To consider the Cabinet report.

The Panel were addressed by Cllr Saunders, Lead Member for Finance, on the 2017/18 Budget which Cabinet had approved and would be going to Council.  As the Budget had already been presented to all Scrutiny Panels and Cabinet he informed he would give a brief overview to the Panel.

Cllr Saunders informed that Panel that the proposed budget contained an increase in revenue investment of about £2.5 million to help protect the most vulnerable people in the Borough.  Examples of increased investment included £1 million added for adult social care, £400k for expanding the practical support for homeless residents, £330k for rising home to school transport for special needs pupils requirements and £120k over three years for increasing early years pupil premium spend.

There was also proposed investment in the Planning Department, for tree maintenance and investment for our voluntary organisations providing community needs. 

The proposed council tax increase was 0.95 percent which was lower than the retail price index There was also a proposal to increase the adult social care precept by three percent.  This increase was about half the amount that an authority could increase council tax without having a local referendum.

The Panel were informed that the proposals meant that a band D property would pay £961.46 for their council tax.

With regards to Fees and Charges the Panel were informed that the majority of charges would see no increase in real terms.  There had been a few increases that brought the borough in line with neighbouring authorities where we had been significantly under charging in the past.

With regards to Capital investment Cllr Saunders informed the Panel that he had previously presented  the need to change the way the authority funded their major capital projects.  Over the last few years the Council had decided to make a number of strategic capital expenditure, such as school expansion and new library.  Historically loans would have been taken to fund these projects however it had been decided that instead of loans the Council would use its reserves to fund capital projects saving about £150k in interest rates.  The Panel were informed that, as demonstrated in the Financial Update reports, this policy was no longer sustainable and thus it had been decided borrow money for capital projects.

It was proposed that over the next year about £75 million would be spent on capital projects that included a further £12.1 million for the ongoing schools expansion plan, £14.5 million for stage one of the new leisure centre,  £9.4 million for stage one expansion of Broadway Car Park,  £9.2 million enhancing York House, Windsor, £8.3 million for other property and parking improvement, £4.5 million for the consolidation of the St Clouds Way development site and £1.6 million for LED street lighting.

The Panel were also informed that with regards to Business Rates it was proposed that there would be a local newspaper business rate relief of £1,500 per title, all locally controlled rate reliefs maintained, rural rate relief extended and redefined and relief for reinvigorating vacant retail units to be extended to all commercial and industrial premises.

The Chairman mentioned that we were proposing a small core council tax increase of 0.95% yet the report also showed saving proposals; he questioned if the level of council tax had been politically motivated.  Cllr Saunders informed the Panel that the 0.95% increase had been set after all areas of the organisation had identified need and savings which resulted in a requirement to increase council tax by 0.95%.  the organisation could have decided to increase council tax further but this would have just been to increase our reserves. 

The Chairman asked what were the expected level of reserves to be at year end and Cllr Saunders informed that the reserves would be at the same level as at the start of the year.  £2 million would be transferred  from revenue support grant to the development fund and that a balanced budget had been set.

The Chairman mentioned that to have set council tax higher just to have built up reserves would have been showing a lack of confidence in the proposed budget.

Cllr Story questioned the £150 million capital receipts expected from Maidenhead regeneration projects  and how reliable this figure was.  Cllr Saunders informed that the £150 million was the lowest level expected, as with any development project this was not guaranteed but a reasonable low end figure.  Each element of the Maidenhead regeneration project would be subject to future decisions. 

Cllr Story mentioned that the parish precepts shoed some increasing whist others had deceases and asked if Council just noted this or are they challenged.  Cllr Saunders replied that in principle the parish precepts were just noted, however if a parish council was receiving financial support from the Council and increased its precept then they would be challenged.

Cllr Story also questioned the 50% budget assumptions with regards to the risks that we could not maintain our costs and asked if this had been set too high.  The Panel were informed that this related to demand management and the volatility of care packages.  It was an assessment of what a prudent level of reserves should be and there was no assumption that they would be required.

Cllr Smith questioned the financing of the Capital Programme.  Cllr Saunders informed that there was funding for the Capital Programme presented to the steering group and separate to this were the Boroughs strategic capital expenditure such as York House and the schools expansion programme.  Such projects were funded by additional loans that would be paid by the regeneration projects.

Cllr Jones asked if it was possible to show Parish Council increases / decreases as a cash figure as well as a percentage; for example Old Windsor precept up by 5% but this relates to a £2 increase.

Cllr Rayner mentioned that the Thames Flood Prioritisation Scheme would be looking for more money in future years and asked if this had been budgeted for.  Cllr Saunders replied that in 2018 there would still be room to pay for additional requirements out of the £150 million and still have a reduction in debt.

The Chairman mentioned that with regards to the regeneration projects the public could see it as good news that the Council is getting the work done or see it as spending future money.  Cllr Saunders replied that the Council has to explain why we are taking such decisions and that we are doing it with integrity.   

Resolved unanimously: that the Panel supports the recommendations in the report and recommends that future reports include the monetary value of changes to Parish Council Precepts.