Agenda item

To consider the recommendation from Cabinet.

Consideration was given to the recommendation from Cabinet on the Medium Term Financial Strategy 2018-21.

 

Cabinet, at its meeting on 6 February 2018, had recommended that Council approve the items at Appendix A of the Cabinet report.

 

In moving the Cabinet recommendations, the Portfolio Holder for Finance and Communications, Cllr P Bates, proposed the following additional matters:

 

·       financial amendments, related to the Final Local Government Settlement 2018/19 that should be reflected in the MTFS, specifically the receipt of Adult Social Care Support Grant of £907,000 to be treated as Specific Government Grant income that is allocated to the Earmarked Reserve for Enabling Transformation pending receipt of detailed grant conditions and subsequent decisions for its use.

·       A financial amendment, related to treatment of the expenditure of the Homelessness Specific Grant of £37,000 that should be reflected in the MTFS as growth within the Housing Services Budget, mitigated by an equivalent increase in the use of Earmarked Reserves.

·       A financial amendment to remove the savings proposal at budget item 89, relating to the withdrawal of car parking refunds for leisure centre users using Snow Hill, Nantwich and the former Library car park in Crewe, from the Leisure Centre Client Commissioning budget, mitigated by a reduction in the contribution of the financing reserve of £45,000.

 

Following the proposing and seconding of the above recommendation of Cabinet and the additional matters, a number of amendments were proposed and seconded:-

 

AMENDMENT 1

“A financial amendment, relating to the removal of savings proposal 31 – Highways Contract of £150,000, mitigated by an equivalent increase in the Use of Earmarked Reserves.”

 

That a further £2,000,000 be provided for Highways improvements funded through the Strategic Capital Project budget.”

 

The amendment was proposed and seconded.

 

Legislation required the recording in the minutes of how each Member voted on this matter as related to the Budget. Accordingly, a recorded vote was carried out in respect of this amendment, with the following results:-

 

For

Councillors A Andrew, A Arnold, G Baggott, D Bailey, Rachel Bailey, Rhoda Bailey, G Barton, P Bates, G Baxendale, M Beanland, D Bebbington, J Bratherton, S Brookfield, E Brooks, D Brown, C Browne, B Burkhill, P Butterill, S Carter, C Chapman, J Clowes, S Corcoran, H Davenport, S Davies, M Deakin, T Dean, B Dooley, L Durham, S Edgar, I Faseyi, JP Findlow, R Fletcher, D Flude, T Fox, H Gaddum, S Gardiner, M Grant, A Harewood, G Hayes, S Hogben, D Hough, O Hunter, A Kolker, J Macrae, D Mahon, N Mannion, S McGrory, R Menlove, G Merry, B Moran, H Murray, J Nicholas, M Parsons, S Pochin, B Roberts, J Saunders, M Sewart, M Simon, L Smetham, D Stockton, A Stott, B Walmsley, G Walton, L Wardlaw, J Weatherill, G Williams and J Wray.

 

Not Voting

Councillor A Moran

 

The motion was declared carried with 67 votes for and 1 not voting.

 

 

AMENDMENT 2

 

“To allocate £345,000 to transition funding to cover voluntary sector provision in the period April-September 2018.  This will be funded from budget item 97 – New Homes Bonus Community Fund.”

 

The amendment was proposed and seconded.

 

Legislation required the recording in the minutes of how each Member voted on this matter as to the Budget. Accordingly, a recorded vote was carried out in respect of this amendment, with the following results:-

 

For

Councillors D Bailey, J Bratherton, S Brookfield, S Carter, C Chapman, S Corcoran, I Faseyi, D Flude, M Grant, A Harewood, S Hogben, D Hough, N Mannion, and B Roberts.

 

Against

Councillors A Arnold, G Baggott, Rachel Bailey, Rhoda Bailey, G Barton, P Bates, G Baxendale, D Bebbington, E Brooks, P Butterill, J Clowes, H Davenport, S Davies, T Dean, L Durham, S Edgar, JP Findlow, T Fox, S Gardiner, G Hayes, O Hunter, A Kolker, D Mahon, S McGrory, R Menlove, B Moran, H Murray, J Nicholas, M Parsons, S Pochin, J Saunders, M Sewart, M Simon, D Stockton, B Walmsley, G Walton, L Wardlaw, J Weatherill, G Williams and J Wray.

 

Not Voting

Councillor C Andrew, M Beanland, D Brown, C Browne, B Burkhill, M Deakin, B Dooley, R Fletcher, H Gaddum, J Macrae, G Merry, A Moran, L Smetham and A Stott.

 

The motion was declared lost with 14 votes for, 40 against and 14 not voting.

 

 

AMENDMENT 3

 

“To reverse budget item 89 – withdrawal of Car Park Refunds for users of the leisure centres in Crewe and Nantwich – cost £45,000, to be funded from the contingency.”

 

This amendment was withdrawn.

 

 

SUBSTANTIVE MOTION

 

The vote on the substantive budget proposals, which included the recommendations of Cabinet, additional matters proposed by the Portfolio Holder for Finance and Communications, and Amendment 1 was taken.

