Decision details

The Cabinet had before it a * report of the Head of Finance outlining options available in order for the Council to move towards a balanced budget for 2016/17.

The Cabinet Member for Finance outlined the contents of the report explaining  that the final  grant settlement had now been received (9 February) and that the authority would now receive £349k more in Rural Services Delivery Grant and £32k in Transition Grant for 2016/17. In addition the DCLG had slightly revised the Referendum Limit to allow all District Councils to increase their share of the Council Tax by no more than 2% or up to a cash maximum of £5. This would effectively allow the authority to increase its band D level of Council Tax from £182.15 (which had been frozen since 2010/11) to £187.15, which would equate to an increase of 2.74% and generate additional Council Tax revenue of circa £34.4k. Therefore a reduced amount of the New Homes Bonus would be required to balance the budget.

Consideration was given:

·         to the 1% reduction in housing rent that the Government had introduced and the impact of that on how the authority maintained its housing stock

·         the need to keep reserves at a decent level

·         the fact that Council Tax had been frozen for several years.

RECOMMENDED  that:

a)        Council Tax be increased by 2.74% to £187.15 (in accordance with the revised referendum limit ability of £5.00) and,

(Proposed by Cllr P H D Hare-Scott and seconded by Cllr N V Davey)

Note:  *Report previously circulated, copy attached to minutes.