Issue - meetings

To consider the report on the budget proposals for 2019/20.

The Portfolio Holder for Finance and Administration presented the report. The Council was required to prepare detailed reports to enable the annual budgets for the General Fund and Council Tax, Housing Revenue Account and the Capital Programme to be set. The Section 151 Officer was also required to provide Members with a Section 25 report giving advice and assurance on the reserves position. The Council also had to provide a number of supporting strategies. All of these documents were presented in the report.

He had been asked by Councillor Dean, the Chairman of the Scrutiny Committee, to clarify that there was no vote at Scrutiny Committee on the budget, and the report to Council was wrong to state that it had endorsed the budget.

He reflected upon the last four years as a Council. The very significant challenge of a one third cut in government funding had been navigated, and the Council had protected services, continued to invest in additional priority services, undertaken a significant programme of capital investments and some important strategic investments, built up a sinking fund to the relocation of the Dunmow Depot, funded the Local Plan, and put in place the Local Council Tax Support Scheme, which was by far the most generous in Essex. This had been done by a combination of efficiencies and identifying an additional source of income.

A 2.99% increase in Council Tax was proposed for the coming year. Over the last ten years, Uttlesford Council Tax had only increased by 2.8%, and Uttlesford continued to have the lowest rate of Council Tax than any other district in Essex.

The Council faced significant financial challenges in the future. Government funding was likely to decline by over 50% in the next five years, from £6.6 million to £3.1 million. There was likely to be a growing deficit going forwards, though the reserves would likely smooth the process. There was scope for efficiencies and increasing council tax, but this would not plug the funding gap. It was therefore proposed to add another aspect to the Investment Strategy. The Council’s investment in Chesterford Research Park was forecast to bring in £1.7 million in 2019/20, and had been a valuable first step. There was capacity to expand the park, but it would not grow fast enough to meet the challenge. A resolution to agree in principle further expansion of the investment strategy was therefore proposed.

An item regarding the governance structure for a significant increase in investment would come to the following Council meeting. It was important for Council to be the decision-making body, but a new structure would ensure early engagement from a wide-range of councillors, non-executive and professional advisors. It was important that decisions on investment must be taken in standalone meetings, or at the beginning of meetings. It was important to see beyond the next election.

Some Members expressed support for the view that decisions on investment should not take place at the end of meetings, and should have standalone meetings. These decisions  ...  view the full minutes text for item 12