Agenda item

The Board considered a report of the Operational Director, Finance, which outlined a recommendation to Council in respect of the Budget, Capital Programme and Council Tax for 2018/19.

It was noted that at the time of writing, the Cheshire Police and Crime Commissioner and the Cheshire Fire Authority had not set their budgets and Council Tax Precepts. However, final figures would be reported to Council when the information was available.

The Government announced the Final Local Government Finance Settlement figure for 2018/19, which was in line with the Provisional Settlement figure announced on 19 December 2017. The main change was the announcement of a one-off Adult Social Care Support Grant for 2018/19 to the value of £0.399m. As part of the Liverpool City Region (LCR), the Council would continue to participate in the pilot Business Rates Retention Scheme. Government had confirmed that the pilot scheme would operate under a “no detriment” policy in that no Council operating as part of the pilot would see a reduction in their funding, in comparison to what would have been received previously.

The Board was advised that the Medium Term Financial Strategy, approved on 16 November 2017, had identified a funding gap of around £5.6m in 2018/19, £13.2m in 2019/20 and £3.3m in 2020/21. The Strategy had the following objectives:

·       Deliver a balanced and sustainable budget;

·       Prioritise spending towards the Council’s five priority areas;

·       Avoid excessive Council Tax rises;

·       Protect essential front line services; and

·       Deliver improved procurement.

In terms of consultation, it was noted that the Council used various methods to listen to the views of the public and Members’ own experiences through their Ward work was an important part of that process. Individual consultations had taken place in respect of specific budget proposals and equality impact assessments would be completed where necessary.

On 6 December 2017, the Council approved initial budget savings totalling £2.2m and further proposed savings were shown at Appendix B. The departmental analysis of the budget was shown at Appendix C, and the major reasons for change from the current budget were outlined for Members’ information in Appendix D. It was noted that the proposed budget total was £109.227m.

The Board was advised that the proposed budget incorporated grant figures announced in the Provisional Grant Settlement and included £2.152m for the New Homes Bonus and £3.045m for Improved Better Care Funding, paid to councils for the second year.

Further information was provided on the budget outlook. As part of the Local Government Finance Settlement for 2016/17, the Government had published indicative Settlement Funding Allocations for the three years up to 2019/20. Local Authorities had been asked to produce and publish an efficiency plan setting out their forecast budget position through to 2019/20, along with their proposed efficiency measures to achieve annual balanced budget positions. The Council’s efficiency plan was published on 14 October 2016. The Medium Term Financial Strategy had been updated to take account of the 2018/19 finance settlement, multi-year allocations and saving measures already agreed or proposed.

Further information was provided in respect of Halton’s Council Tax, Parish Precepts, Capital Programme, the Prudential Code and School Budgets.

Members wished to place on record their thanks to all members of the Budget Working Group, Policy and Performance Board Chairs and staff for their hard work in producing this year’s budget.

Reason(s) for Decision

To seek approval for the Council’s revenue budget, capital programme and council tax for 2018/19.

Alternative Options Considered and Rejected

In arriving at the budget savings proposals set out in Appendix B, numerous proposals had been considered, some of which had been deferred pending further information or rejected.

Implementation Date

7 March 2018.

RESOLVED: That Council be recommended to adopt the resolution set out in Appendix A attached to the report, which includes setting the budget at £109.227m, the Council Tax requirement of £47.447m (before Parish, Police and Fire precepts) and the Band D Council Tax for Halton of £1,377.88.