Agenda item

Final Financial Plan Proposals 2018/19 to 2020/21


The Portfolio Holder for Corporate Resources introduced the item and advised the Council had been successful as part of the business rates pilot and this would provide 100 % funding retention for one year.  It would not be 100% in future financial years.  The Council will also be facing reductions in New Homes Bonus.


The Acting Chief Finance Officer for Finance presented the headline aspects of the budget proposals, as previously reported to the Executive and the Overview & Scrutiny committee on the 5 February 2018.


·       An increase in council tax of £5 or 3.12% to £165.17

·       The continuing significant reduction in new homes bonus

·       Other central funding reductions especially revenue support grant

·       Reserves at 11% of the net revenue budget or just under £1.9 million

·       Continuing support for housing whilst backing business and bringing people and organisations together for local neighbourhood planning

·       Infrastructure delivery plan investment funded by community infrastructure levy and external sources where available

·       The final pay offer including increases linked to the national living wage for 2018/19 and increases of 2% for all other staff

·       The provisional assumptions following the successful bid to be a 100%   business rates pilot authority with the rest of Devon for 2018/19

·       Rural aid continuing at £40,000


The budget proposals had been the subject of public consultation, the consultation has not closed but the results to date were as follows:


Results of Consultation

Statement 1

The current recommendation is a 3.1% increase, or £5 per year, for a Band D property taking the Council Tax to £165.17 for the year

Agree 70.9%

Disagree 19.8%

Not sure 9.3%

Statement 2

Support to back business and improve town centres

Agree 73.7%

Disagree 12.2%

Not sure 14.1%

Statement 3

Support investment in infrastructure for employment, education and transport links and sports and open spaces

Agree 83.7%

Disagree 6.7%

Not sure 9.6%

Statement 4

Support to continue support for housing as a priority by enabling affordable housing and improving poor quality homes

Agree 66.7%

Disagree 16.1%

Not sure 17.2%

Statement 5

To balance the Council’s budget in future which of these would you expect us to consider – select only one

60.7% generating more income to invest in Council services

15% making more budget savings

5.4% reducing the services we provide

18.9% increasing council tax further


The Leader reminded the meeting that although this was second year in a row that the Council had increased the council tax, the previous five years no increase had been made.  That resulted in a £10 increase to council tax during the seven year period which he believed represented value for money for residents.


Council tax funding did not fund all the costs running the Council and in fact council tax income, as a percentage of overall council funds only represented 12% of expenditure. This was supplemented by increasing income and grant income.


The Leader thanked the Acting Chief Finance Officer for his work and the manner of his work in preparing the budget.




          That the Executive propose a budget to Council for adoption as set out in Appendix 4 & 7 of the previously circulated report


Supporting documents: