Agenda item

To consider the attached report (C-032-2018/19) .

(1)          That the Cabinet considered the Council’s 2019/20 General Fund budgets and make recommendations to the Full Council meeting on 21 February 2019 to adopt the following:

(2)          That the Cabinet recommends to the Full Council that the 2019/20 HRA budget including the revised revenue estimates for 2018/19 be agreed;

(3)          That the Cabinet notes that rent reductions proposed for 2019/20 would give an average overall fall of 1%;

(4)          That Cabinet recommends to Full Council the adoption of the Capital Strategy 2018/19 to 2022/23;

(5)          That the Cabinet notes the Chief Financial Officer’s report to the Council on the robustness of the estimates for the purposes of the Council’s 2019/20 budgets and the adequacy of the reserves.

The Business Support Portfolio Holder introduced the Council’s budget report for 2019/10. This report set out the detailed recommendations for the Council’s budget for 2019/20. The budget added £0.51m to reserves and the Council’s policy on the level of reserves could be maintained throughout the period of the Medium Term Financial Strategy (MTFS). Over the course of the MTFS the use of reserves to support spending peaks at £1.153m in 2021/22 and reduces to £0.384m in 2022/23. The budget assumed that Council Tax would not increase in 2019/20 and that average Housing Revenue Account rents would decrease by 1% in 2019/20.

The Portfolio Holder noted that with the phasing out of the Government’s revenue support grant the Council was aiming to maintain and enhance local services as it became entirely self-financing. The council was able to do this as it continued to reap the rewards of long term planning and innovation.

He highlighted the council’s commercial property portfolio that was valued at £140million, which included North Weald Airfield Industrial estates and the Epping Forest shopping park and the High Street shop units. It was also noted that the National Police Air Service at North Weald was the latest major tenant supporting the District Council Services. Other ways that the council continues to recoup costs without increasing council taxes was by using fees and charges. Major contracts with service providers such as Biffa and the provision of leisure services by Place for People who run existing leisure centres and will help in the provision of a new one in Epping. The Council was also making a more efficient council through innovation and investment. All these and more came together as a package and contributed to a more efficient council while enabling the council to freeze council tax for yet another year.

The Chief Finance Officer noted that this report had been considered by the Finance and Performance Management Cabinet Committee and will go on to the full Council meeting at the end of February. Officers had now received the final local government settlement and were proposing that the CSB be no more than £12million.

Councillor Philip noted recommendation 3 where is said that rent reductions would be kept at 1%. Was that 1% on a weekly basis to take this budget forward? The Business Services Portfolio Holder said it was right to point out that this particular issue was causing problems for all local authorities, as the forthcoming calendar year had 53 weeks with a Monday so we were continuing to work closely with the LGA and seeking clarification from the Government so that we can follow the correct policy.

Councillor Lion said that he was encouraged to see no increase in council charges for the year and, that transformation was having a major impact in the way we worked and in improving our efficiencies. Well done to the officers on the finance side.

Councillor Stavrou also said it was an excellent report from the finance officers and as the housing portfolio holder she was looking forward to seeing what would happens with the new homes bonus.

Councillor Whitbread noted that this built strongly on the foundation of 9 years out of 10 that we have been able to freeze council tax. This continues to build upon successes that we have had and continues to recognise the need to increase revenue to support our frontline services. A good building block to be self-sufficient.  It goes without saying that our officers work tirelessly across the whole Council to produce this budget, particularly finance, and across the board we are an efficient council thanks to our officers.

Decision:

(1)          That the Cabinet considered the Council’s 2019/20 General Fund budgets and make recommendations to the Full Council meeting on 21 February 2019 to adopt the following:

(2)          That the Cabinet recommends to the Full Council that the 2019/20 HRA budget including the revised revenue estimates for 2018/19 be agreed;

(3)          That the Cabinet notes that rent reductions proposed for 2019/20 would give an average overall fall of 1%;

(4)          That Cabinet recommends to Full Council the adoption of the Capital Strategy 2018/19 to 2022/23;

(5)          That the Cabinet notes the Chief Financial Officer’s report to the Council on the robustness of the estimates for the purposes of the Council’s 2019/20 budgets and the adequacy of the reserves.

Reasons for proposed decision:

The decisions are necessary to assist the Cabinet in determining the budget that will be laid before Council on 21 February 2019.

Other options for action:

Members could decide not to approve the recommended figures and instead specify which growth items they would like removed from the lists, or Members could ask for further items to be added.