Agenda item

Councillor Russell Holland, the Cabinet Member for Finance and Commercialisation, and the Corporate Director of Resources and Growth, submitted a joint report providing an update on the position in relation to the 2017/18 forecast outturn and the work underway to address the financial challenge in the period to March 2020 through a two-year budget strategy. It was noted that the submission of the report met the requirement to publish initial proposals for the Budgetary and Policy Framework at least two months before the Framework must be adopted (Paragraph 2 (a), Budget and Policy Framework Procedure Rules, part 4 of the Council’s Constitution refers).

Councillor Holland introduced the report, providing a summary of (i) the recognised pressures on the 2017/18 budget, including the worsened projected outturn forecast, primarily due to continued demand pressures on looked after children placements, (ii) progress to date with the various key elements of the Swindon Programme, and (iii) the Council’s changed approach to managing its financial challenges. It was noted that, for purposes of financial planning, an annual increase in basic council tax of 1.99% had been assumed for the financial period to 2019/20, and that the adult social care precept would be an assumed 3% in 2018/19.

Following his presentation of the report, Councillor Holland, with the Leader of the Council, responded to questions put by Councillor Jim Grant, the Leader of the Labour Group, seeking clarification regarding opportunities for consultation on the detail of the budget, in advance of its consideration at the Council meeting in February 2018, and enquiring why the savings of £13.8m attributed to savings within the Organisational excellence workstream of the Swindon Programme, had not been realised earlier. 

Resolved – (1) That the in-year forecast outturn position for 2017/18 be noted and that it be also noted that responding management actions are being developed to eliminate the projected year-end overspend.

(2) That it be noted that:

a)   The budget strategy will be focussed on the delivery of a two year plan covering both 2018/19 and 2019/20.

b)   The Local Government Finance Settlement for 2018/19 has yet to be published and therefore the funding assumptions in this report contain levels of uncertainty.

c)    The tax base for 2018/19 will be 72,898.6.

d)   The potential funding pressures of meeting the demand for increased school places in future years.

(3) That the virements set out in Appendix 2 to the report be agreed.

(4) That it be agreed that:

a)   Budgets for fees and charges that are set by the Council should be uplifted by 5%, or a rounded price close to 5%, except where alternative proposals are recommended as part of the commercialisation workstream of the Swindon Programme.

b)   The Local Council Tax Support (reduction) scheme in 2018/19 be unchanged from that for 2017/18, apart from the annual increases in allowances, applicable amounts and non-dependant deductions, which will be increased in line with the national scheme.

c)    The basis for allocating Council Tax Support Grant to Parish Councils remains unchanged from that for 2017/18.

d)   The Council’s share of the estimated surplus on the council tax element of the Collection Fund as at 31 March 2018 is £626k.

The reasons for the decision and alternative options are as set out in the report to the meeting.