Issue - meetings

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report which summarized the revised budget for 2017/18 and the Cabinet’s final budget proposals and pay policy statement for 2018/19.  Her introduction is attached in full to these minutes.

The budget was seconded by Councillor Jordan.

A question was raised by a Member as to how the budget was prepared in chaotic circumstances owing to the wrong figures being published by the Valuation Office Agency. In response the Cabinet Member Finance said that apparently the Minister was aware the figures were incorrect before he published and as the consultation period had closed there was no opportunity for local authorities to comment on the fact that this authority had received momentarily an increased tariff of £454k from the proposed provisional settlement as detailed in section 5 of the Section 151 Officers report.

Group Leaders were invited to address Council.

In the absence of Councillor Harman, Conservative group leader, Councillor Babbage spoke on behalf of the Conservative group. He paid tribute and thanks to those who had been involved in producing this draft budget . He also thanked officers for their support to the budget scrutiny working group. He informed Members that two amendments to the budget would be put forward by his group.

On behalf of the People Against Bureaucracy group Councillor Stennett recognised the professionalism of the finance team particularly in this new changing environment of reducing government support.

Councillor Babbage proposed the following amendment :

Amendment 1 (Revenue)

Reduce number of councillors by 10: £54k pa saving

Move to four-yearly election cycle: £30k pa saving

Consolidate Revenue, Benefits & Customer Services within Publica: £79k pa saving

Additional emptying of Recycling Banks at peak periods to avoid littering: £10k pa cost

Reverse proposed car parking charge increase: £150k pa cost

The amendment was seconded by Councillor Mason

The following questions and comments were raised on the amendment and responses given :

·         It was questioned as to how soon a reduction in the number of councillors and the move to 4 yearly elections could be implemented bearing in mind this would involve changes to electoral arrangements to be agreed with the Electoral Commission. The potential savings from the amendment were proposed to be spent in 2018/19 and would this be possible without a further increase in council tax ?

·         Some Members felt that this proposal should have been raised prior to this meeting as the implications of the changes could have been worked through. Changes to revenue amounted to £300k and it was difficult to see how this could be done without putting at risk some services which were important to the town, e.g. Leisure @

·         Some Members felt that with regard to car parking charges it would be sensible if the Cabinet Member of the County Council and the CBC Cabinet Member could discuss an integrated parking solution for Cheltenham rather than a piecemeal approach.

·         The Cabinet Member Development and Safety referred to the support given to the Arup report on car parking. Money  ...  view the full minutes text for item 10

Report of the Cabinet Member Finance

RESOLVED THAT it be recommended to Council to:

1.    Approve the revised budget for 2017/18.

2.    Consider the budget assessment by the Section 151 Officer at Appendix 2 in agreeing the following recommendations.

3.    Approve the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £203.01 for the year 2018/19 (an increase of 2.99% or £5.89 a year for a Band D property), as detailed in paragraphs 4.26 to 4.30.

4.    Approve the growth proposals, including one off initiatives at Appendix 4.

5.    Approve the savings / additional income totalling £716,500 and the budget strategy at Appendix 5.

6.    Approve the use of reserves and general balances and note the projected level of reserves, as detailed at Appendix 6.

7.    Note that Gloucestershire was successful in becoming a 100% Business Rate Retention pilot in 2018/19 and propose that the additional revenue generated be earmarked for economic growth initiatives specific to Cheltenham (paragraphs 4.19 to 4.20).

8.    Approve the extension of grants to Cheltenham Performing Arts (£20,000) and the Holst Birthplace Trust (£7,500) for a further 3 years, as detailed in paragraph 5.12.

9.    Approve the deferral of the 2017/18 Cheltenham Trust management fee saving to 2019/20 and 2021/22 and provide for a contingency within the working balance of £150,000 for the Trust to drawdown (paragraphs 5.13 to 5.18).

10.  Approve the Pay Policy Statement for 2018/19, including the continued payment of a living wage supplement at Appendix 9.

11.  Approve a level of supplementary estimate of £100,000 for 2018/19 as outlined in Section 13.

The Cabinet Member Finance introduced the report which summarised the revised budget for 2017/18 and the Cabinet’s final budget proposals and pay policy statement for 2018/19. She reminded Members of her introductory statement last year when she predicted that there were extremely difficult financial times ahead, and with further cuts to government funding the net result of this was that the budget process for 2018/19 would be even tougher and would make it very difficult to avoid making cuts. Staff were to be congratulated that cuts to services had been avoided.

Despite huge year on year financial cuts and future financial uncertainty whilst the government determined how and where local authority funding would come from and how it will be divided, the ability for local authorities to generate a sustainable independent revenue income was a journey that the council was already on.

The Cabinet Member highlighted some of the very positive steps that the council had taken over the last year that not only maintained existing services but also looked to improve, enhance and invest in Cheltenham for the benefit of its residents and businesses.

This administration had seen herself and other Cabinet Members bring forward a number of reports for approval aimed at ensuring the council looked at many different and diverse ways and means to protect what makes Cheltenham a great place to live and work. This had included the introduction of a commercial strategy, investment in cultural services, using diverse and new Treasury instruments taking a more risk aware approach, property investment had seen small increases in income, the pension advance lump sum payment that would net the authority £400K over two years, a new extended kerbside recycling service, investment in the new build crematorium,  a successful bid to join the business rates pilot and the launch of marketing Cheltenham alongside hosting a successful new festival of cycling event.

She concluded that it was a budget that the Cabinet could be rightly pleased to recommend to Council and asked for their support to approve the recommendations as set out in the report. She expressed her sincere thanks to all of the finance team, in particular Paul Jones and Sarah Didcote, for their enormous amount of hard work in supporting the process. This was endorsed by the Leader.

The Leader commended the excellent financial control which the report demonstrated by officers across the council. He considered that it was a very positive budget which demonstrated the efforts being made to protect and enhance services and the decision to increase council tax was appropriate in the circumstances.

RESOLVED THAT it be recommended to Council to:

1.    Approve the revised budget for 2017/18.

2.    Consider the budget assessment by the Section 151 Officer at Appendix 2 in agreeing the following recommendations.

3.    Approve the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £203.01 for the year 2018/19 (an increase of 2.99% or £5.89 a year for a Band D property),  ...  view the full minutes text for item 10