Issue - meetings

To consider a report from Chief Officers setting out proposals for the 2018/19 Policy and Resources budget.

For the Policy and Resources Select Committee to consider a budget setting report considered by Cabinet on 11 December 2017 for background, and to pre-scrutinise the proposed revenue budget for 2018/19 for Policy & Resources (which is due for consideration by the Executive Member for Policy & Resources at the decision day on 22 January 2018 at 2:00pm).

The Select Committee received a report and supporting presentation from the Chief Executive, Director of Culture, Communities and Business Services, Director of Corporate Resources and Director of Transformation and Governance, regarding the proposed Revenue Budget for 2018/19 for the services within the portfolio of the Executive Member for Policy & Resources (see Item 6 in the Minute Book). As background, the report considered by Cabinet on 11 December 2017 regarding Budget Setting and Provisional Cash Limits 2018/19 was also provided, to provide context for how the budgets had been set for 2018/19.

Members were informed about the latest financial position for the Council overall, and the position for the policy and resources budgets. In terms of the overall position, it was noted that pressures being experienced in Adults and Childrens services meant that there was likely to be a delay in delivery of their savings under the Transformation to 2019 programme. This would impact on capacity to respond to the next round of savings.

For the current budget preparation, it was noted that the council tax threshold prior to requiring a referendum had been raised by 1%. It would be for full Council to consider whether to take advantage of this in setting the council tax rate for Hampshire. A Fair Funding review was underway, however the results were not expected until 2020/21. It was expected that up to 75% of business rates would be retained by 20/21, however the business rates retention policy was based on fiscal neutrality, and would be re-set every few years, so a degree of re-distribution would remain.

Regarding the policy and resources budget, it was noted that this included the budget for Members grants, currently at £8,000 per year per member. This was currently being supported by reserves, following a decision to reduce this budget under Transformation to 2017, and would be subject to review again in 2018.

Members asked questions for clarification and debated the proposals. Members congratulated officers for creating a balanced budget in challenging circumstances.

Following the debate, the Chairman proposed the recommendation, which was carried (with four against) as follows;

RECOMMENDED:

The Policy and Resources Select Committee support the recommendations being proposed to the Executive Member for Policy and Resources to approve for submission to the Leader and the Cabinet:

·         The revised revenue budget for 2017/18 as set out in Appendix 1.

·         The summary revenue budget for 2018/19 as set out in Appendix 1.