Agenda item

Pursuant to Minute CAB124: The Financial Plan 2015/2020, of the Cabinet Meeting held on 2 February 2016, the “Financial Plan 2015/2020 and Council Tax Resolution 2016/2017” the document includes an updated summary of the Financial Plan 2015/2020, the County Council, the Police and Crime Commissioner - Council Tax for 2016/2017 and details of Parish Precepts and Internal Drainage Boards levies for 2016/2017. 

 

NOTE:            In accordance with Statutory Instrument 2014 No. 165, Local Government, England, The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, any decision taken on the Council’s Budget or Council Tax setting must be taken with a recorded vote

 

Councillor N Daubney, as Leader of the Council, proposed his budget pursuant to Minute CAB124: The Budget 2015/2020, of the Cabinet Meeting held on 2 February 2016.  In proposing the budget, Councillor Daubney reminded Council that in proposing his last budget the Council remained at the top of the efficiency list of councils when measuring service delivered against tax raised.

 

He drew attention to the fact that there was now a change of emphasis in Council financing which was progressing towards zero direct government funding for services and cooperative working to deliver infrastructure and growth by the ability to retain and attract business growth.

He commented that the council was well placed to look to the future with confidence because since 2009 nearly £8m pounds of savings had been delivered by the Authority, but to maintain the budget position a further £3m had to be found over the coming years.

Councillor Daubney commented that the Administration had resisted the calls from others to mitigate the risk of funding cuts by taxing more, he stated he had measured the risk and mitigated by efficiency.

He drew attention to the fact that services of the council were consistently rated as high quality –improvements were recognised and respected and the Council had maintained a Borough which was clean, smart, interesting and fun whilst bringing employment and growth which was essential, as were savings.

He reminded Members that savings could be targeted and measured but of course they got harder to deliver.  One of his last acts as Leader would be to charge member teams to study specific areas of our operations and identify areas to save. He believed that opportunity was there with fast developing technology and innovative thinking and savings could and would be delivered.

He drew attention to the fact that measured by tax increases against service delivered the Council was one of the UK’s most efficient councils  which he wished it to remain so.

Councillor Daubney, in referring to increases in car parking charges reminded Members that they had been frozen for five years and the modest increases proposed enabled a balance, allowing those using the services to contribute to them, with the charges making a large and valuable contribution to festivals and events in the Borough.

He considered that the Council had:

·         delivered improvement in facilities and a first class service. 

·         was adopting technology to engage better with the population at lower cost

·         was working with continued ambition

·         welcomed regeneration with the town centre enhanced and within weeks the world class Innovation Centre would open.

·      continued to support educational attainment with the completion of a University Block in King’s Lynn later in the year

·      Borough Council apprentice schemes

·      Light shows, festivals, trails and the expansion of the events programme

·      Maintenance of the important basics, like a first class waste collection and recycling service

 

Councillor Daubney extended his thanks to the Chief Executive and officers for their expertise, advice and guidance and specifically the Section 151 Officer who had taken over the reins not so long ago and had demonstrated strength, robustness, knowledge and integrity as had the teams behind them.

In presenting his last financial plan, Councillor Daubney reminded Members it was one with the most challenging forecast, but stated he had faith that the Council would deliver.  He also thanked his Group who had scrutinised the plan and given him the confidence to present it.

Councillor Beales seconded the proposal.

 

Councillor J Collop, as Leader of the Labour Group passed on his thanks to the Assistant Director and her Team for putting together the Financial Plan.  He commented that the Government cuts had been severe in this round and would involve cuts in staff numbers and services by 19%.  He referred to the fact that the increase in Council Tax was proposed as 0.8%, which he considered was 1% below RPI.  Councillor Collop drew attention to the fact that the Government were now permitting councils to increase their Council Tax by £5, assuming that they would do so in order to mitigate some of the Government cuts on things such as no award for not putting up Council Tax, reduction in New Homes Bonus and Revenue Support Grant.  He also drew attention to the risk associated with business rates growth of which Councils could retain 40% of the net growth, but in uncertain times with the EU referendum there was great economic risk.   He commented that there were no details yet of the efficiency plan proposed, to address the significant financial challenges ahead, whereas the increase suggested by Government would give an additional £380,000 pa. 

 

Councillor J Collop proposed an amendment to the budget that an increase in the Council Tax of 1.9%  for the next 3 years be approved. 

