Agenda item

Budget 2019/20 and Medium Term Financial Strategy

To approve the recommendations from Cabinet

Minutes:

Further to the detailed consideration of the Budget for 2019/20 by the Cabinet, Councillor Brian Donnelly, the Cabinet Member for Finance and Assets introduced this item; presented the recommendations of the Cabinet in respect of the 2019/20 budget; and moved that they be approved.  Councillor Stuart Ritchie seconded the proposal.

 

Councillor Donnelly noted that the Council was able to set a budget for 2019/20 that would generate a surplus, which would help towards funding future transformation to maximise efficiency and effectiveness.  It was also currently projected that there would be a budget surplus in 2020/21, and the budget projections for 2021/22 and 2022/23 were close to breakeven, provided significant transformation continued to be delivered.  Additionally, in 2019/20, the Council would be delivering a £19,800,000 capital programme, while the level of council tax proposed remained the lowest in West Sussex and in the lowest quartile nationally.  Councillor Donnelly thanked all staff for their work in maximising efficiency and achieving savings, which made a positive contribution to the Council’s current and predicted financial position.  He also thanked the Director of Corporate Resources and her team for their hard work in briefing Members at a number of meetings and producing the budget report.

 

Councillor David Skipp, Leader of the Liberal Democrat Group endorsed the Cabinet Member’s thanks to officers for producing the budget now before Members.   He agreed with the Cabinet Member’s positive comments regarding the Council’s current financial position and also noted that planning for the future in the current uncertain financial situation was difficult.  He noted that in October 2012 the Council had agreed a minimum level of general reserves of £6,000,000, which was accepted as a sound principle.  However, the Council’s general reserves now stood at £11,100,000.  He noted that the Council was currently investigating the possibility of setting up a housing company to enable the provision of more affordable housing throughout the District using commuted sums from S106 agreements.

 

Councillor Skipp then moved an amendment to the motion by the addition of the following recommendation: “In view of the significant solvency of this Council, the commuted sum comprising £12,000,000 from S106 agreements should be enhanced by £2,000,000 a year for the next three years from Council funds in order to ensure that much-needed affordable accommodation is provided within this District.”

 

The amendment was seconded by Councillor Christine Costin.

 

Members debated the amendment, expressing support for the provision of affordable housing through the proposed setting up of a housing company, which was due to be considered by Cabinet in March.  However, generally, Members did not support making an additional commitment as now proposed in view of future uncertainties regarding the Council’s finances.

 

Having been moved and seconded, the amendment was put.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the voting in respect of the amendment was recorded and was as follows:

 

FOR THE MOTION: Councillors: Christine Costin, Leonard Crosbie, David Skipp

 

AGAINST: Councillors: John Bailey, Andrew Baldwin, John Blackall, Toni Bradnum, Karen Burgess, Peter Burgess, John Chidlow, Jonathan Chowen, Philip Circus, Paul Clarke, David Coldwell, Roy Cornell, Ray Dawe, Brian Donnelly, Matthew French, Billy Greening, David Jenkins, Nigel Jupp, Liz Kitchen, Lynn Lambert, Adrian Lee, Gordon Lindsay, Tim Lloyd, Christian Mitchell, Brian O’Connell, Stuart Ritchie, Kate Rowbottom, Jim Sanson, Ben Staines, Simon Torn, Claire Vickers, Michael Willett, Tricia Youtan

 

ABSTAIN: Councillor: Mike Morgan

 

ABSENT: Councillors: Alan Britten, Jonathan Dancer, Tony Hogben, Paul Marshall, Josh Murphy, Godfrey Newman, Connor Relleen

 

The amendment was declared LOST.

 

Members then debated the substantive motion raising a number of points including concerns regarding the impact of the County Council’s proposed reduction in housing support; the benefits of New Homes Bonus; and the work that had gone into producing a budget that provided value for money whilst preserving services.

 

Having been moved and seconded, the substantive motion was put.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the voting in respect of the motion was recorded and was as follows:

 

FOR THE MOTION: Councillors: John Bailey, Andrew Baldwin, John Blackall, Toni Bradnum, Karen Burgess, Peter Burgess, John Chidlow, Jonathan Chowen, Philip Circus, Paul Clarke, David Coldwell, Roy Cornell, Leonard Crosbie, Ray Dawe, Brian Donnelly, Matthew French, Billy Greening, David Jenkins, Nigel Jupp, Liz Kitchen, Lynn Lambert, Adrian Lee, Gordon Lindsay, Tim Lloyd, Christian Mitchell, Mike Morgan, Brian O’Connell, Stuart Ritchie, Kate Rowbottom, Jim Sanson, Ben Staines, Simon Torn, Claire Vickers, Michael Willett, Tricia Youtan

 

AGAINST: None

 

ABSTAIN: Councillors: Christine Costin, David Skipp

 

ABSENT: Councillors: Alan Britten, Jonathan Dancer, Tony Hogben, Paul Marshall, Josh Murphy, Godfrey Newman, Connor Relleen

 

The motion was declared CARRIED and it was:

 

            RESOLVED

 

(i)         That the level of Council Tax for 2019/20 be increased from £145.60 by £3.93 (2.7%) to £149.53 at Band D.

 

(ii)        That the net revenue budget for 2019/20 of £10.435m be approved (Appendix A to the report).

 

(iii)       That Special Expenses of £299,140 (Appendix D to the report) and a Band D charge of £25.46 be agreed in respect of the unparished area for 2019/20.

 

(iv)       That the capital programme for 2019/20 (amended Appendix E to the report) be approved and that the indicative capital budgets in the programme for future years be noted.

 

(v)        That the projected future balanced budgets on the revenue account in 2021/22 and 2022/23 be noted and the Medium Term Financial Strategy continues to be reviewed and refined to ensure that decisions are taken to deliver these balanced budgets in these two years.

 

(vi)       That the Minimum Revenue Provision (MRP) Statement set out in Appendix F to the report be approved.

 

(vii)      That the Capital Strategy and prudential indicators and limits for 2018/19 to 2021/22 set out in the amended Appendix G to the report be approved.

 

(viii)     That the statement on the robustness of the level reserves in Appendix I to the report be noted.

 

REASON

 

To meet the Council’s statutory requirement to approve the budget and the prudential indicators before the start of a new financial year

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