Issue - meetings

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the report on the Revenue Budget Proposals 2018/19, which outlined the strategic framework, the prepared estimates and highlighted the issues that would affect the actual setting of the overall level of council tax. The report also summarised the overall budget position arising from the information presented to Members in December and the current cycle of Scrutiny Committee meetings. Members were advised that an updated Medium Term Financial Plan was also set out in an appendix to the report, and their attention was drawn to the level of savings required; £1.250 million in 2019/20 and £1.500 million in 2020/21. The savings anticipated in 2020/21 would be as a result of a reset of the business rates, which should coincide with the fair funding review and move to 75% business rates retention. 

The Chief Finance Officer also commented on the Local Government Provisional Finance Settlement 2018/19, advising Members that the City Council had accepted the Government’s offer of a four year agreed settlement in November 2015, following the submission of the required efficiency plan. He also referred to the assumption of an increase in Council Tax of £5 as part of Exeter’s budget strategy for next year which, along with an estimated collection fund surplus of £139,900, would mean the City Council’s Council Tax budget would rise by £285,850, the council tax level being subject to discussion at the forthcoming Council meeting on 20 February. He also confirmed that the provisional award of New Homes Bonus of £2.591 million for 2018/19 had been awarded in December, and if the trend for lower housing growth continued then a new resolution by Members would be sought to redress the shortfall that would arise from the current resolution.

Exeter City Council had taken part in a 100% Business Rate pilot scheme for 2018/19, enabling 100% of the growth generated in the county to be kept (40% was kept for the individual Districts taking part, 59% for Devon County Council and 1% for the Fire Authority).  The Government had included a no detriment clause as part of the scheme, so that the Council would be no worse off than under the existing 50% retention scheme.  He did however, refer to the impact when the current funding settlements came to an end in 2020. He responded to a Member’s enquiry about the level kept by Exeter and added that Devon County Council had been fair in their offer to the Districts, with all those taking part, working well together to ensure the pilot bid was successful.

Corporate Services Scrutiny Committee noted the report.