Agenda item

Cabinet:

1.               Noted the updated national financial context for local government, in year financial performance and the projected budget gap over the period 2018/19 to 2022/23 as set out in section 1 of the report and the period 6 forecast position set out in section 2 of the report.

2.               Noted the assumptions which underpin the forecast and that further updates will be provided as further information becomes available in the build up to the budget setting in February 2018.

3.               Noted the update on the proposed London Business Rate Pool Pilot and that this will be presented to Cabinet for a decision in January 2018.

4.               Approved additional savings proposals of £1.390m of which £0.588m relate to 2018/19 for consultation where necessary as set out in section 6 and Appendix B of the report.

5.               Approved growth proposals of £1.080m, all of which relate to 2018/19 for consultation where necessary as set out in section 6 and Appendix B of the report.

6.               Approved the proposed 5 year Capital Programme for consultation and scrutiny as required as set out in section 8 of the report

7.               Noted the updated Treasury Management position arising from the proposed Capital programme and that an updated Treasury Management  Strategy will be presented in January (section 8 of the report)

8.               Approved the amendment to the Council Tax Discretionary Policy to include supporting care leavers set out in section 4 of the report.

9.               Noted the timetable and process for developing, reporting and considering the 2018/19 budget and MTFS as set out in section 7 of the report which will include consideration and approval of the Council Tax Support Scheme in January 2018.

The report was presented to Cabinet by the Leader of the Council, Cllr Roger Ramsey. This detailed an update on assumptions within the Medium Term Financial Strategy (MTFS) approved by Cabinet in October, 2017 and set out further budget proposals to achieve a balanced budget for 2018/19.  The report set out the proposed 5 year Capital Programme for approval to put forward to consultation and scrutiny.  In addition, an overview of the proposed Business Rates Pilot Pool with effect from 2018/19 was provided.  Further, the report presented proposed amendments to the Council Tax Discretionary Policy to support care leavers on low incomes to discharge their Council Tax liability.

The Council is required by statute to set a balanced budget for 2018/19 and to have a robust plan in place to achieve a financial balance over the medium term.

Key information will come from the Provisional Local Government Settlement (PLGS) which will set out the support the Local Authority will receive.  This is expected in December and hoped for next week.

The October Cabinet report set out a number of Council’s funding streams which were subject to further review:

·                     Business Rates

·                     Impact of the London Business Rates Pool Pilot

·                     Council Tax Base and Level

·                     Better Care Fund and Improved Better Care Fund

·                     New Homes Bonus

·                     Education Services Grant

·                     External Borrowing

The Leader addressed each of these matters in turn.

The future direction for the national business rates policy remains uncertain though further information is expected in the PLGS.

At the London Council’s Leaders’ Committee in October the establishment of a London Business Rates Pilot for 2018/19 was agreed in principle.  This will be the subject of a further decision at Cabinet in January, 2018.

The Autumn Budget confirmed the power to raise the empty homes premium from 50% to 100% from April, 2018.  On current data, this will generate a further £0.120m and this has been incorporated into the forecast budget figures.

Council tax base growth assumptions of £0.980 increase remains as predicted at the October Cabinet and the Council tax level will be reviewed as part of the budget report before February Cabinet and Council.

At this stage there is no further update regarding the Better Care Fund and the Adult Social Care Grant, pending the Local Government Finance Settlement.  The Adult Social Care Green Paper will now be published in the summer of 2018.

The New Homes Bonus has been at risk due to Planning Applications being granted on appeal.  The position is now better and more information will be provided in the January and February Cabinet reports.

The Education Services Grant has been reduced considerably and there is a shortfall in funding that will be managed as part of the ongoing transformational review of the service.

The London Business Rate Pool Pilot was reported to Cabinet in October and will be reviewed again in January.  The principle to go forward with establishing a Pan-London Business Rates Pool to pilot 100% retention of business rates growth in 2018 to 2019 for a period of up to two years, was agreed on 10^th October, 2017.

The Council is seeking to provide care leavers with the stability and support they need to progress confidently into independent lives.  The Council will be supporting approximately 130 care leavers through the Council Tax Support Scheme.

A timetable has been established to develop further budget proposals which will be considered by Cabinet in January and February, 2018.

For the reasons set out in the report, Cabinet:

1.            Noted the updated national financial context for local government, in year financial performance and the projected budget gap over the period 2018/19 to 2022/23 as set out in section 1 of the report and the period 6 forecast position set out in section 2 of the report.

2.            Noted the assumptions which underpin the forecast and that further updates will be provided as further information becomes available in the build up to the budget setting in February 2018.

3.            Noted the update on the proposed London Business Rate Pool Pilot and that this will be presented to Cabinet for a decision in January 2018.

4.            Approved additional savings proposals of £1.390m of which £0.588m relate to 2018/19 for consultation where necessary as set out in section 6 and Appendix B of the report.

5.            Approved growth proposals of £1.080m, all of which relate to 2018/19 for consultation where necessary as set out in section 6 and Appendix B of the report.

6.            Approved the proposed 5-year Capital Programme for consultation and scrutiny as required as set out in section 8 of the report

7.            Noted the updated Treasury Management position arising from the proposed Capital programme and that an updated Treasury Management Strategy will be presented in January (section 8 of the report)

8.            Approved the amendment to the Council Tax Discretionary Policy to include supporting care leavers set out in section 4 of the report.

9.            Noted the timetable and process for developing, reporting and considering the 2018/19 budget and MTFS as set out in section 7 of the report which will include consideration and approval of the Council Tax Support Scheme in January 2018.