C
78/18 | Consideration was given to a report on the Medium Term Financial Plan Update and Strategy.
This was the final report in setting the Council’s 2019/20 Budget and Council Tax. The report also outlined the Medium Term Financial Plan (MTFP) position to 2023.
The MTFP report for 2019/20 to 2022/23 was attached and contained the following detail:
• Background and Context
• National Changes
• Financial Position at 31 December 2018
• 2019/20 Council Tax levels
• Medium Term Financial Plan 2019-23
• Capital Programme
• Business Rate Relief Scheme
• Pay Policy and Members Allowances
• Precept Levels
• Capital Strategy
• Treasury Management Strategy
• Investment Strategy
Attached to the report as appendices were the following:
• Capital Programme December 2018
• Capital Programme 2012-2020
• Pay Policy Statement
• Council Tax Statutory Requirements
• Capital Strategy
• Treasury Management Strategy
• Investment Strategy
The report outlined the Council Tax proposals and budget for 2019/20 and the indicative MTFP for the next three years.
The report updated the position from that reported to Cabinet and Council in February and March 2018 and in particular reflected the implications arising from the Autumn Budget 2018 and the Local Government Finance Settlement for 2019/20.
The Provisional and Final Financial Settlements had provided funding allocations for 2019/20 only, this being the final year of the four year settlement agreed with MHCLG. They confirmed further funding reductions which would make the difficult financial position faced by the Council even more challenging. The report also provided an update on future changes to Local Government Finance. These included the move to retention of a greater proportion of business rates by Local Authorities and the introduction of changes to the funding formulae. These were potentially major changes which were likely to have an impact on future council funding. This meant that the position for 2020/21 onwards, outlined in the report, needed to be treated with some caution.
The Council had a strong track record of prudent financial management and delivering savings early. This had enabled the use of reserves to support a planned and managed approach to addressing the financial challenges and this would continue.
Cabinet had considered this matter at its meeting held on 21 February 2019 and a copy the relevant minute extract had been circulated to Members.
Moved by Councillor Bob Cook, seconded by Councillor Jim Beall:-
1. That in accordance with the Local Government Act 2003, Members note that the Section 151 Officer confirms that the following recommendations:
a. represent a robust budget which has been prepared in line with best practice;
b. provide adequate working balances;
c. that the controlled reserves and provisions are adequate for their purpose.
General Fund Budget
2. A 2019/20 Council Tax requirement for Stockton-on-Tees Borough Council of £89,143,441 be approved.
3. A 2019/20 Council Tax requirement for Stockton-on-Tees Borough Council inclusive of Parish Precepts (£870,287) of £90,013,728 be approved.
4. The 2019/20 budget and indicative 2019/23 MTFP as outlined in paragraphs 37-39 be approved.
5. Prudential Borrowing of £2.5m to fund the additional costs associated with the Globe Theatre, which has previously been agreed in principle by Cabinet, be approved.
Business Rate Relief System
6. The changes introduced in the Spring and Autumn Budgets of 2017 and 2018 be noted.
Taxation
SBC
7. The Council Tax for Stockton-on-Tees Borough Council prior to Parish, Fire and Police Precepts be increased by 2.9% i.e. to £1,588.65 at Band D (£1,059.10 at Band A) be approved.
Fire, Police & Parish
8. The Police precept of £14,058,476 which equates to a Council Tax of £250.54 at Band D (£167.03 at Band A) be noted.
9. The Fire precept of £4,340,878 which equates to a Council Tax of £77.36 at Band D (£51.57 at Band A) be noted.
10. The Parish precepts as set out in paragraph 63 of the budget report be noted.
Capital
11. The Capital Programme attached at Appendix A & B be approved.
Organisational and HR
12. The Pay Policy Statement attached at Appendix C to the report be approved.
Members Allowances
13. Members allowances be frozen for 2019/20. This will mean that these allowances have been frozen since 2013/14.
Council Tax - Statutory Requirements
14. The statutory requirements for Council Tax as shown in Appendix D be approved.
15. The current Local Council Tax Support Scheme be retained for the financial year 2019/20 (see paragraph 66 of the report)
Capital Strategy
16. The Capital Strategy as set out at Appendix E to the report be approved.
Treasury Management/Prudential Code
17. The Treasury Management Strategy as set out in Appendix F to the report be approved.
Investment Strategy
18. The Investment Strategy as set out at Appendix G to the report be approved.
Moved by Councillor Matthew Vickers, seconded by Councillor Lynn Hall that the substantive motion be amended as follows:-
Additional Recommendation
1. Generate revenue savings of £200,000 from a reduction in management costs.
2. Utilise the saving generated to appoint additional Street Wardens/Enforcement Officers.
All other recommendations remained the same as the substantive motion.
