To receive the Budget 2017/18 Report.

Rob Stubbs, Head of Finance/Deputy Director Corporate & Community Services reported on the Budget Report 2017/18 as below:

Local Revenue Investments

•       Adults, Children’s and Health Services:

•       Forecast cost increases to meet more resident needs: £1,000,000.

•       Meeting increased costs such as National Minimum Wage: £350,000.

•       Increasing costs in residential care homes: £200,000.

•       Covering costs of local residents outside of area Ordinary Residence: £250,000.

•       More children’s social workers to reduce work loads: £180,000.

•       Rising home to school transport for special needs pupils: £330,000.

•       Increasing early years pupil premium spend: £120,000 over 3 yrs.

•       Expanding the practical support for homeless Residents: £400,000.

•       Other services: priority needs; £1.6m, including:

•       Expanding the planning team’s expertise and capacity: £196,000.

•       Increasing the care and maintenance of public trees: £100,000.

•       More grants for voluntary organisations: £160,000.

•       Funding the apprenticeship levy: £280,000

Revenue recommendations

Total band D £961.46 :

•       In 16/17 this was £373 less than the average unitary, £213 less than any other Berkshire unitary and £189 less than any other unitary.

•       3% adult social care precept at band D of £27.75, adding to the 2% in 16/17 of £18.14.

•       0.95% increase in council tax at band D, adding £8.62 to the £906.95 which did not increase from 15/16 to 16/17.

•       0.95% is half of the reference inflation of 2.0% in Sep16 and the 1.99% increase permitted without a local referendum.

•       Fees and charges are either not increased, or are increased at or below 2.0%, or are aligned to other councils.

•       Increases the real terms reduction in core council tax over eight years to 32.5% plus a priority adult social care levy of 5%.

2017/18 Capital Investment

•       Interest costs avoided in recent years by funding capital projects from available cash balances.

•       Capital receipts from the Maidenhead regeneration from 2018 to 2025 justify £73m of medium term borrowing in 17/18 for:

•       Full capital programme including slippage:£10.0m.

•       Ongoing schools expansion: £12.1m.

•       LED street lighting: £1.6m.

•       Consolidating the St Clouds Way development site: £4.5m.

•       Stage one expansion Broadway Car Park: £9.4m net: total £17.8m.

•       Stage one new leisure centre: £14.5m: total £29.0m.

•       Enhanced York House Windsor: £9.2m.

•       Other property and parking improvements: £8.3m.

•       Thames flood protection scheme contribution: £0.3m.

Business Rates – for business

•       Small business rate relief doubling to 100%  up to £15, 000.

•       Local newspaper business rate relief of £1,500 per title.

•       All locally controlled rate reliefs maintained.

•       Rural rate relief extended and redefined from large parishes to smaller voting wards.

•       Relief for reinvigorating vacant retail units to be extended to all commercial and industrial premises.

•       Ongoing deliberations and consultations on how local government will retain all business rates by the end of this Parliament.

Context of Report

•       Increased demand in adult social care with a permitted precept of up to 3% in each of 17/18, 18/19 & 19/20 capped at 6% in total, plus a one-off 17/18 £0.5m grant.

•       New Homes Bonus £3.7m in 17/18, although reduced from 6 years to 5 in 17/18 and then 5 to 4 in 18/19.

•       Transition Grant £1.3m in 17/18.

•       DSG increased by £4.8m in 17/18 to £109.8m largely due to rising pupil numbers, increases in SEN and Early Years.

•       £280,000 0.5% apprenticeship levy on all payroll from 17/18.

Points discussed by Panel included:

•       Huge piece of work, exciting but very complex.

•       The park and open space budget was discussed.

•       The loss of income as a result of the loss of Braywick driving range was discussed.

•       Savings from the delivering differently schemes.

•       Increase in grants to voluntary organisations. The process of selection of organisations was discussed. Attracting new organisations to apply for grants for offering services to residents was discussed. The process was being streamlined to make the process clearer for new organisations. This would include linking to which strategic priorities wanted to be supported.This was work in progress and would be further discussed at the Grants Panel in March 2017.

The Chairman expressed the Panels support for the regeneration projects in Maidenhead and noted the significant Capital programme, including the re-provision of the Magnet Leisure Centre.  The Panel will review progress and expenditure as these plans move forward.

It was noted that the management of the Leisure Centres under contract by Legacy Leisure has resulted in significant increases in income and cost savings, and the Panel thanked Officers for this.

Also noted that the extension of  Library Services steered by Mark Taylor was an example of efficiency and improving value to residents.

Cllr. S Rayner (Lead Member) and the Panel thanked the Head of Finance for his comprehensive Budget presentation and for steering RBWM’s financial course.