 

This was seconded by Councillor McGuiness, who referred to the increases in Special Expenses which had been added to many Town and Parish Councils across the Borough.  He considered it would have made it easier to protect some of those parishes across the Borough if a general increase of £5 had been proposed.

 

Councillor A Tyler concurred with the comment and stated that if there had been a modest increase in Council Tax  in the last few years it would have helped improve services and assist those areas with problems in the Borough.  He also praised the officers who had prepared the Plan.

 

Councillor Joyce agreed with the Leader on the issue of working to increase educational attainment in the Borough.  He sought to remind the next Leader of the commitment given.  In speaking to the amendment he did not recall disagreement about the provision of IT for Members, as Cabinet Scrutiny had suggested some improvements to the scheme.  He commented that it was a Conservative Government who had suggested the £5 increase which was 10p per week which wasn’t being proposed but, he felt  increases were being made in other ways such as car parking and Special expenses.  He asked what would happen to existing services.

 

Councillor Rochford stated that as he had campaigned promising no increase in Council Tax, he would not support the budget.

 

In summing up on the amendment, Councillor Daubney stated that it wasn’t his habit to fill the gap in a budget by increasing Council Tax.  He referred to the issue of Special Expenses increases, and reminded Members that Parishes had the ability to deliver the services covered by the Borough themselves.  He considered that the budget proposed was sustainable, with an element of risk which would be mitigated.  He urged Councillors to vote against the amendment. 

 

In accordance with SI2014 No 165, a recorded vote was taken on the amendment.

 

For	Against	Abstain
J Collop	B Ayres	R Bird
S Collop	L Bambridge	J Moriarty
C Joyce	A Beales
C Kittow	R Blunt
G McGuiness	A Bubb
A Tyler	J Collingham
M Wilkinson	P Colvin
	C Crofts
	N Daubney
	S Fraser
	R Groom
	G Hipperson
	P Hodson
	Lord Howard
	M Howland
	H Humphrey
	P Kunes
	A Lawrence
	B Long
	C Manning
	K Mellish
	A Morrison
	E Nockolds
	D Pope
	P Rochford
	C Sampson
	T Smith
	S Squire
	M Storey
	D Tyler
	G Wareham
	E Watson
	J Westrop
	D Whitby
	T Wing-Pentlow
	A Wright
	S Young
7	37	2

 

The amendment was lost.

 

In debating the substantive motion, Councillor Moriarty expressed disappointment that no communication had gone to parishes regarding the increases in Special Expenses.

 

Councillor Long reminded Members that some Parishes conducted the work themselves and were already paying for it, therefore to not charge a parish for work carried out  on parish land such as grass cutting so was unfair on those parishes.  Should other parishes wish to do the same  they were able to do so.

 

Councillor Daubney summed up and commended his budget.

 

A recorded vote was taken:

 

For	Against	Abstain
B Ayres	J Collop	R Bird
L Bambridge	S Collop	P Rochford
A Beales	C Joyce
R Blunt	C Kittow
A Bubb	G McGuiness
J Collingham	J Moriarty
P Colvin	A Tyler
C Crofts	M Wilkinson
N Daubney
S Fraser
R Groom
G Hipperson
P Hodson
Lord Howard
M Howland
H Humphrey
P Kunes
A Lawrence
B Long
C Manning
K Mellish
A Morrison
E Nockolds
D Pope
C Sampson
T Smith
S Squire
M Storey
D Tyler
G Wareham
E Watson
J Westrop
D Whitby
T Wing-Pentlow
A Wright
S Young
36	8	2

 

The substantive Motion was agreed.

 

RESOLVED:

 

1)            That the revision to the Budget for 2015/2016 (as set out in Appendix 4 of the report) be approved.

 

2)            That the Policy on Earmarked Reserves and General Fund Working Balance and the maximum balances set for the reserves be re affirmed.

 

3)            That the budget of £18,447,560 for 2016/2017 and note the projections for 2017/2018, 2018/2019 and 2019/2020 (as set out in Appendix 4 of the report) be approved.

 

4)            That the level of Special Expenses for Town/ Parish Councils (as set out in Appendix 2 of the report) be approved.

 

5)            That the Fees and Charges for 2016/2017 as detailed in Appendix 4 of “The Financial Plan 2015/2020” booklet as reported to Cabinet on 2 February 2016 be approved.

 

6)            That Management Team be instructed to present the Council’s Efficiency Plan to Cabinet as soon as the Government guidance is published and that the Council takes up the option to ’fix’ the four year settlement.

 

7)            That a minimum requirement of the General Fund balance for 2016/2017 of £932,756.be approved.

