Agenda and minutes

(Director of Governance) To declare interests in any item on this agenda.

(a)        Pursuant to the Council’s Code of Member Conduct, Councillors G Mohindra, S Stavrou, A Lion and J M Whitehouse declared a personal interest in item 4 - Financial Issues of the agenda, in so far as it relates to the Local Council Tax Support payable to Parish/Town Councils as they are Parish/Town Councillors. They understood that there are no binding decisions being made by the Sub-Committee at the meeting and therefore would advise that when the decisions were due on this later in the budget cycle, they would seek a dispensation if required.

To confirm the minutes of the meeting of the Committee held on 16 June 2016 (attached).

            RESOLVED:

That the minutes of the meeting held on 16 June 2016 be taken as read and signed by the Chairman as a correct record.

(Director of Resources) To consider the attached report (FPM-006-2016/17).

The Director of Resources advised that the report provided a framework for the 2017/18 Budget and updated Members on a number of financial issues that would affect the Authority in the short to medium term. He advised that the information, new legislation and regulations that were normally available by now, to inform the Medium Term Financial Strategy (MTFS) had not been forth coming, owing to the EU referendum. The result of the referendum to leave the European Union had resulted in a new Prime Minster and Cabinet being appointed, which in turn could effect legislation and policies coming forward and could reduce funding prospects for local government. 

The Director of Resources reported other areas of current financial uncertainty and risk to the Authority as follows;

·                     Central Government Funding – the Settlement Funding Assessment (SFA) reduced over the next four years by £2.45m (45%), resulting in a negative Revenue Support Grant and the Core Spending Power, which considers the Government’s thinking on Council tax and the New Homes Bonus was likewise to reduce across the same period by £2.05m (13.5%). Local Council Tax Support was also affected by the reduction in the Revenue Support Grant and this would result in the removal of the grant to town and parish councils completely by 2019/20. Furthermore, the Secretary of State for Communities and Local Government advised local authorities in March 2016 that they could accept the 4-year figures as fixed for SFA, if accompanied with an efficiency plan to show “how this greater certainty could bring about opportunities for further savings”. This funding would be honoured “barring exceptional circumstances” and also contained a cautionary note that future levels of funding to those who preferred not to have a four year settlement could not be guaranteed.

·                     Business Rates Retention – The Council had received over £0.75m in 2014/15 for Section 31 grants and anticipated £0.7m in 2015/16 and £0.4m in 2016/17. The business rates pool, which the Council became a member of for 2015/16 and 2016/17 had no levy paid to the Treasury and despite the requirement of safety net funding for two members in 2015/16, the Council had been still £118,000 better off. There were still 400 appeals outstanding with the Valuation Office and a total provision of £4 million. Although this had been felt prudent there was still an outstanding appeal for a rateable value of £6 million, which could result in a significant shortfall. The Collection Fund for 2015/16 had less than £30,000 difference to the estimate, which required no amendments to MTFS. Furthermore, the announcement of 100% local retention of business rates being retained within local government and no amounts of either base funding or growth being paid over to the Treasury with the policy being fiscally neutral, would mean that any additional funding would be matched by a transfer of additional responsibilities that had previously been centrally funded. Therefore through the reform process local government as a whole would need to try and limit the amount of risk that  ...  view the full minutes text for item 12.

Section 100B(4)(b) of the Local Government Act 1972, requires that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

It was noted that there was no other urgent business for consideration by the Sub-Committee.