Agenda item

Recommendation from Cabinet - The Council's Corporate Plan 2016/20 and Medium Term Financial Strategy 2016/19

Meeting of Council, Thursday, 25th February, 2016 10.00 am (Item 73.)

To consider the recommendations from Cabinet.

Minutes:

Cabinet, at its meeting on 9 February 2016, had considered a report on the Council’s Corporate Plan for the years 2016/17 to 2019/20 and the Medium Term Financial Strategy for the years 2016/17 to 2018/19. The report to Cabinet had summarised the resolutions that Cabinet were requested to recommend to Council, at Appendix A.

The Portfolio Holder for Finance and Assets reported that the Government had announced the day before the Cabinet’s meeting that the Council would receive transitional grant of £2.97M in 2016/17 and again in 2017/18. He had also informed Cabinet that the Corporate Overview and Scrutiny Committee at its meeting on 4^th February 2016 had made no specific comments in relation to the report.

The Portfolio Holder also reported that the Medium Term Financial Strategy reflected the confirmation of grant funding levels for Public Health Funding (reduced by £298,000 compared to provisional figures) and the Independent Living Fund Grant (confirmed as £12,000 above the estimated position) and would both be matched by equal changes in service expenditure. He also reported the renaming of the current “Business Retention Scheme” earmarked reserve to “Collection Fund Management Reserve”, which better reflected the nature of this funding. The balance of this reserve would stand at £8.4m and would be used to manage cash flow implications arising from administration of the Collection Fund.

The recommendations from Cabinet, as set out on pages 89 and 90 of the agenda papers were proposed and seconded, together with additional recommendations from two reports, which had considered by Cabinet as urgent items on 23 February 2016. The first of these related to the findings of a statutory consultation exercise as part of plans to make significant changes to the Children’s Centre delivery in Cheshire East. There was a need to address a significant financial shortfall in the Council’s budget associated with reducing Central Government grant and increasing costs. The savings being consulted upon would achieve a £500k saving against the Council’s base budget.

The second additional recommendation related to the 2016/17 Final Local Government Finance Settlement, which had been received on Monday
8 February 2016. The settlement had contained some good news in the form of temporary Transitional Grant Support, although it also confirmed that by the start of the 2019/20 financial year the Council would have lost all of its Revenue Support Grant. Details were set out in the Cabinet report.

Cabinet had made recommendations to Council on, an appropriate financial strategy that would achieve the best overall impact from the additional temporary Transitional Grant that had now been confirmed.

It was moved and seconded that Council approve:

1 The new Corporate Plan 2016/20.

2 The Revenue estimates for the 2016/17 budget and the medium term Capital Programme estimates 2016/19, as detailed in the Medium Term Financial Strategy Report 2016/19.

3 Band D Council Tax of £1,261.95 representing an increase of 3.75%. This arises from the provisional finance settlement allowing up to a 2% additional charge to fund Adult Social Care pressures.

4 The 2016/17 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.

5 The 2016/17 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.

6 The relevant Portfolio Holder to agree the use of additional Specific Grants received in conjunction with the Finance Portfolio Holder as further updates to the 2016/17 funding position are received.

7 The recommended Prudential Indicators for Capital Financing.

8 The Children and Families Portfolio Holder to agree any necessary amendment to the 2016/17 Dedicated Schools Grant (DSG) of £147m 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 2015/16.

9 The recommended Reserves Strategy, and the proposal to contribute £1m from General Reserves to an Earmarked Reserve for the on-going costs of Planning Appeals.

10 The Medium Term Financial Strategy 2016/17 reflects the new Transition Grant funding as follows:

(a) Income from Government Grant is increased by £2.973m in 2016/17 and by £2.974m in 2017/18.

(b) Expenditure in Outcome 5 in 2016/17 is increased by £473,000 to reflect feedback received to proposals within the Pre-Budget Report and to support the transitioning and targeting of services.

(c) A ‘Transformation’ earmarked reserve is established for £2.5m from 1st April 2016. The Portfolio Holder for Finance & Assets (in consultation with the Chief Operating Officer) is given responsibility for managing allocations of funding from the reserve on an ‘Invest to Save’ basis.

(d) Transition Grant of £2.974, receivable in 2017/18 is allocated to the new Transformation Reserve.

And that Council recognises that Cabinet has noted:-

11 The Budget Engagement exercise undertaken by the Council, as set out in the attached.

12 The comments of the Council’s Chief Operating Officer (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

13 The risk assessment detailed in the MTFS Report

14 That the estimates and profiling contained within the proposed Capital Programme 2016/17 to 2018/19 reflect the scale of ambition and future investment plans of the Council. 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.

15 That projects will be robustly governed through the Executive Monitoring Board. The Council’s Finance Procedure Rules will always apply should any changes in spending requirements be identified.

16 That having considered the contents of the Children’s Centre Consultation report, at its meeting on 23 February 2016, along with the attached Equality Impact Assessment, confirms its previous recommendation to Council regarding the rationalisation of Children’s Centre Provision to save £0.5million.

AMENDMENT

The following amendment was proposed and seconded:-

“That £500,000 of the £2.97m interim funding be used to reverse the proposed rationalisation of Children’s Centre provision”.

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

For

Cllr D Bailey, Cllr S Brookfield, Cllr C Browne, Cllr B Burkhill, Cllr P Butterill, Cllr S Carter, Cllr C Chapman, Cllr S Corcoran, Cllr I Faseyi, Cllr R Fletcher, Cllr D Flude, Cllr T Fox, Cllr M Grant, Cllr A Harewood, Cllr S Hogben, Cllr D Hough, Cllr J Jackson, Cllr L Jeuda, Cllr D Mahon, Cllr N Mannion, Cllr D Marren, Cllr A Martin, Cllr A Moran, Cllr D Newton, Cllr M Parsons, Cllr J Rhodes, Cllr B Roberts, Cllr A Stott, Cllr B Walmsley, Cllr M Warren.

Against

Cllr C Andrew, Cllr A Arnold, Cllr G Baggott, Cllr Rachel Bailey, Cllr Rhoda Bailey, Cllr G Barton, Cllr P Bates, Cllr G Baxendale, Cllr M Beanland, Cllr E Brooks, Cllr D Brown, Cllr J Clowes, Cllr H Davenport, Cllr S Davies, Cllr B Dooley, Cllr L Durham, Cllr S Edgar, Cllr JP Findlow, Cllr S Gardiner, Cllr S Gardner, Cllr P Groves, Cllr M Hardy, Cllr O Hunter, Cllr M Jones,
Cllr A Kolker, Cllr J Macrae, Cllr R Menlove, Cllr G Merry, Cllr B Moran,
Cllr J Saunders, Cllr M Sewart, Cllr M Simon, Cllr D Stockton, Cllr G Wait,
Cllr G Walton, Cllr L Wardlaw, Cllr J Weatherill, Cllr H Wells-Bradshaw, Cllr G Williams, Cllr J Wray.

Not Voting

Cllr D Bebbington, Cllr M Deakin, Cllr T Dean, Cllr H Gaddum, Cllr J Hammond, Cllr G Hayes, Cllr H Murray, Cllr S Pochin,

The Motion was declared lost by 30 votes for, 40 against with 8 not voting.

The vote on the substantive budget proposals was taken.

For

Cllr C Andrew, Cllr A Arnold, Cllr G Baggott, Cllr Rachel Bailey, Cllr Rhoda Bailey, Cllr G Barton, Cllr P Bates, Cllr G Baxendale, Cllr M Beanland,
Cllr D Bebbington, Cllr E Brooks, Cllr D Brown, Cllr J Clowes,
Cllr H Davenport, Cllr S Davies, Cllr M Deakin, Cllr T Dean, Cllr B Dooley,
Cllr L Durham, Cllr S Edgar, Cllr JP Findlow, Cllr S Gardiner, Cllr S Gardner, Cllr P Groves, Cllr J Hammond, Cllr M Hardy, Cllr O Hunter, Cllr M Jones,
Cllr A Kolker, Cllr J Macrae, Cllr D Marren, Cllr A Martin, Cllr R Menlove, Cllr G Merry, Cllr B Moran, Cllr H Murray, Cllr S Pochin, Cllr J Saunders, Cllr M Sewart, Cllr M Simon, Cllr D Stockton, Cllr G Wait, Cllr G Walton,
Cllr L Wardlaw, Cllr J Weatherill, Cllr H Wells-Bradshaw, Cllr G Williams,
Cllr J Wray

Against

Cllr D Bailey, Cllr S Brookfield, Cllr C Browne, Cllr B Burkhill, Cllr P Butterill, Cllr S Carter, Cllr C Chapman, Cllr S Corcoran, Cllr I Faseyi, Cllr R Fletcher, Cllr D Flude, Cllr T Fox, Cllr M Grant, Cllr A Harewood, Cllr S Hogben,
Cllr D Hough, Cllr J Jackson, Cllr L Jeuda, Cllr D Mahon, Cllr N Mannion,
Cllr A Moran, Cllr D Newton, Cllr M Parsons, Cllr J Rhodes, Cllr B Roberts, Cllr A Stott, Cllr B Walmsley, Cllr M Warren.

Not Voting

Cllr H Gaddum, Cllr G Hayes

The motion was carried by 48 votes for, 28 against with 2 not voting.

RESOLVED

That the following be approved:-

1 The new Corporate Plan 2016/20, as provided at Appendix B to the report

2 The Revenue estimates for the 2016/17 budget and the medium term Capital Programme estimates 2016/19, as detailed in the Medium Term Financial Strategy Report 2016/19 (Appendix C).

3 Band D Council Tax of £1,261.95 representing an increase of 3.75%. This arises from the provisional finance settlement allowing up to a 2% additional charge to fund Adult Social Care pressures (Appendix C, Section 2).

5 The 2016/17 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).

7 The recommended Prudential Indicators for Capital Financing (Appendix C, Annex 11).

9 The recommended Reserves Strategy, and the proposal to contribute £1m from General Reserves to an Earmarked Reserve for the on-going costs of Planning Appeals (Appendix C, Annex 13).

10 The Medium Term Financial Strategy 2016/17 reflect the new Transition Grant funding as follows:

(a) Income from Government Grant is increased by £2.973m in 2016/17 and by £2.974m in 2017/18.

(b) Expenditure in Outcome 5 in 2016/17 is increased by £473,000 to reflect feedback received to proposals within the Pre-Budget Report and to support the transitioning and targeting of services.

(d) Transition Grant of £2.974, receivable in 2017/18 is allocated to the new Transformation Reserve.

Council recognises that Cabinet has noted: -

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

13 The risk assessment detailed in the MTFS Report (Appendix C, Annex 5).

15 That projects will be robustly governed through the Executive Monitoring Board. The Council’s Finance Procedure Rules will always apply should any changes in spending requirements be identified (Appendix C, Annex 12).

16 That Cabinet, at its meeting on 23 February 2016, having considered the contents of the report along with the attached Equality Impact Assessment, confirms its previous recommendation to Budget Council regarding the rationalisation of Children’s Centre Provision to save £0.5million and that this recommendation be confirmed as agreed.

The meeting adjourned for lunch at 1.15 pm and reconvened at 2.15 pm.

Councillors G Barton and M Jones left the meeting and did not return.

Supporting documents: