Meeting documents

Present

THE MAYOR – Councillor Trevor Foster

Councillors Ali, Allcock, Armitage, Bainbridge, Barker, J Briggs, Mrs Bromby, Bunyan, Clark, Collinson, Davison, Eckhardt, Ellerby, England, Evison, L Foster, Glover, Godfrey, Gosling, Grant, Kataria, Marper, Ogg, Oldfield, O'Sullivan, Poole, Mrs Redfern, Robinson, Rowson, C Sherwood, N Sherwood, Swift, K Vickers, P Vickers, Waltham, Wardle, Wells, Whiteley and Wilson.

The council met at The Civic Centre, Ashby Road, Scunthorpe.

2355 DECLARATIONS OF DISCLOSABLE PECUNIARY INTERESTS AND PERSONAL OR PERSONAL AND PREJUDICIAL INTERESTS – Declarations of personal interests were indicated as follows –

2356 BUDGET SPEECHES - It was moved by Councillor England and seconded by Councillor Poole -

That in accordance with Procedure Rule D1.19(s) the Leader of the Council and the Leader of the Opposition be allowed up to 20 minutes to deliver their respective budget speeches.

Motion Carried

2357(11)REVENUE BUDGET 2015/2016 AND FINANCIAL PLAN 2015/2019, CAPITAL PROGRAMME 2015/2019, TREASURY MANAGEMENT AND STRATEGY REPORT 2015/2016 AND IMPLEMENTATION OF THE 2015/2016 PAY POLICY STATEMENT - The Director of Policy and Resources submitted reports relating to -

• The Revenue Budget 2015/2016 and Financial Plan 2015/2019.
• The Capital Programme 2015/2019.
• The Treasury Management and Strategy Report 2015/2016.
• The Implementation of the 2015/2016 Pay Policy Statement.

Each year the council decides its spending plans for the next financial year. This starts in April and the plans include -

• A Revenue Budget to cover the day to day running costs of council's services.
• A Capital Programme of investment in buildings and infrastructure.
• A Treasury Management and investment strategy which says how it will invest its cash, both investment in assets or to help its cash flow and manage its debt.

Each of these issues was dealt with by a separate report. The budget is part of a long term financial strategy because the council needs to be sure its spending on services is sustainable. It must also ensure that its resources are deployed in the most effective way to deliver improved public services and to do so would increase efficiency. The report on the revenue budget 2015/16 and financial plan 2015/2019 considered some key issues and relevant factors for the financial strategy namely -

• The financial framework.
• General government funding.
• Local resources.

There is a legal requirement to set a revenue budget each year. The council has to decide the level of spending it could afford and take account of how much government grant it would receive and the level of council tax it wished to set. The council must make sure that it sets a balanced budget - and that it has identified adequate finance to pay for its spending plans. Although the revenue budget is by law set one year at a time, it needs to fit in the longer term strategic vision and in practice the council sets and indicative four year financial plan as well as a detailed one year budget.

The council also has a separate capital programme for longer term investment in services. This is spending on the construction and improvement of assets such as schools, roads and other council run facilities. It also includes grants for investment in community facilities and home improvement and government funding allocated for economic regeneration and infrastructure development. These could be funded from grants and other external funding, borrowing, capital receipts and from the sale of council assets and direct contributions from the council's general fund revenue budget. The prudential code governs borrowing decisions and the council has to ensure that borrowing to support investment was affordable and prudent over the long term.

The council has also adopted the CIPFA Code of Practice for Treasury Management, the standard of best practice. This had been revised in the light of the Icelandic Banking crisis and the impact it had on local government investment. The code required the council to set a strategy for the investment of cash services, the management of its debt portfolio and define how and in what circumstances it would borrow.

In addition, the implementation of the 2015/2016 pay policy statement report outlined and sought approval for the council's pay policy statement for 2015/2016, in accordance with Section 38 of the Localism Act 2011. Local authorities were now required under Section 38(1) of the Localism Act 2011 to prepare an annual pay policy statement. The statement attached as an appendix to the report set out the council's approach to pay and reward of its most senior employees set within the context of the pay of the wider workforce.

Each of the financial reports submitted by the Director of Policy and Resources dealt with council priorities and the financial plan, revenue and spending, capital investment and treasury management. Each report contained a great deal of detail in relation to those specific areas which, taken together, would enable the council to set a budget for 2015/2016.

Moved by Councillor Mrs Redfern and seconded by Councillor Briggs -

Strategy

1 That in determining the resource allocation the Council has taken account of the state of public finances, the council's financial resources and the council's strategic priorities as set out in report 3(a)

2 That the budget consultation feedback from local residents, business and other stakeholders, considered in section 7 of report 3(a)be welcomed.

