58 Budget 2018/19 - Update PDF 215 KB
To receive a report from the Director of Finance, Assets and Resources reviewing the revised draft budget changes which have been identified and to discuss any further changes required in order for the Council to move towards a balanced budget for 2018/19.
Additional documents:
Minutes:
The Group had before it, and NOTED, a report * from the Director of Finance, Assets & Resources which had been presented to the Cabinet on 4 January 2018. This report reviewed the revised draft budget and discussed any further changes required in order for the Council to move towards a balanced budget for 2018/19.
The draft budget had been presented to the Group at their November meeting. This had indicated a budget gap of £617k and had been based on a range of assumptions, the updated report before the Group for this meeting took into account the formula grant settlement. Other factors affecting the draft budget included the following:
· There was an indicative pay award of 2% which would add an additional £160k to the pay bill, however this was not straightforward in that there would be an increase of circa 5% for those on grades 4 or 5.
· The Council had been successful in its bid to be a 100% Business Rate Pilot and some initial modelling had predicted that this could see £230k of extra business rates being kept within Mid Devon. The caveat to this was that this was only a 12 month pilot and it therefore presented a possible revenue risk.
· The Government had increased the referendum limit to 3% (the amount the Council could increase Council Tax by) which could deliver an extra £21k.
· The Government had reaffirmed its reduction to New Homes Bonus (NHB) from a 6 year dowry to a 4 year dowry, this would reduce NHB from £1.8m to £1.1 next year. A number of sinking funds in the revenue budget would therefore be under greater strain.
Discussion took place regarding:
· The Broadband project budget had reduced to £60k from £100k in the first draft budget presented to the Group in November 2017. It was explained that an opportunity to explore superfast Broadband was moving forwards and this was the level of funding that would be required in the initial stages.
· The pay settlement could create a significant pressure on the bottom line.
· The efficiency agenda could only take the Council so far, there would need to be an honest reality check in the coming months and an understanding that the way some services were delivered would need to be re-thought.
Note: * Report previously circulated; copy attached to the signed minutes.