Agenda item

Draft Budget 2016/17 (00:11:41)

Meeting of Homes Policy Development Group, Tuesday, 1st December, 2015 2.15 pm (Item 45.)

To receive a report from the Head of Finance considering the options available in order for the Council to set a balanced budget for 2016/17 and agree a future strategy for further budget reductions for 2017/18 onwards.

Minutes:

The Group had before it, and NOTED, a report * from the Head of Finance considering options for the Council to set a balanced budget for 2016/17 and agree a future strategy for further budget reductions for 2017/18 onwards.

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

These figures had been based upon a number of assumptions:

1. Council Tax has been increased by 1.0% as an illustration and increased property growth.

2. Nil transfer from the general Fund Balance.

3. Most of the savings and cost pressures proposed in the budget review meetings had been included.

4. 2016/17 salary budgets include an increase of 1%

5. All earmarked reserves had been reviewed and adjustments made based upon existing need.

6. All income flows had been reviewed and adjusted for changes in demand and unit price.

7. Investment income had been

8. Investment income had been based upon the existing lending criteria now in force.

9. Support services had been inflated in accordance with the pay award.

10. No reductions to grant budgets had been made.

11. Car parking fees were based upon 2015/16 fees and vends.

A revised position would be presented to the Cabinet and Policy Development Groups in January 2016.

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

Supporting documents: