The Medium Term Financial Plan (MTFP) considered by Policy, Finance and Resources Committee on 29 November 2016 gave Members an update on the various significant changes that would impact on the Council’s financial position.  Particular issues highlighted, relevant to the General Fund and HRA,  included the phasing out of the Revenue Support Grant (RSG), changes to the New Homes Bonus and the Business Rates Retention Scheme.   

 

The fundamental principles of the Council’s MTFP were to:

 

(i)            Maintain a sustainable financial position against a background of unprecedented financial uncertainty and reduced government funding, including the delivery of efficiency targets. 

(ii)          Support the vision of our Borough through appropriate identification of resources required to deliver the key priorities outlined in the “Vision for Brentwood”. 

(iii)         Maximise opportunities and mitigate risks associated with the fundamental change to the way in which local government is financed. 

The report considered:

 

(i)            The General Fund budget proposals for 2017/18 to 2019/20.

(ii)          The Housing Revenue Account (HRA) budget proposals for 2017/18 onwards.

(iii)         The Capital Programme 2017/18 to 2019/20.

(iv)         The Treasury Management and Investment Strategy for 2017/18. 

 

The Leader of the Council and Chair of Policy, Finance and Resources Committee, Cllr Mrs McKinlay, introduced the proposed budget for 2016/17 and MOVED the recommendations in the report which Cllr Kerslake SECONDED. 

 

Cllr Aspinell, as leader of the major opposition group, responded to the Leader’s statement.

Six amendments had been submitted in accordance with Rule 3.15 of the Council’s Procedure Rules. 

 

Cllr Mrs McKinlay MOVED and Cllr Kerslake SECONDED the AMENDMENT received from the Conservative Group which proposed two additional recommendations, 2.1b and 2.8, each referring to Table 8.1 which was included in the published amendment, and Cllr Mrs McKinlay ACCEPTED the amendment.

 

Cllr Barrett MOVED and Cllr Morrissey SECONDED the first proposed AMENDMENT submitted by the Labour Group, as follows: 

 

For the financial year 2017/18 onwards Brentwood Borough Council removes its Second Home Discount (10%) from Council Tax and reduces the Empty Home Council Tax Discount (100%) from three months to two weeks.

 

This can be immediately implemented, as confirmed by advice from officers.

Cllr Mrs McKinlay did not accept the AMENDMENT  however she expressed her interest in taking the proposal forward at a later date and invited Cllr Barrett to be involved in future related discussions.

 

Following a debate a vote was taken on a show of hands and the AMENDMENT was LOST.

 

Cllr Barrett MOVED and Cllr Morrissey SECONDED the Labour Group’ssecond AMENDMENT, as follows:

 

Creating a revenue stream through early payment of invoices - the London Boroughs of Bexley and Croydon produce rebate income from early payment of invoices to achieve a return on procurement costs of around 0.1%. The income will be related to spending – and as such larger in years with greater capital spending.

 

There is a delay in implementation to find an appropriate partner to implement this scheme.

 

Mrs McKinlay did not accept the AMENDMENT.

 

Following a debate during which a Member requested the Council’s full confidence in the Section 151 Officer be minuted, a vote was taken on a show of hands and the AMENDMENT was LOST.

 

Cllr Barrett MOVED and Cllr Morrissey SECONDED the third AMENDMENT submitted by the Labour Group, as follows:

 

Build a Memorial Wall both for former residents and pets. Estimates have been developed taking costs of similar local authority and applying a prudent take up of 150 total per year.

 

There is a lower income in year 2017/18 to account for the construction and any necessary planning requirements.

 

Cllr  Mrs McKinlay did not accept the AMENDMENT and advised that the proposal had been included in the proposed budget under Senior Officer Initiatives.

 

In light of this, Cllr Barrett WITHDREW the proposed AMENDMENT.

 

Cllr Barrett MOVED and Cllr Morrissey SECONDED the fourth AMENDMENT submitted by the Labour Group, as follows:

 

Use experience of the Housing Department to set up a private sector focused letting agency. Given numerous problems with local letting agencies and potential to work more closely with CAB set up 'best practice' model. This could potentially be a sustainable income stream for the Council, alongside offering benefits in cost reduction on homelessness and housing concerns through strengthened delivery.

 

 

Cllr Mrs McKinlay did not accept the AMENDMENT and advised that the proposal had been included in the proposed budget.

 

In light of this, following a debate, Cllr Barrett WITHDREW the proposed AMENDMENT.

