Agenda and minutes

Members are asked to declare any interests in the items under consideration and in

doing so state:

(1) the type of interest concerned either a

(a) personal interest

(b) prejudicial interest

(c) disclosable pecuniary interest (DPI)

and

(2) the nature of the interest concerned

If any member requires advice on declarations of interests, they are advised to contact the Head of Democratic Governance in advance of the meeting.

Councillor Hunter declared a prejudicial interest in section 1.91 of the budget ‘Use of reserves, e.g. Highfield’ as a Governor of Highfield Leadership Academy and indicated that he would leave the room if there was any discussion on this matter.

Councillor Singleton declared a prejudicial interest in section 1.11 of the budget ‘Blackpool Coastal Housing dividend to General Fund’ as a Non-Executive Director of Blackpool Coastal Housing Limited and indicated that she would leave the room if there was any discussion on this matter.

Councillors G. Coleman and Galley declared personal interests in section 1.51 of the budget ‘Cultural Exemption generating VAT recovery’ as Non-Executive Directors of Blackpool Entertainment Company Limited.

To discuss and undertake consultation with Non Domestic Ratepayers and Trade Unions regarding the General Fund Revenue Budget 2018-2019.

Members and Attendees will have the opportunity to ask questions and seek clarification from officers regarding the draft Budget.

Specific observations and comments can be made that will be passed to the Executive for consideration at its meeting on 20 February 2018.

Mr Steve Thompson, Director of Resources, presented the draft General Fund Revenue Budget 2018-2019 which had a proposed net budget requirement of £124,365,000 including target budget savings of £5,500,000.

Economic climate, long-term planning and Financial Settlement

He confirmed that the Council would achieve a balanced budget. Local authorities had faced government funding cuts since 2011 and in response the Council had developed a consistent six year Medium Term Financial Sustainability Strategy (2016-2022).

The Settlement Funding Assessment informed medium-term government funding (primarily revenue support grant and business rate returns). From the Assessment, the provisional Local Government Finance Settlement 2018-2019 for Blackpool was announced mid-December 2017 and the final Local Government Finance Settlement 2018-2019 was confirmed on 6 February 2018.

Other significant funding streams

The New Homes Bonus had been a six-year programme whereby government incentivised authorities to build new residential properties above set numbers. The programme now ran from 2018-2019 for four years. The cumulative funding on offer was £464,500 although the in-year amount available was only £15,000.

The Housing Benefit Subsidy Grant, from government for processing benefit payments, had reduced by 11% to £810,000 in 2018-2019. Universal Credit (one scheme replacing several benefits) would be rolled out from December 2018. This could impact on jobs and residents. There had been good support initiatives.

The Public Health grant would be reduced by 5.5% in real terms to £18,428,000 for 2018-2019. The Better Care Fund for health and social care integration to support people’s independent living was proposed to increase to £27,300,000 for 2018-2019.

The Dedicated Schools Grant was proposed to increase to £108,800,000.

Core spending ‘power’

Core spending ‘power’ amounts (funding available) had increased by £1,200,000 (0.94%) before inflation and service demand pressures. Council Tax (general element and Adult Social Care precept) was proposed to increase by 5.99%.

Budget-setting and 2017-2018 outturns / pressures

The Committee was advised that the budget-setting process included looking at forecast budget outturns for 2017-2018, in particular any significant spend variances and that the Children’s Services Directorate was under demand pressures with a projected overspend of £2,908,000 for 2017-2018 due to high numbers of Looked After Children (539 for month nine, end December 2017). A large number of cases were complex and costly.

It was noted that Strategic Leisure Assets budget line was forecast to overspend by £1,174,000 across the full portfolio of assets. An in-year ‘surplus’ in 2021-2022 was expected with the full portfolio expected to break even by 2030 which was a good performance for leisure assets. Parking Services was expected to overspend by £716,000 for 2017-2018 but it was reported that pressures were being managed.

Mr Thompson advised that the Adult Services Directorate was reporting a forecast underspend of £598,000 for 2017-2018. However, this included technical adjustments.

In total, projected variances for 2017-2018 equated to an overspend of £1,833,000 which included any movement from contingencies / reserves.

Budget-setting and key assumptions

Members were advised that budget proposals had assumed a national staff pay rise of 1%. An offer of 2% had been made  ...  view the full minutes text for item 2.