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7. Recommendations from the Cabinet Meeting held on 4 December 2018 PDF 675 KB
Additional documents:
10. Portsmouth City Council Revenue Budget 2019/20 - Savings Proposals PDF 675 KB
The report by the Director of Finance & Information Technology (Section 151 Officer) describes the financial challenge facing the City Council for the three years 2019/20 to 2021/22 and the likely implications for Council services to businesses and residents. It also describes, in overall terms, the way in which the Administration will seek to address this challenge through a Medium Term Financial Strategy with an increasing focus on regeneration, innovation and creativity.
The report sets out the need to find £12m of savings over the next three years with a minimum of £4m to be made in 2019/20 (assuming a 2.99% increase in Council Tax for general purposes and a total of a 1.50% increase for the ASC Precept in 2019/20). It recommends the level of savings to be made across Portfolios and other activities in 2019/20 consistent with both the outcomes of the recent budget consultation exercise and the overall financial strategy. The appendices highlight the likely savings proposals and implications associated with the overall Portfolio savings levels proposed.
This report is being brought at this time to provide greater opportunity for any necessary consultation, notice and other lead-in times to take place prior to implementation in order that full year savings can be made. Should approval of the savings be considered at a later date, a greater number or deeper savings will be required in order to compensate for any delay in implementation.
The detailed recommendations are set out in the report, and this report will be submitted to Council on 11 December for approval.
Decision:
RECOMMENDED TO COUNCIL
(1) that the following be approved:
(a) That the overall aim of the MTFS and its key strands as described in
Section 8 of the report be adopted by the Council
(b) That the Council's Budget for 2019/20 be prepared on the basis of a
2.99% Council Tax increase for general purposes
(c) That the Council continues to take advantage of the opportunity to
increase the level of Council Tax for an "Adult Social Care Precept" within
the limits set by Central Government (i.e. a 1.5% increase for 2019/20),
and consequently that the additional funding is passported direct to Adult
Social Care to provide for otherwise unfunded cost pressures
(d) The savings proposals for each Portfolio amounting, in total, to £4m for
2019/20 and continuing into future years as set out in Appendix A to
enable appropriate consultation and notice periods to be given to affected
parties
(2) That the following be noted:
(a) The Budget Savings Requirement for 2019/20 of £4m approved by the
City Council is predicated on a total Council Tax increase of 4.49%; each
1% change (increase or decrease) in the Council Tax results in a change
to the savings requirement of £747,0001[1]
(b) The key themes arising from the Budget Consultation
(c) The indicative savings proposals set out in Appendix B which are provided
for the purpose of demonstrating to the Council that the Portfolio savings
as recommended in recommendation 1(d) above are robust and deliverable
(d) The likely impact of savings as set out in Appendix B
(e) That the responsibility of the City Council is to approve the overall Budget
and the associated cash limits of its Portfolios and Committees; it is not
the responsibility of the City Council to approve any individual savings
within those Portfolios / Committees
(f) That it is the responsibility of the individual Portfolio Holders (not full
Council) to approve the individual savings proposals and the Portfolio
Holder can therefore, in response to any consultation, alter, amend or
substitute any of the indicative savings proposal(s) set out in Appendix B
with alternative proposal(s) amounting to the same value within their
Portfolio
(g) Managers will commence the implementation of the approved savings
required and any necessary consultation process or notice process
(h) That there is no general provision for Budget Pressures and that it is the
responsibility of the Portfolio Holder to manage any Budget Pressures
which arise from the overall resources available to the Portfolio (which
includes their Portfolio Reserve)
(i) In accordance with the approved financial framework, it is the
responsibility of the Portfolio Holder, in consultation with the Director of
Finance & Information Technology (S151 Officer), to release funds from
the Portfolio Reserve in accordance with the provisions set out in
paragraph 10.16 of the report
(j) The MTRS Reserve held to fund the upfront costs associated with Spend
to Save Schemes, Invest to Save Schemes and redundancies currently
holds a modest uncommitted balance of £4.0m and will only be
replenished from an approval to the transfer of any non-Portfolio
underspends at year end into this reserve.
[1] Tax increases will be subject to Council Tax referendum thresholds which are at this stage unknown