Agenda item - Corporate Plan, Revenue and Capital Budgets and Treasury Strategy 2014-15

Report of Director of Resources and Interim Head of Finance and Procurement

Summary

To review the Council’s General Fund Budget, Capital Programme, Earmarked Reserves and General Fund Balances to ensure the robustness of the estimates included and to seek formal adoption of all parts of the Council’s financial plans and Corporate Plan for the 2014-15 budget year.

Recommendations

The meeting is recommended:

1.1 To consider the contents of this report in approving the General Fund Revenue Budget and Capital Programme for 2014-15 and to formally record that consideration.

1.2 To approve the 2014-15 General Fund Budget and 2014-15 Capital Programme proposed by the Executive on 3 February 2014 as detailed in Annex 1 amended for the changes to the collection fund and investment income as set out in paragraphs 3.12 and 3.13.

1.3 To approve the Collection Fund Estimates contained in Annex 2

1.4 To approve the draft 5 year strategy, 2014-15 business plan and public pledges (detailed in Appendices 3, 4 and 5 to Annex 1) and to delegate authority to the Director of Resources in consultation with the Leader of the Council and the Lead Member for Performance and Customers to make any minor amendments to the plan or pledges as required before final publication in March 2014.

1.5 To approve the Treasury Management Strategy as detailed in Annex 3.

1.6 To approve the appended statement of pay policy for 2014-15 as required by the Localism Act and detailed in Annex 4.

1.7 To approve the Business Rates Retail Relief Policy as outlined in paragraphs 3.18 and 3.19 and contained in Annex 5 and the formal resolutions that underpin the policy:

1.7.1 The Council award “Retail Relief” of up to £1,000 to qualifying businesses in occupation of retail premises which have a rateable value of £50,000 or less in accordance with discretionary relief powers (Section 47 of the Local Government Finance Act 1988 (as amended)) for the financial years 1 April 2014 to 31 March 2015 and 1 April 2015 to 31 March 2016.

1.7.2 The business to qualify for the relief must be “retail” as detailed in the Business Rates Retail Relief Policy.

1.7.3 The Council, through the National Non-Domestic Rate Return process, seek full reimbursement of the cost of “retail relief” from Central Government.

1.8 To approve the discount and exemptions as follows:

1.8.1 Agree that in respect of properties within Class A and B as defined by the Council Tax (Prescribed Classes of Dwellings) (England) (Amendment) Regulations 2012(furnished chargeable dwellings that are not the sole or a main residence of an individual) the discount provided by Section 11A of the Local Government Finance Act 1992 shall be reduced to zero.

1.8.2 Agree that in respect of properties within Class C as defined by the Council Tax(Prescribed Classes of Dwellings) (England) (Amendment) Regulations 2012 (a property that is unoccupied and substantially unfurnished) the discount provided by Section 11A of the said Act shall be reduced to 25% for a maximum period of six months and thereafter to zero.

1.8.3 Agree that in respect of properties within Class D as defined by the said Regulations (chargeable dwellings that are vacant and undergoing major repair work to render them habitable) the discount provided by Section 11A of the said Act shall be reduced to 50% for twelve months and thereafter to zero.

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Resolved

(1) That the contents of the report in approving the General Fund Revenue Budget and Capital Programme for 2014-15 be noted and that consideration be formally recorded.

(2) That the 2014-15 General Fund Budget and 2014-15 Capital Programme proposed by the Executive on 3 February 2014 contained in the annexes to the minutes and amended for the changes to the collection fund and investment income (as set out in the Minute Book) be approved.

(3) That the Collection Fund Estimates (annex to the minutes as set out in the Minute Book) be approved.

(4) That the draft 5 year strategy, 2014-15 business plan and public pledges (annexes to the minutes as set out in the Minute Book) and authority be delegated to the Director of Resources in consultation with the Leader of the Council and the Lead Member for Performance and Customers to make any minor amendments to the plan or pledges as required before final publication in March 2014.

(5) That the Treasury Management Strategy (annex to the minutes as set out in the Minute Book) be approved.

(6) That the statement of pay policy for 2014-15 as required by the Localism Act (annex to the minutes as set out in the Minute Book) be approved.

(7) That the Business Rates Retail Relief Policy as contained in the annex to the minutes (as set out in the Minute Book) and the following formal resolutions that underpin the policy be approved:

i. The Council award “Retail Relief” of up to £1,000 to qualifying businesses in occupation of retail premises which have a rateable value of £50,000 or less in accordance with discretionary relief powers (Section 47 of the Local Government Finance Act 1988 (as amended)) for the financial years 1 April 2014 to 31 March 2015 and 1 April 2015 to 31 March 2016.

ii. The business to qualify for the relief must be “retail” as detailed in the Business Rates Retail Relief Policy.

iii. The Council, through the National Non-Domestic Rate Return process, seek full reimbursement of the cost of “retail relief” from Central Government.

