Minutes:
The Executive Director, Finance and Resources gave a presentation (attached to these Minutes) which covered the following areas:
· The impact of the settlement received from Central Government – including Local Government Funding Reform and Business Rates Baseline and retention.
· Council Tax: The level at which a referendum would need to take place locally had increased from 2% to 3%. If the higher figure was to be included than the budget would be increased by approximately £47k.
· Business Rate Pilot Scheme – the Worcestershire pilot scheme bid had not been successful and Bromsgrove would therefore remain in the Greater Birmingham and Solihull Pool for 2018/19.
· There was no change to New Homes Bonus.
· There would be a consultation in the Spring of 2018 in relation to the “negative” grant which had been previously reported and was currently £740k for 219/20.
· Current Position – there was a balanced position for 2018/19 and assumptions which had been made, including income from the Leisure Centre which would be generated from year 2 onwards and a 2% pay award for all staff. Borrowing costs had also been offset by projected income.
· Next steps – further work would be carried out in respect of where savings could be made and the reserves statement would be reviewed to establish whether funds could be drawn down from this.
· Current balances and the recommended minimum required. Together with the need to agree the budget on 21st February 2018.
Following receipt of the presentation Members discussed a number of areas in more detail, this included:
· Whether the £740k to be repaid to Central Government was a one off payment or whether there would be further amounts in the following years. It was confirmed that clarification was being sought in respect of this.
· The need for further clarity to enable the Council to be able to create a three or four year plan and whether the assumption should be made that there will be a need to factor in further repayments to Central Government in future years.
· The Efficiency Plan which Members had submitted to Central Government had been based on a four year plan.
· Criticism from the Auditors in respect of only having a one year plan, but the problems in being able to create anything further due to the uncertainty and the need for this to be made clear to the Auditors.
· Whether it was worth taking the matter up with the local MP in his role as Secretary of State for Communities and Local Government.
· Whether the Council had received any feedback in respect of the reason why the Worcestershire Business Rates Scheme bid had not been successful. It was explained that there had not been any feedback as yet, but it was understood that Worcestershire County Council had contacted Central Government and requested it.
· New Homes Bonus and the impact of the number of housing developments being agreed this year and the knock on effect. The impact of this on the available funds for the NHB Community Grants Scheme, which was estimated at £80k for 2018/19.
Members thanked the Executive Director, Finance and Resources for the presentation.