Agenda item

Report of the County Treasurer (CT/17/106) on the impact of the Provisional Local Government Settlement for the forthcoming year on the preparation of the 2018/2019 budget and affirmation / reaffirmation of service expenditure targets. Report to follow.

(Councillors Connett, Hannaford, Biederman and Atkinson attended in accordance with Standing Order 25(2) and spoke to this item).

The Cabinet considered the Report of the County Treasurer (CT/17/106) on the impact of the Provisional Local Government Settlement for the forthcoming year, on preparation of the 2018/2019 budget and affirmation / reaffirmation of service expenditure targets.

Members noted that at the time of writing the report, the Secretary of State for Communities and Local Government had not announced the Provisional Local Government Settlement for 2018/19. Whilst the exact date of the announcement was not known, it had to be before the House of Commons rose for the Christmas recess on the 21st December. Should the timing of the Final Settlement follow the same pattern as last year then it should be received in sufficient time for consideration at the scheduled Cabinet and Council budget meetings in February 2018.

The Cabinet further noted that the level of Council Tax increase that would trigger a referendum was expected to remain at 2%.

The Adult Social Care Precept regulations were also expected to remain unchanged. In 2016/17, the Social Care Precept was capped at 2% per annum for the period 2016/17 to 2019/20. Members also recalled that Government changed those regulations last year and allowed Authorities to increase the precept to a maximum of 3% per annum over the period 2017/18 to 2019/20, as long as the total increase over the three years did not exceed 6%.

The Council increased the Adult Social Care Precept by 3% in 2017/18, so if the rules remained (and the Adult Social Care Precept was increased by 2% in 2018/19), there could only be a 1% increase in 2019/20; Likewise, if the Adult Social Care Precept was increased by 3% in 2018/19 then there could be no increase in 2019/20.

The Chancellor of the Exchequer’s Autumn Statement (on 22nd November 2017) presented very little specific to Local Government other than in relation to Business Rates (the change in the annual inflationary increase from RPI to CPI had been brought forward by two years to 1st April 2018), Empty Property Council Tax (Government would legislate to allow a 100% council tax premium to be charged on empty properties) and the National Living Wage.

The Report also outlined the 2018/19 100% Business Rate Retention Pilots and the Council’s application to become a pilot area and that the Government was expected to announce which applications had been successful at the time of the Provisional Settlement announcement.

Cabinet also noted the additional Improved Better Care Fund Grant for authorities with Adult Social Care responsibilities which meant, in round terms, an extra £15m in the current year, £10m in 2018/19 and £5m in 2019/20. The Government required the grants to be pooled in the Better Care Fund but used for Adult Social Care purposes.

In terms of the 2018/19 Targets, in the absence of the Provisional Settlement, there was inherent uncertainty. Whilst in 2016/17 Councils were given funding figures for the four year period of 2016/17 to 2019/20, the Provisional Settlement would confirm whether the funding for 2018/19 remained in line with the announcement in 2016/17.

The proposed targets set out in the report (2018/19 Base Budget, £000’s)

Adult Care & Health £227,851 (+6.1%)

Children’s Services £125,487 (+5.5%)

Community Health, Environment & Prosperity £34,727 (-2.3%)

Corporate Services £34,618 (+1.7%)

Highways, Infrastructure Development & Waste £54,708 (-2.7%)

The Capital Programme for 2018/19 to 2022/23 would be presented to Cabinet at the February meeting.

The County Treasurer also updated on the current negotiations in respect of the staff pay award (NJC scales) and that the provisional settlement was anticipated in the week commencing 19 December 2017.

The matter having been debated and the options and/or alternatives and other relevant factors (e.g. financial, sustainability, carbon impact, risk management, equality and legal considerations and Public Health impact) set out in the County Treasurer’s Report and/or referred to above having been considered:

It was MOVED by Councillor Hart, SECONDED by Councillor Clatworthy, and

RESOLVED

(a) that the lack of clarity over the timing of the Provisional Settlement be noted;

(b) that the revenue spending targets for 2018/19 as set out in paragraph 5 of the Report, be approved; and

(c) that Members agree that the Capital Programme be determined by Cabinet on 9th

February 2018.