Agenda item

Joint Report of the Chief Executive and Head of Corporate Resources

Further to Minute No. 123 of the Cabinet Meeting held on 15 February 2018, the Council considered the joint report of the Chief Executive and the Head of Corporate Resources which provided details of the Revenue Budget for the period 2018/19 – 2019/20, and also the level of Council Tax for 2018/19 and information on:- 

 

·       An assessment of the Council’s current financial position and approach to the 2018/19 to 2019/20 Budget Plan;

·       Progress that has been made during the last year within the Council’s Framework for Change programme;

·       An update on the Government’s announcement of resources that are available to the Council for 2018/19 (subject to final confirmation by the Government);

·       The Council’s current financial position and the assumptions built into the Medium Term Financial Plan;

·       The options available for the Council’s Budget;

·       The proposed Capital Programme for 2018/19 and 2019/20; and

·       The first budget estimate of the funding gap that the Council will face in 2020/21.

As such, the report set out the approach to the financial strategy of the Council and the national and local financial context within which it was operating; indicated that the Council had a statutory requirement to remain financially sustainable; that the Council’s Framework for Change Programme was a comprehensive and ambitious programme that sought to support the delivery of the Council’s core purpose; that as would be expected with a programme of this size and complexity that spanned a number of financial years, the detailed proposals had been and would continue to be the subject of change as they were developed and ultimately implemented; and that within this context, work had been undertaken to confirm that change proposals for 2018/19 were viable and would help deliver financial sustainability.

 

In respect of the overall financial context for the Council and its approach to the 2017/18 to 2019/20 Budget Plan the report indicated that in 2010, Central Government imposed, what were thought at the time, to be significant reductions in local government financial support; that rather than this being a short term restriction in spending, the austerity programme had extended into a ten-year long period of severe budget reductions; that for Sefton this had resulted in a funding gap of £233m being required to be met by the end of 2019/20, with a direct loss of 51% of government funding which equated to £722 per Sefton household; that due to the scale of this financial challenge (and taking into account the significant savings that had already been made since 2010) the Council undertook a comprehensive review of its role within the Borough, via the Imagine Sefton 2030 consultation and as a result, updated its core purpose; and that it was subsequently determined that the delivery vehicle for the Council’s core purpose and to ensure financial sustainability would be the “Framework for Change” programme, the key pillars of which were detailed in the diagram in paragraph 2.4 of the report.

 

 

The report also detailed the progress to date made on the “Framework for Change” programme and that the Council remained focused on: -

 

·       Creating more and better jobs for local people – Economic Growth

·       Working with partners to deliver affordable services which achieve the best possible outcomes – Public Sector Reform

·       Making every pound count in everything we do – Service Delivery Options

·       Investing wisely and creatively to make and save money, grow faster and enable our communities to thrive – Strategic Investment

 

The report also provided information on the Medium Term Financial Plan (MTFP) 2018/19 – 2019/20 and in particular on the following issues:-

 

·       Additional budget pressures associated with Adult Social Care and Children’s Social Care

·       Key MTFP assumption revisions relating to the Local Government Pay Offer, the Transport Levy, Business Rates and Council Tax Base, the Waste Levy, VAT Shelter Income, Leisure Income – VAT Liability Change, and the New Homes Bonus reduced funding 

·       Impact of the Local Government Financial Settlement

·       Review of Budget proposals and planning assumptions

 

Regarding the Two-Year Budget Plan 2018/19 to 2019/20 the report indicated that, based upon the revisions to the MTFP and the savings that were forecast from the Public Sector Reform programme, it was now estimated that the funding shortfall in the following two years would be £11.227m and £2.542m respectively, before any Council Tax decisions were made and any additional service delivery options were considered; and that in order to support this two year package and the revised funding gap, a number of Service Delivery Options were now proposed relating to: -

 

·       Supplies and Services Saving

·       Sefton New Directions Contract Saving

·       The annual income stream arising from the acquisition of the Strand Shopping Centre

·       PSR2 – Re-phasing of Saving Achievement

·       Transforming Sefton Reserve

·       Risk Management, Financial Monitoring and Sustainability

 

The report then set out specific Budget 2018/19 issues relating to charges relating to external / levying bodies and the proposed overall Council Tax increase; provided information on schools’ related grants; other Government grant notifications in 2018/19; a summary of budget proposals for 2018/19; and precepts to the Police and Crime Commissioner and Fire and Rescue Service.

 

The following appendices were attached to the report:-

 

Appendix A	Individual School Budgets
Appendix B	Draft Council Budget Summary 2018/19 – 2019/20
Appendix C	Fees and Charges 2018/19
Appendix D	Capital Programme 2018/19 - 2019/20

 

In conclusion, the Budget Plan 2018/19 to 2019/20 had proved to be a very positive first year of the financial plan period; and indicated that the Council would continue to play its part and show strong and visible leadership in delivering the Vision 2030; and that the Council had adopted the 2030 Sefton Vision of ‘A confident and connected Sefton’ and would continue to strive to deliver key priorities, ensuring everything it did had a contributory focus to the future of the Borough.

 

The report requested the Council to consider and determine the following issues:

 

·       Budget for 2018/19 and the Financial Plan to 2019/20;

·       Setting the Council Tax for Sefton Council for 2018/19; and

·       Approving the overall Council Tax resolution for 2018/19.

 

The Council also considered the draft Council Tax resolution for 2018/19 which had been prepared by the Head of Corporate Resources and circulated to Members of the Council in the supplementary agenda.

 

It was moved by Councillor Maher, seconded by Councillor Fairclough;

 

That:

Budget 2018/19 and Medium Term Financial Plan to 2019/20   1.                  the update of the Medium Term Financial Plan for the period 2018/19 to 2019/20 which includes the implications of the local government finance settlement (Section 4) be noted;   2.                  Approval be given the budget for 2018/19 and the two-year financial plan to 2019/20 and officers be authorised to undertake the necessary actions relating to the implementation associated with the recommendations (Section 5); 3.                  Approval be given of a one-off revenue contribution, to be repaid of £1.209m to the Liverpool City Region Mayoral Combined Authority to support the Single Investment Fund in 2018/19. (Paragraph 7.2); 4.                  Approval be given to the changes in the use of one-off resources in 2018/19 and 2019/20 to phase the impact of the required savings over the budget plan (Paragraphs 5.6 and 7.2); 5.                  Approval be given to a Council Tax increase of 2.99% and a Social Care Council Tax Precept of 3% in 2018/19 resulting in an overall increase in Council Tax for Sefton of 5.99% for 2018/19; 6.                  the Schools’ Forum decisions on the Dedicated Schools Grant and Individual School Budgets (Section 8 and Appendix A) be noted; 7.                  the allocation of specific grants as detailed in the report (Section 9) be approved; 8.                  the Fees and Charges as proposed in the draft Council budget (Appendix C) be noted; and 9.                  Subject to the recommendations above, the overall Council Tax resolution for 2018/19 including Social Care, Police, Fire and Parish Precepts be approved. Capital Programme 2018/19 to 2019/20   10.              the Capital schemes to be funded from school and transport grants in 2018/19 as outlined in paragraphs 2.2 and 3.2 of Appendix D be approved for inclusion within the Capital Programme; 11.              the transfer of the funding for work at Litherland Moss Primary School Phase 2 towards Essential and Planned schools maintenance as outlined in Section 2 of Appendix D be approved; and 12.              the inclusion within the Capital Programme of the fully grant funded schemes as detailed in paragraphs 4.2 of Appendix D be approved.

Councillors Maher, Pugh, Jamieson and Bennett each gave a statement expressing the views of their political groups on the content of the report.

 

Following debate on the report, an amendment was moved by Councillor Pugh, seconded by Councillor Daniel Lewis that the Motion be amended as follows:

 

“In order to immediately improve the condition of roads within the Borough, approve the inclusion of an additional one-off resource in 2018/19 of £44,000 to be spent on highway maintenance.  This will be capital expenditure and will be funded by Prudential Borrowing.  The annual costs of this (£400,000 per year for ten years) will be funded from the Highways Maintenance – Carriageway Resurfacing revenue budget.  The net increase in annual expenditure in 2018/19 will therefore be £357,000.”

 

“The net impact of the proposed amendment above would still ensure that the Council’s three year budget plan remains balanced.”

 

 

Following debate and in accordance with Rule 96 of Chapter 4 in the Constitution, the voting on the Amendment was recorded and the Members of the Council present at the time, voted as follows:

 

 

 

FOR THE AMENDMENT:

 

Councillors Ashton, Brodie-Browne, Dawson, Dodd, Keith, Daniel Lewis, McGuire, Preece, Pugh, Pullin, Shaw, Lynne Thompson and Weavers.

 

AGAINST THE AMENDMENT:

 

Councillors Atkinson, Bennett, Bliss, Burns, Byrom, Carr, Carragher, Linda Cluskey, Cummins, Dutton, Fairclough, Friel, Gannon, Grace, Hardy, Jamieson, John Kelly, John Joseph Kelly, Lappin, Daniel Terence Lewis, Maher, McCann, McGinnity, McKinley, Moncur, Murphy, Brenda O’Brien, Michael O’Brien, O’Hanlon, Page, Pitt, Roscoe, Sayers, Spencer, Thomas, Anne Thompson, Tweed, Veidman, Webster, Bill Welsh, Marianne Welsh and The Mayor.

 

ABSTENTIONS:

 

Councillor David Barton.

 

The Mayor declared that the Amendment was lost by 42 votes to 13 with 1

abstention.

 

Following further debate and in accordancewith Rule 96 of Chapter 4 in the Constitution, the voting on the Motion was recorded and the Members of the Council present at the time, voted as follows:

 

FOR THE MOTION:

 

Councillors Atkinson, Bennett, Bliss, Burns, Byrom, Carr, Carragher, Linda Cluskey, Cummins, Dutton, Fairclough, Friel, Gannon, Grace, Hardy, Jamieson, John Kelly, John Joseph Kelly, Lappin, Daniel Terence Lewis, Maher, McCann, McGinnity, McKinley, Moncur, Murphy, Brenda O’Brien, Michael O’Brien, O’Hanlon, Page, Pitt, Roscoe, Sayers, Spencer, Thomas, Anne Thompson, Tweed, Veidman, Webster, Bill Welsh, Marianne Welsh and The Mayor.

 

AGAINST THE MOTION:

 

Councillors Ashton, David Barton, Brodie-Browne, Dawson, Dodd, Keith, Daniel Lewis, McGuire, Preece, Pugh, Pullin, Shaw, Lynne Thompson and Weavers.

 

The Mayor declared that the Motion was carried by 42 votes to 14 and it was

 

RESOLVED:

 

That:

 

Budget 2018/19 and Medium Term Financial Plan to 2019/20

 

1.               the update of the Medium Term Financial Plan for the period 2018/19 to 2019/20 which includes the implications of the local government finance settlement (Section 4) be noted;

 

2.                  Approval be given the budget for 2018/19 and the two-year financial plan to 2019/20 and officers be authorised to undertake the necessary actions relating to the implementation associated with the recommendations (Section 5);

3.                  Approval be given of a one-off revenue contribution, to be repaid of £1.209m to the Liverpool City Region Mayoral Combined Authority to support the Single Investment Fund in 2018/19. (Paragraph 7.2);

4.                  Approval be given to the changes in the use of one-off resources in 2018/19 and 2019/20 to phase the impact of the required savings over the budget plan (Paragraphs 5.6 and 7.2);

5.                  Approval be given to a Council Tax increase of 2.99% and a Social Care Council Tax Precept of 3% in 2018/19 resulting in an overall increase in Council Tax for Sefton of 5.99% for 2018/19;

6.                  the Schools’ Forum decisions on the Dedicated Schools Grant and Individual School Budgets (Section 8 and Appendix A) be noted;

7.                  the allocation of specific grants as detailed in the report (Section 9) be approved;

8.                  the Fees and Charges as proposed in the draft Council budget (Appendix C) be noted; and

9.                  Subject to the recommendations above, the overall Council Tax resolution for 2018/19 including Social Care, Police, Fire and Parish Precepts be approved.

Capital Programme 2018/19 to 2019/20

 

10.              the Capital schemes to be funded from school and transport grants in 2018/19 as outlined in paragraphs 2.2 and 3.2 of Appendix D be approved for inclusion in the Capital Programme;

11.              the transfer of the funding for work at Litherland Moss Primary School Phase 2 towards Essential and Planned schools maintenance as outlined in Section 2 of Appendix D be approved; and

12.               the inclusion within the Capital Programme the fully grant funded schemes as detailed in paragraphs 4.2 of Appendix D be approved.

 

13.               It be noted that at its meeting on 25^th January 2018, the Council calculated the following amounts for the year 2018/2019 in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 1992 (as amended):

(a)		82,939.50	Band D equivalent properties, for the whole area [item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended]; and
(b)		for dwellings in those parts of its area to which a Parish precept relates as shown in the table below:
	Parish			Council Tax Base
				(Band D Equivalent Properties)
	Aintree Village			2,037.00
	Formby			9,125.50
	Hightown			864.60
	Ince Blundell			162.60
	Little Altcar			330.90
	Lydiate			2,047.80
	Maghull			6,545.40
	Melling			999.60
	Sefton			236.50
	Thornton			763.20

 

14.           The Council calculate that the Council Tax requirement for the Council's own purposes for 2018/2019 (excluding Parish Precepts) is £126,458,685.

 

15.           the following amounts be calculated by the Council for the year 2018/2019 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992:

 

(a)	£584,459,546	Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.
(b)	-£456,974,888	Being the aggregate amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
(c)	£127,484,658	Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year (item R in the formula in Section 31B of the Act).
(d)	£1,537.08	Being the amount at 3(c) above (item R), divided by the amount at 1(a) above (item T), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish Precepts).
(e)	£1,025,973	Being the aggregate amount of all special items (Parish Precepts) referred to in Section 34(1) of the Act.
(f)	£1,524.71	Being the amount at 3(d) above, less the amount given by dividing the amount at 3(e) above by the amount at 1(a) above (item T), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special item relates.
(g)	The amounts below, being the amounts given by adding to the amount at 3(f) above the amounts of thespecial items relating to dwellings in those parts of the Council's area mentioned above divided in eachcase by the amount at 1(b) above, calculated by the Council in accordance with Section 34(3) of the Actas basic amounts of its Council Tax for the year for dwellings in those parts of its area to which specialitems relate.
	Parish Aintree Village Formby Hightown Ince Blundell Little Altcar Lydiate Maghull Melling Sefton Thornton		£  1,580.18  1,533.48  1,531.03  1,537.07  1,534.00  1,598.24  1,623.00  1,544.72  1,539.51  1,531.26
(h)	The amounts below being the amounts given by multiplying the amounts at 3(f) and 3(g) above by thenumber which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in aparticular valuation band divided by the number which in that proportion is applicable to dwellings listedin valuation Band D, calculated by the Council, in accordance with Section 36(1) of the Act, as theamounts to be taken into account for the year in respect of categories of dwellings listed in differentvaluation bands.
	Property Valuation Band Proportion of Band D A 6/9 B 7/9 C 8/9 D 9/9 E 11/9 F 13/9 G 15/9 H 18/9   £ £ £ £ £ £ £ £ Parish                                   Aintree Village 1,053.45 1,229.03 1,404.60 1,580.18 1,931.33 2,282.48 2,633.63 3,160.36                   Formby 1,022.32 1,192.71 1,363.09 1,533.48 1,874.25 2,215.03 2,555.80 3,066.96                   Hightown 1,020.69 1,190.80 1,360.92 1,531.03 1,871.26 2,211.49 2,551.72 3,062.06                   Ince Blundell 1,024.71 1,195.50 1,366.28 1,537.07 1,878.64 2,220.21 2,561.78 3,074.14                   Little Altcar 1,022.67 1,193.11 1,363.56 1,534.00 1,874.89 2,215.78 2,556.67 3,068.00                   Lydiate 1,065.49 1,243.08 1,420.66 1,598.24 1,953.40 2,308.57 2,663.73 3,196.48                   Maghull 1,082.00 1,262.33 1,442.67 1,623.00 1,983.67 2,344.33 2,705.00 3,246.00                   Melling 1,029.81 1,201.45 1,373.08 1,544.72 1,887.99 2,231.26 2,574.53 3,089.44                   Sefton 1,026.34 1,197.40 1,368.45 1,539.51 1,881.62 2,223.74 2,565.85 3,079.02                   Thornton 1,020.84 1,190.98 1,361.12 1,531.26 1,871.54 2,211.82 2,552.10 3,062.52                   All Other Parts of the Council's Area 1,016.47 1,185.89 1,355.30 1,524.71 1,863.53 2,202.36 2,541.18 3,049.42

 

16.           it be noted that for the year 2018/2019 the Police and Crime Commissioner and Fire and Rescue Authority have stated the following amounts in precepts issued to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:

 

			Property Valuation Band
Proportion of	A	B	C	D	E	F	G	H
Band D	6/9	7/9	8/9	9/9	11/9	13/9	15/9	18/9
	£	£	£	£	£	£	£	£
Precepting Authority
Merseyside Fire & Rescue Authority	51.04	59.55	68.05	76.56	93.57	110.59	127.60	153.12
Merseyside Police and Crime Commissioner	118.65	138.42	158.20	177.97	217.52	257.07	296.62	355.94

 

 

17.           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 2018/2019 for each part of its area and for each of the categories of dwellings.

 

			Property Valuation Band
Proportion of	A	B	C	D	E	F	G	H
Band D	6/9	7/9	8/9	9/9	11/9	13/9	15/9	18/9
	£	£	£	£	£	£	£	£
Parish
Aintree Village	1,223.14	1,427.00	1,630.85	1,834.71	2,242.42	2,650.14	3,057.85	3,669.42
Formby	1,192.01	1,390.68	1,589.34	1,788.01	2,185.34	2,582.69	2,980.02	3,576.02
Hightown	1,190.38	1,388.77	1,587.17	1,785.56	2,182.35	2,579.15	2,975.94	3,571.12
Ince Blundell	1,194.40	1,393.47	1,592.53	1,791.60	2,189.73	2,587.87	2,986.00	3,583.20
Little Altcar	1,192.36	1,391.08	1,589.81	1,788.53	2,185.98	2,583.44	2,980.89	3,577.06
Lydiate	1,235.18	1,441.05	1,646.91	1,852.77	2,264.49	2,676.23	3,087.95	3,705.54
Maghull	1,251.69	1,460.30	1,668.92	1,877.53	2,294.76	2,711.99	3,129.22	3,755.06
Melling	1,199.50	1,399.42	1,599.33	1,799.25	2,199.08	2,598.92	2,998.75	3,598.50
Sefton	1,196.03	1,395.37	1,594.70	1,794.04	2,192.71	2,591.40	2,990.07	3,588.08
Thornton	1,190.53	1,388.95	1,587.37	1,785.79	2,182.63	2,579.48	2,976.32	3,571.58
All Other Parts of the Council's Area	1,186.16	1,383.86	1,581.55	1,779.24	2,174.62	2,570.02	2,965.40	3,558.48

 

 

18.           the Council's basic amount of Council Tax for 2018/2019 is not deemed to be excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992.