Agenda item

Report of the Strategic Director of Finance and Customer Services

Recommendations:-

That Cabinet resolve to recommend to Council:-

1.     Approval of the Budget and Financial Strategy for 2020/21 as set out in the report and appendices, including the proposed budget adjustments and investments, a basic Council Tax increase of 0.99% and an Adult Social Care precept of 2.0%.

2.     Approval of the updated Medium Term Financial Strategy (MTFS) to 2022/23.

3.     Approval of the Reserves Strategy as set out in Section 2.8 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2019/20.

4.     To note and accept the comments and advice of the Strategic Director of Finance and Customer Services (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provides (Section 2.12).

5.     To note the consultation feedback from the public, partners and Overview and Scrutiny Management Board (OSMB) following public consultation on the Council’s budget for 2020/21 which took place from 13 December 2019 to 13 January 2020 (Section 4).

6.     Approval of the proposed increases in Adult Social Care provider contracts as set out in Section 2.4.

7.     Approval of the changes to allowances for Special Guardianship Orders and Child Arrangement Orders as set out in Paragraph 2.6.9. 

8.     Approval of the investment proposals set out in Section 2.7 and Appendix 2.

9.     Approval of the Council Fees and Charges schedules for 2020/21 attached as Appendix 7.

10.  Application of the Business Rates Reliefs as set out in Section 2.9, in line with Government guidance. 

11.  Approval of the proposed Capital Strategy and Capital Programme as presented in Section 2.10 and Appendices 3A to 3F. 

12.  Approval of the Treasury Management Matters for 2020/21 as set out in Appendix 4 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy. 

13.  Approval of the Flexible use of Capital Receipts Strategy 2020/21 (Appendix 5).

14.  Approval that the Capital Programme budget continues to be managed in line with the following key principles:

(i)     Any underspends on the existing approved Capital Programme in respect of 2019/20 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2019/20 report to Cabinet.

(ii)    In line with Financial and Procurement Procedure Rules 6.17 and 13.9, any successful grant applications in respect of capital projects will be added to the Council’s approved Capital Programme on an ongoing basis.  

(iii)   Capitalisation opportunities and capital receipts flexibilities will be maximised, with capital receipts earmarked to minimise revenue costs.

Consideration was given to a report proposed the Council’s Budget and Council Tax for 2020/21, based on the Council’s Provisional Local Government Finance Settlement for 2020/21, budget consultation and the consideration of Directorate budget proposals through the Council’s formal Budget process alongside a review of the financial planning assumptions within the Medium Term Financial Strategy. 

In setting the proposed 2020/21 budget, Cabinet was asked to recommend to Council, an increase of 0.99% in the Council’s basic Council Tax and an Adult Social Care precept of 2.0%. The report proposed the revenue budget for 2020/21, being the second year of the two-year budget for 2019/20 and 2020/21 set by Council in February 2019.

Members of the Cabinet highlighted specific areas of investment in the forthcoming budget and reflected on what had been delivered against the existing financial strategy of the authority.

It was noted that the proposals had been subject to pre-decision scrutiny by the Overview and Scrutiny Management Board on 12 February 2020, where Members had expressed concern at the lack of clarity from central government in respect of the final settlement position for the 2020-21 budget and had recommended that further reports be submitted detailing the potential impact of any significant changes to government funding streams received by the Council, at such a time as any changes might occur.

Resolved:-

1.     That Council be recommended to:-

                 i.       Approve the Budget and Financial Strategy for 2020/21 as set out in the report and appendices, including the proposed budget adjustments and investments, a basic Council Tax increase of 0.99% and an Adult Social Care precept of 2.0%.

               ii.       Approve the updated Medium Term Financial Strategy (MTFS) to 2022/23.

              iii.       Approve the Reserves Strategy as set out in Section 2.8 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2019/20.

              iv.       Note and accept the comments and advice of the Strategic Director of Finance and Customer Services (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provides (Section 2.12).

               v.       Note the consultation feedback from the public, partners and Overview and Scrutiny Management Board (OSMB) following public consultation on the Council’s budget for 2020/21 which took place from 13th December 2019 to 13th January 2020 (Section 4).

              vi.       Approve the proposed increases in Adult Social Care provider contracts as set out in Section 2.4.

             vii.       Approve the changes to allowances for Special Guardianship Orders and Child Arrangement Orders as set out in Paragraph 2.6.9.

            viii.       Approve the investment proposals set out in Section 2.7 and Appendix 2.

              ix.       Approve the Council Fees and Charges schedules for 2020/21 attached as Appendix 7.

               x.       Apply the Business Rates Reliefs as set out in Section 2.9, in line with Government guidance.

              xi.       Approve the proposed Capital Strategy and Capital Programme as presented in Section 2.10 and Appendices 3A to 3F. 

             xii.       Approve the Treasury Management Matters for 2020/21 as set out in Appendix 4 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy.

            xiii.       Approve he Flexible use of Capital Receipts Strategy 2020/21 (Appendix 5).

           xiv.       Approve that the Capital Programme budget continue to be managed in line with the following key principles:

a.   Any underspends on the existing approved Capital Programme in respect of 2019/20 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2019/20 report to Cabinet.

b.   In line with Financial and Procurement Procedure Rules 6.17 and 13.9, any successful grant applications in respect of capital projects will be added to the Council’s approved Capital Programme on an ongoing basis.

c.   Capitalisation opportunities and capital receipts flexibilities will be maximised, with capital receipts earmarked to minimise revenue costs.

2.     That the recommendation from the Overview and Scrutiny Management Board proposing that further reports be submitted detailing the potential impact of any significant changes to government funding streams received by the Council, at such a time as any changes occur, be supported.