 

8)           The Local Authorities (Calculation of Tax Base) (England) Regulations 2012 contain rules for the calculation of the Council Tax Base, which is an amount required by the Local Government Finance Act 1992 to be used in the calculation of the tax by the Council as the billing authority, and Norfolk County Council and the Norfolk Police and Crime Commissioner as major precepting authorities, and in the calculation of the precept payable by the Council to the County Council and Norfolk Police and Crime Commissioner.  Under Officer Delegated Decision the Council Tax Base was calculated as follows for the year 2016/2017:

 

Number of dwellings in each Council Tax band; taking into account the multipliers, discounts, exemptions, rate of collection and Council Tax Support.

 

(a)    47,940                being the amount calculated by the Council, in accordance with Regulation 3 of the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, as its Council Tax Base for the year.

 

The tax base for each Parish

 

(b)        the amounts listed on pages 11-14 of the report, (Column headed - Taxbase) being the amounts calculated by the Council, in accordance with Regulation 6 of the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, as the amount of its Council Taxbase for the year for dwellings in those parts of its area to which one or more special items relate.

 

9)         Approve that the following amounts be now calculated by the Council for the year 2016/2017 in accordance with Sections 31A to 36 of the Local Government Finance Act 1992:

 

Total expenditure

 

(a)   £96,913,760         being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) (a) to (f) of the Act. (See Appendix 5 of the report).

           

Total income

 

(b)   £88,939,420         being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) (a) to (d) of the Act. (See Appendix 5 of the report).

 

The difference between expenditure and income

 

(c)   £7,974,340          being the amount by which the aggregate at 9(a) above exceeds the aggregate at 9(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its total budget for the year. (See Appendix 5 of the report).

 

Average Council Tax for Band D property (Borough and Parish)

 

(d)     £166.34               being the amount at 9(c) above divided by the amount at 8(a) above, calculated by the Council in accordance with Section 31B(1) of the Act, as the basic amount of its Council Tax for the year.

 

The total of Parish Precepts and Special Expenses

 

(e)                                 £2,563,350    being the aggregate amount of all special items referred to in Section 34(1) of the Act.

 

The Borough Council’s Council Tax for a Band D property (excluding Parish Precepts and Special Expenses)

 

(f)(1)    £112.87             being the amount at 9(d) above less the result given by dividing the amount at 9(e) above by the amount at 8(a) above, calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special item relates.

 

The Borough Council’s Council Tax for each valuation band

 

(f)(2)

 

A        B             C                 D               E                F                G                 H

 

£75.25 £87.79 £100.33       £112.87      £137.95 £163.03       £188.12         £225.74             

 

The Borough and Parish Councils’ Council Tax for a Band D property in each Parish (pages 13-16 of the report)

 

(g)                                 the amounts listed in Col (4), pages 11-14 of the report, when added to the amount at 9(f)(1) above being the amounts of the special item or items relating to dwellings in those parts of the Council’s area mentioned divided in each case by the taxbases on pages 11-14, calculated by the Council, in accordance with Section 34(3) of the Act, gives the basic amounts of its Council Tax for the year for dwelling in those parts of its area to which one or more special items relate.

 

The Borough and Parish Councils’ Council Tax for each tax band in each Parish (pages 15-18 of the report)

 

(h)                               the amounts listed in Cols (1) to (8), pages 11-14 of the report, together with the amounts shown above in 9(f)(2) as valuation bands A to H - being the amounts given by multiplying the amounts at 9(g) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band, divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

 

10)  Note that for the year 2016/2017 Norfolk County Council and the Norfolk Police and Crime Commissioner have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:

           

           

 

 

The total Council Tax for each band in each parish (pages 19-22 of the report)

 

11)       Approve that, having calculated the aggregate in each case of the amounts at       9(h) and 10) above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets these as the amounts of Council           Tax for the year 2016/2017 for each of the categories of dwellings shown.

 

12)       Approve that the Assistant Director (S151 Officer), Revenues and Benefits Manager, Revenues Manager, Revenues Team Leaders, Committal Manager, Committal Officer, Revenues Officers and Revenues Assistants be authorised to demand and recover, in accordance with the Local Government Finance Act 1992, the Council Tax set by this resolution and be authorised to appear on behalf of the Council in Magistrates’ Courts in respect of recovery proceedings.

 

13)       Approve that the Officers be authorised to give notice of the setting of the Council Tax in accordance with Section 96 of the Local Government Finance Act 1992.