Agenda item

To determine the General Revenue Budget, Capital Programme and Council Tax Levels for 2018/19.  To enable Council to make the required decisions, the following documents are submitted:-

a)         Revenue Budget 2018/19

The proposals put forward by Cabinet on 14^th February 2018 are set out in the attached report.  The final proposals of the Controlling Group will be submitted at the meeting.

b)         Capital Programme 2018/19

The proposals put forward by Cabinet on 14^th February 2018 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 14^th February 2017 to consider the budget proposals for 2018/19.  The Committee’s comments will be reported at the meeting.

Before the start of the debate, the Deputy Mayor sought consent to the order and format of the debate, a copy of which had been circulated prior to and at the meeting.  The meeting gave its consent to the proposed arrangements.

The Leader of the Council presented the proposed revenue and capital budget and council tax levels for 2018/19. Proposals for the 2018/19 general fund revenue budget and capital programme had been put forward at Cabinet on the 14^th February 2018 and had been recommended to Council for approval. The Leader put forward an updated report circulated at the meeting setting out the Council’s budget requirement for 2018/19, its Precept on the Collection Fund and the formal details surrounding the Precept of other bodies on the Collection Fund and seeking permission to continue to allow former Area Council budgets for Capital and Revenue to be retained by those groups or their successors and for additional payment or payments to be made to Lancashire Pension Authority if surplus funds existed.  

The Vice-Chair of the Resources Overview and Scrutiny Committee (Councillor Jenny Molineux) submitted a report of that Committee’s consideration for 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 2018/19, now submitted by the Controlling Group of the Council, be approved.”

A number of proposals were then submitted by the Leader of the Conservative Group (Councillor Tony Dobson).

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 Judith Addison, Lisa Allen Mohammad Ayub, Noordad Aziz, Jean Battle, Stephen Button, Clare Cleary, Loraine Cox, Paul Cox, Munsif Dad, Bernard Dawson, Tony Dobson, Stewart Eaves, Diane Fielding, Melissa Fisher, Glen Harrison, June Harrison, Eamonn Higgins, Terry Hurn, Julie Livesey, Gareth Molineux, Jenny Molineux, Ken Moss, Tim O’Kane, Bernadette Parkinson, Miles Parkinson, Joyce Plummer, Kath Pratt, Malcolm Pritchard, Jeff Scales and Paddy Short, (31).

Against the Motion:

None.

Abstentions:

Councillor Peter Britcliffe, (1).

The motion was therefore carried.

Resolved                           (1)   That the Cabinet’s recommendations on the Revenue and Capital Budgets and Prudential Indicators and Treasury Management Report for 2018/19 to 2020/21 made at the Cabinet meeting on the 14^th February 2018 be accepted and adopted;

                                            (2)   That Council Tax for Hyndburn Borough Council be increased by £5.00 to £240.52 for the year for a Band D property.  That was equivalent to a 10 pence per week increase for a Band D property, but most people in Hyndburn would see an annual increase of £3.34 as they lived in Band A properties.  The weekly increase there would be 7 pence; 

                                            (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 the budget;

                                            (5)   That it be noted that on the 3^rd January 2018 the Council at its Cabinet calculated:

o   the Council Tax Base 2018/19 for the whole Council area as 20,506 (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 314;

                                            (6)   That Council agrees that the Council Tax requirement for the Council’s own purpose for 2018/19 (excluding Parish precepts) is £4,932,103;

                                            (7)   That Council agrees that the following amounts be calculated for the year 2018/19 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 Lancashire Combined Fire & Rescue 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 2018/19 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 2018/19 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 be given delegated authority to use the unallocated surplus generated in 2017/18 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 (£55.9m as at the 31st March 2017); 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.