Issue - meetings

Draft 18/19 General Fund and Capital Programme

Meeting: 26/10/2017 - Cabinet (Item 72)

72 Draft 18/19 General Fund and Capital Programme (1-07-11) PDF 498 KB

To consider a report of the Director of Finance, Assets and Resources outlining options available in order for the Council to set a balanced budget for 2018/19 and agree a future strategy for further budget reductions for 2019/20 onwards.

Additional documents:

GF Budget Report 2018-19 - Capital, item 72 PDF 693 KB

Minutes:

The Cabinet had before it a * report of the Director of Finance, Assets and Resources considering options available in order for the Council to set a balanced budget for 2018/19 and providing a strategy for further budget reductions in 2019/20 onwards.

The Cabinet Member for Finance outlined the contents of the report stating that the initial aggregation of all service budgets (which included assumptions surrounding predictions for interest receipts, contribution to the capital programme, transfers to/from reserves and council tax levels) currently indicated a General Fund budget gap of £617k. Members discussed the following table which showed the main budget variances affecting the 2018/19 draft budget:

Variances	Amount £k
External items outside of our control
Reduced formula grant settlement	318
Decrease in Housing Benefit Grant and increase in associated costs	57
Pay Award and pension increases	239
Rural Services Delivery grant	86
Transition Grant	32
Subtotal	732
Other changes
Increase in service cost pressures	317
Not utilising New Homes Bonus to balance the budget	89
Increase in property sinking funds	100
Interest payments on loans for new leisure equipment	45
Service cost reductions	(108)
New or increased income identified by service managers	(272)
Increase in Council Tax income (£5 rise + 370 new properties)	(212)
Net recharge to HRA	(108)
Minor changes	34
Draft budget gap for 2018/19	617

Consideration was given to

· Newly purchased properties

· The shortfall in Government funding and the need to increase income

· Options already being considered to address the shortfall.

RESOLVED that the contents of the report be NOTED and that ongoing work to address the budget gap be acknowledged.

(Proposed by Cllr P H D Hare-Scott and seconded by Cllr C R Slade)

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