Issue - meetings

RECOMMENDED:

1)         That the revision to the budget for 2017/2018 as set out in the report be approved.

2)         That the Policy on Earmarked Reserves and General Fund Working Balance be reaffirmed and the maximum balances set for the reserves as noted in the report.  

3)         That the budget of £18,256,150 for 2018/2019 be approved and the projections for 2019/2020, 2020/2021 and 2021/2022 be noted.

4)         That the level of Special Expenses for the Town/Parish Councils be approved as detailed in the report.

5)         That the Fees and Charges 2018/2019 detailed in Appendix 5 in the report be approvedsubject to the following amendments:

• Hunstanton Coach park – All Day to be replaced with Over 2 Hours until 18:00

• Hunstanton Season Ticket – 12 months to increase from £200 to £220.

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6)         That a Band D council tax of £121.37 for 2018/2019 be approved.

7)         That a minimum requirement of the General Fund balance for 2018/2019 of £912,808 be approved.

8)         That the revision to the Budget for 2017/2018 as set out in the report be approved.

Reason for Decision

The Council is obliged to set a Budget Requirement and level of council tax before the beginning of a financial year commencing on 1 April.

The Director – Finance Services presented the report to Cabinet which set out that as part of the council tax setting process the Council updated its longer term Financial Plan to take account of any changes in financial settlements, inflation on service costs and revised priorities of the administration.

The report reminded Members that in February 2017 the Council set out a Financial Plan for 2016/2021.  The Plan reflected the continued significant financial challenges faced by the Council including the phasing out of Revenue Support Grant (RSG), changes to the distribution of New Homes Bonus, the impact of the Business Rates revaluation from 2017, a 100% Business Rates Retention Scheme from 2020 and a fair funding review.

The general election in May 2017 had added to the uncertainty for local government with no date set for the legislative changes required for the implementation of the 100% Business Rates Retention Scheme and the consultation process on the fair funding review only just underway.

The Council could present a balanced budget for 2018/2019 and a funded budget for the remaining years of the medium term financial plan to 2022.   There was significant uncertainty from 2020/2021.  The impact of the implementation of a new Business Rates Retention scheme and the Fair Funding Review from 2020/2021 were still unknown, but there was considerable downside risk.

The provisional local government finance settlement announced by Government on 19 December 2017 confirmed the third year of the 4 year offer.  It should be noted that the 4 year offer only included RSG and Rural Services Delivery Grant (RSDG). The ending of RSG has been clearly signaled and it was assumed that the Council would receive no RSG from 2020/2021. As with RSG it had also been assumed that the Council would receive no RSDG from 2020/2021.  As part of the recent settlement announcement additional RSDG has been provided in 2018/2019.

The Government focus is on Councils’ ‘core spending power’ inclusive of locally generated resources.  The core spending power analysis tables published by the Government for each Council assumed that Councils in the lowest quartile of Council Tax levels (which included the Borough Council) would introduce the full £5 per annum per Band D dwelling Council Tax increase now permitted under the Council Tax Referendum Principles. 

In the provisional local government finance settlement announced on 19 December 2017 the Government approved 10 additional Business Rates Pilots for 2018/2019 unfortunately the pilot bid from Norfolk was unsuccessful.  There would be a further opportunity to apply to pilot the business rates retention scheme as the Government has confirmed that it would continue to pilot the scheme in 2019/2020.  The Norfolk pooling arrangements which included all Norfolk districts and the county council will however continue in 2018/2019.

The Government also announced that the aim was for local authorities to retain 75% of business rates from 2020/2021.  This would be through incorporating existing grants into business rate retention including the Revenue Support Grant and local authorities would be able to keep that  ...  view the full minutes text for item 117