Agenda item

The Cabinet Member for Finance, Growth and Investment introduced the Council’s proposed budget framework for 2018/19 which incorporated the following:

·  the Medium Term Financial Strategy (MTFS) for 2018/19 to 2020/21;

·  the General Fund budget for 2018/19;

·  the level of Council Tax for 2018/19;

·  funding reductions to 2020/21;

·  the financial outlook for 2019/20 onwards;

·  the Capital Programme for 2018/19 to 2021/22; and

·  the strategy for the Flexible Use of Capital Receipts.

The Cabinet Member explained that the net General Fund budget for 2018/19 would be £145.368m, reducing to £139.012m in 2019/20.  The Council was embarking on a range of exciting and innovative projects aimed at generating additional long-term revenue streams and the Cabinet Member referred to the significant issues that had impacted on the budget for 2018/19 and beyond, such as changes to grant arrangements, the London-wide Business rates pooling arrangements and the delivery of the Council’s transformation programme. 

The Cabinet Member pointed out that as well as the significant opportunities that the Council’s major investment and regeneration programmes would bring, there would be accompanying pressures stemming from the increase in the Borough’s population.  Demand for services was difficult to control and it was only through raising the Council Tax and the Adult Social Care precept by the maximum permissible that the Council could maintain quality services to its community.  It was noted that the Council had consulted widely on its key budget proposals for 2018/19 and the majority of respondents had acknowledged the need for the Council to raise Council Tax levels.  Following on from that, the Cabinet Member alluded to the financial pressures that many of the Borough’s residents were facing as a consequence of the Government’s austerity programme and called upon the Government to rethink its approach due to the chaos that it was causing nationwide

The Cabinet Member referred to a number of other specific proposals within the report, such as:

·  the proposed loan of £2.147m to Barking and Dagenham Trading Partnership, the Council’s Traded Services delivery model, for the purchase of new fleet vehicles;

·  the planned General Fund reserve levels of £17.03m at 31 March 2018 and £15.115m at 31 March 2019; and

·  the proposed Capital Programme for 2018/19 – 2021/22 of £360.362m, which included £196.690m for HRA-funded schemes. 

In response to points raised regarding air pollution and the promotion of ‘green’ fuels through the installation of new charging points across the Borough, the Chief Operating Officer agreed to provide Cabinet Members with details of the Trading Partnership vehicle purchase programme.  Comments were also made regarding the Government’s appalling treatment of the most vulnerable in the community through the real-term cuts to NHS and social care funding.  Concluding the discussions, the Leader advised that the Council’s funding from the Government was based on an outdated Borough population level of 185,000, whereas the true figure was over 200,000, and the Council was also having to meet other significant costs which should be met directly by the Government, such as the cost of secure accommodation placements for young people remanded into custody.

The Cabinet resolved to recommend the Assembly to:

(i)  Approve a base revenue budget for 2018/19 of £145.368m, as detailed in Appendix A to the report, including the new savings proposals and other adjustments as detailed in the report;

(ii)  Approve the adjusted Medium Term Financial Strategy (MTFS) position for 2018/19 to 2020/21 allowing for other known pressures and risks at this time, as detailed in Appendix B to the report, including the additional cost of borrowing to accommodate the capital costs associated with the implementation of the MTFS;

(iii)  Delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Growth and Investment, to finalise any contribution required to or from reserves in respect of the 2018/19 budget, pending confirmation of levies and further changes to Government grants prior to 1 April 2018;

(iv)  Approve the Statutory Budget Determination for 2018/19 as set out at Appendix C to the report, which reflects an increase of 2.99% on the amount of Council Tax levied by the Council, a further 3% increase in relation to the Social Care Precept and the final Council Tax proposed by the Greater London Assembly (5.1% increase), as detailed in Appendix D to the report;

(v)  Note the update on the Council’s transformation programme;

(vi)  Approve the provision of a loan of £2.147m from the General Fund to the Barking and Dagenham Trading Partnership to cover the cost of new vehicles;

(vii)  Approve the Council’s draft Capital Programme for 2018/19 to 2021/22 totalling £360.362m, of which £163.672m related to General Fund schemes, as detailed in Appendix E to the report;

(viii)  Approve the updated Strategy for the Flexible Use of Capital Receipts at Appendix H to the report and, in doing so, note that the some of the associated savings targets shall be subject to final business cases and confirmation at future meetings; and

(ix)  Approve the updated Dedicated Schools Budget for 2018/19, including the hourly rate payable to Early Years providers (3 and 4-year olds), as detailed in section 14 of the report.