Agenda item

*PLEASE BRING YOUR COPY OF THE DRAFT BUDGET BOOK TO THE MEETING

Cabinet received a report containing the final draft budget proposals as published on 15th January 2018 to support the scrutiny and democratic process through Cabinet Committees, Cabinet and which would culminate in the annual County Council budget setting meeting on 20th February.

The report provided a summary of the key issues in the draft budget and an opportunity to receive and consider comments and recommendations from Cabinet Committees. The draft budget included a proposed 2.993% council tax increase for 2018-19 (up to the referendum limit) and a further 2% proposed through the Social Care Levy. The draft budget represented the Council’s response to local budget consultation and the impact of the provisional Local Government Finance Settlement, as well as an update to include the latest spending/saving plans and forecasts.

Ms Margaret Crabtree, Deputy Cabinet Member for Finance introduced the report for members.  She reminded members that over recent years the council had made savings of approximately £600million with a further £53million identified for 2018-19.  The draft budget, once again, proposed a balanced budget but, she warned, it would be harder than ever to achieve as government grant funding continued to be reduced and demand continued to increase.  Finally she reported that the draft budget proposed a 2.993% Council Tax increase and 2% Social Care levy.

Mr Andy Wood, Corporate Director of Finance and Procurement spoke to the item.  He reported that further changes to the draft would be made before approval was sought from County Council, for example, the balances on collection funds from District Councils were now available as were most of the business rate figures both of which had been slightly higher than the forecast included in the draft.  He also drew the attention of members to three other areas where changes may occur or where there was an element of risk to the forecast:

1.    Unaccompanied asylum-seeking children (UASC) – the draft budget for 2018-19, as with the 2017-18 report considered in the previous item, assumed that KCC would be fully funded for all of the associated costs of UASC but this had not yet been confirmed.

2.    In relation to Basic Need an assumption was included that the government would provide further support to ensure school places could be provided

3.    The final government settlement had not yet been released and would be available by the end of the week.

Mr Dave Shipton, Head of Finance, spoke to the item.  He concurred with previous speakers that pressures on local government finances continued to grow; he reminded members that those pressures had been estimated at approximately £44million when the Medium Term Financial Plan was published but that the latest forecast was nearer to £67million, largely as a result of higher inflation.  Grant reductions, while unwelcome, were as predicted and the two factors combined resulted in a challenge of £113million to find, which had been managed in the draft budget by a combination of savings, additional council tax income and a new power to retain 100% of business rates collected in the County.

Mr M. Dance, Cabinet Member for Economic Development, referred to the matter of business rate retention and welcomed the confirmation received from Mr Shipton that during the pilot in 2018-19 100% of the Business rates received from new businesses collected would be retained locally but following a question from the Leader warned that monies collected would be offset against successful appeals by businesses.

Mr G. Gibbens, Cabinet Member for Adult Social Care, referred to the 2% social care levy on council tax and the strict criteria that applied to its use which Mr Andy Wood confirmed that, despite the complex nature of the calculations, the draft budget was fully compliant with the requirements of the levy and the spend would be closely monitored to ensure that this was the case throughout the financial year.

It was RESOLVED that