Cabinet Member for Finance and Performance

Cabinet considered the report of the Head of Finance and the above Cabinet Member, which set out the Council’s Medium Term Financial Plan (MTFP) and the 2017/18 budget proposals.

The Cabinet Member introduced the report, and explained that it had been updated since the Cabinet meeting on 7 December 2016, to reflect the Provisional Local Authority Grant Settlement announced on 15 December 2016.  He drew attention to the reduction in the New Homes Bonus, and reported that a letter had been written to the Secretary of State outlining the concerns of the Council.  The Cabinet Member explained that new income streams were needed to continue to provide services to Swale residents.  He explained that it was proposed to extend the current borrowing facility, to enable the Council to borrow up to an additional £30 million, on top of the £30 million already agreed in 2016, for new projects.

In response to a question, the Cabinet Member advised that the additional £30 million was to allow the Council to be solvent in the next two or three years by investing in revenue-raising projects.

The Chief Executive further advised that the proposal was to extend the current borrowing facility, but there were no specific projects in mind for the funding, and that taking up any part of the facility would require a further Cabinet decision, that would be available for scrutiny.

The Chairman of the Scrutiny Committee thanked the Cabinet Member for the report, and congratulated the Finance Team on the budget proposals.  He confirmed that the Scrutiny Committee had made no recommendations at their meeting on 26 January 2017.

In response to further questions, the Cabinet Member advised that there was no inclusion in this year’s budget for the leisure and tourism proposals, as recommended by the Scrutiny Committee; that the increase in Council Tax was a combination of an increase in the Council Tax base informed by the emerging Local Plan, and a prudent assumption about Council Tax increases; and that the Leader had written to central government raising concern with regard to future financial uncertainty.

Discussion ensued on the further borrowing of £30million, and Members were reminded that it was not a request to borrow more now, but allowed the opportunity to borrow when, and if, needed.

In accordance with Council Procedure Rule 19(5), a recorded vote was taken and voting was as follows:

For:  Councillors Bowles, Mike Cosgrove, Duncan Dewar-Whalley, Gerry Lewin, Ken Pugh and David Simmons.  Total equals six.

The recommendations were therefore agreed.

 Recommended:

(1)      That the 2017/18 budget proposals be approved.

(2)      That the proposed Council Tax band D increase for 2017/18 to £164.88 be approved.

(3)      That the Medium Term Financial Plan funding position be noted.

(4)      That the capital investment principles be approved.

(5)      That increasing the borrowing facility from £30m to £60m be approved.

(6)      That the draft Capital Programme be approved.

(7)      That the additional amount of Council Tax for parish precepts be noted.

(8)      That the Minimum Revenue Provision Statement as set out in Appendix IX be approved.