Issue - meetings

Background:

This report provided details of the provisional local government settlement announced by Government on 19 December 2017 together with the impact on the Council’s proposed budget for 2018/2019 as underpinned by the Core Spending Power calculation, as set out in table 1 to the report.

It was noted that two announcements made as part of the provisional local government settlement could have significant implications for setting the 2018/19 revenue budget. These were an increase in the referendum limit for Council Tax, from 2% to 3% and the successful bid for a pilot scheme, in a pooled arrangement with Kent County Council, Kent Fire and Rescue Service and the twelve lower tier Kent authorities, for 100% business rate retention.

With regards to the Government’s “Fair Funding Review: a review of relative needs and resources”, it was noted this would be implemented in the 2020/21 financial year.  The business rates baseline would be reset in 2020/21, with the introduction of a 75% business rates retention scheme. Several existing grants, including Revenue Support Grant and Public Health Grant would be incorporated into the scheme. The report noted that within the business rates retention system, the Non Domestic Rates (NDR) baseline and top up and tariff amounts had been amended to reflect Revaluation 2017. The implications on business rates within Medway were set out at section 4 to the report.

The report also provided details of the impact on other grants.

Reasons:

These provisional levels of grant are a fundamental component of the 2018/19 budget, and their announcement is a further stage in the process of preparing a balanced budget.