Issue - meetings

To receive and consider the recommendations of the Cabinet meeting held on 9 February (to follow), the report for which is attached.

Purpose

1.1      The primary purpose of this report is to set the Council's overall Budget for the forthcoming year 2017/18 and the associated level of Council Tax necessary to fund that Budget.

1.2      The report makes recommendations on the level of Council spending for 2017/18 and the level of Council Tax in the context of the Council's recently refreshed Medium Term Financial Strategy with its stated aim as follows:

Overall aim

'In year' expenditure matches 'in year' income over the medium term whilst continuing the drive towards regeneration of the city, being entrepreneurial and protecting the most important and valued services.

1.3      The recommended Budget for 2017/18 has been prepared on the basis of the decisions taken by the City Council on the 13^th December 2016 relating to:

·         The Council Tax proposals for the general increase as well as the additional flexibility to increase Council Tax for Adults Social Care Services

·         The approved budget savings amounting to £9m

1.4      This report also provides a comprehensive revision of the Council's rolling 3 year financial forecast for the new period 2018/19 to 2020/21 (i.e. extending the forecast to 2020/21) considering both the future outlook for both spending and funding.  In that context, wider recommendations are made regarding the levels of reserves to be maintained and additional contributions to the Capital Programme in order to meet the Council's aspirations for the City as well as maintaining the Council's overall financial strength.

1.5      In particular, this report sets out the following:

(a)          The challenging but improving financial climate facing the City Council in 2017/18 and beyond and the consequential budget deficits that result

(b)          A brief summary of the Medium Term Financial Strategy for achieving the necessary savings as refreshed by the Council in December  2016

(c)          A brief recap of the budget decisions taken by the City Council at its meeting of the 9^th December 2016

(d)          The Revised Revenue Budget and Cash Limits for the current year

(e)          The Local Government Finance Settlement for 2017/18 to 2019/20

(f)           The Business Rate income for 2017/18 and future years

(g)          The Council Tax base and recommended Council Tax for 2017/18

(h)          The forecast Collection Fund balance as at 31 March 2017 for both Council Tax and Business Rates

(i)            The proposed Revenue Budget and Cash Limits for 2017/18

(j)            The forecast Revenue Budget and revised Savings Requirements for 2018/19, 2019/20 and 2020/21

(k)          Estimated Revenue Balances over the period 2016/17 to 2020/21

(l)            The Medium Term Resource Strategy (MTRS) Reserve, its financial position and proposed use to achieve cashable efficiencies

(m)         The statement of the Section 151 Officer on the robustness of the budget in compliance with the requirements of the Local Government Act 2003.

RECOMMENDED

That Cabinet agrees and recommends to Council that the recommendations in paragraphs 3.1-3.9 of the report be approved.