 

Cllr Aspinell MOVED and Cllr Mynott SECONDED the AMENDMENT submitted by the Liberal Democrat Group as follows:

 

The Lib Dem Group would like to propose that this Council investigates and invests in the work needed to set up a LATCO to enable Brentwood Borough Council to generate revenue in addition to grants and council tax income through entrepreneurial ideas.

Cllr Mrs McKinlay did not accept the AMENDMENT and following a debate, a vote was taken on a show of hands and the AMENDMENT was LOST.

 

Returning to the SUBSTANTIVE MOTION, following a debate in accordance with Procedure Rule 8.3.5 which set out the length of speeches and in accordance with Procedure Rule 9.6 of the Constitution, a recorded vote was taken.  Cllr Aspinell  had left the Chamber during the debate and therefore did not vote.

 

The Mayor advised that she had agreed to a Member’s request to divide the recommendations into 3 separate votes: 2.1 and 2.1b, 2.5, 2.6 and 2.7 - the General Fund and Capital Programme, 2.2, 2.3 and 2.4 – the Housing Revenue Account (HRA), and 2.8 – Council Tax.

 

Members voted as follows on recommendations2.1 and 2.1b, 2.5, 2.6 and 2.7 relating to the General Fund and Capital Programme:

 

For: Cllrs Bridge, Cloke, Mrs Coe, Faragher, Hirst, Mrs Hones, Hossack, Kerslake, McCheyne, Mrs McKinlay, Mrs Middlehurst, Mrs Murphy, Parker, Poppy, Mrs Pound, Reed, Russell, Ms Sanders, Mrs Slade, Trump, Tumbridge and Wiles (22)

 

Against:  Cllrs Barrett, Chilvers, Clarke, Mrs Davies, Mrs Fulcher, Mrs Hubbard, Keeble, Kendall, Morrissey, Mynott and Newberry (11)

 

Abstain: (0)

 

Members RESOLVED:

 

General Fund:

 

2.1         To approve the General Fund - Revised MTFP for 2017/18 as shown in Table 7 at paragraph 8.2 which includes the proposed savings target envelope as shown in Table 8 at paragraph 8.7 of this report.

 

2.1b    To agree the General Fund budget detail savings and growth outlined in Table 8.1.

 

 

 

Capital programme

 

2.5         To approve the proposed Capital Programme and Funding totalling £33.9 million for 2017/18 to 2019/20 as set out in Tables 15 and 16 of the report.

 

2.6         To approve the Treasury Management and Investment Strategy as set out in Section 12 of the report.

 

2.7         To note the Section 151 Officer’s Assurance Statement as set out in Section 13 of the report.

 

Members voted as follows on recommendations2.2, 2.3 and 2.4 relating to the Housing Revenue Account (HRA)

 

For: Cllrs Bridge, Cloke, Mrs Coe, Faragher, Hirst, Mrs Hones, Hossack, Kerslake, McCheyne, Mrs McKinlay, Mrs Middlehurst, Mrs Murphy, Parker, Poppy, Mrs Pound, Reed, Russell, Ms Sanders, Mrs Slade, Trump Tumbridge and Wiles (22)

 

Against:  Cllrs Chilvers, Clarke, Mrs Davies, Mrs Fulcher, Mrs Hubbard, Keeble, Kendall, Mynott and Newberry (9)

 

Abstain: Cllrs Barrett and Morrissey (2)

 

Members RESOLVED:

 

2.1         To approve the HRA Business Plan for 2017/18 and beyond as shown in Appendix E of the report.

 

2.2         To approve a 1% decrease in rents for 2017/18 and for the following 2 years.

 

2.3         To recommend to apply the formula rent to all new tenancies from April 2017/18.

 

Members voted as follows on recommendation2.8 relating to Council Tax.

 

For: Cllrs Bridge, Cloke, Mrs Coe, Faragher, Hirst, Mrs Hones, Hossack, Kerslake, McCheyne, Mrs McKinlay, Mrs Middlehurst, Mrs Murphy, Parker, Poppy, Mrs Pound, Reed, Russell, Ms Sanders, Mrs Slade, Trump Tumbridge and Wiles (22)

 

Against:  Cllrs Barrett, Chilvers, Clarke, Mrs Davies,  Mrs Hubbard, Keeble, Kendall, Morrissey, Mynott and Newberry (10)

 

Abstain: Cllr Mrs Fulcher (1)

 

Members RESOLVED

 

Council Tax 2017/18

 

2.8         To approve a Council Tax increase of £5 (Band D) for 2017/18, to fund the growth items outlined in Table 8.1.

 

Reason for Recommendation

 

The Council is required to approve the Budget as part of the Budget and Policy Framework.

 

 

Following this item of business the meeting was adjourned for a short comfort break.