Agenda item

The Executive Director for Finance Services presented the Panel with information on the Council’s Budget.  She explained that the presentation (as attached) had also been presented to the Environment and Community Panel and would be presented to the Corporate Performance Panel and any comments made by the Panels would be included in the report to Cabinet in February 2018.

The Executive Director explained that the Council should know their Government settlement just before Christmas and then a report would be presented to Cabinet and Council in February 2018.

The Chairman thanked the Executive Director for her presentation and invited questions and comments from the Panel, as summarised below.

In response to a question from Councillor Mrs Collingham, the Executive Director clarified that with regards to the Capital Outturn expenditure, Major Housing referred to the housing development sites such as Lynnsport and Marsh Lane and Private Sector Housing referred to assistance such as disabled facilities grants.

Councillor Bird asked for an example on how Capital investment could result in an income stream.  The Leader of the Council provided the example that the Council could build houses and then receive a revenue stream through renting out the properties.

The Chief Executive provided information on the level of uncertainty that the Council would face in the future, changes to Government legislation and reduction in Government Grant.  He highlighted that the Government was considering an alternative approach in relation to New Homes Bonuses which would look at the quality of decision making by planning authorities.  This approach would link the New Homes Bonus allocations to the ratio of successful appeals to residential planning decisions over an annual period and if this was introduced it could have a significant impact on the Councils income stream.

The Panel discussed the implications that the potential changes to the New Homes Bonus could have on the Planning Committee when determining applications and it was suggested that the relevant officers and Members be invited to a future meeting of the Panel to discuss potential implications.

Councillor Tyler referred to European Grant funding and if Brexit would have an impact on the Council.  It was explained that the impact of Brexit on the economy was currently unknown.  The Leader, Councillor Long reminded those present that in the past the Council had benefitted from European funding to deliver specific projects.  The Chief Executive commented that the Government had announced that a national regeneration fund was likely to be made available to replicate European Funding opportunities which would be lost post Brexit.

Councillor Mrs Collingham felt that the Government was pushing Local Authorities to become more ‘business like’ and look at ways to generate income irrespective of the impact.  She acknowledged that the Council would have to look at ways to meet any shortfall, but she warned against moving from a political entity to a commercial business.  The Panel discussed the importance of generating income and looking at different ways of working in the future.

The Portfolio Holder for Corporate Projects and Assets, Councillor Beales commented he did not feel discouraged by the budget position.  He commented that the Council had a plan, had identified the problems and were taking a positive approach.  He reminded those present of the commercial work carried out by the Council and the importance to balance this with the wider public good.  Councillor Beales commented that the Panels would have an important role in the future to assist with the development of policy.

Councillor Middleton commented that this was a new era for Local Authorities and he felt that the Council was in a fairly good position, in that they hand the funds available to invest.  He explained that it would be important to look at long term initiatives beyond the current financial plan and asked if the Council was planning for the long term.  The Leader of the Council, Councillor Long explained that work was ongoing to look beyond the current plan period and investment opportunities would be investigated.

The Chief Executive commented that the focus of the Capital Programme was to look at the rate of return and things that would generate income in the future.  He explained that the Council were also active in seeking grant support funding, for example the Heritage Lottery Fund and this would continue.

RESOLVED: (i) The Regeneration and Development Panel noted the presentation.

(ii) The potential changes to New Homes Bonus be added to the Work Programme.