Agenda item

Capital and Revenue Budgets 2017/18

Minutes:

Background:

This report presented proposals for the capital and revenue budgets for 2017/2018.

It was noted that the Cabinet had considered initial budget proposals on 22 November 2016, which had been developed in accordance with the principles set out in the Medium Term Financial Plan which had identified a potential revenue shortfall of some £11.7m for 2017/2018.

The report stated that local authorities such as Medway would also be able to continue to apply the social care precept. However such local authorities would now be able to increase Council Tax by up to an additional 3.0% per annum in 2017/18 and 2018/19. Local authorities that took advantage of this further flexibility would not be able make a further increase in 2019/20, as the total allowable increase over the three-year period would remain at 6.0%. The budget proposed by Cabinet would be based upon the Council availing itself of this additional flexibility and raising Council Tax by 4.994% in 2017/18.

The report stated that the proposed revenue budget requirement of £293.044m (as set out in Appendix 2 to the report) exceeded the estimated available resources by £958,400. However, options were being considered to address this prior to the Council’s budget setting meeting on 23 February 2017.

The proposed capital programme for 2017/2018, incorporating existing schemes and anticipated funding allocations, was £74.621m. 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 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 23 February 2017.

Decision number:	Decision:
	The Cabinet noted the recommendations from overview and scrutiny committees as summarised in the Addendum Report.
5/2017	The Cabinet agreed to recommend to Council that the net revenue budget summarised at Appendix 2 to the report, amounting to £293.044 million, should be adopted and that this be funded by a 4.994% increase in Council Tax for 2017/18 with the equivalent Band D figure at £1,296.56. Final proposals to address the £958,400 deficit would be reported to Council on 23 February 2017.
6/2017	The Cabinet agreed to recommend to Council the capital budget proposals, as set out in Appendix 4 to the report.
7/2017	The Cabinet agreed to recommend to Council the fees and charges set out in Appendix 6 to the report.
8/2017	The Cabinet agreed that the Chief Finance Officer be requested to calculate the formal requirements under Sections 30 to 36 of the Local Government Finance Act 1992 for resolution by Special Council on 23 February 2017.

Reasons:

The constitution requires that Cabinet’s budget proposals must be forwarded to Council for consideration and approval.

The Council is required by statute to set a budget and council tax levels by 11 March each year.

Supporting documents: