Decisions

To finalise budget recommendations and the treasury management strategy prior to the 20 February 2018 Full Council budget setting meeting.
This will include key decisions on the recommendations in respect of the proposals set out below following public consultation:
- Special Guardians allowances and financial arrangements for families with children who are voluntarily looked after by the local authority.
- Increasing income generation and efficiency across culture services.
- Funding to support neighbourhood action.

Appendix A: Budget Recommendations to Full Council

Cabinet noted :

·       The report from the Budget Scrutiny following 18^th and 22^nd January Overview and Scrutiny Management Board meetings.

·       The Dedicated Schools’ Grant as set out in Section 10.

·       The categorisation of Earmarked Reserves and provisions set out in Section 16.

·       The advice given by the Service Director Finance with respect to the robustness of the budget estimates and the adequacy of the Council’s reserves as set out in Section 16.

Cabinet agreed to recommend to Full Council:

·       An overall 4.99% increase in the Council’s element of council tax for 2016/17 with 2% as a precept for Adult Social Care and a 2.99% general increase.

·       The General Fund revenue budget for 2018/19, as summarised in Section 5, the detailed budget summary by Directorate and Service outlined in Appendix 1 and the proposals identified in Appendix 6 for business efficiencies, changing services, increasing income and reducing or stopping services - 2018/19 to 2022/23.

·       The capital programme as set out in Appendix 2.

·       The Treasury Management Strategy, including the Prudential Indicators measuring affordability, capital spending, external debt and treasury management, as set out in Appendix 4.

·       That they note the results of consultation as set out in Section 18 and detailed in Appendix 7.

Delegation of authority

·       To delegate authority to the Service Director Finance after consultation with the Deputy Mayor and Cabinet Member for Finance, Governance & Performance and the Mayor, to make any necessary adjustments following receipt of the final settlement information or other technical adjustments to the figures to be submitted to Full Council on 20 February 2018.

Appendix B: West of England Combined Authority

·       To give consent to the Combined Authorities Borrowing Regulations, including a debt cap of £120m for the period till 2020/21 as set out in Appendix B.

·       Delegate to the Service Director Finance after consultation with the Deputy Mayor and Cabinet Member for Finance, Governance & Performance and the Mayor, authority to make all related decisions and provide written authority to the Secretary of State of consent to the Combined Authorities Borrowing Regulations.

Appendix C: Removal of Neighbourhood Action Funding

Having given careful consideration to the consultation findings and Equalities Impact Assessment Cabinet agreed:

To make a saving of £257k by withdrawing the small grants fund.

To make available one-off budget of up to £50,000 to help mitigate the impact on areas which face greater challenges of inequality and deprivation and where there is limited access to community and voluntary organisations which can help. This funding will be used to increase social action and support communities to become more self-sufficient in identifying funding and accessing resources.  How this budget will be allocated will be agreed with the Exec Member.

When the Bristol Impact Fund small grants process is reviewed in 18/19 consideration will be given to the impact of removing the neighbourhood action fund.

Appendix D: Changes to Culture Services

Having given careful consideration to the consultation findings and Equalities Impact Assessment Cabinet approved the implementation of the following:

1.     Charging adults for entry to Red Lodge and Georgian House Museums from April 2019

2.     Increased income from major event through sponsorships

3.     Increase income generation to make both the Film Office and Site permission team cost neutral by 2022

Appendix E: Improved Better Care Fund

Cabinet agreed to delegate authority to the Director – Adult Social Care to draw down funds associated with the supplementary funding for the Improved Better Care Fund for the period 2017/18 to 2019/20 to support proposed expenditure as set out in Appendix E.

Cabinet approved a sum of up to £0.43m capital and £0.085m resource in 2017/18 and £0.875m capital and £0.515m resource in 2018/19 to support the costs for the development of feasibility studies and business cases for priority infrastructure schemes within the Bristol area of the sub-region.

That the Capital Programme be amended to include provision of up to £0.6m of resource and £1.305m of capital to provide for the costs to deliver the feasibility studies and business cases for the schemes as set out in Appendix A.

Cabinet agreed to proceed with the bid.

Cabinet agreed:

1.      To approve the HRA budget for 2018/19, tested within the context of the 30-year financial business plan model

2.   To approve the detailed capital & revenue investment plan for 2018/19 that underpins the 2018/19 HRA budget,

3.   To delegate authority to the Strategic Director Neighbourhoods (with appropriate legal and procurement advice) for the procurement of relevant contractors during 2018/19 to deliver the capital & revenue investment plans in consultation with Cabinet Member for Housing as summarised in Appendices 3 and 4.

Cabinet agreed that

1.      Schools Block (detail in Appendix A.2)

a.      the Schools Block budget be set at £253.423m for 2018/19 as per Table 1 above;

b.      the Growth Fund for established schools expanding in September 2018 be set at £2m;

c.       the lump sum per school value in the mainstream formula for primary and secondary schools is set at £125,000, as in 2017/18;

d.      rates funding for mainstream schools is based on each school’s expected requirements for 2018/19, as per ESFA guidance;

e.      the Minimum Funding Guarantee for mainstream schools is set at 0%, ensuring that the per pupil amount is no less than that for 2017/18;

f.        no capping or scaling should be applied to the formula for 2018/19;

g.      the formula factors used in 2017/18 should be increased by the same percentage to distribute the remaining available funding.

2.      Central School Services Block (detail in Appendix A.3)

a.      Subject to Schools Forum agreement, the Central School Services Block budget be set at £2.262m, leaving the indicated historic funding of £0.566m for prudential borrowing unallocated as it is not required.  In the event that the funding is not clawed back by the ESFA, a decision on how it is used can be decided at a later point.

3.      High Needs Block (detail in Appendix A.4)

a.      The High Needs Block budget be set at £50.951m for 2018/19 as per Appendix A.4.2;

b.      The measures to reduce the budget pressures set out in Table 2 in Appendix A.4 are agreed;

c.       The outline three year plan to balance the budget in Table 3 of Appendix A.4 is endorsed.

4.      Early Years Block (detail in Appendix A.5)

a.      the Early Years Block budget be set at £35.541m for 2018/19, noting that spend and DSG income will vary up or down, according to participation levels in each of the three terms;

b.      Funding for 3 and 4 year olds will be based on a rate of £4.88 per hour, with supplements for deprivation (13p), quality (16p) and Special Needs (25p).

c.       Funding for 2 year olds will be based on a rate of £5.40 per hour.

d.      The budget for the central team will be £1.476m, based on 28p per hour for 3&4 year olds and 3p per hour for 2 year olds, of which £1.276m will be allocated to the central Early Years Team and £0.200m will be used for commissioned speech and language therapy.

5.      Overall position

a.      Members note that expected school balances are expected to be in the region of £3m at the end of 2017/18 and the DSG position is expected to be overspent by £5.1m, so Council reserves will be needed to cover the net deficit until the underlying financial position, particularly in the High Needs budget, improves.

1. Noted the Corporate Strategy 2018 – 2023 and recommend it to Full Council for approval.

2. Noted the Corporate Strategy and Budget Consultation Report which helped inform the final proposals.

Cabinet noted the progress being made on the project and the steps being made towards enabling the Council to make a final decision on the Arena project.