(8) That the discount and exemptions as follows be approved:

i. Agree that in respect of properties within Class A and B as defined by the Council Tax (Prescribed Classes of Dwellings) (England) (Amendment) Regulations 2012(furnished chargeable dwellings that are not the sole or a main residence of an individual) the discount provided by Section 11A of the Local Government Finance Act 1992 shall be reduced to zero.

i. Agree that in respect of properties within Class C as defined by the Council Tax(Prescribed Classes of Dwellings) (England) (Amendment) Regulations 2012 (a property that is unoccupied and substantially unfurnished) the discount provided by Section 11A of the said Act shall be reduced to 25% for a maximum period of six months and thereafter to zero.

ii. Agree that in respect of properties within Class D as defined by the said Regulations (chargeable dwellings that are vacant and undergoing major repair work to render them habitable) the discount provided by Section 11A of the said Act shall be reduced to 50% for twelve months and thereafter to zero.

(9) That agreement be given to transfer £100,000 from General Fund Balances to a Housing Earmarked Reserve, with funding released by the Director of Resources in consultation with the Lead Member for Financial Management and the Lead Member for Housing.

The Chairman outlined that it was customary during the budget debate to suspend standing orders with regard to the duration of speeches by proposers of motions and amendments, also the order of dealing with and speaking on amendments. It was also agreed that the estimates would be taken as one integrated set of financial figures and the revenue and capital estimates, the Collection Fund Estimates 2014/15 and the Business Plan and the public pledges would not be debated separately.

Members signified agreement that speeches made by Group Leaders or any Member proposing the Budget, an alternative Budget, any amendments or commenting on the Budget would not be time limited.

The Chairman advised Council that the Secretary of State was introducing legislation to require any motion or amendment to the budget or council tax setting reports to be taken by recorded vote. Whilst this was not yet in force the government had stated that it was their expectation that all authorities would do this for the 2014/15 budget. Members agreed to take a recorded vote on the recommendations in the reports at agenda items 11 and 13 en bloc and separate votes on any amendments.

The Chief Finance Officer (Director of Resources) and Head of Finance and Procurement submitted a report to review the Council’s General Fund Budget, Capital Programme, Earmarked Reserves and General Fund Balances to ensure the robustness of the estimates included and to seek formal adoption of all parts of the Council’s financial plans and Corporate Plan for the 2014-15 budget year.

The Lead Member for Financial Management, Councillor Atack, introduced the report and set out the proposed budget for the year. In introducing the report, the Lead Member for Financial Management proposed an additional recommendation to transfer £100,000 from General Fund Balances to a Housing Earmarked Reserve, with funding released by the Director of Resources in consultation with the Lead Member for Financial Management and the Lead Member for Housing.

The Leader of the Council, Leader of the Opposition and the Leader of the Liberal Democrat Group responded to the budget. In the course of his response, the Leader of the Liberal Democrat Group requested that a separate vote be taken on recommendation 1.2, “To approve the 2014-15 General Fund Budget and 2014-15 Capital Programme proposed by the Executive on 3 February 2014 as detailed in Annex 1 amended for the changes to the collection fund and investment income as set out in paragraphs 3.12 and 3.13.”.

The budget was debated at length by Members, during which no amendments were moved.

In accordance with the agreement given, a recorded vote on recommendation 1.2 was taken separately. Members voted as follows:

Councillor Alyas Ahmed – For

Councillor Ken Atack – For

Councillor Andrew Beere – Against

Councillor Maurice Billington – For

Councillor Fred Blackwell – For

Councillor Norman Bolster – For

Councillor Ann Bonner – For

Councillor Mark Cherry – Against

Councillor Colin Clarke – For

Councillor Surinder Dhesi – Against

Councillor John Donaldson – For

Councillor Diana Edwards – For

Councillor Tim Emptage – Abstain

Councillor Andrew Fulljames – For

Councillor Michael Gibbard – For

Councillor Tim Hallchurch MBE – For

Councillor Chris Heath – For

Councillor Simon Holland – For

Councillor Alastair Milne Home – For

Councillor David Hughes – For

Councillor Russell Hurle – For

Councillor Tony Ilott – For

Councillor Mike Kerford-Byrnes – For

Councillor Ray Jelf – For

Councillor James Macnamara – For

Councillor Melanie Magee – For

Councillor Kieron Mallon – For

Councillor Nicholas Mawer – For

Councillor Nigel Morris – For

Councillor Jon O’Neill – For

Councillor P A O’Sullivan – For

Councillor D M Pickford – For

Councillor Lynn Pratt – For

Councillor Neil Prestidge – For

Councillor Nigel Randall – For

Councillor G A Reynolds – For

Councillor Alaric Rose – Abstain

Councillor Daniel Sames – For

Councillor Les Sibley – For

Councillor Trevor Stevens – For

Councillor Lawrie Stratford – For

Councillor Rose Stratford – For

Councillor Lynda Thirzie Smart – For

Councillor Nicholas Turner – For

Councillor Douglas Webb – For

Councillor Douglas Williamson – Abstain

Councillor Barry Wood – For

Councillor Sean Woodcock – Against

A recorded vote was subsequently taken on all other recommendations. Members voted as follows: