Decision details

The Mayor explained that this item and item 6. Fees and Charges Review 2019/20 will be considered at the same time.

Councillor Peter Wilson, Executive Member (Resources) presented the Executive's 2019/20 Draft Budget and Summary Budget position over the Medium Term and item 6. Fees and Charges Review 2019/20.

Councillor Wilson thanked the officers and the Labour Group for their hard work and input into the proposed budget.  Chorley Council has experienced and may continue to experience in the coming three years, large reductions in its major funding sources, particularly the Revenue Support Grant, New Homes Bonus and from Lancashire County Council. 

The uncertainty surrounding the future of local government finance, New Homes Bonus and Business Rate Retention are important considerations and reasonable assumptions must be made in planning for the future.  Despite the budget savings there remain large forecast budget deficits of £1.196m in 2020/21 and £1.672m in 2021/22. To achieve a sufficient reduction in net expenditure the Council’s strategy will be:

1.         To make the Council more financially self-sufficient with specific emphasis on creating investment that generates income. This includes identifying future uncommitted resources to support income generating schemes.

2.         To realise savings through the procurement of its contracts

3.         To identify the efficiencies through investment in infrastructure, ICT and through exploring alternative delivery models that will enable the Council to balance the budget whilst seeking to minimise the impact on front line service users

Councillor Wilson referred to the achievements of the Council in recent years and noted that the Council has maintained effective budgetary planning and delivered efficiency savings of £1.484m for 2019/20. This figure also includes additional income the Council has raised through sources other than Council Tax.

In addition to a balanced budget, there are proposals for investment to support the Corporate Strategy, including the creation of employment opportunities, the development of a Housing Company and improvements to Astley Hall through the Capital Programme.

In summary, the report set out proposals that will:

·                Mitigate the expected future reduction in Central Government funding by increasing Council Tax by 2.99% in 2019/20 and including a forecast 2.00% increase in 2020/21 and a forecast 2% increase in 2021/22 as part of the medium term budget strategy.

·                Deliver budget efficiency savings and increased income of £1.484m in 2019/20 onwards

·                Continue to deliver ongoing investment in strategic priorities of approximately £1m

·                Seek to bridge the forecasted budget gap, in particular through investing in projects that generate net income streams as well as the procurement of its contracts and through investment in its services, assets and staff enabling the council to deliver services more efficiently.

·                Set aside £300k to mitigate the impact that the UK leaving the EU could have on local businesses and Corporate Priorities.

·                Is consistent with the Council’s Corporate Strategy and Medium Term Financial Strategy.

·                Minimise the revenue impact of the council’s borrowing commitment to fund the capital programme.

The proposed budget builds on the success of previous years, ensures the resilience of the Council’s financial position and continues the provision of quality services. 

Councillor Wilson updated Members on an item referenced within Appendix H: Capital Strategy in relation to a plot of land, with planning permission for a replacement GP Practice in Whittle.  The land owned by St John’s Church has been for sale on the open market, to ensure compliance with Charity Commission Rules to ensure the Church receives best value.  When the agenda was published the offer had not been accepted, but following the bid and a subsequent clarification meeting the following heads of terms have been reached:

              £520,000       Land value

              £35,000         Other costs/fees and disbursements

              £15,000         Stamp duty and land tax

Total      £570,000

Councillor Wilson proposed the addition of the development of a GP Surgery at Whittle to the Capital Programme.  The scheme is currently included in the CIL 123 list and the allocation of the funding is an executive function.

Councillor Alistair Bradley, Executive Leader, highlighted the positive work undertaken with public sector partners within Chorley and that the investment undertaken has resulted in safer and healthier residents.  The delivery of key corporate strategy projects, including the Youth Zone and Market Walk extension were examples of what the Council has achieved, and the proposed budgets looks forward with ambition to do the best for Chorley residents. 

Before moving to the vote, the Mayor asked the Conservative Group to present their Statement of Opposition.