Agenda item
Budget 2021/2022
Purpose:
To consider (i) the revenue budget proposals for 2021/22; (ii) the Council’s Capital Programme for 2021/22 to 2030/31; and (iii) the level of Council Tax for 2021/22. The report also fulfils the requirements of the Local Government Act 2003 relating to the Council’s Treasury Management function and implementation of the Prudential Code Capital Finance System arrangements, and seeks recommendations for Council to approve the Council’s Medium Term Financial Strategy, Capital Programme, Capital Strategy, Investment Strategy and Treasury Management Strategy; and includes the Chief Finance Officer’s report on the robustness of estimates and the adequacy of the Council’s reserves.
Recommendation:
(a) That the Council be recommended to approve:
(i) The updated Medium Term Financial Strategy in Annex A;
(ii) General Fund revenue budgets as summarised in Annex B;
(iii) The Capital Programme for 2021/22 to 2030/31 as set out in Annex D;
(iv) Fees and charges for 2021/22 as set out in Annex E;
(v) The Council’s Pay Policy Statement as set out in Annex F;
(vi) The Council’s Capital Strategy 2021/22 as set out in Annex G;
(vii) The Council’s Investment Strategy 2021/22 as set out in Annex H;
(viii) The Council’s Treasury Management Strategy 2021/22 as set out in Annex I;
(ix) The Prudential Indicators as set out in Annex N;
(x) The level of District Council Tax for 2021/22 for a Band D property of £109.38; and
(b) That the estimate of business rates income for 2021/22, as set out in the government return NNDR 1, in Annex L, and the Parish Precepts and Tax Levels set out in Annex M be noted.
Minutes:
The Cabinet received and considered the report of the Chief Finance Officer, which asked Members to consider the revenue budget proposals for 2021/22, the Council’s Capital Programme for 2021/22 to 2030/31 and the level of Council Tax for 2021/22.
This report also fulfilled the requirements of the Local Government Act 2003 relating to the Council’s Treasury Management function and implementation of the Prudential Code Capital Finance System arrangements. Cabinet would recommend the Council’s Medium Term Financial Strategy, Capital Programme, Capital Strategy, Investment Strategy and Treasury Management Strategy to Council for approval, and the report included the Chief Finance Officer’s report on the robustness of estimates and the adequacy of the Council’s reserves.
The draft base budget for 2021/22 had been considered by Cabinet on 13 January, and by Council on 20 January. This report updated Cabinet on the proposed changes to any expenditure budgets and funding streams, included details of feedback from consultation on the Council’s budget proposals and drew together the Council’s suite of strategic financial documents for 2021/22.
The report outlined the main changes to the budget, Business Rates, Council Tax and advised on the consultation carried out and responses received. There were a number of appendices attached to the report for consideration as detailed below:
Annex A, Medium Term Financial Strategy; Annex B - Summary of General Fund Revenue Budgets 20201/22; Annex C - Forecast Collection Fund Surplus 2020/21; Annex D - Capital Programme for 2021/22 to 2030/31; Annex E - Fees and Charges 2021/22; Annex F – Council Pay Policy Statement; Annex G – Capital Strategy 2021/22; Annex H – Investment Strategy 2021/22; Annex I – Treasury Management Strategy 2021/22; Annex J – Feedback from the budget consultation; Annex K – Report of the Chief Finance Officer; Annex L – Estimate of Business Rates 2021/22 (extracts from NNDR1 return); Annex M – Parish Precepts and Taxbase 2021/22; and Annex N – Summary of Prudential Indicators.
The Cabinet Member for Resources, Councillor Morris introduced the report and thanked the Chief Finance Officer, her team and all Cabinet Members for their input and hard work in pulling together a balanced budget. He reminded the meeting that the Council had continued to deliver all services under very difficult circumstances and highlighted the key points in the report.
Councillor Morris noted the significant pressure within the Medium Term Financial Strategy and recognised that there were some difficult years ahead for local authorities, with a number of changes to be prepared for. He proposed the report as laid out.
This was seconded by Councillor Mead, who echoed her thanks to all officers involved and to Councillor Morris for responding to communications and queries promptly.
Councillor Cotterill stated that this was a reassuring report and passed his congratulations to the team and, having asked for clarification on a number of posts detailed in the report, was advised that these posts had been approved as part of the Covid Recovery Strategy.
Councillor Coul recognised that this had been an unprecedented year and thanked all officers for their work in such difficult times.
Councillor Cooper reminded the Leader of his proposal relating to the potential for the Council to recognise the 150th anniversary of Winston Churchill’s birth, which he felt could shine a spotlight on the District. The Leader noted his request.
There were some Councillors who felt that the publication of the budget reports did not coincide with Scrutiny committees effectively enough and queried whether there was anything that could be done to make this easier. Councillor Morris noted their frustration and reminded them that officers were reliant on receiving information from Central Government but noted that this could be addressed if the Council moved to a multi-year settlement.
Councillor Graham thanked senior officers for engaging fully and transparently in the budget process. He queried the reference to the money markets in Annex I to the report, raised a concern that the consultation response rates were still low and wondered whether it had been promoted extensively enough.
In response, Councillor Morris and the Chief Finance Officer assured Councillor Graham that the consultation had been very widely promoted and had received a higher response rate than in previous years. Clarification was also provided on the money market funds, the yields they provided and the potential for green investments.
Councillor Enright added his thanks to officers and acknowledged the timing difficulties experienced in producing the papers. He highlighted the importance of grants being used alongside ‘bounce back’ plans for the economy and hoped that these would be widely promoted.
Having considered the report and having heard from the officers present, Cabinet approved the recommendations.
DECISIONS:
(a) That Council be recommended to approve:
(i) The updated Medium Term Financial Strategy in Annex A
(ii) General Fund revenue budgets as summarised in Annex A
(iii) The Capital Programme for 2021/22 to 2030/31 as set out in Annex D
(iv) Fees and Charges for 2021/22 as set out in Annex E
(v) The Council’s Pay Policy Statement as set out in Annex F
(vi) The Council’s Capital Strategy 2021/22 as set out in Annex G
(vii) The Council’s Investment Management Strategy 2021/22 as set out in Annex H
(viii) The Council’s Treasury Management Strategy 2021/22 as set out in Annex I
(ix) The Prudential Indicators as set out in Annex N
(x) The level of District Council Tax for 2021/22 for a Band D property of £109.38
(b) That the estimate of Business Rates income for 2021/22, as set out in the excerpt from the government return NNDR1, in Annex L, and the Parish Precepts and Tax Levels set out in Annex M be noted.
REASONS: The report fulfils the requirements of the Local Government Act 2003 relating to the Council’s Treasury Management function and implementation of the Prudential Code Capital Finance System arrangements and supports the priority themes set out in the Council Plan, approved by Council in January.
OPTIONS: Councillors could choose to amend the figures proposed in the budget and propose an alternative budget to Council.
Supporting documents:
PDF 3 MB