Issue - meetings

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the report, which outlined the strategic framework, and the prepared estimates and highlighted 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. He emphasised the importance of the Council being in a position to set a balanced budget and determine the council tax, in line with the statutory timeframe.

The Chief Finance Officer advised that the City Council was in the final year of a four year agreed local government finance settlement, following the submission of the required efficiency plan. The provisional settlement for 2019/20 was announced in December and, although the final settlement was awaited, it was not anticipated that there would be any significant change.  The continuation of the more recent budget strategy of an increase in Council Tax of up to and including £5 would be presented to Members, which along with an estimated collection fund surplus of £96,331 would mean the City Council’s Council Tax base would raise an extra £208,000. The Council Tax level was subject to discussion at the Council meeting on 26 February.  He also confirmed that, following the Government deferral of any changes to the New Homes Bonus in 2019/20, the provisional award of New Homes Bonus was of £2.518m. The methodology for allocating the New Homes Bonus was included in the report. He was disappointed to announce that the City Council had been unsuccessful in applying for participation in a further round of a local business rates retention pilot scheme.  He responded to a Member who sought information on future opportunities.  He advised that all Devon authorities would revert to acting as a pool.

He also reminded Members that, at the forthcoming Council meeting on 26 February, the proposals in the circulated report were for a balanced budget, and should Members wish to offer a further proposal or adjustment they would have to include replacement savings of an equal value.

Corporate Services Scrutiny Committee noted the report.