Agenda item

The purpose of this report is to set out the Council’s budget proposals for 2018/19 and to update the medium-term budget outlook.  It also sets out the results of the consultation and scrutiny processes.  Subject to discussion at the Cabinet meeting these will form the basis of the budget to be agreed at the Full Council meeting of 26 February 2018.

It was RESOLVED:

7.1       That an overall 4.99% increase in the Council’s element of council tax for 2018/19, with 2% as a precept for Adult Social Care, and a 2.99% general increase be recommended to Full Council for approval;

7.2       That the General Fund revenue budget for 2018/19, as summarised in Appendix A, be recommended to Full Council for approval;

7.3       That the cost pressures, technical adjustments and savings detailed in Appendix B, be noted;

7.4       That the Dedicated Schools Grant as set out in section 9 of the report, be noted;

7.5       That the report from the Budget Scrutiny Panel in Appendix C, be noted;

7.6       That the capital programme as set out in Appendix D be recommended to Full Council for approval;

7.7       That the Treasury Management Strategy and the Annual Investment Strategy for 2018/19 set out in Appendix E, be recommended to Full Council for approval;

7.8       That the Prudential Indicators measuring affordability, capital spending, external debt and treasury management set out in Appendix F, be noted;

7.9       That the advice of the Director of Legal and HR as set out in Appendix G, be  noted;

7.10    That the schedules of fees and charges set out at in Appendix H, and the proposed new fees and charges policy, including the officer delegated powers to which it refers be agreed, and where relevant, be recommended to Full Council for approval;

7.11    That the results of the consultation, as set out in section 7, and detailed in Appendix I, be noted; and

As per the Chief Finance Officer’s briefing on the final local government finance settlement which was provided verbally at the meeting:

7.11A              It be noted that the final local government settlement contained changes from the draft settlement on which the report was based and the Chief Finance Officer be authorised to do the following:

(i)            amend the figures at 2.24(a) and 2.24(b) of the report to reflect this, subject to these changes being equal and therefore not affecting the calculation of the council tax, which is presented at 2.24(c) and 2.24(d); and

(ii)          to make consequential (but no other) changes to other numbers and statutory calculations in the report, and such minor factual changes to the narrative reporting as may be required.

Councillor McLennan (Deputy Leader of the Council) introduced the report which set out the Council’s key budget proposals for 2018/2019 before being presented to Full Council on 26 February for formal approval. She noted that the Council was to be asked to re-confirm the proposed savings agreed at the budget setting meeting in February 2017, plus agree an additional one percent Council Tax increase. Members’ heard that the subsequent increase in Council Tax had arisen from the government having recently raised the Council Tax ‘referendum limit’ for Councils from two to three percent, and that Brent had adjusted its budget proposals accordingly to incorporate this.

The Chair invited Councillor Kelcher (Chair of the Resources and Public Realm Scrutiny Committee) to speak on the Budget Scrutiny Task Group Report. Councillor Kelcher asked Cabinet for an update on the task group’s recommendation to advocate a form of sub-regional investment within the proposed London-wide business rates retention pool, and also how the Council planned to spend any dividend which might arise from the savings identified. Conrad Hall (the Council’s Chief Finance Officer) provided further detail on how the investment strategy within the business rates retention pool was expected to work in practice and also outlined that he expected that the Council would consider how any additional income from savings would best be allocated over the coming year.

Conrad Hall also provided Members’ with additional information on the final Local Government Finance Settlement which had been announced after the Cabinet agenda pack had been published. He drew Members’ attention to some of the differences from the provisional settlement, which included: an additional £800,000 allocated to Brent via the Adult Social Care Support Grant; and that the Valuation Office Agency (VAO) had adjusted its recent errors to the figure for re-distributed non-domestic rates (business rates) which had resulted in a loss of income for Brent of £12,280.02. He tabled an additional recommendation to the report which delegated authority to him in order to enact some of the technical changes to the budget so that these recent updates could be reflected.

Cabinet Members Miller, Farah, Hirani and Tatler spoke respectively in support of the budget proposals. Members outlined that it was a prudent budget which reflected the values of the Labour Party despite continued funding cuts from central government, and that the Council Tax rise was necessary due to service pressures on the authority - particularly within both adult and children’s social care.

Councillor McLennan placed on record her thanks to the Council’s Finance Department for their work in preparing the budget. Councillor Butt (Leader of the Council) thanked Cabinet Members, residents and the Scrutiny Task Group for their input into the process. He concluded by highlighting the growth pressures and financial risks facing Council services which made it necessary to deliver a balanced budget for its residents and endorsed the report’s recommendations to Members.

It was RESOLVED:

8.1       That an overall 4.99% increase in the Council’s element of council tax for 2018/19, with 2% as a precept for Adult Social Care, and a 2.99% general increase be recommended to Full Council for approval;

8.2       That the General Fund revenue budget for 2018/19, as summarised in Appendix A, be recommended to Full Council for approval;

8.3       That the cost pressures, technical adjustments and savings detailed in Appendix B, be noted;

8.4       That the Dedicated Schools Grant as set out in section 9 of the report, be noted;

8.5       That the report from the Budget Scrutiny Panel in Appendix C, be noted;

8.6       That the capital programme as set out in Appendix D be recommended to Full Council for approval;

8.7       That the Treasury Management Strategy and the Annual Investment Strategy for 2018/19 set out in Appendix E, be recommended to Full Council for approval;

8.8       That the Prudential Indicators measuring affordability, capital spending, external debt and treasury management set out in Appendix F, be noted;

8.9       That the advice of the Director of Legal and HR as set out in Appendix G, be noted;

8.10    That the schedules of fees and charges set out at in Appendix H, and the proposed new fees and charges policy, including the officer delegated powers to which it refers, be agreed, and where relevant, be recommended to Full Council for approval;

8.11    That the results of the consultation, as set out in section 7, and detailed in Appendix I, be noted; and

As per the Chief Finance Officer’s briefing on the final local government finance settlement, which was provided verbally at the meeting:

8.11A              It be noted that the final local government settlement contained changes from the draft settlement on which the report was based and the Chief Finance Officer be authorised to do the following:

(i)            amend the figures at 2.24(a) and 2.24(b) of the report to reflect this, subject to these changes being equal and therefore not affecting the calculation of the council tax, which is presented at 2.24(c) and 2.24(d); and

(ii)        to make consequential (but no other) changes to other numbers and statutory calculations in the report, and such minor factual changes to the narrative reporting as may be required.