Agenda item

Report of the Chief Executive.

Approval granted to start the Budget Consultation process and note the following proposed budget items, in particular:

·                     Council Tax to be frozen in 2016/17

·                     The proposed new investments for 2016/17

·                     The balanced budget position for 2016/17

·                     The forecasted budget position to 2017/18

The report of the Chief Executive was presented by the Executive Member (Resources), Councillor Peter Wilson.

It was proposed that Council Tax be frozen and not increase in 2016/17.  This would be the fourth consecutive year that the current administration had achieved a balanced budget position for the forthcoming financial year without increasing Council Tax.

The recent Local Government Finance Settlement included provisional core grant allocations for the forthcoming four years, from 2016/17 to 2019/20. The announcement continued the programme of Central Government core grant reductions across all four years adding to previous cuts. The Revenue support Grant would also be reduced to zero over this time.

Due to the successful implementation of the MTFS, budget efficiency savings

totalling £0.214m have been applied to the budget to achieve a balanced budget position for 2016/17 achieved mainly by the Council entering into a Business Rates Retention Pooling agreement within Lancashire effective from 1st April 2016.

In addition contributing to the New Investment Packages for 2016/17, totalling £2.845m for both Revenue and Capital projects, the New Homes Bonus also provides an opportunity for the Council to invest in three other additional areas to protect public services within the borough and increase financial resilience given the revolutionary funding changes.

A budget of £0.500m would be available for the next two years to assist in the transactional period public services currently provided for and funded by Lancashire County Council and a £0.500m provision per annum to increase General Balances to mitigate against the financial risk of a core grant income shift to 100% local taxation sources. £0.603m would all be available for use to invest in projects that will provide income streams to the Council.

Potential investment proposals were summarised in the report and set out in detail in project mandates. Funding has been achieved by not building all the New Homes Bonus income received since 2013/14 into the base budget. An approach taken to enable the council flexibility and resilience in order to address the volatile and variable nature of future core funding which continues to be under review by Central Government. The latest round of projects would bring the total new investment on the Councils corporate priorities to £12.008m since 2013/14

The consultation on the proposed budget would focus on obtaining feedback on the key investment areas in order to help prioritise activity.  It would also highlight the impact of a reduction in Council funds and ask residents to give the Council their views on the budget.  The consultation would invite responses from residents, partners, parish groups and other stakeholders through a variety of methods including a short survey.  Results would be analysed and published in February for consideration as part of budget finalisation. 

The Executive Leader commented on the ambitious nature of the budget and Members supported the projects proposed. 

Decision: Approval granted to start the Budget Consultation process and to note the following proposed budget items, in particular:

·                     Council Tax to be frozen in 2016/17

·                     The proposed new investments for 2016/17

·                     The balanced budget position for 2016/17

·                     The forecasted budget position to 2017/18

Reason for recommendation(s)

To progress the Council’s 2016/17 Budget setting process to achieve an approved and balanced budget.

Alternative option(s) considered and rejected

Setting the budget is a statutory responsibility.