Agenda item

Report FSD19001

The Executive received a report setting out the initial draft 2019/20 Budget including the full year effect of changes agreed as part of the 2018/19 Council Tax report including savings approved during the year with the resultant impact on the Council’s medium term budget gap.

A key part of the financial strategy was to highlight the budget issues that would need to be addressed by the Council over the coming financial years, by forecasting the level of available resources from all sources and budget pressures relating to revenue spending. Details of the capital programme were reported separately to Executive.

The views of PDS Committees would be sought and reported back to the next meeting of the Executive, prior to the Executive making recommendations to Council on the 2019/20 Council Tax and Adult Social Care precept levels.

The report provided details of the final year of the four year Local Government Financial settlement (2016/17 to 2019/20), the impact of the Chancellor’s Autumn Budget 2018 and the Provisional Local Government Financial Settlement 2019/20.

There  were still outstanding issues and areas of uncertainty remaining. Any further updates would be included in the 2019/20 Council Tax report to the next meeting of the Executive.

The report had been scrutinised by the Executive, Resources and Contracts PDS Committee at its meeting on 8^th January 2019, and the Committee had supported the proposals.

RESOLVED that

(1) The initial draft 2019/20 Budget detailed in Appendix 7 to the report be agreed.

(2) The initial draft 2019/20 Budget for each portfolio be referred to the relevant PDS Committees for consideration.

(3) The financial projections for 2020/21 to 2022/23 be noted.

(4) It is noted that there are still areas of financial uncertainty which will impact on the final 2019/20 Budget and future year forecasts.

(5) The setting of the schools budget, mainly met through Dedicated Schools Grant, be delegated to the Education, Children and Families Portfolio Holder, allowing for consultation with head teachers, governors and the Schools Forum (see section 11 of the report.)

(6) It is noted that the outcome of consultation with PDS Committees will be reported to the next meeting of the Executive.

(7) The outcome of the public consultation meetings detailed in Appendix 9 to the report be noted.

(8) The proposed contribution of £248,886 in 2019/20 to the London Boroughs Grant Committee be agreed (see section 10 of the report.)

(9) The outcome of the Provisional Local Government Financial Settlement 2019/20 be noted as detailed in the report.

(10) The significant budget gap remaining of an estimated £32.2mper annum by 2022/23 and that any decisions made for the 2019/20 Budget will have an impact on the future year projections be noted.

(11) It is noted that any final decision by Executive on recommended council tax and social care precept levels to Council will normally be undertaken at the next meeting of Executive.

(12) It is agreed to proceed with the London Business Rate Pilot 2019/20, and authority be delegated to the Director of Finance in consultation with the Director of Corporate Services, Leader of the Council and the Portfolio Holder for Resources, Commissioning and Contracts Management, in relation to the operational details of the London Business Rate Pilot pooling arrangements with the participating authorities.