A recorded vote then took place on the amendment to the substantive motion.
For the amendment:-
Councillors John Gardner, Lynn Hall, Elsie Hampton, Tony Hampton, Stefan Houghton, Maurice Perry, Stephen Richardson, Andrew Stephenson, Matthew Vickers, Sally Ann Watson, Julia Whitehill and Bill Woodhead.
Against the amendment:-
Councillors Helen Atkinson, Sonia Bailey, Louise Baldock, Chris Barlow, Jim Beall, Derek Brown, Julia Cherrett, Carol Clark, Chris Clough, Bob Cook, Nigel Cooke, Gillian Corr, Evaline Cunningham, Ian Dalgarno, Ken Dixon, Kevin Faulks, Lisa Grainge, David Harrington, Dianne Hewitt, Barbara Inman, Mohammed Javed, Eileen Johnson, Paul Kirton, Ann McCoy, Kathryn Nelson, Steve Nelson, Jean O’Donnell, Ross Patterson, Lauriane Povey, Paul Rowling, Mike Smith, Norma Stephenson, Mick Stoker, Sylvia Walmsley, Paul Weston, David Wilburn, Norma Wilburn and Barry Woodhouse.
Councillor Laura Tunney entered the meeting room after the debate had started and therefore did not vote on the item.
The amendment was not carried.
Moved by Councillor Matthew Vickers, seconded by Councillor Lynn Hall that the substantive motion be amended as follows:-
Additional Recommendation
1. Reduce the costs of SIRF by £240,000.
2. Utilise the saving generated to provide additional funding to the Youth Service.
All other recommendations remained the same as the substantive motion.
A recorded vote then took place on the amendment to the substantive motion.
For the amendment:-
Councillors John Gardner, Lynn Hall, Elsie Hampton, Tony Hampton, Stefan Houghton, Maurice Perry, Stephen Richardson, Andrew Stephenson, Matthew Vickers, Sally Ann Watson, Julia Whitehill and Bill Woodhead.
Against the amendment:-
Councillors Helen Atkinson, Sonia Bailey, Louise Baldock, Chris Barlow, Jim Beall, Derek Brown, Julia Cherrett, Carol Clark, Chris Clough, Bob Cook, Nigel Cooke, Gillian Corr, Evaline Cunningham, Ian Dalgarno, Ken Dixon, Kevin Faulks, Lisa Grainge, David Harrington, Dianne Hewitt, Barbara Inman, Mohammed Javed, Eileen Johnson, Paul Kirton, Ann McCoy, Kathryn Nelson, Steve Nelson, Jean O’Donnell, Ross Patterson, Lauriane Povey, Paul Rowling, Mike Smith, Norma Stephenson, Mick Stoker, Sylvia Walmsley, Paul Weston, David Wilburn, Norma Wilburn and Barry Woodhouse.
Councillor Laura Tunney entered the meeting room after the debate had started and therefore did not vote on the item.
The amendment was not carried.
A recorded vote then took place on the substantive motion.
For the substantive motion:-
Councillors Helen Atkinson, Sonia Bailey, Louise Baldock, Chris Barlow, Jim Beall, Derek Brown, Julia Cherrett, Carol Clark, Chris Clough, Bob Cook, Nigel Cooke, Gillian Corr, Evaline Cunningham, Ian Dalgarno, Ken Dixon, Kevin Faulks, Lisa Grainge, David Harrington, Dianne Hewitt, Barbara Inman, Mohammed Javed, Eileen Johnson, Paul Kirton, Ann McCoy, Kathryn Nelson, Steve Nelson, Jean O’Donnell, Ross Patterson, Lauriane Povey, Paul Rowling, Mike Smith, Norma Stephenson, Mick Stoker, Sylvia Walmsley, Paul Weston, David Wilburn, Norma Wilburn and Barry Woodhouse.
Against the substantive motion:-
Councillors John Gardner, Lynn Hall, Elsie Hampton, Tony Hampton, Stefan Houghton, Maurice Perry, Stephen Richardson, Andrew Stephenson, Matthew Vickers, Sally Ann Watson, Julia Whitehill and Bill Woodhead.
Councillor Laura Tunney entered the meeting room after the debate had started and therefore did not vote on the item.
The motion was carried.
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