Agenda item

To consider the Cabinet recommendations in relation to:

·       the General Fund Budget Estimates 2019/20 and the Medium Term Financial Strategy 2019/20 to 2023/24;

·       the Council Tax levels for 2019/20;

·       the Capital Programme 2019-2022;

·       the Treasury Management, Capital Strategy and Investment Strategy for 2019/20.

Members considered the Corporate Budget 2018 and Mid Term Financial Strategy report presented by Councillor Hay.  

Members were reminded that they were debating and voting on the altered recommendations which gave the option to either set Council Tax with a 1.97% increase [option ix (a)] or alternatively a 0% increase for this financial year [option ix (b)]. 

Members asked questions and made comments as follows:

·       Councillor Hay stated her belief is that members would be doing this Council a disservice by supporting a 0% increase, as even with a 1.97% increase there would be a deficit in 2019/20 of £553k which will rise should 0% be supported. She feels there are a number of risks, such as the new homes bonus and fairer funding review and any new administration after May will face the prospect of having to go through a second comprehensive spending review to present a balanced budget for 2020/21.

·       Councillor Tierney respected the way Councillor Hay had made her case but he held a different view. He said Overview & Scrutiny had looked at the budget and under-spend over recent years and it is broadly their view that there is no need at this time to raise Council Tax. He acknowledged that there are potential risks in the future, but members are not here to do the easy thing, but to do the right thing. There are many people in the area who are already struggling with their bills and feel they are paying enough Council Tax, and there is a very clear case economically through good financial management. If Council Tax is frozen this year, it will be appreciated by the public. 

·       Councillor Boden agreed with Councillor Tierney’s comments stating that members have to bear in mind that 2% increase in Council Tax costs our taxpayers an additional £150k approximately and whilst services which are provided have to be paid for, the Council has been asking for Council Tax increases for a number of years at a time when year-on-year we have been showing a surplus. Taking the last five years cumulatively, each year on average the Council has ended up at the end of the year with a surplus of £870k, which suggests that we have not become as tight in our financial planning as we should be. Councillor Hay made reference to failing to raise council tax by 2% this year will require the need to have a second comprehensive spending review next year but regardless of what the Council Tax increase may or may not be, we should be doing that anyway. The Council needs to continue to review what it does and look for additional savings to transform the way it delivers services to its residents. There is a culture of ultra-caution in this Council, proven by the level of surplus generated over the last five years and the problem with underspending by such a vast amount is that when members are making decisions, they are being made on a false premise. It is very important to get a tighter control of our finances so that members know when it sets a budget those are likely to be the numbers that are going to be the outturn. Therefore, he supports option b and does not expect reserves to go down as a result.  This year some £103k surplus is projected but also there is the opportunity for a second Comprehensive Spending Review (CSR), so there is scope for additional savings to be had and for better ways of delivering services. Members can deliver something that is ambitious, reflects the needs and desires of our residents and also invades their pockets as little as necessary.

·       Councillors Sutton and Connor also voiced their support for option b. Councillor Sutton said he felt there was merit in opting for option a, but there are so many unknowns one way or the other. Not so long ago the Council was centre of national attention regarding its Council Tax being higher than Kensington and Chelsea. Last year he thought he was the only member who felt Council Tax should be frozen and he wishes he had said something then. He cited several roads where one end was in the boundary of Fenland District Council and the other fell under the remit of Kings Lynn & West Norfolk; where there was a vast difference in the Council Tax paid for properties of the same band, with ours being much higher which he felt could not be justified.

·       Councillor Booth commented that the report regarding FDC-CSR proposals was incorrect as it mentioned CCTV which was not a CSR proposal. He added that he is also concerned that the forecast surplus is £103k but at Overview & Scrutiny the figure was £139k, and asked for clarification on the differing amount as it is important for figures to be correct. He stated that looking at the projected net service expenditure of the Council that is where £800k additional income is required. He feels that if the Council was more commercially minded and run in a more business-like manner, it would not need to find this money as it would fund itself. He added that he has said previously that Parish Councils are being unfairly treated with regards to double taxation in having to pay for street lighting. Members have an opportunity to rectify that with this budget and make Council Tax more equitable. It is an achievement to officers that they have been able to find additional funding through government grants and finances which have helped the Council meet its budgets, but the Council needs to be mindful as they will not have £800k every year.

