Agenda item

(NOTE: Councillor S P Roe left the Council Chamber at 10.48am)

 

A report by the Executive Director – Resources had been circulated together with a separate document entitled 'Council Budget 2020/21' which described the Executive's Budget and council tax proposals.

 

RESOLVED

 

(1)         That there be one debate;

 

(2)           That Councillor M J Hill OBE, Leader of the Council, in introducing and moving the budget and in responding to issues raised during the debate be allowed to speak without limit of time;

 

(3)           That proposers of the amendments each be allowed to speak without limit of time;

 

(4)           That Councillors seconding the motions each be allowed to speak for six minutes;

 

(5)         That other speakers be allowed to speak for three minutes; and

 

(6)           That no further substantial amendments be moved

 

 

It was moved and seconded that:

 

The Council:

 

1.    Has due regard to the responses to the consultation on the Council's budget proposals as contained in the appended Budget Book (Appendix D - Budget Consultation Feedback);

 

2.    Has due regard to the Section 151 Officer's Statement on the Robustness of the Budget and the Adequacy of Reserves as set out in the appended Budget Book (Section 11 - Section 151 Officer's Statement on the Robustness of the Budget and Adequacy of Reserves);

 

3.    Has due regard to the Impact Analysis relating to increasing the Council Tax by 3.50% in 2020/21 set out in the appended 'Budget Book' (Appendix C – Impact Analysis relating to increasing the Council Tax by 3.50% in 2020/21);

 

4.    Approves:

 

4.1The service revenue budgets for 2020/21 contained in the appended Budget Book, (Table 3 - Net Service Revenue Budget 2020/21);

 

4.2The capital programme and its funding contained in the appended Budget Book (Section 8 - Capital Programme) and (Appendix P - Capital Programme);

 

4.3The County Council element of the council tax for a Band D property at £1,337.58 for 2020/21 contained in the appended Budget Book (Appendix B - County Precept 2020/21);

 

            As together being the Council's Budget.

 

5.    Approves the Council's Medium Term Financial Strategy contained in the appended Budget Book (Appendix E – Medium Term Financial Strategy);

 

 

6.    Approves the Council's Capital Strategy 2020/21 contained in the appended Budget Book (Appendix O – Capital Strategy 2020/21);

 

7.    Approves the Council's Flexible Use of Capital Receipts Strategy 2020/21 contained in the appended Budget Book (Appendix G - Flexible Use of Capital Receipts Strategy);

 

8.    Approves the prudential targets for capital finance and notes the prudential indicators contained in the appended Budget Book (Appendix N - Prudential Indicators);

 

9.    Approves that the minimum revenue provision (MRP) be based on the asset life method, charged on an annuity basis for major infrastructure projects and in equal instalments for all other assets, over the estimated life of the assets acquired through borrowing as set out in the appended Budget Book (Section 10 - Minimum Revenue Provision).

 

10.Approves the transfer of £5.000m from earmarked reserves arising from underspends in Dedicated Schools Grant to the 2019/20 Children's Services capital programme, to support the Building Communities of Specialist Provision Strategy.

 

11. Approves the establishment of a Development Fund earmarked reserve to fund new initiatives as set out in the appended Budget Book (Section 6 - Reserves, paragraph 6.3).

 

An amendment was moved and seconded by the Labour Group as follows:

 

The Labour Group's alternative budget recognises that our residents look to the County Council to provide important services to protect and promote their interests. This is particularly true at a time when the Council Tax is being increased by 3.50% whilst the national rate of inflation is currently only 1.4% (Dec 2019). Not only that but the County Council projects that it will hold reserves of £55.769 million as at 31 March 2020 in the Financial Volatility account  and, under this budget, expects reserves to be £61.926m in the Financial Volatility and Business Rates Volatility accounts.

 

The Labour Group position remains as stated in 2019; that there is no financial argument for the existence of a Business Rates Volatility Reserve. The balance of this reserve one year later remains at £6.157 million meaning that no use has been made of those reserves. Hence those funds could be used for funding other initiatives as the risk of there being a Business Rate shortfall in 2020/21 is still minimal. If a shortfall did occur it is argued that there are sufficient funds available in the Financial Volatility Reserve to meet any deficit. Accordingly £6.157m should be released of which £3.632m is to be used on service developments in 2020/21 and the remaining £2.525m should be added to the Financial Volatility Reserve. £2.607m of the Financial Volatility Reserve will be required to fund the developments in 2021/22.

