The following table shows how the net revenue expenditure budget and financing for 2017/18 has changed from the previous year.

£000 £000
Budget adjustments and pressures    
Full Year Impact of 2016/17 Budget Reductions, Policy Changes and Service Changes (4,776)  
Activity Transferring into the Dedicated Schools Grant (640)  
Public Health Grant Rolled into 100% Business Rates Retention Pilot Scheme 17,337  
Additional Pension Contributions 662  
Impact of Pay Award 1,000  
Price Inflation 1,480  
Investment Fund (Capital Financing Costs) 200  
Homelessness Service Increasing Demand 250  
Home to School Transport Service Demand 350  
Waste Disposal and Transport Levies 932  
Employment Terms and Conditions 2,000  
Adults Social Care Service Demand 3,000  
Adults Social Care Impact of National Living Wage 2,445  
Adults Social Care Improved Better Care Fund 716  
Support for the Public Health Service 796  
Coroners Service Increase in Service Demand 250  
Apprenticeship Levy New Burden 400  
Changes to Education and Early Years Funding 1,094  
Special Educational Needs and Disability New Burdens 203  
Implementation of Universal Credit New Burden 293  
Revised Parish Precepts 12  
Total Budget Adjustment and Pressures 28,004
Less Changes in Funding    
Public Health Grant Rolled into 100% Business Rates Retention Pilot Scheme 17,337  
Public Health Grant Roll In 17,337
Additional Retained Business Rates 4,949  
Revenue Support Grant (40,543)  
Business Rates Top Up 24,510  
Grants in lieu of Business Rates 2,797  
Education Services Grant (1,731)  
New Homes Bonus Grant 17  
Housing and Council Tax Benefit Administration Grant (92)  
Independent Living Fund (93)  
Improved Better Care Fund Grant 716  
Adult Social Care Support Grant 1,127  
Other Non Ringfenced Government Grants 325  
Other changes in Government Funding   (8,018)
Reduction in Other Funding    
Collection Fund Council Tax Surplus 196  
Overall Collection Fund Surplus   (196)
Additional Council Tax Income   3,897
Total Changes in Funding 13,020
Total Savings Requirement 14,984
Expenditure Savings by Portfolio    
Health and Wellbeing (1,679)  
Economy, Skills & Neighbourhoods (1,175)  
Corporate & Commercial Services (3,222)  
Chief Executive (498)  
Capital & Treasury (2,135)  
Total Savings in Expenditure   (8,709)
Approved Additional Use of Reserves 2017/18 (6,275)
Total Savings (14,984)
Net Balanced Position  0

The budget reduction requirement resulted from having to address a combination of spending pressures and a cut in general Government funding offset by additional Council Tax income.

The Council approved budget reductions of £9.498m in order to balance the 2017/18 budget. Of this sum, £8.709m results from a reduction in expenditure or increased income, and there is a £0.789m use of reserves.

To balance the 2017/18 budget the Council has approved the use of £5.486m Corporate Reserves in addition to the £0.789m use of reserves contained within the 2017/18 budget reduction proposals. Therefore the total additional use of reserves for 2017/18 is at a value of £6.275m as shown in the table above.   

The Government has announced that it intends to continue reducing funding support for the Local Government sector still further in 2018/19 and beyond. The Council will therefore continue to face further challenges in order to balance its budget in 2018/19 and future years as more Government funding is withdrawn.