Revenue

3 That the revenue budget for 2015/16 be set in total and for each service as follows:

4 That all budgets be strictly cash limited to the figures set by the Council and that services ensure tight control of expenditure during the year and take immediate action to contain cost pressures

5 At the meeting held on 11^th December 2014 Council set the following amounts for the year 2015/16. These are as required by regulations made under Section 33(5) of the Local Government Finance Act 1992:-

(a) 45,103.1 as its Council Tax Base for the year (Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended, the “Act”)

(b) the Council Tax Base for each part of the area as shown in Appendix C, column 2 (regulation 6)

6 That the Council Tax requirement for the Council's own purposes for 2015/16 (excluding Parish precepts) is 57,913,733

7 That the following amounts for 2015/16, as required by Sections 31 to 52 of the Local Government Finance Act 1992 as amended be approved

(a) 322,127,386 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils (gross expenditure including parish precepts and special expenses)

(b) 262,911,156 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act (gross income)

(c) 59,216,230 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).

(d) 1312.91 being the amount at (c) above Item R, divided by Item T (5(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts). (Band D council tax including parish precepts and special expenses)

(e) 1,761,195 being the aggregate amount of all special items and Parish precepts referred to in Section 34(1) of the Act (as per the attached Appendix C1) (Total of all Parish Precepts and Special Expenses)

8 That it be noted that for the year 2015/16 the major precepting authorities have issued precepts to the Council, in accordance with Section 40 of the Local Government Finance Act, 1992 (policeand fire precepts)

9 That the amounts of council tax for the year 2015/16 for each of the categories of dwellings be as specified inrevisedAppendices C1 and C2of report 3(a) attached. Having calculated the aggregate in each case of the amounts at 7 and 8 above in accordance with Section 31B of the Local Government Finance Act, 1992 as amended (council tax including police, fire and parish precept for each band and each parish)

10 That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1)(a) of the Act) be confirmed

11 That the adequacy of reserves included in the budget in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section (e) and at revised Appendix A2 of report 3(a)attached be confirmed.

12 That grant be awarded to parishes in accordance with the principles agreed at council on 11^th December 2014 and shown in Appendix C1.

13 That the financial strategy for 2015/19 as set out in revised Appendices B1 and B2 of report 3(a) be approved and the council tax levels be set at zero in 2015/16 and indicatively at 1.8% in 2016/17,2017/18 & 2018/19

14 That the Director of Policy & Resources be authorised to produce the necessary taxpayer information

Capital

15 That the capital programme for 2015/19 be approved in line with revised Appendices A & B of report 3(b) attached.

16 That any further capital projects fully funded by external sources or which are self-financing be added to the capital programme when known, subject to a proper assessment of the business case, and approval of the necessary virement

17 That in accordance with Part 1, sections 3 and 5 of the Local Government Act, 2003 the Prudential Indicators contained in revised Appendix C of report 3(b) attached be approved

18 That the Director of Policy & Resources be authorised to determine the methods of capital financing within the available funding (revenue budget, capital receipts, borrowing, specific external funding and leasing)

19 That the Director of Policy & Resources be delegated authority to:

• borrow within authorised limits and the operational boundaries for external debt
• effect movement between agreed borrowing figures and long term liabilities, in accordance with option appraisal and the achievement of value for money for the council. Movements are to be reported to cabinet or council as appropriate at the next meeting following the change

20 That the Director of Policy & Resources report any amendments required to Prudential Indicators during 2015/16, to cabinet or council as appropriate at the next meeting following the change

Treasury

21 That the Treasury Management and Investment Strategy for 2015/16 be approved

22 That the prudential indicators for 2015/19 at revisedAppendix D to the report at 3(c) be approved

23 That the policy on the Minimum Revenue Provision at paragraph 4.28 to the report at 3(c)be approved

24 That council approves the current list of approved financial institutions at Appendix Cto the report 3(c) and delegates to the Director of Policy and Resources the authority to make changes to the list as necessary, within the guidelines set by the Treasury Strategy. Any changes to be reported back to Council, Cabinet and Audit Committee as part of the regular reporting process

Pay Policy Statement

25 That the proposed Pay Policy Statement for 2015/16 contained in report 3(d) be approved
Moved by Councillor L Foster and seconded by Councillor Grant as an amendment -

Strategy

1 That in determining the resource allocation the Council has taken account of the state of public finances, the council's financial resources and the council's strategic priorities as set out in report 3(a)

2 That the budget consultation feedback from local residents, business and other stakeholders, considered in Section 7 of report 3(a) be welcomed.

Revenue

3 That the revenue budget for 2015/16 be set in total and for each service as follows:

4 That all budgets be strictly cash limited to the figures set by the Council and that services ensure tight control of expenditure during the year and take immediate action to contain cost pressures

5 At the meeting held on 11^th December 2014 Council set the following amounts for the year 2015/16. These are as required by regulations made under Section 33(5) of the Local Government Finance Act 1992:-

(c) 45,103.1 as its Council Tax Base for the year (Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended, the 'Act')

(d) the Council Tax Base for each part of the area as shown in Appendix C, column 2 (regulation 6)

6 That the Council Tax requirement for the Council's own purposes for 2015/16 (excluding Parish precepts) is 57,913,733

7 That the following amounts for 2015/16, as required by Sections 31 to 52 of the Local Government Finance Act 1992 as amended be approved

(a) 321,507,386 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils (gross expenditure including parish precepts and special expenses)

(b) 262,291,156 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act (gross income)

(c) 59,216,230 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).

