Issue - meetings

To receive and recommend to Council the Final Budget 2021/22 and Medium-Term Financial Strategy 2022/23 to 2025/26 and the Plan-on-a-Page.

Executive Councillor: J A Gray

The Cabinet has recommended to Council the approval of:

§  the overall Final Budget 2021/22 and Medium Term Financial Strategy 2022/23 to 2025/26 as outlined in Appendix 1 of the report now submitted (which includes the Revenue Budget at Section 2 and the Capital Programme at Section 3); and

§  the “Plan-on-a-Page” as outlined in Appendix 2 of the report now submitted.

By means of a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) the Cabinet were provided with details of the Final Budget 2021/22 and the Medium Term Financial Strategy 2022/23 to 2025/26 which included the Capital Programme.

In introducing the report, the Executive Councillor for Finance and Resources reported that whilst the budget had not gone through the full draft budget process, this had been a good decision to make as a number of uncertainties had now become clearer. He then went on to report that the proposed budget for 2021/22 of £20,686,000 had increased by 17% when compared to the previous year’s original budget. The Cabinet’s attention was drawn to the New Homes Bonus, the level and use of reserves held by the Council and the focus which would be placed upon Economic Development in 2021/22. In his concluding remarks, the Cabinet were encouraged to note the proposal to freeze Council Tax in 2021/22 owing to the uncertainties which continued to exist around the impact of COVID-19 and the need to continue to protect the District’s most vulnerable residents.

The Chief Finance Officer then drew attention to the key risk areas within the  budget which included the scrutiny of Medium Term Plan bids, the Council’s Minimum Revenue position, NNDR growth assumptions, the Council’s Commercial Investments and the robustness of reserves.

Having expressed their appreciation to the Chief Finance Officer, Service Managers and staff for their efforts in producing a comprehensive budget and in noting the views of the Overview and Scrutiny Panel (Performance & Growth), it was

RESOLVED

that Council be recommended to approve:

(a)  the overall Final Budget 2021/22 and Medium Term Financial Strategy 2022/23 to 2025/26 as outlined in Appendix 1 of the report now submitted (which includes the Revenue Budget at Section 2 and the Capital Programme at Section 3); and

(b)  the “Plan-on-a-Page” as outlined in Appendix 2 of the report now submitted.

The Panel are to receive the final revenue budget for 2021/22, the medium-term financial strategy for the period 2022/23 to 2025/26 and the capital programme.

(Report to follow.)

By means of a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) the Final 2021/22 Revenue Budget and Medium Term Financial Strategy (MTFS) (2022/23 to 2025/26) including the Capital Programme was presented to the Panel. During the introduction, the Executive Councillor for Finance and Resources formally thanked all Officers for their work during the Municipal Year 2020/21, especially when faced by new challenges as a result of the Covid-19 pandemic.

It was noted that in previous years the Panel would have received a draft budget, however it had been agreed with Group Leaders that this would not be appropriate this year because it would have contained a number of significant unknown variances. Members were then acquainted with the headline elements of the budget including no increase in the District Council’s proportion of Council Tax for 2021/22 and an amendment to the level of reserves required to be held by the Council.

A discussion ensued on Council Tax with a question from Councillor Grice who asked whether no increase in 2021/22 would lead to a substantially higher increase in subsequent years. Councillor Wakeford questioned how the proposed freeze compared with political commitments. In response, the Executive Councillor commented that Council Tax rises were restricted by statute and that Council Tax would increase by 2.6% in the subsequent years of the MTFS. The Executive Councillor confirmed that the Council Tax freeze was consistent with political commitments.

Following a query from Councillor Roberts, it was confirmed that no alternative budget proposals were received.

Councillor Cooper-Marsh commented on the unpredictable nature of some aspects of the budget and about the reliance of the budget on revenue which might not materialise. In response, Members were informed that revenue from One Leisure, the Car Parks and the commercial estate had been lower than expected in 2020/21, and Officers had, as a result, been prudent in their revenue predictions when setting the budget for 2021/22. Consequently, it was possible that revenue receipts might exceed expectations. Councillor Dew commented that, despite the challenges that had faced the Council’s finances in the last year, he thought it was a sound budget.

Members discussed the proposal to lower the minimum level of reserves that the Council was required to hold. The basis of the previous limit was outlined. The new limit was based on an assessment of risks and the likelihood that they would occur. The proposal was supported by the Panel, as was the premise of using reserves this year due to the challenges that faced the Council’s finances as a result of the Covid-19 pandemic.

Following a question from Councillor Wakeford on the likelihood that the use of reserves would be required in the coming year, Members were informed that the Council did not intend to be reliant on reserves. Councillor Wakeford then sought assurance that the level of provision within the budget was sufficient for the Council to continue the good work done in many areas such as homelessness.  ...  view the full minutes text for item 58