Agenda item

As Appendix H of this report is confidential, the press and public may be excluded from the meeting during consideration of this agenda item. This is in accordance with the provisions of Section 100(A)(4) of the Local Government Act 1972 (exempt information as defined in paragraph 3 of Schedule 12A of the Act).

 

 

 

1.       Not for call-in. Cabinet recommended that Council:

 

Revenue and capital – General Fund (GF)

 

(a)             Approves the revenue estimates for 2017-18 as shown in the GF Budget Setting Reports (BSR) Section 5.

 

(b)             Approves the precautionary items for the GF, GF BSR Appendix B.

 

(c)             Approves the GF revenue forecasts as set out in GF BSR Section 6.

 

(d)             Instructs the Executive Management Team to identify additional income / savings of £163k for 2017-18, rising to £1,531k from 2018-19.

 

(e)             Approves the GF capital programme and associated funding up to the year ended 31 March 2022, as set out in Appendix D.

 

(f)               Instructs the Head of Finance, on the basis of the proposals set out in the GF BSR, to prepare formal papers to set the council tax requirement and amount of council tax for all Bands at the Council meeting on 23 February 2017.

 

Revenue – Housing Revenue Account (HRA)

 

(g)             Approves the HRA revenue budget as shown in the HRA Summary Forecast 2016-17 to 2021-22 in Appendix I of the HRA Budget Setting Report at Appendix 2 to this report.

 

(h)             Approves the retention of the balance of the 4 year savings target included as part of the 2016-17 HRA Budget Setting Report to mitigate the impact of some of the changes in national housing policy, recognising that the net savings proposed from 2017-18 over-deliver against the profile of £250,000 per annum for 4 years, reducing the balance to be sought in the remaining 3 years to £600,480.

 

Review of Rents and Charges

 

(i)               Approves that social housing rents for existing tenants be reduced by 1%, in line with legislative requirements, with effect from 3^rd April 2017.

 

(j)               Approves that affordable rents are reviewed in line with rent legislation, to ensure that rents charged are no more than 80% of market rent, with this figure then reduced by 1% as with social housing. Local policy is to cap affordable rents at the lower level of Local Housing Allowance, which will result in a rent freeze from 3^rd April 2017.

 

(k)             Approves inflationary increases of 2.4% in garage rents for 2017-18, in line with the base rate of inflation for the year assumed in the HRA Budget Setting Report.

 

(l)               Approves the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix B of the HRA Budget Setting Report.

 

Housing Capital

 

(m)           Approves the latest budget, spend profile and funding mix for each of the schemes in the new build programme, as detailed in Section 5 and Appendix E of the HRA Budget Setting Report, recognising the most up to date information available as each scheme progresses through the design, planning, build contract and completion process.

 

(n)             Approves earmarking of the required level of additional funding for new build investment between 2017-18 and  2021-22 to ensure that commitments can be met in respect of the investment of all right to buy receipts retained by the authority, up to the end of December 2016. This expenditure will either take the form of HRA new build, with the 70% top up met by capital receipts anticipated from the sale of self-build plots or could alternatively be grant made to a registered provider, where the registered provider will provide the 70% top up to build new homes.

 

(o)             Approves the capital budget proposals, both bids and savings, detailed in Appendix G(2) of the HRA Budget Setting Report.

 

(p)             Approves the capital amendments, detailed in Appendix H of the HRA Budget Setting Report, which include the capital proposals in Appendix G(2), along-side re-profiling of investment, increase and re-allocation of resource for new build schemes and budget to fund the up-front costs for self-build plots, with the latter fully met from the resulting capital receipt.

 

(q)             Approves the revised Housing Capital Investment Plan as shown in Appendix J of the HRA Budget Setting Report.

 

Treasury Management

 

(r)              Approves the borrowing and investment strategy for the year to March 2018, Appendix F.

 

(s)             Approves the prudential indicators required by the Code for Capital Finance in Local Authorities for the year to 31 March 2018, Appendix G.

 

(t)               Approves the Capital Strategy 2017-18 to 2021-22, Appendix H.

 

(u)             Approves any unspent New Homes Bonus money allocated to the City Deal to be rolled into 2018-19.

 

General

 

(v)             Gives delegated authority to the Interim Chief Executive to issue the final version of the Estimates Book, incorporating any amendments required from the council’s decisions.

 

Fees and Charges

 

2.               Not for call-in – Recommended that the Housing Portfolio Holder approves the fees and charges for the Housing Improvement Agency as set out in GF BSR Appendix A.

 

Ermine Street Housing Limited (ESH)

 

3.               Cabinet approved the ESH 10-year Business Plan, attached as Appendix H (Confidential) to this report.

Councillor Simon Edwards, Finance and Staffing Portfolio Holder, and Councillor Lynda Harford, Housing Portfolio Holder, presented for the Cabinet’s consideration a report about the Medium Term Financial Strategy (MTFS).

 

Councillor Tony Orgee (Chairman of the Scrutiny and Overview Committee) thanked the Finance and Staffing Portfolio Holder for an exceptionally clear presentation, and conveyed the comments from that Committee. Those comments related to

·        Support for the recommended increase in Council Tax, subject to clarification of the impact for people living in properties banded other than Band D

·        Endorsement of the recommendation that the Housing Portfolio Holder approve the fees and charges for the Housing Improvement Agency, set out in Appendix A

·        The need to focus on savings

 

The Leader asked Councillor Orgee to convey to the Scrutiny and Overview Committee his appreciation of its contribution to the consideration of this issue.

