Budget Setting 2017/18

The Council, like councils across the country, is facing unprecedented financial pressures, whilst still aiming to improve the services we deliver to our residents.

These pressures arise from significant reductions in government funding, increasing costs and increasing numbers of people needing support and services provided by the borough.

In April 2016, the Council consulted on Ambition 2020, a transformation programme to re-examine every aspect of what the Council does and how we are structured to deliver the Council’s vision and priorities.

89% of those who responded to the consultation supported the proposals, and it is these proposals that have provided the basis for our 2017/18 budget.

For 2017/18, the Council is proposing to:

  • Implement savings of £9.275m as approved by Cabinet in November 2016 in respect of the 2017/18 budget.
  • Increase Council Tax by 1.99% which will raise £1m of income towards significant demand increases faced by the Council and funding cuts from Central Government of £10.6m on our Revenue Support Grant.
  • Increase Council Tax by an additional 2% which will raise £1m of income towards the costs of Adult social care.
    The budget for Adult social care will be increased by the same amount.
    This additional income will only partially meet the costs associated with growth in the older population (those above 85 years of age) and of inflationary increases to the cost purchasing services.
    Adult Social Care services support some of the most vulnerable members of our community, largely supporting those in old age and adults with disabilities.
    In 2017-18 our spending on services for this group is likely to exceed £43m (approximately 30% of our total budget).
    By 2019-20 it is estimated that Adult Social Care expenditure in this borough will exceed £54m (38% of our total budget).
  • Invest £10m in capital expenditure across the borough, including but not limited to improvement to our highways, parks improvements, and purchase of winter maintenance equipment.
  • Increase the budget for Homelessness by £1.8m.
    The service is experiencing severe budget pressures due to recent changes in government policy and the rapid increase in rental prices across the borough for temporary accommodation.
  • Set aside an additional £0.33m for the East London Waste Authoruity levy due to the rising waste disposal costs.
  • Fund land acquision costs of £1m in 2017/18 for lands purchased which will act as enablers for future regeneration programmes.
  • To make the other changes as set out in the Council’s Medium Term Financial Strategy and Budget Strategy report as per Cabinet in November.

Further to the adjustments above, the Council’s provisional net revenue budget requirement will be £151.322m for 2017/18, compared to the 2016/17 net revenue budget of £150.3m.

Consultation

We are consulting on our budget proposals for 2017-18 and this is your chance to share your views.

We would love to hear your thoughts, comments and ideas on the budget.

This consultation closes on Wednesday 25 January 2017.
Comment on our budget proposals - Consultation portal

Contact

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