·       Councillor Hay thanked Councillor Booth for acknowledging the one-off grants. In respect of the £139k, officers are continually looking at budgets so this figure will change but she does not expect it to increase any further. She added that to the best of her knowledge CCTV was in the CSR. Investment strategy is being looked at and she hopes that the Council will act more commercially in a way to bring in extra revenue.

·       Councillor Miss Hoy responded to Councillor Sutton’s comments regarding Council Tax. She stated that it is not that simple to compare two authorities as they have different precepts. This Council may charge more on the highest band, but the majority of houses in Fenland are in Band A, with 84% being in bands A-C. Fenland’s Council Tax is average and the previous Leader had already been on the BBC to defend this. She confirmed that she would be supporting a 0% increase.

·       Councillor Tierney responded to Councillor Sutton’s comment with regard to thinking he was the only councillor last year who was arguing for 0% Council Tax. He said he has always argued the case for a 0% Council Tax freeze except on one occasion as a town councillor and that was for a specific purpose.

·       Councillor Mrs French addressed Councillor Hay’s statement regarding CCTV being included in the CSR undertaken in 2016. She asked it be stated for the record that a shared service was never discussed.

Proposed by Councillor Sutton, seconded by Councillor Tierney and AGREED that:

·       Option ix (b) the Band D Council Tax level for Fenland District Council services for 2019/20 be set at £260.46, the same level as the current year 2018/19 (no increase) and a contribution of £150,720 is made from General Reserves in 2019/20 to secure a balanced Budget.

The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 impose an obligation on Local Authorities (after 25 February 2014) to record all votes on decisions on budget and council tax, with this in mind Members voted on option ix (a) as follows:

In favour of the proposal for option ix (a) - None

Against the proposal for option ix (a)  – Councillors Benney, Mrs Bligh, Boden, Booth, Buckton, Butcher, J Clark, S Clark, Connor, Cornwell, Court, Mrs Cox, Mrs Davis, Mrs French, Garratt, Miss Hoy, Mrs Laws, Mason, Miscandlon, Owen, Sutton, Tierney, Yeulett

Abstentions to option ix (a) – Councillors Hay, Murphy, Oliver, Seaton,

The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 impose an obligation on Local Authorities (after 25 February 2014) to record all votes on decisions on budget and council tax, with this in mind Members voted on option ix (b) as follows:

In favour of the proposal for option ix (b) - Councillors Benney, Mrs Bligh, Boden, Booth, Buckton, Butcher, J Clark, S Clark, Connor, Cornwell, Court, Mrs Cox, Mrs Davis, Mrs French, Garratt, Miss Hoy, Mrs Laws, Mason, Miscandlon, Owen, Sutton, Tierney, Yeulett

Against the proposal for option ix (b)  - None

Absentions to option ix (b) – Councillors Hay, Murphy, Oliver, Seaton

Proposed by Councillor Sutton, seconded by Councillor Tierney and AGREED that:

(i)              the General Fund revenue budget for 2019/20 as set out in Section 8 and Appendix A be approved;

(ii)            the Medium Term Financial Strategy as outlined in this report and Appendix B be adopted;

(iii)           the Capital Programme and funding statement as set out in Appendix D be approved;

(iv)          the adoption of the Business Rates Retail Relief scheme detailed in paragraphs 5.4 – 5.6 be approved;

(v)            the expenses detailed in Section 10 be approved to be treated as general expenses for 2019/20

(vi)          the Port Health levy for 2019/20 be set as shown in Section 11;

(vii)         the adoption of additional Council Tax premiums on Long Term Empty Properties as detailed in Section 12 be approved;

(viii)       the Treasury Management, Capital Strategy Minimum Revenue Provision, Investment Strategy, Prudential and Treasury Indicators for 2019/20 as set out in Section 15 and Appendix E be approved;

The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 impose an obligation on Local Authorities (after 25 February 2014) to record all votes on decisions on budget and council tax, with this in mind Members voted on recommendations (i) to (viii) as follows:

In favour - Councillors Benney, Mrs Bligh, Boden, Booth, Buckton, Butcher, J Clark, S Clark, Connor, Cornwell, Court, Mrs Cox, Mrs Davis, Mrs French, Garratt, Hay, Miss Hoy, Mrs Laws, Mason, Miscandlon, Murphy, Oliver, Owen, Seaton, Sutton, Tierney, Yeulett

Against – None

Abstentions - None