 

Legislation required the recording in the minutes of how each Member voted on any decision relating to the Budget. Accordingly, a recorded vote was carried out in respect of this item, with the following results:-

 

For

Councillor C Andrew, A Arnold, G Baggott, Rachel Bailey, Rhoda Bailey, G Barton, P Bates, G Baxendale, M Beanland, D Bebbington, E Brooks, D Brown, C Browne, P Butterill, J Clowes, H Davenport, S Davies, M Deakin, T Dean, B Dooley, Liz Durham, S Edgar, JP Findlow, H Gaddum, S Gardiner, G Hayes, O Hunter, A Kolker, J Macrae, S McGrory, R Menlove, G Merry, B Moran, H Murray, M Parsons, S Pochin, J Saunders, M Sewart, M Simon, L Smetham, D Stockton, B Walmsley, G Walton, L Wardlaw, J Weatherill, G Williams and J Wray. 

 

Against

Councillor D Bailey, J Bratherton, S Brookfield, S Carter, C Chapman, S Corcoran, I Faseyi, R Fletcher, D Flude, T Fox, M Grant, A Harewood, S Hogben, D Hough, D Mahon, N Mannion, J Nicholas, B Roberts and A Stott,

 

Not Voting

Councillors B Burkhill and A Moran.

 

The motion was declared carried with 47 votes for, 19 against and 2 not voting.

 

RESOLVED:  That Council approves:

 

1.       the Revenue estimates for the 2018/19 budget and the medium term Capital Programme estimates 2018/21, as detailed in the Medium Term Financial Strategy Report (MTFS) 2018/21 (Appendix C of the report).

 

2                 Band D Council Tax of £1,404.28 representing an increase of 5.99%. This is below the referendum limit and arises from the provisional finance settlement allowing a 3% additional charge to fund Adult Social Care pressures (Appendix C, Section 2 of the report).

 

3        the 2018/19 non-ring-fenced Specific Grants, and that any amendments to particular grants will be reported to Council if further information is received from Government Departments or other funding bodies (Appendix C, Annex 8 of the report).

 

4        the 2018/19 Capital Grants, and that any amendments to particular grants will be reported to Council if further information is received from Government Departments or other funding bodies (Appendix C, Annex 9 of the report).

 

5        that the relevant Portfolio Holder shall agree the use of additional Specific Grants received in conjunction with the Finance Portfolio Holder as further updates to the 2018/19 funding position are received.

 

6        the recommended Prudential Indicators for Capital Financing (Appendix C, Annex 10 of the report).

 

7        that the Children and Families Portfolio Holder shall agree any necessary amendment to the 2018/19 Dedicated Schools Grant (DSG) of £144m and the associated policy proposals, in the light of further information received from DfE, pupil number changes, further academy transfers and the actual balance brought forward from 2017/18 (Appendix C, Annex 8 of the report).

 

8        the recommended Reserves Strategy (Appendix C, Annex 12 of the report).

 

9        that £2m be allocated to a specific “New Homes Bonus Community Fund” to be used over the next two financial years.

 

10      financial amendments, related to the Final Local Government Settlement 2018/19 that should be reflected in the MTFS, specifically the receipt of Adult Social Care Support Grant of £907,000 to be treated as Specific Government Grant income that is allocated to the Earmarked Reserve for Enabling Transformation pending receipt of detailed grant conditions and subsequent decisions for its use.

 

11      a financial amendment, related to treatment of the expenditure of the Homelessness Specific Grant of £37,000, that should be reflected in the MTFS as growth within the Housing Services Budget, mitigated by an equivalent increase in the use of Earmarked Reserves.

 

12      a financial amendment to remove the savings proposal at budget item 89, relating to the withdrawal of car parking refunds for leisure centre users using Snow Hill, Nantwich and the former Library car park in Crewe, from the Leisure Centre Client Commissioning budget, mitigated by a reduction in the contribution of the financing reserve of £45,000.

 

13      a financial amendment, relating to the removal of savings proposal 31 – Highways Contract of £150,000, mitigated by an equivalent increase in the Use of Earmarked Reserves

 

          Council recognises that Cabinet has noted:

 

14      the Budget Engagement exercise undertaken by the Council, as set out in the attached (Appendix C, Annex 2 of the report).

 

15      the results of the Budget Consultation (Appendix B of the report).

 

16      the comments of the Council’s Interim Executive Director of Corporate Services (Section 151 Officer), contained within the MTFS Report, regarding the robustness of estimates and level of reserves held by the Council based on these budget proposals (Appendix C of the report, Comment from the Interim Executive Director of Corporate Services ).

 

17      the risk assessment detailed in the MTFS Report (Appendix C, Annex 5 of the report).

 

18      the Capital Strategy as set out in the attached (Appendix C, Annex 10 of the report).  This is linked to the Treasury Management and Investment Strategies and these will continue to be developed in accordance with the revised guidance for local authority investments during 2018/19.  The strategy contains the programme of capital investment for 2018/19 to 2020/21. The programme may vary to take advantage of external funding opportunities, maximise private sector investment, prudential borrowing considerations, operational capacity and to ensure optimal delivery of the overall programme

 

19      the Council’s Finance Procedure Rules will always apply should any changes in spending requirements be identified (Appendix C, Annex 10 of the report).