Agenda item

Draft budget proposals 2018/19 - update

To consider the report of the Director (NE) (reference 18/11) attached

 

Minutes:

The Cabinet considered a report by the Director (NE) (Reference 18/11) providing an update on the draft budget proposals for 2018/19.  Members were advised that in addition to the usual technical matters that remained to be resolved (recommendations (ii) and (iii)), the draft budget had been revised in particular in light of the National Employers two year pay offer which had been higher than expected equating to an increase in the Council’s funding gap by £320k in 2018/19 and a further £220k in 2019/20, and the provisional Local Government Finance Settlement which had increased the Council Tax referendum limit to a maximum of 3%.  The recommended increase in Council Tax for 2018/19 was 2.99% to help bridge this funding gap.  The report also described how the funding gap would be addressed by reprofiling the use of reserves in the next two years and how a review of operational reserves had identified an uncommitted balance of £790k which would be used for one-off priority funding – Armed Forces Day and the Community Investment Fund – and various additions to the Capital Programme.  Members welcomed the proposals in the report, and the Portfolio Holder, Councillor Chatt made a plea for the Community Led Local Development programme to be given financial support in future years, for example through Scarborough Jobmatch.

RESOLVED that the Cabinet:

(i)        approve the Council Tax Base for 2018/19 as 38,006.85 Band D equivalent properties;

(ii)       agree that authority to approve the final Council Tax Collection Fund surplus be delegated to the Director (Nick Edwards) in consultation with the Portfolio Holder for Corporate Investment;

(iii)      agree that authority to approve the NNDR1 Return and Business Rates Collection fund surplus be delegated to the Director (Nick Edwards) in consultation with the Portfolio Holder for Corporate Investment;

(iv)      endorse the updated draft revenue budget proposals set out in Appendix A to this report prior to them being presented to Full Council for approval in March; with particular attention being given to the implications of the employer’s pay offer, outcome of the provisional Local Government Finance Settlement  announcement, and the associated proposal to increase Council Tax by 2.99% rather than the previously reported figure of 2.26% and re-profile planned draws from reserves into the 2018/19 year;

(v)       endorse the draft capital budget proposals set out in Appendix B prior to them being presented to Full Council for approval in March;

(vi)      subject to the approval of recommendation (v) agree that officers enter into a period of consultation on the proposals contained within this report; and

(vii)     recommend that Council approve the 2018/19 Council Tax discount and premiums set out in Section 3.3 of this report, which remain unchanged from those approved for 2017/18.

 

Reasons

All preceptors use the Council Tax Base figure as the denominator for calculating their Council Tax. It is a statutory requirement for the Council to notify the major Precepting Authorities of the approved Tax Base and any surplus or deficit on the Collection Fund by the 31 January of each year.

 

It is a statutory requirement to submit the NNDR1 form to the Department for Communities and Local Government and notify North Yorkshire County Council and North Yorkshire Fire & Rescue Service of their respective shares by the 31 January of each year.

 

Full Council must approve the 2018/19 budget, and associated Council Tax level at its meeting on 2 March 2018. It is important that the Council consults with the public on its budget prior to it being approved, and that the areas identified in the consultation process are taken into consideration in the budget setting process. 

 

 

Supporting documents: