Agenda item

The Leader of the Council presented the report on the 2018/19 Revenue Budget and Medium Term Financial Plan. 

 

The Leader stated that this budget was the culmination of 6 months hard and diligent work, alongside officers, to respond to the impact of on-going austerity whilst ensuring this Council continues to provide the essential services and support that residents require from Local Government.  The Leader thanked colleagues for their hard work on the budget. 

 

The Leader explained that it was for Council to agree:

 

·         the Council Tax increase for the City Council, with Cabinet agreeing how and where the Council’s budget is spent .

 

·         the overall Council Tax Resolution, so the authority for the Council to then charge Council Tax in 2018/19, which also included the precept requirements coming from the Police and Crime Commissioner and the various Community Councils around the city.

 

·         the annual Treasury Management strategies and borrowing limits coming out of the Capital programme.

The revenue budget was finalised at Cabinet on 14 February following a comprehensive consultation exercise, and the Leader thanked all who had contributed to the consultation activities.  The Leader highlighted the good response rate to the consultation, with 2,680 individual proposal responses, 47 people attending the market event and 75 people attending specific sessions on individual proposals. There were also responses from the scrutiny committees, schools forum and the Fairness Commission.  

 

The Leader highlighted that in finalising the budget the Cabinet had

·         reduced the Council Tax increase

·         provided more funding for schools

·         re-considered the respite care budget saving  

The Leader highlighted the legal duty to set a balanced budget within the context of significant increases in demand for services, from the most vulnerable in society, and no increase in central funding. 

 

The Leader stated that the budget would build on the success of the previous 5 years, and gave examples of capital and revenue investment projects introduced.  The Leader also highlighted that the Council still had the second lowest Council Tax level in Wales and one of the lowest in the UK, while still spending around £8m under Newport’s Standard Spending Assessment.

 

The Leader stated that the revenue budget would see the Council’s net budget set at just under £275m and this requires a Council Tax Increase of 4.8% for 2018/19, just over £48 per annum on an average Band ‘D’ property or 93p per week.  This increase was consistent with other unitary councils in Wales and England, and it was being recommended to Council as a fair balance between an increase in Council Tax and making savings to fund the essential investments required.

 

 

 

In relation to the capital programme, the Leader highlighted the continuation of significant investments in the city over the last 5 years, including

 

·         £70m over the next 5 years or so to continue the investments in school buildings and capacity

 

·         A number of key schemes in the city centre such as the Market arcade and the development of grade ‘A’ offices in Mill Street

 

·         The annual cyclical programmes, including disabled facilities works as well as major building maintenance and IT/vehicle replacements

 

Finally, in relation to treasury management, the Leader highlighted the proposed updates detailed in the report, which had previously been considered by the Council’s Audit Committee.

 

In concluding, the Leader stated that this had been a challenging budget, following over £40m savings already delivered over the last 5 years.  The Leader was pleased to recommend this budget as it continued the journey in delivering essential services to residents, supporting the most vulnerable residents and improving the city itself.

 

In seconding the proposals, Councillor Whitcutt suggested that, in the absence of an alternative set of proposals being put forward, a vote against the proposals was a vote against the legal requirement to set a balanced budget. 

 

Members speaking against the proposals stated:

 

-       The comments raised by the scrutiny committees in considering the proposals, which members felt had been disregarded.  Members cited some of the specific issues raised by the committees on certain proposals, which they felt needed to be addressed.

 

-       That the Oaklands proposal should be delayed pending a meeting planned for this week with consultees. 

o   As a point of clarification, the Leader assured Members that the Cabinet Member would be meeting with residents and if there were changes that needed to be made, they would be. 

 

-       Objections to the council tax rise and the impact that would have on local residents.

 

-       That the proposals were at odds with the Council’s mission to improve people’s lives.

 

-       That the blame on Westminster cuts was misplaced, instead blaming the impact of funding to local governments by the funding allocated to Welsh Government and the costs of Cardiff Bay.

 

-       That more innovative solutions needed to be found to modernise services and provide longer term savings.

 

Members speaking in favour of the proposals stated:

 

-       That the difficult decisions being faced were as a result of the national government’s austerity measures and policy decisions.

 

-       That a complex process had been followed to bring the budget forward today, and the savings being proposed were those that would have the least negative impact to produce a balanced budget. 

 

-       That no alternative budget had been put forward.

o   As a point of clarification, Councillor M Evans stated that he had put forward suggestions for alternative proposals.

 

-       Councillor Dr Hayat used the example of his recent trip to the refugee camps to highlight the excellent services in place in Newport, and support the council tax rise.

 

-       The negative impact of the Barnet formula on local government funding in Wales. 

 

A closure motion was passed and the Leader summed up by commending the budget to the Council for approval. 

 

The vote was carried.

