Agenda item

DRAFT BUDGET 2016-17 (1.07.06)

Meeting of Community, People & Equalities Policy Development Group, Tuesday, 8th December, 2015 2.15 pm (Item 50.)

To receive a report from the Head of Finance to consider options available in order for the Council to set a balanced budget for 2016/17.

Minutes:

The Group had before it and NOTED a report * from the Head of Finance presenting options available for it to consider in order for the Council to set a balanced budget for 2016/17.

The Officer outlined the contents of the report stating that Service Managers had been tasked with producing savings and substantial savings had been found, however there was still a budget gap of £827k. It had been reported that the Treasury had reached agreement with four government departments, including the Department for Communities and Local Government, for an averageof 30% cut in government funding over the next four years. There was no question that the formula grant would be cut and it was now likely that the Revenue Support Grant of £1.7m would disappear entirely by 2019/20.

Consideration was given to the following table:

Reconciliation of Major 2016/17 Budget Variances

Variances	Amount £000
External items outside of our control
Reduced formula grant settlement	597
Increased pension contributions - auto enrolment	110
NIC rebate removed from contracted out pensions	180
NNDR GP surgery appeals	100
Pay award circa	100
Falling commodity prices for recycling	125
Subtotal	1,212
Other changes
Deficit on our 2015/16 budget taken from reserves	187
Increase in sinking funds for asset replacement	132
Increased interest payable	78
Decrease in Collection Fund surplus	32
Income from garden waste scheme	(250)
Increased leisure income	(155)
Increased income from investments	(102)
Contributions from town and parish councils	(100)
Increase Council tax income	(95)
Other net savings	(112)
Draft budget gap for 2016/17	827

Discussion took place regarding:

· Take up of the garden waste collection scheme had been higher than expected and to date 6000 permits had been sold, it was hoped that there would be further uptake in March;

· The salary bill was reduced by £130k due to redundancies;

· It was hoped that Devon County Council would enter an agreement for the savings made by a reduction in waste to landfill;

· Customer Services providing for more and more areas to be completed on line, which was a cheaper service to provide;

· Areas of uncertainty such as the level for the Council Tax Freeze Grant, the New Homes Bonus and the level of the Council Tax referendum;

· A number of assumptions such as the level of salary increase, car parking fees and income flows.

The Head of Finance explained that a further report would be presented in the New Year.

Note: - * Report previously circulated and attached to Minutes.

Supporting documents: