Issue - meetings

(To receive a report from the Executive Director – Resources, which sets out the Council's Medium Term Financial Strategy covering the next three years and outlines the budget proposals for the next financial year 2020/21. The Executive is asked to make proposals for the Council's budget for 2020/21 based on these estimates, and to refer these proposals for internal and external consultation) 

That the budget proposals, as described in the report, be approved as the Executive's preferred option for the purposes of further consultation.

The Executive gave consideration to a report from the Executive Director – Resources, which set out the budget proposals for the next financial year 2020/21, and to approve the estimates presented, for internal and external consultation.

In guiding the Executive through the report presented and the updated budget information circulated on 2 January 2020, the Assistant Director – Strategic Finance advised that the current year was the last year of the four-year funding deal for local authorities and that the provisional settlement was for a one-year spending round.  It was noted that the review of business rate retention had also been deferred to the following year.  Confirmation was given that nationally an additional £1bn of social care grants funding had been announced, which for the Council would result in an extra £14.7m; and that this figure had been included in the budget proposals.

It was highlighted that at the beginning of the year there had been an anticipated budget gap of £27m by 22/23, and as a result, a thorough review of budgets had been undertaken to help bridge the gap.

Reference was made to the Revenue Budget details in Table A on page 160 of the report; and to the cost pressures summarised in Appendix C, with further service breakdown details being shown in Appendix E.

Reassurance was given that the budget savings proposed shown in Appendices D and E were not reducing any front line services. 

It was noted that as part of the budget process a number of areas had been identified as needing more thorough review, details of which were shown in Appendix B.  The Executive noted that it was anticipated that these reviews would offer savings in future years.

It was reported that changes to council tax were detailed on page 163; and that the budget proposal was for an increase of 1.5% general levy, plus the 2% Adult Social Care precept, giving a total increase of 3.5% which would generate £14.979m in the Council's budget.   

It was highlighted that the provisional settlement confirmed the continuation of a business rates pool, with district council's estimated to generate £2.8m for 2020/21.

It was highlighted further that as well as general reserves, the Council had earmarked reserves which currently stood at £189.234m.  The Executive were advised that all these reserves had been reviewed; and that £10.180m of reserves had been identified to be released, and that proposals were for these reserves to be amalgamated into a new reserve called a 'development fund' to fund new initiatives.

The Executive was advised that a ten year capital programme had been compiled; and that Appendix F provided full details of the proposed programme.

Officers advised that the Council had taken advantage of the government's relaxation of the use of capital receipts to fund transformational revenue costs in previous years.  However, it was highlighted that the proposal was not to continue that strategy, but to direct capital receipts to funding the capital programme, which would reduce the borrowing requirement.

The Executive  ...  view the full minutes text for item 51