Agenda item

The Director for Corporate Services to submit a report to consider a number of key items which will feed into the Council’s Medium Term Financial Strategy (MTFS) and the 2019/20 Budget and Corporate Planning process.

The Director for Corporate Services submitted a report for members to consider key items which will feed into the Council’s Medium term Financial Strategy (MTFS) and the 2019/20 budget and corporate planning preparation process. It was highlighted that an invitation had been issued to authorities to bid to be a 75% business rates retention pilot in 2019/20 which will be used to shape the new scheme. A joint bid to establish a Leicestershire Business Rates Pool has been discussed across the County and the Director for Corporate Services confirmed that the bid had been submitted for consideration this evening.

Key features were highlighted as in the report and the risk of being in a less favourable position by being in the pilot was mentioned as extremely low. The split of potential monies is still being finalised but there is the possibility of approximately £300k for Melton, to be spent on housing and business infrastructure and financial sustainability.

Members were advised that the MTFS did have a budget gap earlier in the year but this has been revised after year end and a more healthy position is envisaged primarily due to the waste outcome.

The key proposals affecting MBC from the Technical Consultation on the 2019/20 Local Government Finance Settlement were highlighted as at 3.7 in the report. The MTFS for 2019/20 will be refined and updated throughout the budget process with the final settlement not due until December 2018.

The review of the working balances was highlighted and members were advised that the risk model as at appendix B had been updated and it confirmed that the current level of £640k for the general Fund working balance is reasonable. There are no proposed changes for the Special Expenses and HRA working balances.

The Director for Corporate Services drew members’ attention to 3.3 of the report where the reduction in the Central Government Grant of £661k should read £944k.

A member mentioned if the possible risks of a Brexit deal had been taken into account. The Chief Executive advised that the potential impact on the local economy and council is being considered and any opportunities or risk mitigations will be considered when there is greater clarity on the scope and level of any deal which is agreed. 

The reduced Cattle Market income was highlighted by a member and queried. The Director for Corporate Services advised that an adjustment was made at the year end as the net cost is lower than before the new cattle shed but not as positive as indicated by Gillstream.

A member requested that the affordable housing figure is to be checked by Officers with regard to the Community Infrastructure Levy as it was suggested that the figure will taper off to zero from 20%.

The Chair moved the recommendations noting that the wording of 2.5 be amended to Housing Revenue Account (HRA) from Housing Reserve Account. Councillor Higgins seconded,

All members were unanimously in favour.

Resolved that

1)     Committee approved the proposed corporate planning and budget framework timetable for 2018/19, in respect of the 2019/20 financial year, set out at Appendix A.

2)     No inflation be provided for in the 2019/20 budget at service budget level, other than fees and charges which has been provided for at the rate of 2.5%, unless adjusted for known cost increases by budget holders and 2% for pay be approved.

3)     Council retains its objective of setting a balanced budget for the life of the Medium Term Financial Strategy.

4)     The level of working balance for General Expenses, taking into account the revised calculations set out in Appendix B, be approved and maintained at £640k.

5)     The existing target levels of working balance be retained for special expenses (Melton Mowbray) at £50,000 and the Housing Revenue Account (HRA) at £750,000 be approved.

6)     The Senior Management Team continue to determine the relative priority growth and savings options for members guidance to consider and allocate funding based on priorities set out in the corporate delivery plan be approved.

7)     The key dates for the budget process be noted.

8)     Members noted the exercise of the Chief Executives delegated authority in consultation with the Leader using urgency powers by reason of limitation of time as set out in para 3.5 to become a business rate pilot as part of the Leicestershire Business Rates pool.