Agenda item

Medium Term Finance Plan 2018/19 - 2021/2022

Minutes:

The Executive Director, Finance and Resources highlighted a number of areas within the report for further consideration by Members, this included:

· Pressures facing the Council over the coming years; reductions in New Homes Bonus Grant, Negative Revenue Support Grant, impact of the Localisation of Business Rates scheme being deferred until 2020/21.

· It was also highlighted that it had been discovered prior to the meeting that due to an error from the Valuation Office, there was a further small reduction.

· Council Tax – the potential to increase this by 2.99%. It was noted that the amount that this would increase the Council Tax by would equate to £76k.

· Business Rates pilot scheme – feedback was still awaited from Central Government, but it was understood that further rounds of bidding would be available in due course.

· The four year settlement which the Council had signed up to, whilst bringing some certainty there were still a number of areas which the Council was awaiting further information on.

· New Homes Bonus (NHB) had been less than anticipated for a number of reasons; the 0.4% levy on growth equated to 169 properties which would have generated approximately £217k additional income.

· The figures provided were on the assumption of an increase of 2.99% (£6.29) in Council Tax. Figures were also beginning to filter through from preceptors.

· The national pay increase was likely to be 2% as opposed to the 1% originally included.

· An increase in national planning applications fees which Members needed to be aware of as this was to be ring-fenced to cover additional resources.

· Assumptions had also been made in respect of the £20m allocated to Investments and Acquisitions, including income.

· The need for only the 2018/19 budget to be balanced at this stage.

In respect of the appendices for savings and additional income and new revenue bids the Executive Director, Finance and Resources drew Members’ attention to £150k to fund transport assessment work, a revenue pressure in respect of the decline in the use of car parks and savings from the new Leisure Centre which would be made in future years.

A number of Capital Bids were also highlighted; £100k funding for Hagley Scouts headquarters extension and refurbishment. It was confirmed that following discussions the Head of Leisure and Cultural Services supported this bid and would be of benefit to the wider community. The figures for allotment fencing had been revised from £41k to £21k. Members felt this was still high and asked for further detail to be provided.

Following presentation of the report Members discussed a number of areas in more detail:-

· Members were pleased to note that there was no impact to service delivery.

· Members were happy to support the Hagley Scouts project.

· The capitalisation of wheelie bin replacement and there estimated life expectancy.

· The cost of resurfacing the car park in Catshill and at the depot. The new procurement guidelines were highlighted to Members to assure them that best value would be achieved.

· The Bromsgrove Energy Efficiency Fund – the increase that had previously been agreed at Council would be separated out to show how it was being funded, as would the additional £80k funding for the Hardship Fund.

· A number of queries were raised in respect of vehicle replacement and depot repairs and it was confirmed that the Executive Director, Finance and Resources had asked for further detail to be provided.

Members discussed whether it would be appropriate to include £150k in respect of transport assessment work in future years. However, after consideration it was agreed as there continued to be ongoing discussions with Worcestershire County Council and the desire on both sides to rebuild a working relationship, this would not be appropriate.

RECOMMENDED:

a) that the additional income / efficiencies as attached at Appendix 1 be approved:

2018/19 £ 580k

2020/21 £ 53k

2021/22 £272k

b) that the unavoidable pressures as attached at Appendix 2 be approved:

2018/19 £ 515k

2019/20 £ 3k

c) that the Revenue bids as attached at Appendix 3 be approved:

2018/19 £165k

2019/20 £15k

d) that the Capital Programme bids as attached at Appendix 4 be approved:

2018/19 £1.293m

2019/20 £999 k

2020/21 £1.940m

2021/22 £1.245m

e) that the Capital Programme unavoidable pressures as attached at Appendix 4 be approved:

2018/19 £110k

2019/20 £110k

f) that the budget savings and pressures for 2018/19-2021/22 are subject to change due to the potential impact of changes to service delivery and the localisation of Business Rates together with any future changes to New Homes Bonus; and

g) that following the decision at Council on 24^th January 2018, the sum of £80k is made available from balances to fund potential Hardship cases in relation to Council Tax Support in 2018/19.

Supporting documents: