Hounslow Council


Agenda item

2017/18 Budget Report (CEX144)

Report by Councillor Theo Dennison, Cabinet Member for Finance and Citizen Engagement

Decision:

RESOLVED –

 

Borough Council to approve the following recommendations:

 

Section 1 - Revenue Budget and Council Tax 2017/18

 

Council Tax 

1.     In respect of the calculation and setting of Council Tax, that Borough Council resolves:

 

(i)        That it be noted that at its meeting on 17 January 2017, Cabinet calculated the Council Tax Base 2017/18 for the whole Council area as 82,599.33 [Item T in the formula in Section 31B of Local Government Finance Act 1992, as amended (the “Act”)].

 

(ii)       That the Council Tax requirement for the Council’s own purposes for 2017/18 is £92,746,657.69 [Item R in the formula in Section 31B of Local Government Finance Act 1992, as amended (the “Act”)].

 

(iii)      That the following amounts be calculated for the year 2017/18 in accordance with Sections 31 to 36 of the Act:

 

(a)  £674,513,231 being the aggregate of the amounts which the Council estimates for its total expenditure in accordance with the items set out in Section 31A (2) of the Act.

 

(b)  £503,241,039 being the aggregate of the amounts which the Council estimates for its total income (including formula grant and Council Tax surplus payable for the year into its General Fund) in accordance with the items set out in Section 31A(3) of the Act.

 

(c)  £92,746,658 being the amount by which the aggregate (iii)(a) above exceeds the aggregate at (iii)(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)  £1,122.85 being the amount at (iii) (c) above (Item R), all divided by Item T at (i) above, calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year.

 

(iv)      To note that for the year 2017/18 the Greater London Authority (GLA) has issued a consultation setting out its precept 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.

 

(v)       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 tables below as the amounts of Council Tax for 2017/18 for each part of its area and for each of the categories of dwellings. (GLA will approve its precept on 20 February 2017).

 

Valuation Band

A

B

C

D

E

F

G

H

Banding Factor

6/9

7/9

8/9

9/9

11/9

13/9

15/9

18/9

Hounslow Council Tax (£)

748.57

873.33

998.09

1,122.85

1,372.37

1,621.89

1,871.42

2,245.7

GLA Council Tax (£)

186.68

217.79

248.91

280.02

342.25

404.47

466.70

560.04

Total Council Tax (£)

935.25

1,091.12

1,247.00

1,402.87

1,714.62

2,026.36

2,338.12

2,805.74

 

(vi)      To note that the Council’s basic amount of Council Tax for 2017/18 is not excessive in accordance with principles approved under Section 52ZB of the Local Government Finance Act 1992.

 

Revenue Budget

2.     Approve a base budget, resulting in net operating expenditure, of £171,343,846 as referred to in paragraph 13.1 of this report. The budget has been based on the provisional local authority finance settlement and may need to be reviewed once the final settlement has been announced, which is not expected earlier than 20th February 2017.

 

Savings

3.    Approve the savings proposals set out in the section 8 and Appendix C

 

Inflation

4.    Approve the levy increase and inflation bids, totalling £4.5m, as set out in section 9 and Appendix D

 

Balances

5.    To allocate £2m of the New Homes Bonus reserve to mitigate actions to reduce the temporary accommodation pressure in 2017/18 and beyond, as set out in table 7.

 

6.    To contribute £2m into the Performance Improvement Fund (PIF) reserve to cover approved and future anticipated allocations for projects.

 

7.    To allocate the Adult Social Care Support Grant for 2017/18 of £1m to an Adult Social Care reserve for transformation and performance improvements.

 

 

 

Fees and Charges

8.     Approve the 2017/18 fees and charges as set out in Appendix B, subject to consultation where relevant.

 

Council Tax Support

9.     Retain the current Council Tax Support Scheme for 2017/18

 

Local Welfare Provision

10.  To allocate £0.15m for Local Welfare Provision as set out in paragraph 23.5

 

Section 2 - Housing Revenue Account Budget

 

11.  That the 2017/18 HRA budget is adopted as set out in section 2 of this report. This is estimating an in year surplus of £12.764m in 2017/18, use of reserves of £12.5m to fund capital expenditure, resulting in an estimated balance on the HRA of £3.253m as at 31 March 2018.

 

Section 3 - Capital Budget 2016/17 - 2019/20

 

12.  To note the update on the planned capital programme from 2016/17 to 2019/20 as set out in Section 3 of this report.

 

Section 4 - Treasury Management Strategy, Investment Strategy, Prudential Indicators and Minimum Revenue Provision Policy 2017/18

                             

13.  To adopt the:

 

·          Treasury Management Annual Strategy (set out in Section 4)

·          Annual Investment Strategy (Appendix  E)

·          Statement on Minimum Reserve Provision (Appendix F)

·          Prudential and Treasury Indicators (Appendix G)

 

14.  To authorise the Director, Finance and Corporate Services to:

 

·          Use short-term (temporary) borrowings

·          Use cash held in internal funds to offset the need to borrow externally

·          Use long term borrowing subject to interest rates at the time of offer

a)        to take long-term loans, as required, from the Public Works Loan Board

b)         to take long term loans from the money market utilising any of the loan instruments available to the Council as deemed most appropriate at the time of borrowing

·          Invest temporary surplus cash within constraints of normal cash flow considerations with approved counterparties

·          Maintain the approved counterparty list, making additions and deletions, and reviewing counterparty limits as necessary

·          Review and appoint external cash fund managers if appropriate if one-off lump sums are received, subject to specific conditions for investment

·          Invest the earmarked PFI funds for periods of over two years in organisations meeting our credit criteria

·          Review and implement all prudent debt management functions which are required to produce advantages to the Council’s long term interest rate liabilities

·          Subject to available rental levels, to finance appropriate expenditure through leasing arrangements

·          Operate the loan facilities made available for implementation of the Property 360 Investment Plan

 

Section 5 - Annual Procurement Plan

                             

15.  To:

 

·          Approve the additions to the Annual Procurement Plan as detailed in Appendix H

·          Adopt the PSAA’s (Public Sector Audit Appointments) invitation to ‘opt in’ to the sector led option for the appointment of external auditors for five financial years commencing 1 April 2018

 

ACTION BY: Director of Finance and Corporate Services

TO NOTE: All

 

Supporting documents: