Cabinet Member for Finance and Performance

Cabinet considered the report of the Chief Financial Officer and the above Cabinet Member which set out the Council’s Medium Term Financial Plan (MTFP) and the draft 2018/19 revenue budget.

The Cabinet Member introduced the report and explained that 2018/19 was one of the most difficult budgets for the Council. The increase in the levy funds to the Lower Medway Internal Drainage Board, a reduction in the New Homes Bonus late in 2016 worsened the Council’s base budget position by £800,000.  There was a funding gap of £1.3 million for 2018/19 and it was forecast that there would be a further £400,000 gap in 2019/20.  The 2016/17 underspend of £677,000 was being used to smooth out the gap.  The Cabinet Member explained that the 2018/19 Local Government Finance Settlement was expected to be announced in the week commencing 18 December 2017.  Members were reminded that the budget would be considered by the Scrutiny Committee on 25 January 2018.

A visiting Member raised points which included: there was nothing in the report to address doing more for tourism in the Borough, hoped that in the final budget for 2018/19 this would be addressed; if there had been a gentle increase in Council Tax, the funding gap would not exist; more funding was needed to tackle homelessness; and the Council continued to under-budget for Planning income.

Members spoke in support of the well-written report and thanked the Finance Team.

The Cabinet Member for Regeneration drew Members’ attention to paragraph 2.19 in the report which reported that the Council had now signed the Development Agreement and the Funding Agreement for the leisure development, as part of the Sittingbourne Town Centre regeneration project.

In response to questions, Members were advised that the 1.2% staff pay increase, as noted in paragraph 2.18 of the report, was not to be compared to the recently publicised public sector increase of 2% which was negotiated on a separate basis, of which SBC had opted out of.  The Cabinet Member for Finance and Performance further advised that the figure of items £5,000 or less was included within the Budget Variations as that figure related to procurement and was the minimum purchasing amount.

Recommended:

(1)      That the Medium Term Financial Plan be endorsed.

(2)      That the draft 2018/19 revenue budget proposals be endorsed.