Agenda item

Report of the Chief Executive (enclosed).

The Executive Member for Resources will be present at the meeting to answer any questions of the committee.

Members of the Committee considered a report on the 2017/18 draft budget and summary budget position over the medium term which was presented at the Executive Cabinet meeting on 19 January 2017.  The report detailed the relevant proposals in respect of:

·         The use of forecast resources identified in 2017/18

·         Budget consultation

Councillor Peter Wilson, Executive Member for Resources attended the meeting to give an overview of the proposals and answer any questions of the Committee.

It was reported that the budget forecasts over the next three years had been updated to take account of the following:

·         Council tax to be increased by 2% in 2017/18, 2018/19 and 2019/2020

·         The Draft Local Government Finance Settlement 2017/18 to 2020/21 published on 15 December 2016.

·         Progress against the current Medium Term Financial Strategy (MTFS) budget efficiency objectives including staffing reviews, contract savings and base budget reviews.

·         Policy decisions taken to reduce the budget deficit and the movement to specific reserved to help the Council manage change and invest in future income generation

·         Strategies to reduce the budget deficit in the medium term.

The Council had experienced significant reductions in funding since 2010/11.  The funding received through the finance settlement had fallen from £8.5m in 2010/11 to £5.7m in 2016/17 with a forecast settlement of £4.221m in 2019/20.  This figure excluded the New Homes Bonus grant that had recently been reduced by approximately £1.6m per year from 2018/19 onwards.

Despite the unprecedented decline in funding the Council had maintained effective budgetary planning so as to continue delivering investment in its priorities and maintain low Council Tax levels.

It was further reported that the Local Government Finance Settlement 2016 included core grant allocations for the forthcoming four years, from 2016/17 to 2019/20.  To aide its medium term budget planning the Council opted to accept the government’s offer of four year RSG allocations.  In accordance with government requirements an Efficiency Plan was agreed at the Council meeting in September 2016.

Other notable issues contained within the report included –

·         The revaluation on business in 2016 across the county increased by on average 6%, for Chorley Council’s valuation, the figure actually reduced by 7%.  This had led the government to reducing the Chorley Council’s tariff to create a budget neutral effect of the revaluations.

·         £339k of budget investment to be built into the base budget from 2017/18 onwards

·         Budget efficiency savings totalling £416k had been achieved and identified for 2017/18. 

·         Proposed changes to the waste and recycling collection services

·         The need to review and re-tender the Council’s major contacts

·         Achieve savings related to the Council’s Transformation Strategy

In summing up the Council’s budgetary position, the Executive Member for Resources reassured members of the Committee that although tough decisions had to be made, the authority was in a good position based on the assumptions detailed in the report. 

During debate, members of the Committee agreed that difficult decisions had to be made and that it was important for a contingency plan to be in place in anticipation of any further government announcement which would affect Council funding.  Members of the Committee noted that there was some budget saving potential in procurement and shared service arrangements.  The Executive Member for Resources also impressed the importance of the Council continuing to invest in major projects and events to generate income and attract businesses and home owners to the borough to ensure the Council’s stability. 

The consultation on the proposed budget for 2017/18 was due to close on 28 February.

The Chair thanked the Executive Member for Resources for attending the meeting and answering questions.

Agreed – That the report be noted.

At this point Councillor Debra Platt left the meeting.