Issue - meetings

This report sets out Cabinet’s proposals for the capital and revenue budgets for 2019/20. In accordance with the Constitution, Council is required to approve the capital and revenue budgets, rent increases and council tax for 2019/20.

Discussion:

This report provided details of the revenue and capital budget proposals for 2019/20.

The Cabinet had considered initial budget proposals on 20 November 2018, which had been developed in accordance with the principles set out in the Medium Term Financial Strategy. In accordance with the budget and policy framework rules within the Constitution, the Overview and Scrutiny Committees had then considered the Cabinet’s proposals prior to Cabinet’s consideration of the draft budget on 5 February 2019.

It was noted that an overarching Diversity Impact Assessment, as set out in Appendix 8 to the report, summarised the results of the Diversity Impact Assessments which had been completed for each of the services affected by the proposed budget changes.

In his introduction, the Leader of the Council, Councillor Jarrett referred to an addendum report which was circulated to advise the Council of a correction required to the calculation of the Council Tax uplift and yield, a series of revisions to the budget requirement and a change to the schedule of Parish Council precepts, all of which were explained in the report and highlighted in bold in the revised recommendations at paragraph 2 of the addendum report and revised Appendices 1, 5, 6 and 6a.

The Leader highlighted additional revenue budget headroom as a consequence of these changes as follows:

The Leader also stated that he would be proposing additional capital schemes which would be funded from capital receipts with the exception of the purchase of the Pentagon Centre which would be funded by prudential borrowing. The Corn Exchange/Guildhall Museum, BRMF (Building Repairs and Maintenance Fund) and the Pentagon Centre related to additions to the 2018/19 Capital Programme whereas the other schemes related to the 2019/20 Capital Programme.

The Leader of the Council, Councillor Jarrett, supported by the Deputy Leader and Portfolio Holder for Housing and Community Services, Councillor Doe, proposed the recommendations set out in section 2 of the addendum report, together with the following detailed changes listed below in relation to recommendations 2.3 and 2.4 of the addendum report:

“Revenue Budget:

More detail to support the revised figures as reflected in the total net expenditure in recommendation 2.3 and shown in the revised summary table at appendix 1 of supplementary agenda 1:

Capital Budget:

Approve the proposed capital programme as set out in Appendix 3 and section 12 of the original report, amended for the additional capital schemes outlined below:

Background:

This report presented proposals for the capital and revenue budgets for 2019/2020.

It was noted that the Cabinet had considered initial budget proposals on 20 November 2018, which had been developed in accordance with the principles set out in the Medium Term Financial Strategy (MTFS). The MTFS had identified a potential revenue shortfall of £3.189 million in 2019/2020 rising to £16.330 million by 2022/2023.

The report stated that the proposed revenue budget requirement of £298.403 million (as set out in Appendix 2 to the report) exceeded the estimated available resources by £660,900. However, options were being considered to address this prior to the Council’s budget setting meeting on 21 February 2019. 

The proposed capital programme for 2019/2020, incorporating existing schemes and anticipated funding allocations, was £229 million. An overall summary and a summary by directorate of the proposed capital programme were attached at Appendix 4 to the report.

It was noted that budget proposals had been referred to all the Overview and Scrutiny Committees for consideration. The Overview and Scrutiny Committees’ views together with the recommendations of the Business Support Overview and Scrutiny Committee (31 January 2019) were set out for Cabinet in an addendum report.

The schedule of fees and charges was set out in Appendix 6 to the report.

The report set out the requirements under equality legislation and it was noted that an overarching Diversity Impact Assessment would be included in the budget report to Full Council on 21 February 2019.

Reasons:

The constitution requires that Cabinet’s budget proposals must be forwarded  ...  view the full minutes text for item 9