Agenda item

Cabinet:

1.            Noted the progress made to date with the development of the Council’s budget for 2018/19 and of the implications for Council Tax setting, although no decisions will be taken until the February cabinet meeting.

2.            Noted the outcome of the Autumn Budget Statement and the likely impact on local authorities.

3.            Noted the provisional local government financial settlement announcement, and that this largely confirms the budgetary assumptions set out in the MTFS based upon the four-year financial settlement.

4.            Noted that a public engagement exercise on the budget process will be carried out during January 2018.

5.            Will Recommend to Full Council that the Council Tax Support Scheme 2018 is approved. (Appendices A and B of the report)

6.            Noted the Equalities Impact Assessment in respect of the Council Tax Support Scheme as set out in Appendix B of the report.

7.            Noted a correction to paragraph 2.3 of the report. The correct figure for the Adult Social Care (ASC) Support Grant was £1.010m; not £6.565m as printed in the report.

The report was presented by the Leader of the Council.

It was reported that at its meeting in October 2017, Cabinet approved the Council’s Medium Term Financial Strategy (MTFS) and further proposals for balancing the 2018/19 budget to go to consultation where necessary. This was followed by a Budget Update report on 13 December 2017.

The October and December reports set out the Council’s financial strategy to manage the predicted budget gap over the period 2018/19 to 2022/23. The

Report before Members:

·         Provided an update on the policy and strategic context and assumptions within the MTFS and the forecast budget gap

·         Presents for approval amendments to the Council Tax Support Scheme

from April 2018.

·         Budget Risks

The detail in the report was based on the best available information and the funding assumption is still subject to confirmation of the final Local Government Finance Settlement for 2018/19 which will not be announced until January 2018.

It was noted that future reports to Cabinet and Council will take account of the impact of the funding changes outlined above as far as is possible. However, the Council’s current medium-term working assumptions is that these changes will have a neutral impact on revenue support grant (RSG) or that any reduction in RSG will be matched by an upside in business rates revenue. At this moment in time, there is insufficient information to make any other assumption.

It was explained that the Council is required by statute to set a balanced budget for 2018/19 and to have a robust plan in place to achieve financial balance over the medium term. The revised assessment of the medium term financial forecast is based upon the best information available at this time. Assumptions will be continually reviewed and refined as work progresses in the period to final budget setting in February 2018.

It was noted that the movement in the budget gap since the December cabinet figure is due to budget adjustment of £1.974m over the period (of which £0.273m relates to 2018/19) following the provisional local government financial settlement announcement and further £0.441m made up of £0.271m Legislative practices pressure and £0.170m capacity pressure.

At period 8, the forecast outturn position for service directorates and oneSource is £140.207m resulting in a forecast overspend of £4.367m (3.31%). The uncommitted Corporate Risk Budget and Corporate Contingency budgets stand at £4.900m (£1.6m reduction from the £6.500m reported in the December) to enable the overall outturn to be achieved within the approved budget for 2017/18. However, in light of the reduction in these corporately held budgets in from December 2017 to January 2018 and further forecast reduction expected in 2018/19, it is crucial for financial sustainability over the medium term, that service directorates manage their ongoing expenditure within approved budgets. light of the reduction in these corporately held budgets in from December 2017 to January 2018 and further forecast reduction expected in 2018/19, it is crucial for financial sustainability over the medium term, that service directorates manage their ongoing expenditure within approved budgets.

The Senior Leadership Team continues to focus upon delivering mitigating action plans and previously agreed savings plans and exercising restraint on non-essential expenditure. A further update with mitigating action plan will be provided to Cabinet in February 2018.

This report provides an update on the London Business Rate Pilot Pool from April 2018. Following the confirmation of Government’s commitment to the 2018/19 London Business Rates retention pilot in the Autumn statement am formal confirmation in a form of Memorandum of Understanding was signed by the Mayor, the Chair of London Councils; the Minister for London and Secretary of State for Communities; and Local Government in December 2017.

Reasons for the decision:

To enable the Council to develop its budget as set out in the constitution.

The Council Tax support scheme from April 2018 will be approved by Council.

Other options considered:

None. The Council is required to prepare and set a balanced budget and to approve the Council Tax support scheme.

Cabinet:

1.            Noted the progress made to date with the development of the Council’s budget for 2018/19 and of the implications for Council Tax setting, although no decisions will be taken until the February cabinet meeting.

2.            Noted the outcome of the Autumn Budget Statement and the likely impact on local authorities.

3.            Noted the provisional local government financial settlement announcement, and that this largely confirms the budgetary assumptions set out in the MTFS based upon the four-year financial settlement.

4.            Noted that a public engagement exercise on the budget process will be carried out during January 2018.

5.            Will Recommend to Full Council that the Council Tax Support Scheme 2018 is approved. (Appendices A and B of the report)

6.            Noted the Equalities Impact Assessment in respect of the Council Tax Support Scheme as set out in Appendix B of the report.

7.            Noted a correction to paragraph 2.3 of the report. The correct figure for the Adult Social Care (ASC) Support Grant was £1.010m; not £6.565m as printed in the report.