Agenda item

To make recommendations to Council on the 2017/18 Revenue Budget; Medium Term Financial Strategy; (including capital programme proposals, Treasury Management Strategy, Risk Management Policy Statement & Strategy, and schools funding), and Council Strategy.

Observations from the Overview and Scrutiny Management Committee will be presented at the meeting.

Cllr Mark Hawthorne, Leader of Council, outlined the Cabinet’s recommendations to Council on the

Having considered all of the information, including known proposals and the reasons for the recommendations, Cabinet noted the report and,

RESOLVED to:

1. Consider the outcome of the consultation received, as summarised in the published decision report and in Section C of the MTFS, and as set out in detail in the consultation report.

2. Approve the Draft Council Strategy for submission to County Council.

3. Approve changes to the draft budget as set out in paragraphs 8 (revenue) and 10 (capital), which are now included within the MTFS, and to approve the MTFS and final revenue and capital budget for 2017/18 for recommendation to Council, including all of the proposals set out in the annexes to the published decision report.

4. Note the schools funding, the provisional local government finance settlement and forecast reserve movements as summarised in this report and set out in the MTFS, and to recommend to Council a revenue budget of £402.68 million, and a band D council tax of £1179.26, and consequential precepts on District Councils.

5. Approve, for recommendation to Council, the Treasury Management Strategy, Investment Strategy and Prudential Indicators as set out in Section I of the published decision report and Annex 9 of the detailed MTFS.

6. Approve, for recommendation to Council, the Risk Management Policy Statement & Strategy as set out in Section M of the published decision report and Annex 10 of the detailed MTFS.

Cllr Mark Hawthorne, Leader of Council, introduced Cabinet’s recommendations to Council on the Draft Council Strategy, Medium Term Financial Strategy, and final revenue and capital budget for 2017/18. The recommendations will be presented at the full council meeting on 15 February 2017.

Cabinet Member for Finance and Change, Cllr Ray Theodoulou, summarised the budget proposals for 2017/18 and proposed a draft budget of £402.68 million, a decrease in cash terms of £5.78 million from 2016/17. The decrease was due to a significant reduction in government grant funding.

Members were reminded that in December 2016, Cabinet had proposed a budget for consultation totalling £397.13 million. This had been based on a 1.99 per cent council tax increase and a 2 per cent National Social Care Levy.

Following the cabinet decision in December, the government had announced the draft financial settlement on 15 December 2016, awarding further funding to the council. The revised budget presented at this meeting included an increase of £5.56 million on the consultation budget approved in December.

Proposals relating to increases in Council Tax and social care levy remained the same as those proposed by the consultation budget. The increase to Council Tax Band D, at £1179.26, remained the same as that proposed by the consultation budget.

Outlining the recommended budget for 2017/18, Cllr Theodoulou confirmed that the proposed budget contained £25.5 million of investment into key services, including services for older people and vulnerable children and adults, and funding of £103.81 million new capital investment in roads, schools and other services. Full details of the budget proposals are set out at annexes 2 and 3 of the agenda/published decision report relating to this item. Cllr Theodoulou referred to the Due Regard Statement which accompanied the report.

Cabinet members summarised the key investments within their budgets, including over £4 million for Adult Social Care, £1.5 million for vulnerable families, children and young people, £300k to help people struggling with mental health and £6 million on highways infrastructure.

Confirming that the proposed budget had been reviewed by the council’s scrutiny committees, the Leader of the Council invited Chairman of the Overview and Scrutiny Management Committee, Cllr Brian Oosthuysen, to present the views of the Overview and Scrutiny Management Committee to the meeting.

Cllr Oosthuysen informed members briefing sessions had been held with Directors and Cabinet Members throughout November 2016, with an opportunity for scrutiny members to scrutinise the draft budget in detail during discussions at specific scrutiny committee meetings in January.

Some of the key points highlighted by the scrutiny report included; a request from the Environment and Communities Scrutiny Committee to extend the duration of the Lengthsman and Highways Local Schemes; support for the proposed additional investment in the Better Care Fund from 2018/19; support for the proposed additional investment in Social Workers, (following recommendations from the Social Worker Task Group Review).

The scrutiny report, (published as a supporting document to item 6 of the council agenda), was noted. Please refer to the following link to view the views and comments included within the report: -

http://glostext.gloucestershire.gov.uk/ieListDocuments.aspx?CId=117&MId=8406&Ver=4

Leader of Council, Cllr Mark Hawthorne, referred to the challenges of creating an achievable budget and thanked members and officers for their contributions. The Leader stated that the 2017/18 budget was the result of having to make tough choices and from prioritised spending. He said it was not easy making savings, especially when having to balance government expectations with the need to invest in delivering key services in Adult Social Care, Children and Families, and those that impacted on the local infrastructure.

Drawing on comparisons with budgets proposed at other authorities, the Leader stated that the 2017/18 budget put forward for approval by full council would enable the council to deliver the right choices. Ultimately, approval of the budget was a decision for full council and would be considered at the council meeting on 15 February 2017.