Issue - meetings

The Cabinet is requested to consider the agenda report and its appendices and make the following resolutions and recommendations to Council as set out below:

That the Cabinet recommends to the Council:

1.    That a net budget requirement of £14,235,800 for 2020-20 be approved.

2.    That Council Tax be increased by £5.00 from £160.81 to £165.81 for a Band D equivalent in 2020-21.

3.    That the uncommitted revenue budget of £483,900 be transferred to the General Fund Reserve to mitigate the deficit expected in 2021-22.

4.    Should the final settlement differ from the draft settlement, the sum in 3.1 (c) above be adjusted accordingly.

5.    The capital programme, including the asset renewal programme (appendix 1c and 1d of the agenda report) be approved.

That the Cabinet further notes:

1.    The current estimated resources position set in appendix 2 of the agenda report, and

2.    The budget variances included in the Draft Budget Spending Plan as set out in appendix 1b of the agenda report.

RESOLVED

1.    That the current estimated resources position set in appendix 2 of the agenda report be noted, and

2.    The budget variances included in the Draft Budget Spending Plan as set out in appendix 1b of the agenda report be noted.

*RECOMMENDED TO COUNCIL 

1.     That a net budget requirement of £14,235,800 for 2020-21 be approved.

2.     That Council Tax be increased by £5.00 from £160.81 to £165.81 for a Band D equivalent in 2020-21.

3.     That the uncommitted revenue budget of £483,900 be transferred to the General Fund Reserve to mitigate the deficit expected in 2020-21.

4.     That should the final settlement differ from the draft settlement, the sum in 3.1 (c) above be adjusted accordingly.

5.     That the capital programme, including the asset renewal programme (appendix 1c and 1d of the agenda report) be approved. 

Mr Wilding introduced the item. He explained that the report follows on from Council’s approval of our Financial Strategy in December 2019. He confirmed that Full Council will set the budget and Council tax in March 2020. He explained that the report focusses on the Budget Spending Plans of each of Cabinet member’s portfolios and how these aggregate and underpin the balanced budget presented.

Mr Wilding acknowledged that the budget process involves co-operation between individual budget managers and the council’s finance team, overseen by the Strategic Leadership Team. The process ensures that service delivery priorities are met within the constraints on public sector financial resources.

Mr Wilding then confirmed that the draft financial settlement from the Government had been broadly as anticipated with the 2020-21 settlement effectively an extension to the previously agreed four-year settlement due to the Government Funding reforms being delayed until 2021-22.    

Mr Wilding then drew attention to some of the key variables and issues that impact the forthcoming financial year detailed in the report and supporting appendices, namely, income from fees, charges and rents; use of reserves; and Council tax. With  regard to Council Tax he explained that he felt that the council should take up central government’s offer of allowing a rise in Council Tax by £5 for Band D properties (or less than 10 pence per week) and equivalent increases for other property Bands. He explained that it will help to offset the continued reduction of central government funding by generating an extra £270,667 per year to assist in closing the budget deficit that would otherwise emerge in the medium term.  He confirmed that to not approve an increase would leave the council with a deficit to address in later years. In addition there will be continued work on the 2016 deficit reduction plan which aims to generate further income and savings amounting to just under £1 million over the next 5 years.

Mr Wilding then explained the overall 2020-21 budget summarised in the income and expenditure statement as detailed at pages 62 and 63 of the agenda pack.  He added that a corrected page 63 was circulated as a supplementary agenda paper. There is a net revenue requirement of £14.236 million with the draft budget showing a net surplus of £484,000 for 2020-21.  However, the Financial Strategy shows that in the two subsequent years the total deficit is forecast to be £500,000. Mr Wilding explained that it is therefore prudent to reserve the 2020-21 surplus by transferring it to the council’s General Fund Reserve in order to off-set future deficits and avoid unwanted service reductions.

Mr Wilding then drew attention to pages 64 - 69 of the supplement pack which details the major variances by department and service area between the 2019-20 budget and that for 2020-21. The most significant variation is the loss of recycling credits which amounts to £769,000 per year.

He then outlined the budget summaries by portfolio on pages 71-86, of the supplement pack.  He explained that the details  ...  view the full minutes text for item 102