Agenda item

This report provides a summary of the revenue and capital budget proposals for 2021/2022 to enable Cabinet to recommend to Council its proposed draft budget and Council Tax levels. The report also includes the statutory statement of the Head of Corporate Services (Section 151 Officer) to Council on the robustness of the estimates and adequacy of reserves.

This proposed budget references numbers included in the provisional finance settlement for 2021/2022 which was published on December 17th 2020. The final settlement is expected in late January or early February 2021. If any further changes are received a verbal update will be provided at the meeting.

It is important to note that the Government’s multi-year Spending Review, due in 2019 was once again replaced by a short-term Spending Round.  What this means is that, in substance, any budget to be proposed will only be for one-year only.  No figures have been made available for local government funding beyond 2021/22, either nationally or locally.  This report therefore cannot give any realistic projection for 2022/2023, however indicative budget requirements have been entered.

RECOMMENDATION to Council

1.            That the level of Council Tax for 2021/22 be increased by £5 (2.9%) and set at £181.84 for a band D property.

2.            That the summary revenue budget for 2021/22 as set out in paragraph 12 of this report be approved.

3.            That the capital programme for 2021/22 as detailed in Appendix 1 be approved.

4.            That no changes be made to the Council Tax Support Scheme for 2021/22 but that a full review of this takes place and is reported to Council in September 2021.  

Members were presented with a summary of the revenue and capital budget proposals for 2021/2022 to enable Cabinet to recommend to Council its proposed draft budget and Council Tax levels. The report included the statutory statement of the Head of Corporate Services (Section 151 Officer) to Council on the robustness of the estimates and adequacy of reserves.

The proposed budget referenced numbers included in the provisional finance settlement for 2021/2022 which was published on December 17th 2020.  Members were asked to note that the Government’s multi-year Spending Review, due in 2019 was once again replaced by a short-term Spending Round, meaning, in substance, any budget to be proposed will only be for one-year only.  No figures have been made available for local government funding beyond 2021/22, either nationally or locally.  This report therefore cannot give any realistic projection for 2022/2023, however indicative budget requirements have been entered.  Overview & Scrutiny Committee were thanked for their structured debate on this draft budget at the meeting held in January.

Members were advised that this time next year will be more challenging and serious decisions would need to be made once the full impact of COVID can be assessed with the addition to budget pressures from the reduction in the new homes bonus settlement.  It was confirmed that there was no significant change in the final settlement figure received from the Government and the shortfall would be covered from reserves for this year.

Members considered:

•           Budgets to allow for claiming compensation due to COVID.

•           Policy positions made on assumptions of returning to business as normal.

•           Income is equal to expenditure with pre-sets and adjustments added for funding element.

•           Approved budgets by Council in February 2020 to be reallocated due to COVID.

•           0.5% being the rate of inflation used to reflect charges and a full list of fees and charges will go to Council.

•           Collection fund surplus is not in the budget for 2021/2022.

•           Level of support given on the council tax base will be provided at next month’s Council.

•           Planning preapplication charges increase is higher than the inflation rate.

•           Increase in household parking permits for a second car.

•           Forecasts expected on track of terms of budget and structural deficit are broadly in line with forecasts predicted.

•           Cost reduction and the impact this will have on services to residents.

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Members acknowledged the support and hard work of the financial team and commended the work done to put the budget together to manage the deficit caused by the impact of the COVID crises.  The Chairman stated that Members need to be prepared to defend residents against the financial pressures the Council faces.

RECOMMENDATION to Council

1.            That the level of Council Tax for 2021/22 be increased by £5 (2.9%) and set at £181.84 for a band D property.

2.            That the summary revenue budget for 2021/22 as set out in paragraph 12 of this report be approved.

3.            That the capital programme for 2021/22 as detailed in Appendix 1 be approved.

4.            That no changes be made to the Council Tax Support Scheme for 2021/22 but that a full review of this takes place and is reported to Council in September 2021.