Issue - meetings

To receive a report from the Director of Finance, Assets & Resources considering the 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.

The Group had before it, and NOTED, a report from the Director of Finance, Assets & Resources considering the 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.

The current draft budget gap for 2018/19 showed a deficit of £617k and a reconciliation of the major budget variances was contained within the report. 2018/19 would be the third year of a four year fixed funding settlement which would see a further reduction of £318k and then the complete removal of the remaining Revenue Support Grant of £179k by 2019/20.

Reference was made to a number of budget pressures including the pay award and reductions to various grants. The Business Rate revaluation exercise had impacted on the Council quite adversely, meaning that it had to pay more. The New Homes Bonus would be reduced from next year meaning that retaining sinking funds for the replacement of assets was all the more problematic. It was further explained that the budget gap would have been a great deal higher had managers not come forward with proposals for savings. There were still a number of issues that had not yet been resolved or were still to be fully evaluated, these were listed within the report.

The Group were informed that budget briefings would be held at the beginning of December in both Tiverton and Crediton and that a Members Away Day focussing on the budget was scheduled for early January 2018. There would therefore be ample opportunity for Members to contribute to the budget setting process.

Consideration was given to the following:

·         The continuation of work with the Town and Parish Councils; co-operation was vital.

·         The maximum amount a district council could increase Council Tax by was limited to 1.99% (or £5). However, the Council only got to keep 11.2% of the Council Tax it collected whereas every pound raised by Town and Parish Council’s as part of their precept could be retained.

·         Discretionary versus non-discretionary services and the need for honest and difficult conversations to take place.

Note: * Report previously circulated; copy attached to the signed minutes.