Agenda item

The Leader’s Portfolio

To consider report FIN/417 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission held on 29 October 2018.

The Leader presented report FIN/417of the Head of Corporate Finance which set out the projected financial position for 2019/20 – 2023/24 for the General Fund and the underlying assumptions. The report also sets the policy framework for the budget process, recognising that there are a range of options for capital investment, income generation, savings and Council Tax levels; none of which can be considered in isolation.  The overall objective is to work towards a balanced General Fund budget over a three year period.  Currently there was a projected deficit of £225,000 for the current year along with a proposal for an increase to the Crawley’s proportion of the Council Tax. It was also emphasised that all capital expenditure was focused on maintaining Council assets, environmental obligations or fund new sources of revenue (spend to save or spend to earn), ultimately refunding the expenditure over time.

Councillor T. Belben presented the Overview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on 29 October 2018. The Commission requested that the Cabinet in considering items for the values that were driving the Capital programme, should not preclude the initial consideration of capital projects that could deliver social value, along with the principles of the upkeep of Council assets environmental obligations and schemes that would be considered spend to save or spend to earn.

In response to the Commission’s comment, the Leader was happy to endorse that additional consideration for the Capital Programme.

Councillor Mullins also spoke on the item.

RESOLVED

That Full Council be recommended to:

1)            approve of the Budget Strategy 2019/20 to 2023/24

2)            notes, for the purpose of projections, the current budget deficit of £225,000 for 2019/20, on the basis of a Council tax increase of £4.95 on a Band D in 2019/20.

3)            work towards balancing this over a three year period, including putting back into reserves when the Budget is in surplus.

4)            to transfer £1m from the Business rates equalisation reserve to the General Fund reserve; and in addition any in year and future surplus are to be transferred to the General Fund reserve in order to fund the short term additional costs due to the investment in the New Town Hall build as outlined in section 7.6 of report FIN/417

5)            instruct Corporate Management Team to take action to address the long term budget gap and to identify policy options for consideration by Cabinet Members and the Budget Advisory Group, which will include areas where additional resources need to be redirected.

6)            notes that items for the Capital Programme are driven by the need for the upkeep of council assets and environmental obligations and schemes will also be considered that are spend to save or spend to earn whilst not precluding the initial consideration of capital projects that could deliver social value.

7)            notes that the Budget is aligned to the Council’s Corporate Priorities.

Reasons for the Recommendations

To set a Strategy for savings and income generation and working towards a balanced budget over three years. Including putting back into reserves when the budget is in surplus.

To determine the criteria for capital programme bids.

To agree the level of reserves in section 7.6 in order to support funding the budget shortfall as a result of the investment in the New Town Hall project