(d) 1,312.91 being the amount at (c) above Item R, divided by Item T (5(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts). (Band D council tax including parish precepts and special expenses)

(e) 1,761,195 being the aggregate amount of all special items and Parish precepts referred to in Section 34(1) of the Act (as per the attached Appendix C1) (Total of all Parish Precepts and Special Expenses)

8 That it be noted that for the year 2015/16 the major precepting authorities have issued precepts to the Council, in accordance with Section 40 of the Local Government Finance Act, 1992 (police and fire precepts)

9 That the amounts of council tax for the year 2015/16 for each of the categories of dwellings be as specified in revisedAppendices C1 and C2 of report 3(a) attached. Having calculated the aggregate in each case of the amounts at 7 and 8 above in accordance with Section 31B of the Local Government Finance Act, 1992 as amended (council tax including police, fire and parish precept for each band and each parish)

10 That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1)(a) of the Act) be confirmed

11 That the adequacy of reserves included in the budget in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section (e) and at revised Appendix A2 of report 3(a)attached be confirmed.

12 That grant be awarded to parishes in accordance with the principles agreed at council on 11^th December 2014 and shown in Appendix C1.

13 That the financial strategy for 2015/19 as set out in revised Appendices B1 and B2 of report 3(a) be approved and indicative council tax levels be set at zero in 2015/16 and 1.9% in 2016/17,2017/18 & 2018/19

14 That the Director of Policy & Resources be authorised to produce the necessary taxpayer information

Capital

15 That the capital programme for 2015/19 be approved in line with revised Appendices A & B of report 3(b) attached.

16 That any further capital projects fully funded by external sources or which are self-financing be added to the capital programme when known, subject to a proper assessment of the business case, and approval of the necessary virement

17 That in accordance with Part 1, sections 3 and 5 of the Local Government Act, 2003 the Prudential Indicators contained in revised Appendix C of report 3(b) attached be approved

18 That the Director of Policy & Resources be authorised to determine the methods of capital financing within the available funding (revenue budget, capital receipts, borrowing, specific external funding and leasing)

19 That the Director of Policy & Resources be delegatedauthority to:

• borrow within authorised limits and the operational boundaries for external debt
• effect movement between agreed borrowing figures and long term liabilities, in accordance with option appraisal and the achievement of value for money for the council. Movements are to be reported to cabinet or council as appropriate at the next meeting following the change

20 That the Director of Policy & Resources report any amendments required to Prudential Indicators during 2015/16, to cabinet or council as appropriate at the next meeting following the change

Treasury

21 That the Treasury Management and Investment Strategy for 2015/16 be approved

22 That the prudential indicators for 2015/19 at revised Appendix D to the report at 3(c) be approved

23 That the policy on the Minimum Revenue Provision at paragraph 4.28 to the report at 3(c) be approved

24 That council approves the current list of approved financial institutions at Appendix C to the report 3(c) and delegates to the Director of Policy and Resources the authority to make changes to the list as necessary, within the guidelines set by the Treasury Strategy. Any changes to be reported back to Council, Cabinet and Audit Committee as part of the regular reporting process

Pay Policy Statement

25 That the proposed Pay Policy Statement for 2015/16 contained in report 3(d) be approved
During the course of the debate it was -

Moved by Councillor Swift and seconded by Councillor L Foster -

That in accordance with Procedure Rule D.19(f) the question be now put.

Motion Lost

Following completion of the debate on the budget the council proceeded to the vote.

The Mayor reminded members that in accordance with minute 2173 of council and as required by the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 immediately after any vote was taken at a budget meeting, the voting shall be recorded in the minutes so as to show whether each member present votes for or against a decision or who abstained from voting. The names of members voting for, against and abstaining from the amendment are as follows -

FOR: Councillors Ali, Armitage, Bainbridge, Barker, Collinson, Davison, Ellerby, L Foster, Godfrey, Gosling, Grant, Kataria, Oldfield, O'Sullivan, Swift, Whiteley and Wilson.

AGAINST: Councillors Allcock, Briggs, Bromby, Bunyan, Clark, Eckhardt, England, Evison, T Foster, Glover, Marper, Ogg, Poole, Mrs Redfern, Robinson, Rowson, C Sherwood, N Sherwood, K Vickers, P Vickers, Waltham, Wardle and Wells.

ABSTAINING: Nil

Amendment Lost

In accordance with minute 2173, and as required by the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the names of members voting for, against and abstaining from the motion are as follows –

FOR: Councillors Allcock, Briggs, Bromby, Bunyan, Clark, Eckhardt, England, Evison, T Foster, Glover, Marper, Ogg, Poole, Mrs Redfern, Robinson, Rowson, C Sherwood, N Sherwood, K Vickers, P Vickers, Waltham, Wardle and Wells.

AGAINST: Councillors Ali, Armitage, Bainbridge, Collinson, Davison, Ellerby, L Foster, Godfrey, Gosling, Grant, Kataria, Oldfield, O'Sullivan, Swift and Wilson.

ABSTAINING: Councillors Barker and Whiteley.

Amendment Lost

Motion Carried