 

Councillor Nick Wright, Corporate and Customer Services Portfolio Holder, highlighted the difficulty in predicting the level of revenue from business rates.

 

Councillor Anna Bradnam asked about savings made from staff turnover. The Finance and Staffing Portfolio Holder replied by saying that savings were made by leaving posts vacant for a period of time, and then sometimes recruiting at a lower level. He denied that this was a mechanism for reducing staff numbers.

 

Those present considered the Council’s exposure to a variety of risks and uncertainties that could affect its financial position, and delivery of the proposed budget. The essential point was to understand the risks involved, and be aware of appropriate mitigation measures.

 

Cabinet

 

1.         recommended that Council:

 

Revenue and capital – General Fund (GF)

 

(a)             Approves the revenue estimates for 2017-18 as shown in the GF Budget Setting Reports (BSR) Section 5.

 

(b)             Approves the precautionary items for the GF, GF BSR Appendix B.

 

(c)             Approves the GF revenue forecasts as set out in GF BSR Section 6.

 

(d)             Instructs the Executive Management Team to identify additional income / savings of £163k for 2017-18, rising to £1,531k from 2018-19.

 

(e)             Approves the GF capital programme and associated funding up to the year ended 31 March 2022, as set out in Appendix D, subject to the deletion of the £5 million contribution to the A14 erroneously included in 2019-20.

 

(f)               Instructs the Head of Finance, on the basis of the proposals set out in the GF BSR, to prepare formal papers to set the council tax requirement and amount of council tax for all Bands at the Council meeting on 23 February 2017.

 

Revenue – Housing Revenue Account (HRA)

 

(g)             Approves the HRA revenue budget as shown in the HRA Summary Forecast 2016-17 to 2021-22 in Appendix I of the HRA Budget Setting Report at Appendix 2 to this report.

 

(h)             Approves the retention of the balance of the 4 year savings target included as part of the 2016-17 HRA Budget Setting Report to mitigate the impact of some of the changes in national housing policy, recognising that the net savings proposed from 2017-18 over-deliver against the profile of £250,000 per annum for 4 years, reducing the balance to be sought in the remaining 3 years to £600,480.

 

Review of Rents and Charges

 

(i)               Approves that social housing rents for existing tenants be reduced by 1%, in line with legislative requirements, with effect from 3^rd April 2017.

 

(j)               Approves that affordable rents are reviewed in line with rent legislation, to ensure that rents charged are no more than 80% of market rent, with this figure then reduced by 1% as with social housing. Local policy is to cap affordable rents at the lower level of Local Housing Allowance, which will result in a rent freeze from 3^rd April 2017.

 

(k)             Approves inflationary increases of 2.4% in garage rents for 2017-18, in line with the base rate of inflation for the year assumed in the HRA Budget Setting Report.

 

(l)               Approves the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix B of the HRA Budget Setting Report.

 

Housing Capital

 

(m)           Approves the latest budget, spend profile and funding mix for each of the schemes in the new build programme, as detailed in Section 5 and Appendix E of the HRA Budget Setting Report, recognising the most up to date information available as each scheme progresses through the design, planning, build contract and completion process.

 

(n)             Approves earmarking of the required level of additional funding for new build investment between 2017-18 and  2021-22 to ensure that commitments can be met in respect of the investment of all right to buy receipts retained by the authority, up to the end of December 2016. This expenditure will either take the form of HRA new build, with the 70% top up met by capital receipts anticipated from the sale of self-build plots or could alternatively be grant made to a registered provider, where the registered provider will provide the 70% top up to build new homes.

 

(o)             Approves the capital budget proposals, both bids and savings, detailed in Appendix G(2) of the HRA Budget Setting Report.

 

(p)             Approves the capital amendments, detailed in Appendix H of the HRA Budget Setting Report, which include the capital proposals in Appendix G(2), along-side re-profiling of investment, increase and re-allocation of resource for new build schemes and budget to fund the up-front costs for self-build plots, with the latter fully met from the resulting capital receipt.

 

(q)             Approves the revised Housing Capital Investment Plan as shown in Appendix J of the HRA Budget Setting Report.

 

Treasury Management

 

(r)              Approves the borrowing and investment strategy for the year to March 2018, Appendix F.

 

(s)             Approves the prudential indicators required by the Code for Capital Finance in Local Authorities for the year to 31 March 2018, Appendix G.

 

(t)               Approves the Capital Strategy 2017-18 to 2021-22, Appendix H.

 

(u)             Approves any unspent New Homes Bonus money allocated to the City Deal to be rolled into 2018-19.

 

General

 

(v)             Gives delegated authority to the Interim Chief Executive to issue the final version of the Estimates Book, incorporating any amendments required from the council’s decisions.

 

Fees and Charges

 

2.               Recommended that the Housing Portfolio Holder approves the fees and charges for the Housing Improvement Agency as set out in GF BSR Appendix A.

 

Ermine Street Housing Limited (ESH)

 

3.               approved the ESH 10-year Business Plan, attached as Appendix H (Confidential) to this report.