Decision details

Councillor Peter Wilson, Executive Member (Resources) presented the Executive's General Fund Revenue and Capital Budget and Council Tax proposals for 2018/19 and item 7. Fees and Charges Policy and a Review of Fees and Charges.  He explained that both items would be considered at the same time. 

Councillor Wilson thanked the officers and the Labour Group for their hard work and input into the proposed budget.  He referred to the achievements of the Council in recent years, investing significant sums in the provision of services, both in the town centre and rural areas, noting this was achieved during a period of austerity and the requirement to make £3 1/2 million in savings. 

Councillor Wilson explained that the budget had resilience for the future.  Chorley Council has experienced, and will continue to experience in the coming three years, large reductions in its major funding sources, including Revenue Support Grant, Retained Business Rates, New Homes Bonus and income from LCC.  The forecast budget deficit for 2019/20 is £1.6m and £2.2 in 2020/21. 

Through savings achieved to date, additional income identified, a review of net financing, the use of unutilised reserves and increases in council tax the Council is able to set a balanced budget in 2018/19 with some resources available to invest. 

The proposed budget is consistent with the Medium Term Financial Strategy and safeguards the financial resilience of the Council’s maintaining the level of working balances at £4.0m.

Councillor Wilson explained that, in addition to a balanced budget, there are proposals for investment to support the Corporate Strategy.  This includes the delivery of the Digital Office Park, Primrose Gardens extra care facility and the delivery of the Market Walk extension.  The Council is working with partners to deliver some of these projects. 

Councillor Bradley, Executive Leader of the Council, noted that the majority of Lancashire Districts are increasing their council tax. The proposed budget is in line with an agreed plan to become self-sufficient and to invest in the services that residents want. 

In summary, the report set out proposals that will:

·         Mitigate the reduction in Central Government funding by increasing Council Tax by 2.99% in 2018/19 and including a forecast 2.99% increase in Council Tax in 2019/20 and a forecast 2% increase in 2020/21 as part of the medium term budget strategy.

·         Deliver budget efficiency savings and increased income in 2018/19 onwards

·         Continue to deliver investment in strategic priorities including £0.897m in 2018/19 and £0.673m in 2019/20

·         Seek to bridge the forecasted budget gap, in particular through the procurement of its contracts, through sharing services with other councils and investing in projects that generate net income streams for the Council.

·         Is consistent with the Medium Term Financial Strategy.

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

·         Safeguard the financial resilience of the Council’s budget by maintaining the level of working balances at £4.0m.

The following appendices were attached to the main report on the General Fund Revenue and Capital Budget and Council Tax for 2018/19, providing supporting information to the budget proposals:

Appendix A: Formal Council Tax Resolution 2018/19

Appendix B: Special Expenses & Parish Precepts 2018/19

Appendix C: Delivering Our Priorities - Chorley Council Medium Term Financial Strategy 2018/19 to 2020/21

Appendix D: Cumulative Budget Deficit & Budget Strategy 2018-19 to 2020-21

Appendix E: Variance Analysis - Movements from 2017-18 Original Estimates

Appendix F: General Fund Forecast Assumptions

Appendix G1 to G3: Capital Programme 2017/18 to 2020/21, Capital Financing, Developer Contributions

Appendix H: Treasury Strategy 2018/19 to 2020/21

Appendix H1: Advice of Treasury Management Consultants

Appendix I: Pay Policy 2018-19

Appendix J: Report of the Chief Finance Officer

Appendix K: Budget Consultation 2018/19

Appendix L: Assessing the impact of 2018/19 Budget proposals

There were no questions raised on the Administration’s Budget Proposal. 

Before moving to the vote, the Mayor asked the Conservative Group to present their Alternative Budget.