Agenda item

This document will be circulated separately.

The Panel received the draft revenues and capital estimates that would be considered by Cabinet on 19 January and then recommended to Council on 28 January. 

The Director of Finance Shared Services stated that Budget Panel’s review of the draft budget was the first stage in the budget process.  She referred Members to the Medium Term Financial Strategy 2015-18 which was set out in Appendix 5.  She explained the different lines in the report which showed how the net expenditure figure was calculated.  This included services’ savings and growth items which had been detailed in earlier appendices.  She advised that the estimated reduction in commercial rents was due to redevelopment works within the Borough, for example Charter Place.

The Director of Finance Shared Services informed the Panel how the net expenditure would be funded.  The estimate assumed a Council Tax freeze and therefore officers had included the Government’s Council Tax Freeze Grant.  She added that there was an increase in the New Homes Bonus.  This was not only due to the number of new homes built within the Borough but also the number of empty homes that had been brought back in to use.

Councillor Derbyshire commented that if the amount moved from the reserves was removed from the proposals, the Council would have a deficit budget.  He felt that largely this was due to the growth required to fund the Big Events programme.  He noted that this had not been requested for future years.  He asked if the Council was not intending to support the Big Events programme in 2016/17.

The Director of Finance Shared Services responded that the Council had agreed to find funding for 2015/16.  Following this, if the Business Improvement District (BID) was established, it was expected the BID would fund the events from 2016/17.

Following a question from the Chair about the income shown from Waste Veolia Outsource in 2015/16 and 2017/18, the Director of Finance Shared Services advised that she would report back to the Panel with the information.

The Chair referred to the New Homes Bonus and the grant in lieu of the New Homes Bonus estimated in 2017/18.  He asked if officers could explain the assumptions behind the estimated £2 million.

The Director of Finance Shared Services explained that the New Homes Bonus was top sliced from the total funding for local government.  It had been suggested that the New Homes Bonus might be stopped and the funding redistributed to local government.  The amount the Council might receive would depend if it was a ‘winner’ or ‘loser’.  Officers had made a cautious estimate.

The Chair referred the Panel to Appendix 10, the Capital Investment Programme.  The Chair asked officers to clarify the difference between the funding to the ‘Health Campus-Contribution to the LABV’ and the additional requirement for the ‘Health Campus’.

The Director of Finance Shared Services advised that the Council had agreed to contribute £3 million to the LABV, making part of the payment in 2014/15 and the remainder in 2015/16.  This had since been re-phased and the full amount would be paid in 2015/16 and nothing in the current financial year.  The budget of £500,000 for the Health Campus had been re-phased from the current financial year.  This referred to the amount the Council was required to spend rather than as part of its role in the LABV.

In response to a question from Councillor Dhindsa about recycling boxes, the Director of Finance Shared Services agreed to report back to the Panel with further information.

RESOLVED –

that Budget Panel notes the report and its comments be forwarded to Cabinet.