Agenda item

The Executive Councillor for Finance and Resources, Councillor J A Gray to present for approval –

 

Ø  The 2021/22 Budget and the Medium Term Financial Strategy (MTFS) for 2022/23 – 2025/26;

 

Ø  The Fees and Charges Schedule for 2021/22;

 

Ø  The Treasury Management Strategy, the Capital Strategy and the Investment Strategy including the annual prudential indicators for 2021/22;

 

Ø  The Annual Minimum Revenue Provision (MRP) Statement 2021/22;

 

Ø  The formal resolution to determine the Council Tax for 2021/22.

 

In accordance with Section 30 (2) of the Local Government Finance Act 1992, the Council will be required to approve resolutions as to the levels of Council Tax in 2021/22.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Council will be asked to resolve that a recorded vote be taken on the conclusion of debate on this item.

 

(Notes: 30 Minutes Presentation

30 Minutes for Questions).

 

(The reports were considered by the Cabinet at their meeting on 11th February 2021 and it was agreed that they should be recommended to Council for approval).

In conjunction with a report by the Chief Finance Officer (a copy of which is appended in the Minute Book), Councillor J A Gray, Executive Councillor for Finance and Resources, presented to Members the 2021/22 Revenue Budget, the Medium Term Financial Strategy (MTFS) for the period 2022/23 to 2025/26, the Fees and Charges schedule for 2021/22, the Treasury Management Strategy, the Capital Strategy, the Investment Strategy, the Annual Minimum Revenue Provision (MRP) Statement for 2021/22 and other associated matters for the Council’s consideration and approval.

 

In accordance with Section 30 (2) of the Local Government Finance Act 1992, the Council also considered proposals for levels of Council Tax in 2021/22 for various parts of Huntingdonshire District.

 

With the assistance of a power-point presentation (a copy of which is appended in the Minute Book), Councillor Gray proceeded to set out the guiding principles which had been used to put together the Budget for 2021/22. He then went on to outline some of the highlights within the proposed Revenue Budget which included the expected income pressures, the retention of all key services with investment, additional resources to drive economic development and growth, the accommodation of pressure from Covid-related growth and the receipt of ongoing Government support.

 

Members were reminded that the Budget for 2020/21 was set at £17,688M on a net basis and the forecast outturn was expected at £18,486M. The proposed Budget for 2021/22 included a further 3,684M of growth bids which almost entirely related to the impact of the pandemic. Work had also been undertaken to identify savings and efficiencies and there had been a number of inflation adjustments. The proposed Budget for 2020/21 appears at 20,686M, a picture which did not seem possible in the early part of the year and reflected the hard work which had been undertaken internally and the support from Central Government. A detailed impact of the changes in the Budget from 2020/21 to 2021/22 broken down by service area was provided to members for clarification.

 

With regard to Capital Expenditure for 2021/22, Councillor Gray went on to outline some of the highlights in this area which included the impact of Covid on the delivery of the programme in the current year, a new focus on town centre improvement plans and a wider focus on seeking more grant funding to lessen the burden on the Council’s MRP.

 

In terms of Reserve Policies, the Council was in a strong position compared to other Cambridgeshire Authorities because of the decisions which had been made over the previous 10 years and a strong level of usable reserves in comparison to other Cambridgeshire Authorities. The Council had also some years ago established a Budget Surplus Reserve to further build resilience with other earmarked reserves.. It was proposed that the 2021/22 Budget would add £0.76M to reserves before utilising 17% of usable reserves over the course of the period of the MTFS. At the end of this period it was proposed that the use of Reserves would fall to £0.4M per annum which would last the Council in the region of a further 36 years. A new risk-based General Fund Reserve formula had also been introduced in the proposed Budget which it was intended to carry forward.

 

Turning to Funding Sources for 2021/22, Councillor Gray explained that an assumption of a flat NNDR contribution had been made and it had been decided to divert £2.0M from the New Homes Bonus into the Revenue Budget for this extraordinary year. The Commercial Investment Strategy was yielding £4.8M income into the Budget for 2021/22 and it was anticipated that the fair funding adjustment would have a growing effect on the Authority over the life of the MTFS. An assumption of a slower growth in the Tax Base than originally had been planned was also included due to increased Council Tax Support and a slower build rate and it was proposed to freeze Council Tax for 2021/22 due to the ongoing financial uncertainties for Huntingdonshire residents. A detailed breakdown of the funding which made up the £21,462M Budget requirement was provided to Members at this point.

 

Attention was then drawn to the Council’s Strategy for Treasury and Capital Management for the forthcoming year, as set out in pages 125 to 176 of the Council Agenda papers. Members were reminded that the Strategy was required to be approved by full Council and sets out the way the financial assets of the Council will be protected, together with liquidity and yield considerations and interest rates. The Strategy also outlines the Council’s Minimum Revenue Policy.

 

Finally, Councillor Gray extended his thanks to all Officers and Executive Councillors who had been involved in putting together the Budget for 2021/22, with particular reference being made to the Chief Financial Officer and the Assistant Director of Corporate Resources. He reiterated that the robustness of the proposed Budget and Medium-Term Financial Strategy had been confirmed by the Council’s Section 151 Officer.

 

Councillor Gray concluded by reminding the Council that this was a surplus Budget for people, for growth and for jobs against the ongoing backdrop of the Coronavirus pandemic. He also paid tribute to the resilience and the high performance of Huntingdonshire District Council as an Authority during the preceding twelve months.

 

Councillor Gray moved the recommendations which were duly seconded by the Executive Leader Councillor R Fuller who reserved his right to speak.

 

In response and on behalf of the HDC Independent Group, the Leader of the Principal Opposition Group, Councillor T D Sanderson thanked Councillor Gray for his presentation and the contributions by the Chief Finance Officer and her finance team for their work in putting this Budget together, together with the efforts of Executive Councillors and the Overview and Scrutiny Panels within this process.

 

Councillor Sanderson reported that the Independent Group would not be submitting an alternative Budget this year. Given the fluid situation it was not practical or realistic to make further demands on Officer time and it was his view that residents would like the Groups to work collaboratively as far as possible.

 

Councillor Sanderson reiterated that historically Cambridgeshire has always been underfunded by Central Government and he was pleased that this had not been the case this year. He made reference to being in tranche 4 of the income compensation scheme and the allocation of funds to Huntingdonshire to tackle the problems which had been faced as part of the pandemic. As a result, Huntingdonshire were in a stronger position than other local authorities even in more prosperous parts of the Country.

 

Councillor Sanderson referred to the savings in the proposed Budget and the fact that Council would continue to provide key services to residents. Councillor Sanderson was pleased to see the recent announcement on Civil Parking Enforcement (CPE) and he credited the administration for taking that forward. In response to his question regarding future funding, Councillor Gray re-iterated that CPE continued to be a priority for the administration and the funding allocated within the Capital Budget would be carried over in the Budget for 2021/22, once the outturn for 2020/21 had been completed.

 

Looking to the future, Councillor Sanderson questioned whether consideration could be given to the better use of the Council’s buildings and reiterated that the green agenda would become a bigger factor in the months to come as the Government seeks to phase out petrol and diesel cars by 2030. He also referred to the effect that climate change had had on flooding, which the Council would be dealing with through its planning system in due course.

 

In concluding his remarks, Councillor Sanderson recognised that there were significant factors outside of the Council’s control but he hoped that the District Council Leisure Centres would open, Huntingdonshire’s high streets would re-open and that the next financial year would be a far calmer one for everyone.

 

On behalf of the Liberal Democrat Group, Councillor S Conboy took the opportunity to respond to the Budget and to thank everyone who had worked to produce it in a year which had been far from routine. Councillor Conboy made reference to the comments which she had made at the Council meeting last year with regards to the Council’s level and use of reserves at which point she had no idea as to what was to come. Councillor Conboy was pleased to see a balanced budget before the Council this evening, however she reiterated her opinion  regarding the use of Council reserves.

 

Looking to the future, Councillor Conboy suggested that the Council would need to ensure that income streams enabled the Authority to continue to deliver those key services yet also be creative about some of our future financial opportunities. She also reiterated that it may become a reality that some of the services which the Council delivers are no longer viable in their current formal. Having said that she referred to the fact that adversity often produces the greatest opportunities and thanked the Executive Leader and those responsible for putting the budget together in these difficult times.

 

Councillor Conboy went on to explain that the Liberal Democrats would not be opposing the proposed Budget on this occasion. Whilst it may have been better to take bolder steps at an earlier opportunity, the public need their essential services at this time and it was pleasing that the District Council would continue to be here to provide them.

 

In concluding her remarks, Councillor Conboy enquired as to whether the need to increase Council tax during the MTFS may need to be reviewed if there were any further unforeseen circumstances as a result of the pandemic. In response to which the Executive Councillor explained that 2.6% had been stated as the average council tax increase over the life of the MTFS although each year would need to be taken as it comes going forward, given the uncertainty at the current time.

 

On behalf of the Labour Group, Councillor P Kadeware expressed his thanks to the Executive Councillor for his presentation and the work undertaken by all those preparing the Budget in the most turbulent of financial circumstances. The Labour Group agreed that trying to focus the future much beyond the coming year is a false errand given the uncertainty of the economic climate. He explained that the Labour Group were not unduly concerned with the deficit implications in the medium term although this would need to be monitored as it developed in future budgets. The proposed use of reserves to help tide the Council and its services through the coming year was also considered to be a sensible decision. The Group welcomed the emphasis on improving the Council’s financial position through supporting local growth which is a political priority shared by all and in the circumstances the relatively limited change represented by this budget is also pragmatic. The Labour Group were content to support it and would be voting accordingly.

 

In concluding his remarks, Councillor Kadeware reiterated that the Council’s most important assets were its employees and the Group had been reassured from other discussions that the Executive Councillor also held this view.

 

 

With regard to the comments which had been made regarding the use of the Council’s reserves, Councillor Gray sought to clarify the position to the Council. In doing, so he reiterated that at no point during the previous year did the Council’s level of reserves drop below 15 percent and in fact the Council were carrying many millions of pounds more than that number. He reiterated that during the last year, the Council were using the budget surplus reserve which had been built up to get the Council through the Medium-Term Financial Strategy. He went on to stress that the Council would be adding to reserves in the current year and then using reserves over the life of the MTFS. As the proposals stood currently, approximately 65 per cent of the budget surplus reserve would be used.

 

Councillor A Roberts welcomed the investment in St Ives Town centre as part of a focus on town centre improvement plans and the District Council’s ambition to continue to achieve economic growth even during a pandemic. He also welcomed the pragmatic approach to the use of reserves and the proposals for Council Tax and the fact that the Council was retaining and investing in key services which reflected a number of years of sound financial management.

 

Councillor R J West welcomed the proposed Budget which prioritised economic development, jobs and prosperity and stated that it was a prudent move to utilise the District Council’s reserves. He made reference to the £12.3M funding which would be made available to St Neots through the future High Streets fund and hoped that Huntingdon, St Ives and Ramsey would follow. Councillor West commended the Executive Councillor, Cabinet and  the Senior Management Team for their work in preparing this Budget and reiterated that even during a pandemic, excellent services had continued to be delivered by the District Council to the residents of Huntingdonshire. He welcomed the proposals before the Council which were visionary and aspirational, yet also prudent and sensible

 

Councillor S J Corney also commended the District Council for enabling the Authority be in a position in which it was still able to invest within the Market Towns at such a difficult time. He looked forward to seeing that investment come to fruition.

 

Councillor D A Giles referred to that fact that this was an interesting budget in a difficult pressured year for all Councils within the Country. He welcomed the £12.3M investment in St Neots to assist in the regeneration of  the town centre and also suggested (with reference to the County Council’s forthcoming move to Alconbury) that future consideration should be given to the better utilisation / future use of the District Council Offices and workspaces.

 

In concluding the discussion on this item, the Executive Leader took the opportunity to convey his appreciation to all officers who had worked incredibly hard to prepare the Budget for 2021/22 and also to individual Cabinet members who had been working for the last few months with their respective Service Managers and Heads of Service to bring this together. He also paid tribute to the Executive Councillor for Finance himself for his professional oversight and preparation of the Budget every year, a role he has now been undertaking for several years.

 

Having made reference to the budget discussions at a neighbouring authority, Councillor Fuller was pleased that the District Council were not in a position where difficult choices had to  be made as to whether investment should be made in people or services. He reiterated that the proposed Budget provided for investment in both whilst also meeting the requirements of the Covid response and also making preparation for the Covid recovery with a strong emphasis on jobs and economic development going forward. He also referred to the strong focus within the Medium-Term Financial Strategy on town centre regeneration.

 

With reference to his discussions with Leaders in other local authorities, Councillor Fuller expressed his sense of pride that the District Council were not in the position of many who were discussing cuts to services and savings due to their financial predicaments. In Huntingdonshire, the proposed Budget reflected an investment in both revenue and capital, which protecting key services and also planning for the future through the delivery of growth, investment in the town centres and in additional services such as Civil Parking Enforcement. Councillor Fuller re-iterated that he was incredibly proud to be meeting his manifesto commitments and to be freezing in Council Tax this year in line with the pledge made in 2018. Councillor Fuller also sought to reassure Councillor Conboy that the District Council had sufficient reserves.

 

Finally, the Executive Leader expressed his appreciation to Opposition Leaders for their constructive input over the course of the last few months and the positive contributions they had made on behalf of the Groups this evening.

 

It having been previously moved and seconded, upon being put to the vote it was RESOLVED

 

a)  that the proposed overall Budget 2021/22 and Medium Term Financial Strategy (MTFS) 2022/23 to 2025/26 (Appendix 1) to include the Revenue Budgets at Section 2, the Capital Programme at Section 3 and the 2021/22 Fees and Charges at Section 7, Annex A be approved;

 

b)  that an increase of 0% Council Tax for 2021/22 be approved, i.e. the Band D Charge remain at £145.86;

 

c)  that the Council note the Council Tax Base for the whole Council area and individual Towns and Parishes (para 6.2) as approved on the 8th December 2020 (and subsequent publication as a key decision).

The tax base (T) which is the amount anticipated from a District Council Tax of £1 is £63,355;

 

d)  that the following amounts calculated by the Council for 2021/22 in accordance with the requirements of the Local Government Finance Act 1992 as amended by the Localism Act 2011 (the Act), the Local Government Finance Act 2012 and associated regulations :-

 

i.  the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) (a) to (f) of the Act Gross revenue expenditure including benefits, Town/Parish Precepts -  £79,453, 376

 

ii.  the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) (a) to (d)

Revenue income including reimbursement of benefits, specific and general grants, use of reserves and any transfers from the collection fund -  £62,681,424

 

iii.  the amount by which the aggregate at (i) above exceeds the aggregate at (ii) above in accordance with Section 31A (4) of the Act

This is the “Council Tax Requirement” including Parish / Town Precepts (item 1 minus item ii). It is the cash sum to be funded from District, Town and Parish Council Taxes - £16,771,852

 

iv.  the Council Tax requirement for 2021/22 divided by the tax base (T) in accordance with Section 31B (1) of the Act

District plus average Town/Parish precepts (item iii divided by District taxbase) - £264.82

 

v.  the aggregate of all “Special items” referred to in Section 34 (1) of the Act.

The total value of Parish/Town precepts included in i and iii above - £7,536,929

 

vi.  the Basic Amount of Council Tax for 2021/22 being item iv less item v divided by the tax base (T) in accordance with Section 34(2) of the Act.

The District Council’s Band D Tax for 2021/22 - £145.86.

 

vii.  the basic amounts of Council Tax for 2021/22 for those parts of the District to which one or more special items (Parish/Town precepts) relate in accordance with Section 34 (3) of the Act are shown  by adding the Huntingdonshire District Council amount to the appropriate Parish Council amount in column “band D” set out in Table 1 attached.

 

viii.the amounts to be taken into account for 2021/22 in respect of categories of dwellings listed in particular valuation bands in accordance with Section 36 (1) of the Act are shown by adding the Huntingdonshire District Council amount to the Parish Council amount for each of the valuation bands in the columns “bands A to H” set out in Table 1 attached.

