A.    To consider the report of Cabinet (attached).

B.   To note the decision of the Greater London Authority on its budget and percept for 2017/18 and the effect thereof on the Council’s budget.

C.   To agree a budget for 2017/18; and then

D.   To set the Council Tax for 2017/18

NOTE: THE REPORT TO CABINET ON 8 FEBRUARY 2017 IS ALSO ATTACHED FOR REFERENCE.

After debate, recommendations of Cabinet, including additional recommendation that the Treasury Management Strategy Statement which was reported to Cabinet on 8 February 2017 and attached to the report to Council at annex C, AGREED by 31 votes to 9.

Council Tax for 2017/18 set at £1597.73 for a Band D property.

Council had before it a report of the Cabinet (incorporating the budget proposals for 2017/18). This referred to the reports presented to Cabinet at its meeting on 8 February 2017.

An additional recommendation to the report was proposed by the Conservative Group as follows:

That the Treasury Management Strategy Statement 2017/18 which was reported to Cabinet on 8 February 2017 and was appended to the report at Annex C be approved.

Following debate, the recommendations of Cabinet, including the additional recommendation that the Treasury Management Strategy Statement which was reported to Cabinet on 8 February 2017 and attached to the report to Council at annex C be approved were AGREED by 31 votes to 9 (see division 1) and it was RESOLVED:

1.         That the following as submitted in the report to Cabinet be approved:

a)         The General Fund revenue budget for 2017/18, as set out in the revised Appendix E attached to the report before Council.

b)        The delegated schools’ budget for 2017/18, as set out in Appendix F of the report to Cabinet.

c)         The Capital Programme for 2017/18, as set out in Paragraph 3.28 and Appendix I of the report to Cabinet.

d)                     The HRA Capital Programme 2017/18, as set out in the separate report to Cabinet on 8 February.

e)         The Treasury Management Strategy Statement 2017/18, as set out in the separate to Cabinet on 8 February and as set out in Annex C of the report before Council.

2.         That, in accepting recommendation 1, Council is mindful of the advice of the Chief Finance Officer as set out in Appendix H of the report to Cabinet and a revised is appended to this report.

3.         That it be noted that the Council Tax public engagement exercise carried out during January 2017 was considered by Cabinet when considering the draft financial strategy as detailed in Annex D of the report before Council.

4.         That it be noted that the minutes of the Overview and Scrutiny Board that were considered at the Cabinet meeting of 8 February were included at Annex E of the report before Council for information.

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5.         That it be noted that under delegated powers the Chief Finance Officer has calculated the amount of 86,821 (called T in the Act and Regulations) as its Council Tax base for the year 2017/18 in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992 (as amended) made under Section 31B of the Local Government Finance Act 1992 as amended.

6.         That the amount of £ 114,404,900 be now calculated as the Council Tax requirement for the Council’s own purposes for 2017/18, with £4,317,608 of that amount being ringfenced for Adult Social Care.

7.         That the following amounts be now calculated by the Council for the year 2017/18 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 as amended:

Members are invited to make any comments on the budget proposals for consideration by Cabinet at its meeting on 8 February. (Report to January 2017 Cabinet meeting attached for information).

The report updated Members on the Local Government Financial Settlement which had been announced in December 2016.

The report summarised the key elements of the Autumn Budget Statement, the implications for the corporate budget and the proposed financial strategy for the coming year. The report also included the latest in year financial monitor and the latest proposals for the capital programme.

Section four of the report detailed Havering’s financial strategy which included provision for the reduction in Revenue Support Grant (RSG) over the next three years based upon the four year financial settlement applicable from 2016/17 and those reductions are re-confirmed and will reduce from £20.89m in 2016/17 to £1.376m in 2019/20.  The impact of the settlement on Business Rates and New Homes Bonus were still being evaluated although it was not expected to have a material impact on the 2017/18 forecast position as reflected in the Medium Term Financial Strategy (MTFS) model. A full analysis would be included in the February Council Tax setting report.

Local authorities would now be able to increase the Social Care Precept by up to 3% per annum in 2017/18 and 2018/19. The additional 1% compared to the increase allowed in 2016/17 would require the authority to set out how the money was being spent on improvements in adult social care. The total increase allowed for over the three-year period to 2019/20 was limited to 6%.

Section eight of the report detailed the Council’s financial strategy for the three year period commencing 2017/18.

Section nine of the report detailed a background to the current Capital Programme.

An indicative block programme of £4.9m for 2017/18 had been approved by Cabinet in October 2016 which represented a continuation of the strategy adopted in recent years.

The report also summarised the Council’s financial position which showed that the Council would need to raise income or make additional savings of approximately £13m in order to balance its financial strategy over the next three years. Of this sum £3.8m had to be found as part of the budget setting process for 2017/18.

During the debate Members sought and received clarification relating to several aspects of the report and its impact on the Council’s service provision.

In relation to the future collection of Business Rates Members asked that consideration be given to investigating the use of alternative premises for small/start up businesses to help attract/keep these businesses within the borough.

Officers confirmed that the possible introduction of a commercial vehicle tariff was a 2018/19 possible saving that would require prior consultation with stakeholders. Current figures suggested that nearly 12,000 commercial vehicles were regularly parked either on the streets or drives of the borough. The problem had been exacerbated with the main utility companies reducing their depot capacities where historically vehicles had been parked. To address the problem and to encourage companies to use their own facilities it was proposed to introduce a £500 annual permit charge for commercial vehicles that parked on the highway outside of work time. Companies that  ...  view the full minutes text for item 15

Note: The deadline for receipt of amendments to all reports included with the final Council agenda is midnight, Monday 23 January 2017.

To consider a report of Cabinet on the Council Tax Support Scheme 2017 (attached).

Report AGREED by 43 votes to 5.

It was noted that the report on the Council’s Financial Strategy, which included the Council Tax Support Scheme 2017 had been approved by Cabinet at its meeting on 18 January 2017.

The report of Cabinet asked Council to approve the Council Tax Support Scheme for 21017 and included, for noting, the Equalities Impact Assessments in respect of the Council Tax Support Scheme.

The report was AGREED by 43 voted to 5 and it was RESOLVED:

That the Equalities ImpactAassessments in respect of the Council Tax Support Scheme be noted and the Council Tax Support Scheme 2017 be approved.

It was noted that Cabinet received reports on the 28 September 2016 and the 14 December 2016 which had provided updates on developments at the national level and the consequential impact on local government funding and which also set out information on the financial position within Havering.

The October and  ...  view the full minutes text for item 83