Agenda item

a)  Leeds City Council Revenue Budget and Council Tax 2016/2017

To consider the report of the Deputy Chief Executive on the proposals for the City Council’s Revenue Budget for 2016/2017 and the Leeds element of the Council Tax to be levied in 2016/2017.

b)  Capital Programme Update 2016 – 2019

To consider the report of the Deputy Chief Executive on the Capital Programme for the period 2016-2019.

c)  Treasury Management Strategy 2016/2017

To consider the report of the Deputy Chief Executive on the Treasury Management Policy and Strategy for 2016/2017.

Further to Minute No.105 of the meeting held 16th December 2015, the Deputy Chief Executive submitted a report regarding the proposals for the City Council’s Revenue Budget for 2016/2017 and the Leeds element of the Council Tax to be levied in 2016/2017.

The provisional Local Government Finance settlement was announced on the 17th December 2015 the day after the Initial Budget Proposals were approved by the Executive Board. The impact for Leeds was reported as a reduction of £34.1m to the Council’s adjusted Settlement Funding Assessment which was £10m more than was assumed in the Initial Budget Proposals. The report set out the details of how the additional savings would be generated.

Following the announcement of the final settlement by Central Government on 8th February 2016, Members had received supplementary packs containing a briefing note on Leeds’ confirmed settlement and a briefing note in respect of the Public Health budget prior to the meeting. Approval was sought at the meeting to incorporate the information within the briefing notes into the Budget report to be presented to Council. The Board was advised that the budget proposals which would be submitted to Council for determination would include details of the recently announced final local government finance settlement.

Emphasis was placed upon the unprecedented financial challenges that the Council continued to face, and the pressures which were being placed upon Local Authorities with regard to ensuring the delivery of key public services.

In receiving the report, the Board thanked officers for their commitment to putting together the Budget in such challenging financial circumstances.

In presenting the report, the Leader commented upon and raised significant concerns regarding the details of Transitional Grants made available by the Chancellor to eligible local authorities. As such, the Leader sought and was provided with cross-party support to make representations to Government on such matters.

In response to an enquiry, the Board was provided with more details regarding the current and future position of Children’s Services, with specific reference to funding for schools’ and services for schools

A) 2016/17 Revenue Budget and Council Tax

RESOLVED -

a)  That Executive Board recommends to Council the adoption of the following:

  i)  That the Revenue Budget for 2016/17 totalling £496.378m be approved. This means that the Leeds element of the Council Tax for 2016/17 will increase by 1.99% plus the Adult Social Care precept of 2%. This excludes the Police and Fire precepts which will be incorporated into the report to be submitted to Council on the 24th February 2016

  ii)  That approval be given for grants totalling £84k be allocated to Parishes.

  iii)  That, in respect of the Housing Revenue Account, Council be recommended to approve the budget with;

·  A reduction of 1% in dwelling rents, a 5% increase in garage rents and a 3% increase in district heating charges.

·  Approve that service charges for multi-storey flats/low/medium rise properties are increased by £1 per week

·  Approve that charges for sheltered support are increased from £12 to £13 per week and that a charge of £2 per week is introduced for those tenants who benefit from the sheltered support service but do not currently pay.

b)  That in respect of the final settlement supplementary document:

(i)  That it be noted that the 2016-17 funding allocations for Leeds have been confirmed in the final settlement; and that the 2016-17 Budget proposals are unchanged

(ii)  That approval be given for an explanation of the changes for authorities be incorporated into the 2016-17 Revenue Budget and Council Tax Report to be considered by Council on 24^th February 2016

c)  That, in respect of the Scrutiny Report on Fees & Charges attached as Appendix 2 of the submitted report:

(i)  That the report from scrutiny be welcomed and the proposed changes to the Fees and Charges Policy and Best Practice Guidance be agreed.

(ii)  That it be noted that in relation to non-residential Adult Social Care Services, the recommendation that officers consider the potential to either increase or remove the current cap on the amount anyone pays for their services per week has been addressed and proposals are included in a separate report on Adult Social Care charging elsewhere on agenda for consideration (minute 134 refers).

(iii)  That officers be tasked with consideration of the other recommendations proposed by Scrutiny and report back to Executive Board as appropriate.

B) Capital Programme Update 2016-2019

The Deputy Chief Executive submitted a report setting out the proposed Capital Programme for the period 2016-2019, which included details of forecast resources for that period. In addition, the report also provided a review of 2015/2016 scheme spend.

RESOLVED –

a)  That Executive Board recommends to the Council:

i)  That the capital programme, as presented in Appendix F of the submitted report, be approved

ii)  That the revised MRP policy for 2016/17 as set out in Appendix D of the submitted report be approved

b)  That Executive Board approval be given for the list of land and property sites shown in Appendix B of the submitted report to be disposed of to generate capital receipts for use in accordance with the MRP policy

(C) Treasury Management Strategy for 2016/17

The Deputy Chief Executive submitted a report seeking approval to the Treasury Management Strategy for 2016/17. The report also provided an update on the implementation of the 2015/16 strategy.

RESOLVED -

a)  That Executive Board approval be given to the initial treasury strategy for 2016/17 as set out in Section 3.3 of the submitted report and that the review of the 2015/16 strategy and operations as set out in Sections 3.1 and 3.2. be noted

b)  That full Council be recommended to set the borrowing limits for 2015/16, 2016/17, 2017/18 and 2018/19 as detailed in Section 3.4 of the submitted report; and to note the changes to both the Operational Boundary and the Authorised limits.

c)  That Council be recommended to set the treasury management indicators for 2015/16, 2016/17, 2017/18 and 2018/19 as detailed in Section 3.5 of the submitted report

d)  That Council be recommended to set the investment limits for 2015/16, 2016/17, 2017/18 and 2018/19 as detailed in Section 3.6. of the submitted report.

e)  That Council be recommended to adopt the revised Treasury Management Policy Statement.

(The matters referred to in Minute Nos. 142(A)(a(i),(ii) and (iii))(Revenue Budget and Council Tax); 142(B)(a)(i) and (ii)(Capital Programme) and 142(C)(b) to (e)(Treasury Management Strategy) being matters reserved to Council, were not eligible for Call In)

(Under the provisions of Council Procedure Rule 16.5, Councillors A Carter and Golton both required it to be recorded that they respectively abstained from voting on the decisions referred to within this minute)