Agenda item

Report of Councillor Holt on behalf of the Cabinet.  Referred from Cabinet on 5 February 2020.

 

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 amendment.

The report was received and the recommendations set out in the report moved by Councillor Holt on behalf of the Cabinet and seconded by Councillor Tutt.  The Council considered the Section 25 Statement of the Section 151 Officer (Chief Finance Officer), a General Fund Summary and the recommendations from the meeting of Cabinet held on 5 February 2020, in respect of the:  

• General Fund Budget 2020/21 and Capital Programme
• Housing Revenue Account (HRA) Revenue Budget and Rent Setting 2020/21 and HRA Capital Programme 2019-23; and
• Treasury Management and Prudential Indicators 2020/21, Capital Strategy and Investment Strategy

 

Councillor Holt made his budget speech setting out the proposals, and Councillor Smart responded on behalf of the opposition.

 

The budget was debated by members from across the Council.  As part of this debate, Members thanked the Chief Finance Officer and her team for the preparation of the budget.

 

The motion was put to a recorded vote, and carried.

 

RESOLVED (By 17 votes to 8 with 1 abstention) - That approval be given to the following:

 

1.    The recommendations as detailed in the reports from the Chief Finance Officer and the Director of Service Delivery to Cabinet on 5 February 2020:

 

(i)          To agree the General Fund budget for 2019/20 (Revised) and 2020/21 (original) Appendix 1 including growth and savings proposals for 2020/21, as set out in Appendix 2 to the Cabinet Report.

 

(ii)         To agree the charge for Council Tax for Eastbourne Borough Council Band D change to £251.71, an increase of 2% for 2020/21.

 

(iii)        To agree the revised General Fund capital programme 2020/21, as set out in Appendix 3 to the Cabinet Report.

 

(iv)        To approve the Treasury Management Strategy and Annual Investment Strategy for 2020/21 as set out in Appendix A to the Cabinet Report.

 

(v)         To approve the Minimum Revenue Provision Policy Statement 2020/21, as set out at paragraph 8 of the Cabinet Report.

 

(vi)        To approve the Prudential and Treasury Indicators 2020/21 to 2022/23, as set out at paragraph 6 of the Cabinet Report.

 

(vii)      To approve the Capital Strategy, as set out at Appendix E to the Cabinet Report.

 

(viii)     To approve the Housing Revenue Account (HRA) income and expenditure proposals, including revised HRA budget for 2019/20 and the budget for 20/20/21, rents and service charges and the arrangements for finalising Eastbourne Homes’ management fee, including to:

 

a)    Agree the HRA budget for 2020/21 and revised 2019/20 budget as set out at Appendix 1 to the Cabinet report.

 

b)    Agree that social and affordable rents (including Shared Ownership) are increased by 2.7% in line with Government policy.

 

c)    Agree that service charges for general needs properties are increased by 2.7% (CPI +1%).

 

d)    Agree that the service charge for the Older Persons’ Sheltered Accommodations increases by an average of 0.5%.

 

e)    Agree that the support charges for Sheltered Housing Residents are set at £7.70 per unit, per week, an increase of 20p.

 

f)     Agree that heating costs are increased by 2.7% (CPI+1%) in line with estimated costs set at a level designed to recover the actual cost.

 

g)    Agree that water charges are increased by 2.7% (CPI+1%) designed to recover the estimated cost of metered consumption.

 

h)   Agree that garage rents are increased by 3.4% (September RPI+1).

 

i)     Agree to give delegated authority to the Chief Executive, in consultation with the Cabinet Portfolio holders for Financial Services and Direct Assistance Service and the Chief Finance Officer to finalise Eastbourne Homes’ Management Fee and Delivery Plan.

 

j)      Agree the HRA Capital Programme as set out at Appendix 2 to the Cabinet report.

 

2.    That delegated authority is given to the Chief Finance Officer to amend the budget for any presentational changes ensuring the Council Tax Requirement at 6 below remains unchanged.

