Agenda item - Draft Revenue Budget and Capital Investment Proposals 2018/19

Report of the Executive Director, Finance & Resources

That the Policy, Resources & Growth Committee:

1)           Notes the updated forecasts for resources and expenditure and an estimated budget gap for 2018/19 based on a 1.99% Council Tax increase and an additional 3% Adult Social Care precept.

2)           Note the Budget, Investment & Efficiency Strategy approach to meeting the financial challenge next year and over the life of this parliament.

3)           Notes the refreshed 4 year Integrated Service & Financial Plans (ISFPs) including detailed draft proposals for savings in 2018/19 toward meeting the identified budget gap.

4)           Directs that all of the draft savings proposals identified at Appendix 2 be subject to further consultation and engagement with relevant stakeholders and across the council, meeting statutory consultation requirements where required.

5)           Notes the update on the HRA budget set out in paragraph 6.4 to 6.7.

6)           Notes the Capital Investment Programme update set out in paragraphs 4.10 to 4.16.

7)           Receive and note the Equality Impact Assessments undertaken in relation to the draft budget proposals.

8)           Notes that subsequent decisions and information from central government may impact on the proposals in this report.

64.1      The Committee considered a report of the Executive Director, Finance & Resources that set out the draft revenue and capital budget proposals for the third year of the 4-year planning framework introduced in 2016/17 which were aligned with the current central government spending review period and 4-year funding deal.

64.2      Councillor Sykes asked the following questions: what the £135,000 for rough sleeping initiatives was and why the £100,000 for teachers pay had come from the General Fund rather than DSG; clarification on the Public Health figures provided on pages 133 and 131, clarification on the figure provided for the increase pressures on the waste PFI contract related to increased properties as the figure assumed a 1% rise in property numbers across Brighton & Hove and whether Members would get the opportunity to revisit the proposals at Budget Council as some of the terminology used inferred that this meeting were agreeing various matters.

64.3      In response, the Executive Director, Finance & Resources confirmed that Budget Council would have to approve the proposals. The Deputy Chief Finance Officer replied that he was uncertain of the detail regarding the precise use of the £135,000 allocated to rough sleeping initiatives; the teachers’ pay issue concerned recognising the pressures on school budgets and was a one-off payment to smooth the impact of a 2% pay award. The Deputy Chief Finance Officer stated that there were two issues relating to the figures provided for Public Health; the first was an allocation of £651,000 was to provide pressure funding in relation to the loss of grant in 2018/19 and the £350,000 figure concerned a one-off allocation which would allow the service to defer a saving relating to a substance misuse contract and that saving would be made the following year.

64.4      Councillor Sykes asked the following questions: on page 144 of the agenda that was a positive amount of £4.2m for 2019/20 listed in table 3 and asked what that concerned; why the TBM 7 report listed an underspend in DSG of £150,000 that contradicted an predicted overspend in this report and the detail of the £220,000 attributed to commitments and reinvestment in Financing Costs on page 153 of the agenda.

64.5      The Executive Director, Families, Children & Learning clarified that the TBM was predicting an underspend however, that related to the Early Years part of the DSG but overall, the budget pressures were greater than spend and schools in general were under significant financial pressure. In relation to the positive amount of £4.2m, the Head of Finance that this mostly detailed an improved settlement for the Better Care Fund with the other element relating to changes in the financing cost budget that was anticipated for 2018/19. The £220,000 figure related to the investment in Saltdean Lido, the commitment to social services investment already built into the capital programme with the remainder relating to the anticipated true financing costs that were reviewed annually.

64.6      Councillor Wealls asked for a formal definition of pressure funding, the detail of the £30,000 capital investment in social enterprise detailed on page 141 of the agenda and for more detail on the carbon budget as the figure of 4% planned reduction appeared small.

64.7      The Executive Director, Finance & Resources explained that pressure funding related to increased costs as a result of demand or prices pressure in excess of inflation. The social enterprise figures were in anticipation of a project currently being developed. The Deputy Chief Finance Officer explained that the 4% carbon reduction target was a challenging one and whilst the sale of Kings House would help achieve that target, reductions in other elements of the council’s property portfolio may be more difficult to attain.

64.8      Councillor Wealls noted that his Group would be abstaining from the proposals at the current stage.

64.9      Councillor Hamilton clarified that the £165,000 allocated to rough sleeping initiatives was in anticipation of a potential re-opening of a Night Shelter during the winter months of 2018 and 2019.

64.10   RESOLVED- That the Policy, Resources & Growth Committee:

1)           Notes the updated forecasts for resources and expenditure and an estimated budget gap for 2018/19 based on a 1.99% Council Tax increase and an additional 3% Adult Social Care precept.

1)           Note the Budget, Investment & Efficiency Strategy approach to meeting the financial challenge next year and over the life of this parliament.

2)           Notes the refreshed 4 year Integrated Service & Financial Plans (ISFPs) including detailed draft proposals for savings in 2018/19 toward meeting the identified budget gap.

3)           Directs that all of the draft savings proposals identified at Appendix 2 be subject to further consultation and engagement with relevant stakeholders and across the council, meeting statutory consultation requirements where required.

4)           Notes the update on the HRA budget set out in paragraph 6.4 to 6.7.

5)           Notes the Capital Investment Programme update set out in paragraphs 4.10 to 4.16.

6)           Receive and note the Equality Impact Assessments undertaken in relation to the draft budget proposals.

7)           Notes that subsequent decisions and information from central government may impact on the proposals in this report.