 

RESOLVED

 

Revenue budget and Council Tax 18/19 (paragraphs 2-8)

 

1          To note that an extensive consultation exercise has been completed on the medium term change and efficiency programme, including the 2018/19 budget proposals.  Cabinet have taken these into account in recommending final details of the programme and the resulting 2018/19 overall revenue budget to Council;

 

2          To note the Head of Finance’s recommendations that minimum general fund balances be maintained at £6.5million, the confirmation of the robustness of the overall budget underlying the proposals, and the adequacy of the general reserves in the context of other earmarked reserves and a general revenue budget contingency of c£1.5million and People services specific budget contingency of £2.2m;

 

3          To consider and approve a council tax increase for Newport City Council of 4.8%, a Band D tax of £1,057.14; and resulting overall revenue budget  shown in appendix 1;

 

4          To approve the formal council tax resolution, included in appendix 3 which incorporates The Police and Crime Commissioner for Gwent and Community Council precepts, and as set out below:

 

RESOLUTION TO SET COUNCIL TAX LEVELS

A.         That the revenue estimates for 2018/2019, as recommended by the Cabinet on 14 February 2018 be approved.

 

B.         That it be noted that the Council at its meeting on 20 February 2007 delegated the setting of the tax base to the Head of Finance and that on10 November 2017, the Head of Finance acting in accordance with that delegation calculated the following amounts for the year 2018/2019 in accordance with regulations made under Section 33(5) of the Local Government Finance Act 1992:-

 

(a)        Council Tax Base

 

58,465.51 being the amount calculated by the Council, in accordance with regulation 3 of the Local Authorities (calculation of council tax base) Regulations 1992, as its council tax base for the year;

 

(b)        Council Tax base for parts of the Council’s Area

 

Area	Tax base
Bishton	767
Coedkernew	986
Goldcliff	192
Graig	2,880
Langstone	1,934
Llanvaches	246
Llanwern	665
Marshfield	1,535
Michaelstone	171
Nash	142
Penhow	459
Redwick	114
Rogerstone	5,008
Wentlooge	365

 

C.        That the following amounts be now calculated by the Council for the year 2018/2019 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992:-

 

(a)        £412,160,155.74 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(2)(a) to (e) of the Act

(Gross Expenditure).

 

(b)        £137,287,116.74 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(3)(a) to (c) of the Act

(Gross Income).

 

(c)        £274,873,039.00 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 32(4) of the Act, as its budget requirement for the year (Budget + Community Council precepts).

 

(d)        £212,790,074.00 being the aggregate of the sums which the Council estimates will be payable for the year into its council fund in respect of redistributed non-domestic rates, revenue support grant or additional grant (RSG + NNDR).

 

(e)        £1,061.87 being the amount at 3(c) above less the amount at 3(d) above, all divided by the amount at 2(a) above, calculated by the Council, in accordance with Section 33(1) of the Act, as the basic amount of its council tax for the year (Average Band ‘D’ Tax for NCC including Community Councils).

 

(f)        £276,935.00 being the aggregate amount of all special items referred to in Section 34(1) of the Act and detailed below (Community Council precepts).

 

 

(g)        £1,057.14 being the amount at 3(e) above less the result given by dividing the amount at 3(f) above by the amount at 2(a) above, 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 (NCC Band ‘D’ Council Tax).

 

(h)        Council Tax level for parts of the Council’s Area

 

 

 

Being the amounts given by adding to the amount at 3(g) above, the amounts of the special item or items in 3(f) divided by the amount at 2(b) for the specified area of the council.  These amounts are calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts of its council tax for the year for dwellings in those parts of its area to which one or more special items relate.

                       

 

 

 

Being the amounts given by multiplying the amounts at 3(g) and 3(h) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in the valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

D.        That it be noted for the year 2018/2019, that The Police and Crime Commissioner for Gwent has stated the following proposed amount in precept 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:-

 

 

 

 

 E.        That having calculated the aggregate in each case of the amounts at 3(i) and 4 above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of council tax for the year 2018/2019 for each of the categories of dwelling shown below:-

 

 

 

 

 

 

Capital Programme and 2018/19 budget (paragraph 9)

 

5          To approve the new five year capital programme and 2018/19 capital budget.   Detail contained in appendix 4.

 

 

Treasury Management and Investment strategies, Minimum Revenue Provision Policies and Prudential Indicators (paragraph 10)  

 

6          To approve treasury management policies in line with the detail contained in appendix 5;

 

7          To approve the annual investment strategy in line with the detail contained in appendix 5;

 

8          To approve the Council’s counterparty list (external bodies for council investments) in line with the detail contained in appendix 5;

 

9          To approve the prudential indicators in line with the detail contained in appendix 5;

 

10        To approve the minimum revenue provision policy in line with the detail contained in appendix 5;

 

Medium Term Financial Plan and Capital programme (paragraphs 2 – 4 and 9)

 

11        To note the MTFP and the challenging financial climate over the medium term;

 

12        To note Cabinets approval of theimplementation of the full four year change and efficiency programme, including all budget investments and saving options, as summarised within the medium term financial plan (appendix 6) and the new capital programme (appendix 4).  Noting they are subject to on-going review and updating.