Issue - meetings

(To receive a report from the Executive Director – Resources which seeks approval for the proposals on the Council's budget for 2021/22, as set out in the report for internal and external consultation)

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

A report on the Council's Budget for 2021/22 was presented by Andrew Crookham, Executive Director – Resources, and Michelle Grady, Assistant Director for Strategic Finance.  The proposals, which would be subject to consultation, had been based on the provisional local government finance settlement for 2021/22, which had been issued on 17 December 2020.  The announcement of the final settlement was expected in February 2021, and this was anticipated to be in line with the provisional settlement.

Further budgetary information was awaited from the Lincolnshire district councils on likely council tax and business rate income for 2021/22.  There were also other risks arising from the impact of the Covid-19 pandemic.  As a result of these uncertainties, it was likely that the budget proposals presented to the Executive on 2 February 2021 and to the County Council on 19 February 2021 would differ from those presented at this meeting.  

The key elements of the provisional local government finance settlement had been: a deferral of the review of relative needs and resources (fair funding); a limit of a 2% increase in general council tax; an increase in the National Living Wage; and a social care grant of £5.3 million for the County Council.  There were also provisions relating to arrangements for irrecoverable council tax and the council tax support scheme. 

The report also detailed the anticipated cost pressures for the County Council, in particular, adult social care, children's services and waste disposal; and proposed efficiency savings (without any service reductions) and additional income of £14.6 million.  Overall, the budget proposals at this stage would lead to a surplus of £1.921 million for 2021/22, with deficits in the following years.

The capital programme had been refreshed with projected expenditure for 2021/22 of £204.3 million, which would be in line with the affordability provisions in the Council's capital strategy. 

Following questions, the following points were confirmed:

·         In relation to the efficiency savings and additional income, it was emphasised that no service reductions had been planned. 

·         To date £44 million of general Covid-19 support had been received from the Government, with a further £15 million expected.  There had also been a series of specific grants and allocations.  These Covid-19 related funds were being monitored and managed separately from the ordinary budgets of the Council. 

On the Lincolnshire economy, which was more resilient than other areas, the Government had been supportive of the business community, but there had been some businesses, usually small businesses operating in the retail and hospitality sectors, who had received no support.  The County Council would be developing its own proposals for providing support for businesses.   The budget consultation meeting with the business community would be reported as part of the budget process to the Executive on 2 February 2021.

As a local authority providing adult social care, it was noted that the Council could increase its council tax requirement by as much as 5%.  The Executive indicated that it was not inclined to make use of the full 5% additional increase available,  ...  view the full minutes text for item 39