 

e)  That the amounts of the precept issued to the Council by Cambridgeshire County Council, Cambridgeshire Police Authority, Cambridgeshire and Peterborough Fire Authority and for each Parish Council for each of the categories of dwellings listed in different valuation bands in accordance with Section 40 of the Act shown in para 6.3 attached be noted.

 

f)  That having regard to the calculations above, the Council, in accordance with Section 30 (2) of the Act, hereby sets the figures shown in para 6.4 as the amounts of Council Tax for 2021/22 for each of the categories of dwelling shown. This is the total Council Tax to be collected, incorporating the requirements of all of the relevant bodies, for each town or parish area.

 

g)  The Council notes that, in accordance with Section 52ZB of the Local Government Finance Act 1992, the basic amount of Council Tax for 2021/22 is not excessive. The basic amount at b(vi) above is not excessive as defined by the Government.

 

Tax Base 2021/22

 

Abbots Ripton    132

Abbotsley    264

Alconbury    578

Alconbury Weston    297

Alwalton    122

Barham & Woolley    30

Bluntisham    753

Brampton  2356

Brington & Molesworth    179

Broughton    95

Buckden  1219

Buckworth    53

Bury    648

Bythorn & Keyston    153

Catworth    163

Chesterton    67

Colne    379

Conington    76

Covington    46

Denton & Caldecote    30

Earith    605

Easton    77

Ellington    237

Elton    288

Farcet    534

Fenstanton  1313

Folksworth & Washingley    348

Glatton    134

Godmanchester  2820

Grafham    239

Great & Little Gidding    123

Great Gransden    473

Great Paxton    366

Great Staughton    330

Haddon    21

Hail Weston    249

Hamerton & Steeple Gidding    51

Hemingford Abbots    327

Hemingford Grey  1282

Hilton    450

Holme    250

Holywell-cum-Needingworth    996

Houghton & Wyton    784

Huntingdon  7625

Kimbolton    593

Kings Ripton    84

Leighton Bromswold    78

Little Paxton  1538

Morborne    12

Offord Cluny & Offord D’Arcy    542

Old Weston    105

Oldhurst    100

Perry    267

Pidley-cum-Fenton    183

Ramsey  2972

Sawtry  1939

Sibson-cum-Stibbington    230

Somersham  1403

Southoe & Midloe    159

Spaldwick    249

St Ives  6007

St Neots   11084

Stilton    768

Stow Longa    74

The Stukeleys    900

Tilbrook    126

Toseland    39

Upton & Coppingford    90

Upwood & The Raveleys    441

Warboys  1575

Waresley-cum-Tetworth    142

Water Newton    38

Winwick    50

Wistow    231

Woodhurst    152

Woodwalton    84

Wyton-on-the-Hill    437

Yaxley  2949

Yelling    152

Total  63,355

 

h)  that the future savings targets of £0.4m of Net Expenditure by 2025/26 be approved (Appendix 2); and

 

i)  that the 2021/22 Treasury Management, Capital and Investment Strategies, MRP Statement and Flexible Use of Capital Receipts Strategy be approved (Appendix 3).

 

In accordance with the Local Authorities (Standing Order) (England) (Amendment) Regulations 2014 the following Members voted for, against or abstained from the Motion -

 

For the Motion – Alban, Banks, Besley, Beuttell, Bull, Burton, Butler, Bywater, Clarke, Conboy, Cooper-Marsh, Corney, Criswell, Davies, Dew, Diaz, Dickinson, Fuller, Gardener, Gaskin, Gray, Grice, Gulson, Humphrey, Johnson, Jordan, Kadeware, Keane, Maslen, Masson, McGuire, Mead, Morris, Neish, Palmer, Prentice, Roberts, Sanderson, Smith, Terry, Tysoe, Wakeford, West and Wilson.

 

Against the Motion – None.

 

Abstentions – D A Giles and S A Giles.

 

(At 18.45pm during the discussion on this item, Councillor K P Gulson joined the meeting).