(KEY DECISION)

Report No. 8/2018 from the Director for Resources was received.

Mr O Hemsley, Acting Leader, introduced the report, the purpose of which was to present a draft budget for consultation prior to the budget being formally set in February 2018.  The Council was required to set a balanced budget and agree the level of Council tax for 2018/19.

During his introduction, Mr Hemsley highlighted that reductions in government funding would continue to put pressure on provision of services for Rutland.  Mr Hemsley noted that only 20% of funding per head in Rutland comes from Local Government, but that nationally the average was 40% and that Members and Officers would continue to lobby to try to redress this inequality.  The proposed increase in Council Tax would go some way to replacing a reduction in funding (£1.5m), but would not be sufficient to help the Council respond to increasing pressures and demand for services.  In spite of continuing work on keeping costs low, demand for adult social care and children’s services will necessitate the use of reserves to balance the budget.  Following the Cabinet decision, the Draft Budget would go to consultation with the public; the business community; and Parish Councils, as well as being presented to Special Budget Scrutiny Panels in January.

During discussion the following points were raised:

1. Members agreed that the Budget was well defined, but raised concerns regarding the impact on reserves in the future due to the current uncertainty around Government Funding.   Mr Della Rocca, Assistant Director – Finance, confirmed that the Government was conducting a series of consultations looking at fairer funding and the needs of Local Authorities.  However, every Local Authority would be looking for a better allocation of funding and although the Council would continue to lobby for a better share for Rutland, given that funding per head in Rutland was below the National Average, the Medium Term Financial Plan assumed there would be no increases in funding from Central Government. The outcome of the Government Green Paper on Social Care may result in increased funding in this area but again this is unclear;
2. The potential of investments such as Oakham Enterprise Park, should be maximised;
3. Decisions should continue to be made in an open and transparent way to ensure that members of the public were fully informed;
4. The Chief Executive, Mrs Briggs, confirmed that Senior Officers kept the savings target under constant review and implemented changes in order to reduce costs wherever possible throughout the year;  and
5. Members agreed that the recommendation in Report No. 8/2018 should be amended to reflect a Council Tax increase of 4.99% in order to minimise the impact on Reserves, in light of the discussion regarding future funding from Central Government.

DECISION

1)    Cabinet APPROVED for consultation:

·       The General Fund Budget for 2018/19 detailed in Appendix 1 section 3 (Report No. 8/2018),

·       The savings proposals set out in Appendix 6 (Report No. 8/2018),

·       The service pressures contained within Appendix 7 (Report No. 8/2018),

·       The Directorate budgets per Appendices 3 – 5 (Report No. 8/2018),

·       An increase in Council tax of 4.99% including a 2% social care precept,

·       The capital programme as detailed in Section 4 of Appendix 1 (Report No. 8/2018).

2)    Cabinet NOTED:

• The budget report was written on the assumption that Council tax was increased by 4.99% although no decision had been made in this regard.  Whilst the main report assumed a 4.99% Council tax increase, the Medium Term Financial Plan at Appendix 2 to Report No. 8/2018 included two models (a version assuming a 3.99% increase and a version assuming a 4.99% increase).
• That the funding position may change when the NNDR (business rates) tax base was finalised and local government finance settlement was received.
• That additional revenue or capital expenditure may be incurred in 2018/19 funded through 2017/18 budget under spends to be carried forward via earmarked reserves.  The use of reserves for budget carry forwards was not currently shown in the budget but would have no impact on the General Fund.
• The estimated deficit of £80,000 on the Collection Fund as at 31 March 2018 (2.6 of Appendix 1 to Report No. 8/2018) of which £70,000 was the Rutland share.
• That Council would be considering the Treasury Management Strategy and Capital Investment Strategy separately.

Reasons for the decisions

1.  The Council was required to set a balanced budget and agree the level of Council tax for 2018/19.

2.  The draft budget for consultation was affordable within the context of the Medium Term Financial Plan and would allow the Council to meet service aims and objectives for the coming year.