Issue - decisions

Final Budget and Medium Term Financial Strategy 2019-2020 - 2020-2021

21/02/2019 - 2019-2020 Final Budget and Medium Term Financial Strategy 2019-2020 to 2023-2024

Council is recommended to:

1. Approve the net budget requirement for 2019-2020 of £234.9 million for General Fund services (as set out at paragraph 18.1 of this report).

2. Approve the Medium Term Financial Strategy 2019-2020 to 2023-2024 as detailed in Table 10 and the budget preparation parameters underpinning the MTFS as detailed in Appendix 1 to this report.

3. Approve a Council Tax for Council services in 2019-2020 of £1,617.06 for a Band D property, being an increase of 4.99% on 2018-2019 levels, which incorporates the 2% increase in relation to Adult Social Care (as set out at paragraph 7.5 of this report).

4. Approve that work start on developing budget reductions and income generation proposals for 2020-2021 onwards in line with the Five Year Financial Strategy (as set out at paragraph 14.3 of this report) and progress be reported to Cabinet in July 2019 (as set out at paragraph 18.8 of this report).

5. Approve the revision to the Council Tax Charges on Empty Properties and Second Homes Policy with effect from 1 April 2019 to introduce additional charges (as set out at paragraph 8.3 of this report).

 

Cabinet resolved:

1. That the changes to the 2019-2020 draft budget for General Fund services, since the draft budget was last reported to Cabinet on 17 October 2018, as detailed in sections 3 to 17 of this report be approved.

2. That the implementation of the new budget reduction, income generation and efficiency proposals totalling £4.0 million, subject to consultation where necessary (as set out at paragraph 15.3 of this report) be approved.

3. That it be approved that work towards the development of budget efficiencies, budget reduction and income generation proposals towards the target of £500,000 (as set out at paragraph 15.6 of this report) commence immediately and progress will be reported back to Councillors in July 2019.

4. That authority be delegated to the Cabinet Member for Resources, in consultation with the Director of Finance, to approve the calculation and allocation of growth in the central share of business rates for 2019-2020 and future years to be passported to the West Midlands Combined Authority (as set out at paragraph 9.6 of this report).

5. That authority be delegated to the Cabinet Member for Resources, in consultation with the Director of Finance, to respond to the consultation on the Business Rates Retention Scheme and the Review of Relative Needs and Resources, and any future related consultation papers.

6. That approval be delegated to the Cabinet Member for Education and Cabinet Member for Resources, in consultation with Director of Finance and Director of Education, to approve changes to the local funding formula for Schools including method, principles and rules adopted (as set out at paragraph 17.4 of this report).

7. That it be noted that the budget for 2019-2020 is in balance without the use of general reserves (as set out at paragraph 18.1 of this report).

8. That it be noted that, in the opinion of the Director of Finance (Section 151 Officer), the 2019-2020 budget estimates are robust (as set out at paragraph 18.1 of this report).

9. That it be noted that, in the opinion of the Director of Finance (Section 151 Officer), the proposed levels of reserves, provisions and balances is adequate in respect of the forthcoming financial year (as set out at paragraph 19.6 of this report).

10. That it be noted that a further £27.3 million needs to be identified for 2020-2021 and £40-50 million over the medium term in order to address the projected budget deficit (as set out at paragraph 18.5 of this report).

11. That it be noted that, due to external factors, budget assumptions remain subject to significant change, which could, therefore, result in alterations to the financial position facing the Council (as set out at paragraph 4.3 of this report).

12. That it be noted that, a number of assumptions have been made with regards to the level of resources that will be available to the Council. It is important to note that there continues to be a considerable amount of uncertainty with regards to future funding streams for local authorities over the forthcoming Comprehensive Spending Review period. At the point that further information is known it will be incorporated into future reports to Councillors. Any reduction in the Government’s allocation of funding to the Council would have a significant detrimental impact and further increase the budget deficit forecast over the medium term (as set out at paragraph 18.7 of this report).

13. That it be noted that, having identified significant budget reductions over the last eight financial years, the extent of the financial challenge over the medium term continues to represent the most significant challenge that the Council has ever faced (as set out at paragraph 18.9 of this report).

14. That it be noted that the overall level of risk associated with the 2019-2020 Budget and Medium Term Financial Strategy 2019-2020 to 2023-2024 is assessed as Red (as set out at paragraph 20.1 of this report).

15. That it be noted that Councillors must have due regard to the public sector equality duty (Section 149 of the Equality Act 2010) when making budget decisions (as set out at paragraph 25.2 of this report).