Agenda item

Members of the Committee are requested to bring their copy of the agenda for the Executive meeting on 8^th February 2017.

The Committee looked at the following reports on the Part 1 agenda for the Executive’s meeting on 8^th February 2017.

(1) 2017/18 Council Tax

Report FSD17016

Final issues affecting the 2017/18 revenue budget were outlined in Report FSD17016 with recommendations sought to full Council on the level of the Bromley element of the 2017/18 Council Tax and Adult Social Care precept. The final GLA precept would be confirmed to the full Council meeting on

20th February 2017. Final approval of the “schools budget” was also sought.

The approach reflected in the report was for the Council to not only achieve a legal and financially balanced budget in 2017/18 but to have measures in place to deal with the medium term financial position (2018/19 to 2020/21).

Introducing the report, the Director of Finance referred inter-alia to the level of funding in the latest local government finance settlement. The Council continued to lobby Government on its low level of funding even though it maintained a low cost position. The Leader of the Council had recently discussed the matter with Gavin Barwell MP, Minister of State for Housing and Planning and Minister for London.

The Draft 2017/18 and future years financial forecast assumes a Bromley element council tax increase of 1.99% per annum and an increase for the adult social care precept of 2% (total of 3.99%). Subject to any further inflationary pressures being addressed and key costs pressures such as, for example, social care being contained, a balanced budget was expected for the next two years. 

With a total allowable increase of 6% over the three year period 2017/18 to 2019/20, a 2% increase per annum was assumed in the forecast. The Government have not specified, at this stage, the additional conditions relating to the option of a front loaded 3% increase in 2017/18. The Chairman supported the approach assumed in the draft 2017/18 Budget on grounds of consistency and being able to plan ahead. 

The recent announcement by Surrey County Council to hold a referendum on a 15% Council Tax rise reflected concern for a reduced level of grant against significant social care cost pressures. However, such a course was not considered appropriate for L B Bromley. Referendum costs were high and the amount could be used to fund services. Within the public sector local government appeared to be a lower funding priority, although revenue from the New Homes Bonus had particularly benefitted District Councils (without Social Care and Education costs). There was a view across local government that current pressures needed to be recognised. 

A Member explored the significance and definition of earmarked reserves seeking clarification on their levels and the level of total reserves. Legislation identifies the reporting and treatment of general and earmarked reserves and they are measures used by central government and the National Audit Office in considering the revenue reserves available to a Council. It was not possible to use capital reserves for revenue purposes and some of the revenue reserves are not within the council's direct control. On any scope to capitalise further reserves, it was confirmed that transformation costs could now be capitalised.  

In concluding debate, Members encouraged the Executive to support the recommendations in Report FSD17016 for onward referral to full Council.

RESOLVED that the recommendations to the Executive be supported.

(2)  Capital Programme Monitoring Q3 2016/17 and Annual Capital Review 2017 – 2021

Report FSD17020

Members noted the current position on capital expenditure and receipts following the third quarter 2016/17. Recommendations in the report, including those to Council, were also noted. 

RESOLVED that the recommendations be noted.