Issue - meetings

Report of Councillor Mattock on behalf of the Cabinet.

Please note that the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 require named votes to be taken and recorded when setting the annual budget and council tax, this to include substantive motions and any amendments.

This matter was reported and proposed by Councillor Mattock on behalf of the Cabinet and seconded by Councillor Tutt.The Council considered the reports to Cabinet, as included in the draft budget book and also the Cabinet minutes and resolutions from the meeting held on 4 February 2015. The budget proposals were also reported to the Scrutiny Committee on 2 February 2015 where no comments or proposals for change were made.

The Council expressed its thanks and appreciation for the work undertaken by the Chief Finance Officer and his team in the preparation of the draft budget.

The following amendment was proposed by Councillor Elkin and seconded by Councillor West:

“We propose that a budget (Fund) is set up to enable bids from Eastbourne residents to support either the setting up of their own small business or expanding an existing one with the purpose of creating jobs in Eastbourne, with priority being given to existing empty properties.  The Fund to be ring fenced to Eastbourne post codes. We propose to fund that budget by reducing the General Reserves by £1m from £4m to £3m.  The Fund therefore being £1m.”

This amendment was lost by 13 votes to 10 with 1 abstention. The named voting record was as follows:

For: Councillors Ansell, Ede, Elkin, Howlett, Jenkins, Liddiard, Murdoch, Taylor, Warner and West.

Against: Councillors Bannister, Harris, Hearn, Mattock, Miah, Murray, Shuttleworth, Stanley, Tester, Thompson, Tutt, Ungar and Wallis.

Abstentions: The Mayor

Resolved: (By 21 votes to 0 with 3 abstentions) That approval be given to the following:

1.        The recommendations as detailed in the reports from the Chief Finance Officer and the Senior Head of Community to Cabinet on 4 February 2015:

(i)                      The General Fund net expenditure for 2015/16 of £15,245,200 and the growth and savings proposals.

(ii)                     No change to the council tax for Eastbourne Borough Council to a Band D charge of £224.19.

(iii)                    Housing Revenue Account (HRA) income and expenditure proposals, including revised HRA budget for 2014/15 and the budget for 2015/16, rents and service charges, arrangements for finalising Eastbourne Homes’ management fee and annual plan.

(iv)                   General Fund capital programme as set out in the report of the Chief Finance Officer.

(v)                    The Treasury Management Strategy and Prudential Indicators.

2.        That consequent upon a General Fund budget of £15,245,200 and other matters, the basic amount (Band D) of council tax for the Borough Council’s functions will be £224.19 calculated as follows:

The statutory resolutions relating to this matter are given at paragraphs 3 and 4 below.

3.        That it be noted that at its meeting on 10 December 2014 the Cabinet (in exercise of powers delegated to them by the Council) delegated the final determination  ...  view the full minutes text for item 51

Report of Deputy Chief Executive and Chief Finance Officer.

Cabinet lead member:  Councillor Gill Mattock.

Full Council recommended to approve (a) a general fund budget for 2014/15 (revised) and 2015/16 (original) as set out in appendix 1 to report, including growth and savings proposals for 2015/16 as set out in appendix 2 to report; (b) no increase in council tax for Eastbourne Borough Council resulting in an unaltered ‘Band D’ charge of £224.19 for 2015/16; (c) a general fund capital programme and financing 2014/18 as set out in appendix 3 to the report.

54.1 Cabinet considered the report of the deputy chief executive and chief finance officer setting out the general fund revenue budget proposals for 2015/16 and a 3-year capital programme 2014/18.  The medium term financial strategy (MTFS) had been revised in July 2014 and the cabinet had agreed a draft 2015/16 budget proposal last December. The MTFS and resulting draft budget had been subject to extensive consultation and previously reported to cabinet and members of the scrutiny committee.  Scrutiny committee, at their meeting on 2 February 2015, made no comments and noted the report.

54.2 The budget was the product of various plans and strategies as part of an integrated and corporate planning process and was linked principally to:

·         The medium term financial strategy

·         Asset management plans

·         The corporate plan

·         Workforce strategy

·         Treasury management strategy

·         Service plans

·         Housing revenue account business plan

·         DRIVE corporate transformation programme

·         Sustainable service delivery strategy

54.3 The chief finance officer had a legal responsibility to give positive assurances on the robustness of the estimates used in the budget and the level of reserves.  He commented that if the recommendations in his report were agreed then these assurances would prevail.

54.4 The budget proposals included:

·         No increase in the council tax in 2015/16.

·         Overall savings totalling £1.5m (9% of the net budget).

·         Efficiency savings of £1 (6% of the net budget).

·         Inflation of £0.6m (4% of the net budget).

·         Other recurring service growth of £0.4m.

·         Non recurring service investments of £0.5m.

·         General reserves averaging in excess of £4m (against a minimum recommended of £2m).

·         Capital receipts of £0.8m invested in new capital schemes.

54.5 The budget represented management of financial risks by:

·         Building on a favourable outturn position.

·         Balancing the base budget requirement without needing to use reserves for recurring expenditure.

·         Identifiable and deliverable savings with accountability and no general unidentified targets.

·         Reserves well above the minimum level.

·         Zero basing of minor reward grants.

·         Providing the funding required for the DRIVE change programme to deliver the future savings required by the MTFS via the strategic change fund.

54.6 The underlying methods of local government financing were changing significantly from 2013/14 and 2014/15 onwards and included the wrapping up of grants in the base “Start Up Funding” notably:

• The localisation of council tax grant (previously £1.2m).
• The council tax freeze grants.
• Some new burdens grants.

For Eastbourne the headline figures of the government settlement were:

• A reduction in revenue support grant (RSG) of £1.2m (30%).
• Partially offset by new homes bonus (NHB) (additional £0.2m in 2015/16). 

54.7 The national non-domestic business rate base had increased slightly (£0.2m), largely as a result of the inflationary increase which had been capped at 2%.  In addition to the formula grant, the government was financing the cost of a 1% increase in council tax (£86,000) which it had confirmed would be put in the base for 2016/17 and beyond.  The government had announced that Eastbourne would receive £1.1m in total of NHB due to the growth in housing in the area and  ...  view the full minutes text for item 54