘Pay as you Go’ charge as these directly affected people with disabilities. She was concerned that the charges would make one-off trips expensive for the service users.

During the debate on the amendment, the view expressed that Disability Action Redditch should have been formally consulted on the proposals. The view was also expressed that the proposed charges were comparable to other providers and a potential initial dip in take up of the service had been accounted for in the proposals.

In accordance with Council Procedure Rule 17.5, the amendment was the subject of the following named vote:

Members voting FOR the amendment:

Councillors Tom Baker-Price, Juliet Brunner, David Bush, Michael Chalk, Anita Clayton, Brandon Clayton, Matthew Dormer, Gay Hopkins, Jane Potter, Gareth Prosser, Antonia Pulsford and David Thain (12).

Members voting AGAINST the amendment:

Councillors Joe Baker, Natalie Brookes, Debbie Chance, Greg Chance, John Fisher, Andrew Fry, Bill Hartnett, Pattie Hill, Wanda King, Mark Shurmer, Yvonne Smith, Jennifer Wheeler, Pat Witherspoon and Nina Wood-Ford (14).

Members ABSTAINING from voting:

Councillor Paul Swansborough (1).

The amendment was declared lost.

Following further debate and a vote on the substantive recommendation it was

RESOLVED that

the following charges for the Shopmobility Service be approved and implemented with effect from 1st April 2017:

1) an annual registration fee of £10 to cover administrative costs, specialised insurance and Officer time training customers on equipment;

2) a hire charge for registered users of £2 for Redditch residents;

3) a hire charge for registered users of £3 for Non-Redditch residents; and

4) a £5 charge for customers who do not wish to register as a member or if they only need to use the service once or for a short period.

Medium Term Financial Plan

Councillor Bill Hartnett proposed, Councillor John Fisher seconded, the recommendations from the Executive Committee relating to the Medium Term Financial Plan.

In proposing the item, Councillor Chance referred to further unexpected Government cuts in support grants which had seen the Council’s funding position change from £4m in recent years to the Council having to pay the Government over £300k by 2021. The controlling group felt that they had no option but to recommend the budget before Members. Changes to funding under the New Homes Bonus Scheme would see a loss of expected/predicted income of £1.2m. The Leader had written to the Redditch MP and Local Government Minister in January seeking a meeting with the Minister in an attempt to gain a more reasonable settlement. The budget was also being set with draft settlement figures only from Government, with the final settlement details due to be confirmed that week.

The Medium Term Financial Plan, which aimed to save £2.8m over the following 4 years, proposed the use of £400k of balances to retain free swimming for the over 60’s and under 16’s, community events such as the Morton Stanley Festival, Street Theatre and Firework Display and Elections by thirds. In order to reduce Council expenditure it was proposed to stop providing some services including surrendering the Council’s interests in the Kingsley and Arrow Vale Sports Centres and cessation of pre–9.30am concessionary bus passes for pensioners, with charges to be introduced for the Shopmobility Service. The Council would also be investigating changing the model of delivery of Leisure Services for provision of the Abbey Stadium, Palace Theatre, Forge Mill, Community Centres and Pitcheroak Golf Course, which would form part of a procurement exercise. It was noted that the town’s parks would not be included in the review.

A lengthy debate on the budget proposals ensued, during which opposing views were expressed by Members. Some supported the review of the Leisure Service whilst suggesting this could have been carried out earlier. The view was expressed that the level of savings currently projected from this initiative may not achievable.

Members thanked finance Officers for their hard work on the budget in what were unprecedented times given the financial challenges faced by the Council and the delay in receiving the final finance settlement figures from Government. Thanks were also expressed to staff generally for the money-saving suggestions that had been submitted.

During the discussion of this item a short comfort break was taken at 8.20pm, following which the meeting resumed at 8.25pm.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the recommendations on the budget calculation were the subject of the following named vote:

Members voting FOR the resolutions below:

Members voting AGAINST the resolutions below:

Accordingly, it was

RESOLVED that

the following be approved:

1) the savings and additional income that do not impact on service delivery for:

· 2017/18 £1.032m

· 2018/19 £56k;

2) the revenue bids for:

· 2017/18 £80k

· 2018/19 £5k;

3) the Capital bids of:

· 2017/18 £136k

· 2018/19 £70k

· 2019/20 £1.508m

· 2020/21 £1.490m;

4) the unavoidable pressures for:

2017/18 £112k

2018/19 £27k

2019/20 £83k

2020/21 £25k;

5) the release from balances of:

2017/18 £103k

2018/19 £87k

2019/20 £105k

2020/21 £136k;

6) the increase in Council Tax for 2017/18 of £5 per Band D equivalent; and

7) the budget savings and pressures for 2018/19 – 2020/21 be subject to change due to the potential impact of changes to service delivery and the localisation of Business Rates together with any changes to New Homes Bonus.

(Prior to consideration of this matter, Councillors Juliet Brunner, Michael Chalk and Jane Potter declared Other Disclosable Interests in Agenda Item 6 – Medium Term Financial Plan, in the following capacities:

· Councillor Brunner – as a Governor of RSA Academy Arrow Vale;

· Councillor Chalk – as an employee of RSA Academy Arrow Vale; and

· Councillor Potter – as a Governor of Tudor Grange Academy Redditch.

Councillors Brunner, Chalk and Potter remained in the room during the consideration of this matter.)

20th February 2017

Pay Policy Statement

RESOLVED that

the Pay Policy Statement 2017/18, as detailed in Appendix 1 to the report, be approved.

Council Tax Resolutions

Further to consideration of the Medium Term Financial Plan Members considered the Council Tax Resolutions 2017/18.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Council Tax recommendations were the subject of the following named vote:

Members voting FOR the resolutions below:

Members voting AGAINST the resolutions below:

RESOLVED that

the recommendations, as set out in Appendix 1 to the report and as appended to these minutes, setting a Council Tax for 2017/18 of £227.21 for a band D unparished property, be approved.

Supporting documents: