Issue - meetings

Estimates booklet circulated as separate document.

The report of the Director of Finance and Transformation referred to the responsibility of the Cabinet under the constitution for formulating initial proposals in respect of the budget.  Reference was made to the role of the Advisory Board in assisting the Cabinet and Council in the preparation of the budget within the context of the Medium Term Financial Strategy (MTFS) and the Council’s priorities.  An outline was given of the process for referring the Advisory Board’s recommendations to the Overview and Scrutiny Committee prior to consideration by the Cabinet on 8 February and thereafter by the Council at its Budget meeting.

The report set out the framework for considering the estimates in terms of the MTFS together with a number of Service specific issues.  The report indicated the factors to be taken into account when updating the MTFS and referred to the Savings and Transformation Strategy (STS) which provided a structure and focus for addressing the significant financial challenge facing the Council.  Progress was reported on savings achieved and it was noted that the MTFS would continue to be updated as more information became available and the targets and timescales within the STS would be revisited and realigned with the latest projected funding gap during the budget setting process.

The Director of Finance and Transformation introduced the provisional Local Government Finance Settlement including the Council’s acceptance of the multi-year settlement to 2019/20.  Members were advised that the Secretary of State had increased the threshold for triggering a referendum on council tax increase to the higher of 3% or £5.   The favourable position regarding New Homes Bonus funding in 2018/19 was explained and reference made to the successful outcome of the Kent and Medway authorities’ bid for pilot status in respect of 100% business rates retention.

Alongside the provisional settlement, the Secretary of State had announced a technical consultation entitled “Fair funding review: a review of relative needs and resources”.  In view of the timescales involved and the programming of meetings, it was suggested that delegated authority be given for a response to be made.

RECOMMENDED:  That

(1)         the draft Revenue Estimates contained in the Booklet be endorsed for consideration by the Cabinet at its special meeting on 8 February 2018;

(2)         the Savings and Transformation Strategy be updated to reflect the latest projected funding gap as part of the budget setting process; and

(3)         delegated authority be given to the Director of Finance and Transformation, in liaison with the Leader and Cabinet Member for Finance, Innovation and Property, to respond to the technical consultation entitled “Fair funding review: a review of relative needs and resources”.

*Referred to Cabinet