Agenda item

To determine the General Revenue Fund, Capital Programme and Council Tax levels for 2016/17. To enable Council to make the required decisions, the following documents are submitted:-

a)         Revenue Budget 2016/17

The proposals put forward by Cabinet on 3rd February 2016 are set out in the attached report; the final proposals of the controlling group will be submitted at the meeting.

b)         Capital Programme 2016/17

The proposals put forward by Cabinet on 3^rd February 2016 are set out in the attached report; the final proposals of the controlling group will be submitted at the meeting.

c)         Comments and Recommendations of Overview and Scrutiny

The Resources Overview and Scrutiny Committee met on 16^th February 2016 to consider the budget proposals for 2015/16. The Committee’s comments will be circulated in due course.

The Leader of the Council presented the proposed revenue and capital budget and council tax levels for 2016/17. Proposals for the 2016/17 general fund revenue budget and capital programme had been put forward at Cabinet on 3^rd February 2016 and had been recommended to Council for approval. The Leader of the Council now put forward an updated report, with just one amendment, to reduce the savings required on the Culture and Leisure Services budget by £50,000 and to insert a corporate savings target of £50,000 instead. The revenue budget for 2016/17 would require a net expenditure of £11,283,000, with no increase in Council Tax.

Councillor Noordad Aziz, Chair of the Resources Overview and Scrutiny Committee, submitted a report of the Committee’s consideration of the budget proposals, to which the Leader responded.

A motion was proposed by Councillor Miles Parkinson and seconded by Councillor Gareth Molineux:-

“That the recommendations for the General Fund Revenue and General Fund Capital Programme Budget and Council Tax Levels for 2016/17, now submitted by the controlling group, be approved.”

A debate on the motion then followed, after which  it was put to the vote. In accordance with The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 a recorded vote was taken. The votes were recorded as follows:-

For the motion: Councillors Mohammad Ayub, Noordad Aziz, Clare Cleary, Loraine Cox, Paul Cox, Munsif Dad, Bernard Dawson, Wendy Dwyer, Diane Fielding, Melissa Fisher, June Harrison, Eamonn Higgins, Abdul Khan, Gareth Molineux, Kerry Molineux, Ken Moss, Jenny Nedwell, Tim O'Kane, Bernadette Parkinson, Miles Parkinson, Bill Pinder, Joyce Plummer, Malcolm Pritchard, Paul Thompson (24)

Against the motion: none

Abstentions:    Councillors Judith Addison, Lisa Allen, Peter Britcliffe, Tony Dobson Julie Livesey, Marlene Haworth, Terry Hurn, Kath Pratt, (8)          

The motion was therefore carried.

Resolved                            (1)  That the recommendations of Cabinet on the Revenue and Capital Budgets for 2016/17 be approved, subject to approval of one amendment, to reduce the savings required on the Culture and Leisure Services budget by £50,000 and to insert a corporate savings target of £50,000 instead.

                                            (2)  That Council Tax rates for Hyndburn Borough Council will remain the same, £230.52 for the year for a Band D property, for example.

                                            (3)  That the Council commits to continuing to strengthen its reserves during the year and requires the Chief Executive and the Deputy Chief Executive to take appropriate action to protect the Council’s overall financial position and further strengthen its reserves during the forthcoming year.

                                            (4)  That the Council delegates authority to the Chief Executive to take such action as he considers necessary to implement the measures contained in this budget. 

                                            (5)  That it be noted that on 6^th January 2016 the Council at its Cabinet calculated:

o   the Council Tax Base 2016/17 for the whole Council area as 19,089 (Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended (the “Act”)) and,

o   for dwellings in those parts of its area to which a Parish precept relates as 301.

                                            (6)  That Council agrees that the Council Tax requirement for the Council’s own purpose for 2016/17 (excluding Parish precepts) is £4,400,396.

                                            (7)  That Council agrees that the following amounts be calculated for the year 2016/17 in accordance with Sections 31 to 36 of the Act:

                                            (8)  That Council note that the County Council, the Lancashire Police & Crime Commissioner and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

                                            (9)  That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the table below as the amounts of Council Tax for 2016/17 for each part of its area and for each of the categories of dwellings.

                                          (10)  That the Council note the basic amount of Council Tax for 2016/17 is not considered excessive in accordance with principles approved under Section 52 ZB Local Government Finance Act 1992.

                                          (11)  That the Deputy Chief Executive be given delegated authority to amend the budget (following  consultation with the Leader of the Council) for technical reasons or to comply with legal requirements, such as the restructuring of cost centres, the re-apportionment and re-allocation of overheads etc., so long as these changes have an overall neutral impact on the budget.

                                          (12)  That any continuing balances on Revenue or Capital previously earmarked for Area Councils continues to be set aside for use by these or their successor bodies.

                                          (13)  That the Chief Executive is given delegated authority to use the unallocated surplus generated in 2015/16 to fund any future shortfall in income or additional expenditure, to support “Invest to Save” projects that will help reduce the Council’s long term costs(including additional payments to the Pension Fund as outlined below), or support specific capital projects, or finance other commitments that he deems to be in the best long term interest of the Council or to transfer funds to Reserves as required. 

                                          (14)  That the Chief Executive be given delegated authority following consultation with the Leader to make a payment to the Lancashire Pension Authority to help reduce the extent of the Council’s pension liabilities that have amassed from previous years (£45.8m as at the 31st March 2015); and

                                          (15)  That the Council renews its short term loan to Barnfield & Hyndburn Ltd of £150,000 if required to assist our joint venture, manage its short term loan position with its Bank, while it continues to develop its site at Mill Gardens Great Harwood pending the arrival of receipts from sales.