(KEY DECISION)

Report No. 8/2017 from the Director for Resources was received.

The purpose of which was to present a draft budget for consultation prior to the budget being formally set in February 2017.  The Council was required to set a balanced budget and agree the level of council tax for 2017/18.

During discussion the following points were raised:

i.                 That rules regarding the setting of the social care precept stated that it was 6% over 3 years but could not be more than 3% in any one year.

ii.                In the medium term, it was being assumed that the Council would levy an additional 2% social care tax for each of the three years but this would be revisited next year.

iii.              That the Council was in a strong financial position which would give it time to close the funding gap.  There is a risk that Government policy towards supporting the health sector could have an impact on the Medium Term Financial Plan.

iv.              That contingency funding was available to meet future pressures as well as funding available to deliver Invest to Save projects.

v.               The Assistant Director – Finance, Mr Della Rocca, advised that the Council the Adoption and Fostering budget was experiencing pressure from increased demand and further pressures in this area are likely.

vi.              The Council was undertaking work on the financial impact of children staying in care until the age of 25.

vii.            Councillor Foster requested that the Council updated its literature, etc. replacing the term Looked After Children (LAC) with terms now used across the public sector: Children Looked After or Children in Care.

DECISION

1)    Cabinet APPROVED for consultation:

·       The General Fund Budget for 2017/18 detailed in Appendix 1, section 3 to Report No. 8/2017

·       The savings proposals set out in Appendix 6 to Report No. 8/2017

·       The service pressures contained within Appendix 7 to Report No. 8/2017

·       The indicative Directorate budgets per Appendices 3 – 5 to Report No. 8/2017.

·       That council tax for 2017/18 was increased by 3.99% including a 2% social care precept

·       The capital programme as detailed in Section 4 of Appendix 1 to Report No. 8/2017

2)    Cabinet NOTED:

·       The Medium Term Financial Plan at Appendix 2 to Report No. 8/2017 and underlying assumptions

·       That the funding position may change when the NNDR (business rates) tax base and local government finance settlement were finalised

·       That in the final budget report, a recommendation would be made asking that the Director for Resources was given delegated authority to spend £150k on IT capital expenditure (para 4.2.2 Appendix 1 to Report No. 8/2017)

·       That additional revenue or capital expenditure may be incurred in 2017/18 funded through 2016/17 budget underspends 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 surplus of £196,000 on the Collection Fund as at 31 March 2017 (2.6 of Appendix 1 to Report No. 8/2017) of which £170,000 was the Rutland share.

·       That in the 2016/17 outturn report (Q4), a recommendation would be made to transfer £1m of General Fund balances to earmarked reserves in line with para 2.7.6 of Appendix 1 to Report No. 8/2017

·       That Council would be approving the Treasury Management Strategy separately and that any implication arising from it were already covered in the draft budget.

Reasons for the decisions

1.     The Council was required to set a balanced budget and agree the level of council tax for 2017/18.

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.