Agenda item

Report of the Strategic Director of Finance and Customer Services.

Recommendations:-

That Cabinet recommends to Council

1.      Approval of the Budget and Financial Strategy for 2021/22 as set out in the report and appendices, including the proposed budget adjustments and investments, a basic Council Tax increase of 1.99% and an Adult Social Care precept of 1.0%.

2.      Approval of the updated Medium Term Financial Strategy (MTFS) to 2022/23, including the carry forward of the 2020/21 £4m budget contingency and £3.5m Treasury Management Savings in a Budget Strategy Reserve.

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 2020/21.

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 and partners following public consultation on the Council’s budget for 2021/22 which took place from 5^th January 2021 to 26^th January 2021 (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 investment proposals set out in Section 2.7 and Appendix 2.

8.      Approval of the Council Fees and Charges schedules for 2021/22 attached as Appendix 7.

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

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

11.   Approval of the Treasury Management matters for 2021/22 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. 

12.   Approval of the Flexible use of Capital Receipts Strategy 2021/22 (Appendix 5).

13.   Approval to transfer any 2020/21 revenue outturn position underspend into the Council’s reserves, to be held within the Budget Contingency Reserve.

14.   Approval to transfer any 2020/21 un-ringfenced Covid funding balances into the Council’s reserves to meet Covid related pressures and costs in 2021/22.

15.   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 2020/21 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2020/21 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 on the Council’s proposed Budget and Council Tax for 2021/22, based on the Council’s Provisional Local Government Finance Settlement for 2021/22, 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 (MTFS).

In setting the proposed 2021/22 budget, Cabinet was asked to recommend to Council an increase of 1.99% in the Council’s basic Council Tax and an Adult Social Care precept of 1.0%. The report proposed the revenue budget for 2021/22, an updated Capital Programme to 2023/24 and the updated MTFS to 2022/23.

At page 104 paragraph 2.6.8 of the report,  the reference to the Adult Social Care precept should have said 1% not 2% and £1.1m not £2.2m and this would be corrected for the Budget and MTFS report to Council. 

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.

Councillor Hoddinott referred to an amendment required to the fees and charges schedule.  She explained that the bulky waste charges have been simplified and that there will no longer be any distinction between Category A waste and Category B waste.  The Category B charges therefore needed amending in the schedule to reflect this ahead of reporting to Council.

The report had been considered by the Overview and Scrutiny Management Board as part of the pre-decision scrutiny process. The Board was fully supportive of the recommendations and thanked Cabinet Member and Officers for their attendance at the OSMB meeting. The Chair raised concerns about the fact that savings targets had not been reached in the 2020/21 budget. The Leader echoed these concerns whilst explaining that it could not be helped due to the Pandemic. It was expected that these savings would be delivered going forward.

Resolved:-

That Cabinet recommend to Council 

1.         Approval of the Budget and Financial Strategy for 2021/22 as set out in the report and appendices, including the proposed budget adjustments and investments, a basic Council Tax increase of 1.99% and an Adult Social Care precept of 1.0%.

2.         Approval of the updated Medium Term Financial Strategy (MTFS) to 2022/23, including the carry forward of the 2020/21 £4m budget contingency and £3.5m Treasury Management Savings in a Budget Strategy Reserve.

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 2020/21. 

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 and partners following public consultation on the Council’s budget for 2021/22 which took place from 5th January, 2021 to 26th January, 2021 (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 investment proposals set out in Section 2.7 and Appendix 2.

8.         Approval of the Council Fees and Charges schedules for 2021/22 attached as Appendix 7.

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

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

11.      Approval of the Treasury Management matters for 2021/22 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.  

12.      Approval of the Flexible use of Capital Receipts Strategy 2021/22 (Appendix 5).

13.      Approval to transfer any 2020/21 revenue outturn position underspend into the Council’s reserves, to be held within the Budget Contingency Reserve.

14.      Approval to transfer any 2020/21 un-ringfenced COVID-19 funding balances into the Council’s reserves to meet COVID-19 related pressures and costs in 2021/22. 

15.      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 2020/21 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2020/21 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.