Agenda item

Consider report by Chief Financial Officer on the estimated Financial Plan resources for 2017/18 – 2021/22 and to seek approval for the level of Council Tax for 2017/18.  (Copy attached.)

There had been circulated copies of a report by the Chief Financial Officer on the estimated revenue and capital resources available for financial year 2017/18 following publication of the local government finance settlement on the 15 December 2016 and subsequent amendments.  The report also outlined the process supporting the construction of the draft revenue and capital Financial Plans from 2017/18 and identified the financial constraints and major risks to be addressed.  Following Scottish Government confirmation that the national 9 year Council Tax freeze was no longer in place Council had agreed on 22 December 2016 to increase Council Tax by 3% in 2017/18 whilst noting the increase was in addition to legislative changes to the 2017 Council tax multiplier affecting bands E - H.  The Corporate Management Team had worked together to support Members to set a Corporate revenue and capital budget to meet identified pressures facing the Council. These pressures had arisen due to the continuing constraints on external revenue and capital funding from central government and the increasing pressures from demographics, inflation and employment costs. The revenue and capital budgets had been designed to ensure the effective deployment of funds available in line with the Council’s corporate objectives and approved service plans.  The report also detailed the conditions placed by the Scottish Government on the funding. 

A further report had been circulated detailing additional funding which had been made available from the Scottish Government on 2 February 2017.  This report explained that as part of the stage one debate on the Scottish Budget on 2 February 2017, the Scottish Government confirmed an additional £130m of revenue and £30m of capital funding nationally for Scottish Local Authorities.  This funding would come to Local Authorities on an un-hypothecated basis for 2017/18 to be spent at local discretion.  The allocation to the Scottish Borders was £2.889m revenue and £0.888m capital.  At present it was assumed this funding was one off pending confirmation from the Scottish Government.  These additional sums required to be added to the previous budget totals giving revised resources for 2017/18 of £267.647m revenue and £39.66m capital. 

DECISION

AGREED:-

(a)       to note the estimated revenue resources for 2017/18 to 2021/22;

(b)       to note the estimated Capital Resources for 2017/18 to 2026/27 and the requirement to adhere to the prudential code for capital borrowing;

(c)       a Band D council tax of £1,116.52 for financial year 2017/18, reflecting a 3% increase as a result of the ending of the Scottish Government Council Tax freeze policy after 9 years; 

(d)       the council taxes to be paid for 2017/18 in respect of chargeable dwellings as set out in appendix 1 to the report, including increases in bands E-H as a result of legislative changes by Scottish Government to the 2017 Council tax multiplier;

(e)       to proceed to consider the Administration’s proposed Financial Plan for 2017/18 including further associated fees and charges for 2017/18 in addition to those approved by Council on 22 December 2016; and

(f)      to note the additional one-off revenue and capital funding made available from the Scottish Government in 2017/18 and proceed to consider the application of this funding as part of the budget setting process.