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Agenda item

2018-2019 Budget and Council Tax Report

Report of the City Treasurer.

Minutes:

4.1       Councillor Tim Mitchell, Cabinet Member for Finance, Property and Corporate Services introduced the report that had been updated since an earlier report presented to Cabinet on 30 October 2017. He drew Members’ attention to the recommendations as set out in pages 17-19 in the report and thanked Steven Mair, City Treasurer and officers for their work.

 

4.2       Steven Mair then highlighted the changes in the budget since the meeting on 30 October and Council on 8 November.  Mr Mair referred to the proposed Westminster Community Contribution and that, if agreed, a report setting out the related governance would be submitted for approval.  It was noted that it was proposed to ask the City of Westminster Charitable Trust to seek these voluntary contributions.

 

4.3      The Leader welcomed the City Council’s proposals to set the lowest Council Tax in the country and the progressive approach taken in respect of the voluntary community which had already received positive feedback from people of all social backgrounds.

 

4.4     RESOLVED:

 

1.            That it be noted that the local element of Council Tax for 2018/19 will not increase.

 

2.            That Cabinet approved:

 

Ø    the 2018/19 budget, as set out in this report, and recommend to the Council the Tax levels as set out in the Council Tax resolution at Annex C;

 

Ø    that local element of Council Tax is increased by 2% in respect of the Adult Social Care Precept as permitted by Government and anticipated in their Core Spending Power assumptions; 

 

Ø    that as a consequence of no change in Council Tax and the 2% increase in the Adult Social Care precept the local element for Band D properties be confirmed for 2018/19 as £416.27;

 

Ø    that subject to their consideration of the previous recommendation, the Council Tax for the City of Westminster, excluding the Montpelier Square area and Queen’s Park Community Council, for the year ending 31 March 2018, be as specified in the Council Tax Resolution in Annex C (as may be amended).  That the Precepts and Special Expenses be as also specified in Annex C for properties in the Montpelier Square and Queen’s Park Community Council;

 

Ø    that the Council Tax be levied accordingly and that officers be authorised to alter the Council Tax Resolution as necessary following the final announcement of the Greater London Authority precept;

 

Ø    that the Council be recommended to approve the budget proposals presented to Council on 8th November 2017 which were approved in principle pending the completion of relevant external consultations as outlined in Section 18;

 

Ø    that the views of the Budget and Performance Task Group set out in Annex A be considered as required;

 

Ø    that the draft estimated cash limited budgets for each service with overall net expenditure for 2018/19 of £186.163m (as set out in Schedule 3) be noted;

 

Ø    that the City Treasurer be required to submit regular reports as necessary on the implementation of the savings proposals and on the realisation of pressures and mitigations as part of the regular budget monitoring reports;

 

Ø    that the City Treasurer be delegated responsibility for any technical adjustments required to be made to the budget;

 

Ø    that the cost of inflation, pressures and contingency be issued to service budgets if and when the need materialises, to the limits as contained within schedule 4c;

 

Ø    the Council continues as previously agreed to make two further one off contributions into the Pension Fund of £10m per annum as well as a recurrent additional £4m contribution as part of the on-going annual contributions as set out in paragraph 13.6;

 

Ø    that the views of consultees and consultation approach, as set out in section 18, be considered by Council;

 

Ø    that the proposed use of new capital receipts be used under the freedoms of the Flexible Capital Receipts regulations be used to fund revenue expenditure on City Hall, Digital Programme and Pension Deficit Recovery programmes which lead to future ongoing savings (and subject to review at year end to determine the actual costs, savings and financing by the City Treasurer) be recommended to Council for approval;

 

Ø    that the proposed use of new capital receipts be used under the freedoms of the Flexible Capital Receipts regulations to finance future revenue expenditure on other relevant and applicable programmes which arise in the future during the duration of the regulations and which lead to ongoing savings (and subject to review at year end to determine the actual costs, savings and financing by the City Treasurer);

 

Ø    that the City Treasurer be delegated responsibility to transfer any potential surplus Business Rates revenue into a reserve to mitigate the potential impact of business rates volatility and to support future years’ revenue budgets;

 

Ø    that the Council carries forward any unspent contribution from Discretionary Housing Benefits (DHP) into 2018/19 to support payments while options to absorb the expected reduction in DHP payments from government are considered;

 

Ø    following the consultation with Band H properties, the council introduces the Westminster Community Contribution to allow the most expensive properties in the city to voluntarily contribute towards supporting discretionary services that support the three priorities of youth services, helping rough sleepers off the streets at night and helping people who are lonely and isolated.  The City of Westminster Charitable Trust be asked to seek these and a further report on the related governance be submitted to the Leader for approval.

 

Ø    that the Equality Impact Assessments included in Annex B be received and noted to inform the consideration of the budget after approval; and

 

Ø    that this report be submitted to the meeting of the Council on 7th March 2018.

 

Reasons for Decision:

 

1.            The preparation of the budget is the final stage of the annual business planning cycle leading to the approval of the Council Tax for the forthcoming financial year. There is a statutory requirement to set a balanced budget and submit budget returns to the Ministry of Housing, Communities and Local Government (MHCLG).  Approval of the revenue estimates constitutes authority for the incurring of expenditure in accordance with approved policies.

 

2.            It should be noted that the Council presented a set of budget proposals to Cabinet in October 2017 and Council in November 2017, this offered an early opportunity to note and approve budget changes for 2018/19. These proposals were assessed at the time as to whether they required consultations and equality impact assessments (EIAs). Completed EIAs were made available to all Members.

Supporting documents: