MIN9
Resolved
That Cabinet:
Budget Review: Revenue savings and growth proposals
i) approves an additional £25.209m of centrally held growth items for 2017/18 – 2020/21 (including £20.509m for 2017/18) since 15 November 2016 Cabinet meeting (para 5.2.3 of the report) and notes the growth proposals already submitted and approved by Cabinet on 15 November 2016 (para 5.2.1 and Appendix 3a of the report).
ii) notes the repurposing of corporate budgets (para 5.2.4 of the report) and notes that no further savings proposals for 2017/18 have been made since 15 November 2016 Cabinet meeting.
iii) notes the allowed increases in the social care precept and the referendum limit of the council (4.2.3 and 4.4.2 of the report) and recommend to Full Council the taking of the Social Care Precept of 2% on council tax.
iv) notes that the council is in a position to agree a balanced budget for 2017/18 and that any remaining budget gap following the council tax decision by Council on 21 February 2017 will be closed using reserves.
v) notes the requirement for additional savings and/or income in future years as set out in para 3.1.6 of the report.
vi) notes that where information comes to light which indicates that particular savings proposals have significant and important implications not set out in this report, for example relevant to the council’s equalities duties or other legal responsibilities, or where consultation is required because of the significant likely impact of proposals upon service users or providers, then those implications will be fully explored and, if necessary, a further report will be considered by Cabinet or the relevant officer or portfolio holder for finance, performance and customer services before a final decision is taken on whether or not to proceed to implementation. Where a decision is taken not to proceed with any savings proposal then alternative proposals will be brought forward for consideration.
vii) authorises the director or executive director with responsibility for each proposal to carry out any steps required in relation to those proposals, including carrying out any appropriate consultation, considering consultation outcomes and any other detailed implications before taking the final decision on whether or not to proceed to implement such a proposal, and amending any proposal prior to implementation as appropriate following consideration as above.
viii) notes in relation to the authorisation given in para vii) above that where it is reasonably practicable to do so, any key decisions should be brought back to Cabinet.
Fees and Charges
ix) notes that there are no changes to fees and charges which require Cabinet approval.
Budget Review: Capital
x) notes the capital proposals already approved by Cabinet on 15 November 2016 and to be approved on 14 February 2017 bringing the total of all capital proposals to £30.210m (para 5.17 and Appendix 7 of the report, schemes 4, 5 and 9). Cabinet also approves the removal of the Children’s Extended Nursery Provision scheme previously agreed by Cabinet on 15 November 2016 (para 5.17 of the report).
xi) notes the capital proposals to the HRA (Appendix 8 of the report, scheme 27 within HRA programme) to be considered as part of the HRA Business plan by Cabinet on 14 February 2017.
Business Rates
xii) a) Makes a decision that pursuant to the Council’s powers under section 47 of the Local Government Finance Act 1988, for 2017/18, the Council will offer a discount in National Non-Domestic Rates (NNDR) of two times the cost of accreditation to the first 100 businesses in Ealing which are, or which become accredited with the Living Wage Foundation and who meet the criteria as set out in the February 2016 Cabinet report: Discretionary Discount Scheme for Businesses accredited to Living Wage Foundation (para 5.23.9 of the report).
(b) Authorises the Strategic Finance Partner – Local Tax and Accounts Receivable to make determinations in relation to applications for such discounts.
xiii) Cabinet endorses and approves the following recommendations and recommends to the Council that on 21 February 2017 it:
Revenue Budget and Medium Term Financial Strategy
xiv) considers and approves the revenue budget for 2017/18 as summarised in Appendix 2 of the report.
xv) considers and approves the refreshed Medium Term Financial Strategy (MTFS) for 2017/18 – 2020/21 (para 4.9.4 and Appendix 1 of the report).
xvi) considers the advice of the Executive Director of Corporate Resources on the levels of reserves and robustness of estimates in setting the budget as required by Section 25 of the Local Government Act 2003 (para 5.11 of the report).
