Issue - meetings

This report presents a review of the council’s financial position to support reflection on Brent’s future financial strategy. The report introduces considerations that will need to be taken into account when considering the council’s approach to budgeting for 2019/20 and beyond. It sets out the changes to the local authority finance regime in its various components – business rates devolution, schools, integration with health services and finance and so on – and the strategic consequences of these for Brent, linked to the local factors that will influence decisions on those.

RESOLVED:

13.1. The July Finance Review report be noted;

13.2. The budget adjustments set out in Appendix A be agreed for service areas to enable spend to be contained within agreed budgets for 2017/18;

13.3. The Capital budgets be noted and authority be delegated to the Chief Finance Officer to re-profile 2016/17 carry-forward budgets as required;

13.4 The recent developments for Business Rates devolution from 2019/20 be noted and that further updates be brought to Cabinet as the legislative

position becomes clearer;

13.5. Cabinet delegated to the Chief Finance Officer, in consultation with the Leader of the Council, authority to enter into negotiations in respect of participating in a pilot business rates pool for London in 2018/19. Cabinet agreed that a report be presented in autumn 2017 to clarify the position regarding the pilot;

13.6 The position on the School funding reform proposals be noted;

13.7 The effects of further integration with NHS services be noted and the use of the Improved Better Care Fund to increase the Adult Social Care base budget be agreed;

13.8. The financial implications of the Homelessness Reduction Act be noted and the use of the new Flexible Homelessness Support Grant to increase the Community Wellbeing base budget be approved; and

13.9. That Cabinet’s intention, as previously announced and subject to  consultation and any other material changes to circumstances, to increase council tax by 3.99% in 2018/19 be confirmed, on the basis that this meant that no new savings proposals needed to be developed.

Councillor Margaret McLennan, Deputy Leader of the Council, introduced the report and reminded Cabinet that since 2010 the Council had delivered against a series of challenging financial targets, using a combination of effective financial management and cost control and more innovative approaches to investment and demand management. She noted that the effectiveness of this approach had been recognised by the Local Government Association (LGA) as Brent’s financial planning, management, and culture of financial accountability had been identified as key strengths in a recent LGA peer review. Councllor McLennan drew Members’ attention to some of the key sections of the report (paragraph 1.5 on page 262 to the Agenda pack):

·         Recommendations for cabinet to approve;

·         Overview of the financial and macro-economic climate following the general election;

·         Issues arising from review of the 2017/18 budgets as at May 2017;

·         Implications of business rates devolution;

·         Consequences of national school funding reforms in Brent;

·         Effects of further financial integration with NHS services;

·         Effects of the Homelessness Reduction Act and the Flexible Homelessness Support; and

·         Revised forecast saving targets for 2018/19 to 2021/22.

RESOLVED that:

15.1    The July Finance Review report be noted;

15.2    The budget adjustments set out in Appendix A be agreed for service areas to enable spend to be contained within agreed budgets for 2017/18;

15.3    The Capital budgets be noted and authority be delegated to the Chief Finance Officer to re-profile 2016/17 carry-forward budgets as required;

15.4    The recent developments for Business Rates devolution from 2019/20 be noted and that further updates be brought to Cabinet as the legislative position becomes clearer;

15.5    Cabinet delegated to the Chief Finance Officer, in consultation with the Leader of the Council, authority to enter into negotiations in respect of participating in a pilot business rates pool for London in 2018/19. Cabinet agreed that a report be presented in autumn 2017 to clarify the position regarding the pilot;

15.6    The position on the School funding reform proposals be noted;

15.7    The effects of further integration with NHS services be noted and the use of the Improved Better Care Fund to increase the Adult Social Care base budget be agreed;

15.8    The financial implications of the Homelessness Reduction Act be noted and the use of the new Flexible Homelessness Support Grant to increase the Community Wellbeing base budget be approved; and

15.9    That Cabinet’s intention, as previously announced and subject to  consultation and any other material changes to circumstances, to increase council tax by 3.99% in 2018/19 be confirmed, on the basis that this meant that no new savings proposals needed to be developed.