 

3.    That it be noted, that since the Cabinet meeting on 5 February 2020 the Business Rates return to the Government (NNDR1) had been finalised with no changes to the previous net budget assumptions.

 

4.    That consequent upon a General Fund budget of £13,522,133 and other matters, the basic amount (Band D) of Council Tax for the Borough Council's functions will be £251.71 calculated as follows:

 

	£'000	£'000
Gross Expenditure:
General Fund		100,670
HRA		19,104
Business Rates payable to Government		11,104
Collection Fund Deficit (Council Tax)		60
		130,938
Less Income:
Service Income	(101,235)
Contribution from Reserves	(3,581)
Other Government Grants	(2,220)
Business Rates income	(15,130)
		(122,166)
COUNCIL TAX REQUIREMENT		8,772
Band 'D' Council Tax		£251.71

 

The statutory resolutions relating to this matter are given at paragraphs 5 and 6 below.

 

5.    That it be noted that at its meeting on 5 February 2020 the Cabinet agreed the Council Tax Base of 34,848.6 for Band ‘D’ equivalent properties for the year 2020/21 (Item T in the formula in section 31B of the Local Government Finance Act 1992, as amended).

 

6.    Calculate that the Council Tax requirement for the Council’s own purposes for 2020/21 as £8,771,741.

 

7.    That the following amounts be now calculated by the Council for the year 2020/21 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended:

 

(a)	£130,937,574	being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.
(b)	£122,165,833	being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
(c)	£8,771,741	being the amount by which the aggregate at 5(a) above exceeds the aggregate at 5(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).
(d)	£251.71	being the amount at 5(c) above (Item R), all divided by Item T (4 above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year.

 

8.    To note that the Police and Crime Commissioner for Sussex has issued a precept to the Council in accordance with Section 40 of the Local Government Finance Act 1992, as amended, for each category of dwellings in the Council’s area as indicated in the table below.   The East Sussex County Council and East Sussex Fire and Rescue Authority figures are based on current recommendations to be considered by their respective budget setting meetings.

 

	Council Tax Valuation Bands
	A	B	C	D	E	F	G	H
	6/9	7/9	8/9	1	11/9	13/9	15/9	2
	£	£	£	£	£	£	£	£
Precepting Authorities
Eastbourne Borough Council	167.81	195.77	223.74	251.71	307.65	363.58	419.52	503.42
East Sussex County Council	994.68	1,160.46	1,326.24	1,492.02	1,823.58	2,155.14	2,486.70	2,984.04
Sussex Police Authority	133.27	155.49	177.70	199.91	244.33	288.76	333.18	399.82
East Sussex Fire Authority	63.69	74.30	84.92	95.53	116.76	137.99	159.22	191.06
Aggregate of Council Tax Requirements	1,359.45	1,586.02	1,812.60	2,039.17	2,492.32	2,945.47	3,398.62	4,078.34

9.    That the Council, in accordance with Sections 30 to 36 of the Local Government Finance Act 1992, as amended, hereby sets the aggregate amounts shown in the table below as the amounts of Council Tax for 2020/21 for each of the categories of dwellings:

 

10.Determine that the Council’s basic amount of Council Tax for 2020/21 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992, as amended.

 

11.As the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2020/21 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK Local Government Finance Act 1992, as amended.

 

 

Recorded vote taken in accordance with the requirements of the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014:

 

For the Motion:

Councillors Bannister, Burton, Choudhury, Diplock, Dow, Holt, Maxted, Miah, Morris, Murray, Rodohan, Sabri, Shuttleworth, Swansborough, Tutt, Vaughan and Whippy (17)

 

Against the Motion:

Councillors Ansell, Belsey, Freebody, Lamb, Metcalfe, Murdoch, Smart and Taylor. (8)

 

Abstention:

Councillor Wallis (The Mayor) (1).