xvii) notes the financial risks and pressures set out in section 4 and in particular para 4.9 of the report.
xviii) notes the total savings of £28.896m, total growth of £3.524m and £25.209m of additional centrally held growth items approved by Cabinet on 15 November 2016 and 14 February 2017 through the budget review processes for the period of the refreshed MTFS, 2017/18 – 2020/21 (para 5.2 and 5.4 and Appendices 3a and 3b of the report).
xix) approves the draft Schools budget of £314.095m and agrees that any changes to the budget reasonably required as a result of the final 2017/18 DSG settlement are delegated for decision to the Executive Director of Children, Adults & Public Health following consultation with the Executive Director of Corporate Resources (see para 5.8.12 and Appendix 5 of the report).
xx) notes the MTFS financial projections for 2018/19 to 2020/21 (para 4.9.4 and Appendix 1 of the report).
xxi)notes that the General Fund balance is scheduled to remain the same at £15.473m for 2017/18 and notes the forecast levels of earmarked reserves (see para 5.13 and Appendix 6 of the report).
xxii) approves the Parking Account 2017/18 (see para 5.6 and Appendix 4 of the report).
Capital Programme 2017/18 - 2020/21
xxiii) approves the new capital projects, totalling £30.210m and the removal of a capital project totalling £1.600m (see para 5.17 and Appendix 7 of the report).
xxiv) approves the revised capital programme of £761.206m, as set out in (para 5.18 and Appendix 8 of the report).
xxv) approves the use of underspends from 2016/17 to part fund new capital schemes as set out in paragraph 5.16.2 and 5.17 of the report.
xxvi) approves the revised Capital Strategy set out in Appendix 9 of the report.
Treasury Management and Pension Fund Update based on TM Strategy
xxvii) approves the Treasury Management Strategy including the associated Prudential Indicators and Annual Investment Strategy and as set out in (para 5.21, Appendix 10, Annexes 3 and 5 of the report).
xxviii) approves the Treasury Management Policy Statement attached to Appendix 10 as Annex 1 of the report;
xxix) notes the Director of Finance will implement the Treasury Management Strategy under existing officer delegated powers set out in Appendix 10 as Annex 2 of the report;
xxx) approves the Minimum Revenue Provision (MRP) policy and in particular notes the revision to the policy changing the MRP Option 1 (pre 2008 debt) provision from reducing balance to straight line basis to achieve a more prudent provision for debt repayment; set out in Appendix 10 as Annex 4 of the report.
xxxi) notes that the Pension Fund cash (where held in house) and West London Waste Authority cash is also managed in accordance with the Treasury Management Strategy (2.9 to 2.13 of Appendix 10 of the report).
Council Tax and Business Rates
xxxii) notes the GLA Band D precept of £280.02 for 2017/18, a 1.46% increase compared to the 2016/17 GLA precept (para 5.9 of the report);
xxxiii) notes that the Executive Director of Corporate Resources calculated under delegated authority on 24 January 2017 the amount of 111,132.37 as the Council Tax Base, (the number of properties in Bands A-H in the Borough, expressed as an equivalent number of Band D units 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 33(5) and 34(4) of the Local Government Finance Act 1992 (para 5.22.1 of the report);
xxxiv) notes the collection fund position as set out in para 5.22.2 of the report;
xxxv) notes the council’s share of the business rates income forecast for 2017/18 at £46.910m agreed under delegated authority by the Executive Director of Corporate Resources (see para 5.23.4 of the report).
Reasons for Decisions and Options Considered
This report is the latest in a series of reports to Cabinet on developing budget proposals for 2017/18. This report updates the position since the last budget strategy report to Cabinet on 15 November 2016, and it brings together a number of significant issues for Cabinet decision. The main purpose of this report is to enable Cabinet to consider further budget proposals and make recommendations to Council for when it finalises the budget and sets the council tax on 21 February 2017.