Agenda item

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 would be targeted with the possible tariff would be those that employed over 1,000 employees. It was also noted that although other local authorities were considering introducing similar schemes no such scheme existed and therefore there were risks associated with the deliverability.

Several Members commented that there were many un-liveried vehicles that also used the highway to park on and it was suggested that maybe the tariff could be levied against the gross vehicle weight rating of vehicles therefor not discriminating against certain employers.

Members also commented that the Council should be seen to keeping its own house in order by levying the charge against its own employees who took Council vehicles home and parked on the highway.

Officers responded by agreeing that all viable options would be explored and that the Cabinet report only asked for agreement to take the proposal forward for consultation.

Members also felt it was important going forward that developers wishing to build in the borough took more responsibility for including parking provision within developments and not rely on the Council approving schemes that were parking free.

Members also agreed that the introduction of a new Local Plan would assist in achieving this aim. Officers confirmed that a new Local Plan was currently being drafted and would be put before Members for their consideration in the near future.

Members also requested that the proposed swimming pool at the new Hornchurch Leisure Centre be a full size 50m competition pool which would attract additional users and provide revenue opportunities going forward.