Agenda item

Councillor Russell Holland, the Cabinet Member for Finance, and the Director of Finance, submitted joint report proposing a Budget for 2019/20 and setting out the financial context for 2020/21 and beyond.

It was noted that, under the Council’s Constitution, the Cabinet is required to recommend a budget to Council as part of its formal Council Tax Setting responsibilities.

Councillor Holland introduced the report, advising the meeting of responses that had been received to the Council’s public consultation on its budget proposals and placing the draft budget and the proposed increase in Council Tax  in the context of the key financial challenges, particularly the continuing challenges facing Children’s Services and the measures being take  to mitigate that budget pressure, and his own confidence that that the Council’s budget strategy will secure the long term viability of its service provision for Swindon residents.

Following his introduction of the report, Councillor Holland, supported by Councillors Oliver Donachie, Gary Sumner and the Leader of the Council, and the Director of Finance, responded to questions put by Councillors Jim Grant and Bob Wright on (i) the focussing of the Vision and budget proposals on social deprivation and the provision of more social housing and improved social services, (ii) the responses to issues raised by the Scrutiny Committee in respect of the approach to fees and charges and the surplus on the collection fund, (iii) provision for the delivery of the Council’s cultural offer objectives, and (iv) the Council’s Reserves Policy.

Resolved – (1) That the following be noted:

a)   The medium term financial context and impact on Swindon of the draft Local Government Finance settlement;

b)   The projected out-turn for 2018/19;

c)    The consultation feedback, summarised in Appendix 3, in relation to the Budget proposals presented to Cabinet in December 2018;

d)   That the detailed Dedicated Schools budget for 2019/20 has been set within the provisional funding envelope of £184.7m;

e)   That, in line with the requirements of the Local Government Act 2003, the Director of Finance, in his Section 151 capacity, confirms the robustness of the estimates underlying the recommended Budget and having reviewed the financial risks being faced by the Council concludes that the proposed minimum level of general reserves is adequate in the context of the earmarked reserves held, specific contingencies and the proposed budget risk contingency of £3.5m.

(2) That the 2018/19 virements, set out in Appendix 2 to the report, be agreed.

(3) That the medium term financial strategy, set out in Appendix 6 to the report, be endorsed.

(4) That the specific reserves held in support of the 2019/20 Revenue Budget, set out in Appendix 5 to the report, be agreed.

(5) That the Director of Finance be authorised to balance any changes between the provisional local government finance settlement and the final numbers expected to be released by mid-February by adjusting the Budget Risk Contingency.

(6) That Council be recommended that, subject to any changes resulting from the Government’s announcement of the final local government finance settlement for 2019/20:

a)    The 2019/20 Budget be set at £142.497m.

b)    The council tax be increased by 3.99%, comprising 2.99% for the basic amount of council tax and a specific adult social care precept of 1%.

c)    It be determined that the proposed increase in the basic amount of Council Tax for 2019/20 is not excessive in accordance with Schedule 5 of the Localism Act 2011 and therefore does not trigger the requirement for a referendum.

(7) That the respondents to the Council’s budget consultation exercise be thanked for their contribution.

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