Agenda item
Updated Financial Strategy 2019/2020
The report of the City Treasurer is enclosed.
Minutes:
A report submitted by the City Treasurer set out the proposed budget position for 2019/20 based on the outcome of the Provisional Local Government Finance Settlement that had been announced by the Government. The report also examined the issues that would need to be taken into account prior to the Council finalising the budget and setting the Council Tax for 2019/20.
The 2019/20 Provisional Settlement was the final year of a four-year settlement provided by Government, and was largely as expected. Some changes had been made, with extra resources of £2.699m coming from a Government surplus in the Business Rates Levy. The New Homes Bonus grant was also to be £1.202m higher than had been expected.
The 2019/20 budget calculations assumed that the City Council would again be increasing the council tax precept by 3.49%. That would be made up of a general precept element of 1.99% and the specific social care precept element of 1.5%.
The Manchester Airport Group dividend was to be used to support the Council’s revenue budget a year in arrears. The December 2018 dividend announcement would therefore provide a further £1.667m which would be used to support the 2019/20 budget.
As well as the changes in the sources of funds, the report examined
the expenditure pressures the Council was expected to face in
2019/20, and the demands for additional investment, with particular
attention given to the needs of children in care, and looked after
children. The proposed investment
priorities for 2019/20 were:
· care and support for vulnerable people by ensuring there is a sustainable amount of funding for Adult Social Care that enables the move to a more permanent structure, despite the volume of one-off funding;
· giving young people the best start in life through investment in Youth Services plus a need to invest greater amounts into Children's Services;
· taking action on family poverty including enhanced enforcement of the private rented sector and appropriate enforcement action;
· tackling homelessness; and
· further action to tackle littering, fly tipping and poor business waste management.
It was explained that the outline budget proposals set out in the report were the continuation of the Council’s budget strategy agreed over the past two years. The intention was for these proposals to be open for public comment and consolation prior to their further consideration by the Scrutiny Committees and by the Executive in February, leading up to the setting of the budget by the Council on 8 March.
Decisions
1. To note:
· that the financial position has been based on the provisional Local Government finance settlement issued on the 13 December 2018;
· that there has been a review of how the resources available are utilised to support the financial position to best effect, including the use of reserves and dividends, consideration of the updated Council Tax and Business Rates position and the availability and application of grants;
· that budget reports from individual Directorates will detail the savings proposals and these were considered by scrutiny committees in early December; and
· that the full suite of budget reports will be presented to the Executive in February 2019.
2. To agree that the proposals in the report be the basis for the 2019/20 budget and invite comments on it from residents, businesses and other stakeholders.
Supporting documents:
- Financial Strategy Update, item 2. PDF 362 KB
- Financial Strategy Update Appendix 1, item 2. PDF 230 KB
- Financial Strategy Update Appendix 2, item 2. PDF 144 KB