Issue - meetings

Budget 2018/19

Meeting: 11/12/2017 - Cabinet (Item 8)

8 Budget Strategy and Financing Update PDF 218 KB

The purpose of this report is to set out the Council’s budget proposals for 2018/19. It therefore includes other key activities in relation to setting the 2018/19 budget, including dealing with any surplus on the Council’s collection fund and the updating the position on the proposed London business rates pilot pool. It also provides a general update on the overall financial position, including an assessment of the Chancellor of the Exchequer’s Autumn Budget of 22 November 2017.

Additional documents:

Appendix A - Savings proposals previously approved by Council as part of previous budget reports, item 8 PDF 311 KB

Decision:

RESOLVED that:

8.1 The overall financial position be noted;

8.2 The budget proposals for 2018/19 that were previously agreed at the Council meeting of 27 February 2017, as set out in Appendix A, be endorsed;

8.3 The technical assumptions underpinning the budget as set out throughout the report, be endorsed;

8.4 The results of the extensive consultation on the budget proposals and a council tax increase of 3.99% that was carried out between November 2016 and January 2017 with local residents, businesses and other stakeholders, be noted;

8.5 The approach to consultation between December 2017 and January 2018, as set out in section 4 of the report, be noted;

8.6 The estimated Collection Fund balance relating to Council Tax for 2018/19 as a surplus of £1.856m (Brent’s share being £1.503m) and note the current estimated balance relating to NNDR for 2018/19 as zero (no surplus or deficit), be agreed;

8.7

i. Participation in the London Business Rates Pilot Pool for one year with effect from 1 April 2018, in principle, be agreed;

ii. The decision whether to agree the Designation Order to be issued by the Secretary of State designating the Council as an authority within the London Business Rates Pilot Pool pursuant to 34(7)(1) of Schedule 7B Local Government Finance Act 1988, be delegated to the Chief Finance Officer;

iii. The Chief Finance Officer be authorised to enter into such Memorandum of Understanding with the participating authorities as may be necessary to implement and/or regulate the pool;

iv. The authority's administrative functions as a billing authority pursuant to the Non-Domestic Rating (Rates Retention) Regulations 2013 be delegated to the City of London Corporation ("COLC") acting as the Lead Authority, subject to agreement of the Designation Order by the Chief Finance Officer;

v. The Leader of the Council be agreed to represent the authority in relation to consultations regarding the London Business Rates Pilot Pool as may be undertaken by the Lead Authority pursuant to the Memorandum of Understanding and that he will respond to the consultations;

vi. It be noted that the Lead Authority may sub-contract certain ancillary administrative functions within the Pool to the GLA as it considers expedient; and

vii. The Chief Finance Officer, in consultation with the Leader of the Council, be delegated authority to agree the operational details of the pooling arrangements with the participating authorities.

Minutes:

Councillor Margaret McLennan, Deputy Leader of the Council, stated that the purpose of this report is to set out the Council’s budget proposals for 2018/19. The report, she stated, therefore includes other key activities in relation to setting the 2018/19 budget, including dealing with any surplus on the Council’s collection fund and updating the position on the proposed London business rates pilot pool. The report also provides a general update on the overall financial position, including an assessment of the Chancellor of the Exchequer’s Autumn Budget on 22 November 2017.

Councillor McLennan informed Cabinet that, subject to the results of consultation and scrutiny, it is envisaged that the budget proposals set out in this report would then form the basis of the budget to be agreed at the Full Council meeting of February 2018. For the avoidance of doubt, all of the proposals included in this report were set out for Council in February 2017, together with the results of the consultation carried out leading up to that.

Councillor McLennan stated that no new budget proposals are recommended by way of this report and the position for 2018/19 is still broadly in line with that estimated in February 2017 and updated since.

Agreeing the proposals in this report, all of which were consulted on and agreed in February 2017 will enable the council to set a balanced budget in 2018/19, in accordance with the statutory obligations.

The report also asks Cabinet to take decisions necessary to enable the council to participate in the London Business Rates Pool should this be in the council’s interests.