Agenda item

The Panel are to receive the draft 2020/21 revenue budget and medium term financial strategy (2021/22 to 2024/25) including the capital programme.

With the aid of a report by the Finance Manager (a copy of which has been appended in the Minute Book) the draft 2020/21 Revenue Budget and the Medium Term Financial Strategy (MTFS) 2021/22 to 2024/25, including the capital programme, was presented to the Panel. The Members were informed that 2020/21 would be challenging; however, the outlook over the course of the MTFS was positive and the Council was in a good position for that period.

Councillor Wakeford asked whether the Cambridgeshire or Huntingdonshire figures was considered to be representative of local wage growth. In response, the Executive Councillor for Resources stated that the Cambridgeshire figure was used.

Discussion took place on the risk associated with raising the minimum wage for the Council, particularly as the report stated there would be a minimal effect on cost. It was explained that the risk related to the cascading effect that raising the minimum wage would have upon the pay scales.

Following an expression of concern that a small change within the budget could have a significant change when delivering a service, the Panel was reassured that as the budget has been reprofiled, it was more robust. In addition, budget managers were more confident that the budget was deliverable. Councillor Wells then asked about the risk associated with the settlement and, in response, was informed that the settlement was draft but there was no expectation that the numbers would change.

Following a question about the main risks to the budget, the Panel was informed that one was funding from Business Rates and another was the frequency of adverse weather. It was noted that adverse weather had a substantial impact upon Operations in delivering their services. Members were informed that the Council had a reserve earmarked for specific items but did not have a general reserve to meet unexpected costs. A conversation then ensued on the budget for the Commercial Investment Strategy. The Panel was reminded that phase one had ended and that the Strategy would be refocussed.

Following a query on a café development at Priory Park/Riverside, the Head of Operations stated that a feasibility study would be carried out and options would be presented before a decision was made. A discussion then took place on car parking income. It was noted that as Members were discussing the budget all that could be identified was the total income and that any in-depth analysis could not be done based on an income line alone.

Councillor Morris asked a question regarding the reduction in employee costs for the Housing service. It was explained that due to a senior management restructure there was no longer a senior management recharge to the service. Members were reassured that there was no intention to reduce the number of staff within the service.

During deliberation on the Leisure and Health budget, the Panel was reassured that this year’s budget for the service was challenging but achievable. In addition, it was noted that the losses accrued by the One Leisure site in Sawtry have been taken out of the budget as the Council is no longer responsible for the site. It was expected that there would be income from the Training Shed.

RESOLVED

that the Panel’s views on the draft 2020/21 Revenue Budget and the Medium Term Financial Strategy (MTFS) 2021/22 to 2024/25, including the capital programme be conveyed to the Cabinet.

(At 8.07pm, during the discussion of this item, Councillor Mrs S Smith left the meeting and did not return.)

(At 8.30pm, during the discussion of this item, Councillor T D Sanderson left the meeting.)

(At 8.32pm, during the discussion of this item, Councillor T D Sanderson returned to the meeting.)

(At 8.38pm, during the discussion of this item, Councillor J Neish left the meeting.)

(At 8.39pm, during the discussion of this item, Councillor J Neish returned to the meeting.)