 

It is proposed that the following amendments are made to the circulated 'Council Budget 2020/21' report:

 

Extra Revenue Spending 2020/21 and 2021/22

 

		2020/21	2021/22
1.a	Social Mobility and Deprivation: 0-19 Health – 1 additional Health Visitor (£0.046m a year) Early Years Workforce Development – Recruiting communication and language champions and direct supporting of Early Years provision across the county. (£0.136m a year)	£0.182m	£0.182m
1.b	Social Mobility Task Force In East Lindsey: The likely impact over the two years would see more schools judged as Good or Better by Ofsted and the raising of attainment and progress of all pupils, particularly those that are disadvantaged at Key Stage 2 and 4 .	£0.425m	£0.425m
1.c	Social Mobility Task Force – Narrowing the gap in Gainsborough, Spalding and the Earlsfield area of Grantham.	£0.450m	£0.450m
1.d	Small Schools Project: to maximise outcomes for disadvantaged children in our 82 schools with 100 pupils or less.	£0.700	£0.700m
2.	Mobility Hub/Park and Ride – Outline Business Case	£1.000m	-
3.	Additional Bus Services - Feedback received from communities/bus users suggests that a lack of bus services on evenings and Sundays is a cause of concern and negatively impacts quality of life and limits access to key services. We propose a pilot of on demand bus services (CallConnect) on Sundays and on 2-3 evenings per week.	£0.850m	£0.850m
4.	Touring Exhibition - Usher Gallery (4 venues) – (This is dependent on the extra capital spending below)	£0.025m	-
	Total Extra Revenue Spending	£3.632m	£2.607m

 

Extra Capital Spending 2020/21

 

1.	Touring Exhibition – Usher Gallery – Presentation of the Exhibition	£0.035m
	Total Extra Capital Spending	£0.035m

 

Funding of the Extra Spending 2020/21

The proposal is that the Business Rates Volatility Reserve is dis-established and instead the Business Rates Volatility Reserve is added to the Financial Volatility reserve. The additional £6.239m (over 2 years) to meet the extra revenue spending commitments outlined above will be taken from the Financial Volatility Reserve. Under these proposals, that reserve account will have an estimated balance of £58.294m at 31/03/2021and £55.687m at 31/03/2022.

 

All of the revenue proposals are or can be time-limited and will impact on the budget in 2020/21 and 2021/22 only.

 

The additional capital spending of £0.035m will be bid for from the New Capital Development Fund already included in the Capital Programme.

The Executive Director - Resources has confirmed that these proposals are compliant with the existing Financial Strategy of the Council and represent a balanced budget for 2020/21 and 2021/22. The outcome of the Government's Fairer Funding Review of local government funding has been further delayed by one year, the Council could potentially still face an ongoing budget deficit over the medium term with substantial savings or other actions needed in the period beyond April 2021 to deliver a balanced budget. These proposals change the funding available to assist in balancing future budgets from the Financial Volatility Reserve to £55.687m.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was held for the amendment and, upon it being put to the vote, the amendment was lost.

 

Details of the recorded vote taken:

 

Those voting for the amendment:

 

M D Boles, K J Clarke, G E Cullen, Mrs J E Killey, R B Parker, S R Parkin, R A Renshaw.

 

Those voting FOR - 7

 

Those voting against the amendment:

 

B Adams, W J Aron, T R Ashton, A M Austin, Mrs W Bowkett, Mrs P A Bradwell OBE, D Brailsford, C J T H Brewis, Mrs J Brockway, M Brookes, R D Butroid, L A Cawrey, Mrs K Cook, C J Davie, R G Davies, B M Dobson, M T Fido, I G Fleetwood, M A Griggs, R Grocock, A G Hagues, M J Hill OBE, R J Kendrick, S R Kirk, Mrs C J Lawton, C S Macey, C E H Marfleet, C Matthews, A P Maughan, D McNally, Mrs A M Newton, C R Oxby, N H Pepper, C L Perraton-Williams, E J Poll, Mrs S Rawlins, C R Reid, R P H Reid, P A Skinner, Mrs E J Sneath, H Spratt, A N Stokes, M J Storer, C L Strange, E W Strengiel, Mrs C A Talbot, M E Thompson, R H Trollope-Bellew, M A Whittington, Mrs S Woolley, L Wooten, R Wootten, N Worth, B Young.

 

Those voting AGAINST - 54

 

Those abstaining – A Bridges

 

ABSTENTIONS - 1

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote on the motion was taken.  Upon being put to the vote, the motion was carried.

 

Details of the recorded vote taken:

 

Those voting for the motion:

 

B Adams, W J Aron, T R Ashton, A M Austin, Mrs W Bowkett, Mrs P A Bradwell OBE, D Brailsford, C J T H Brewis, Mrs J Brockway, M Brookes, R D Butroid, L A Cawrey, Mrs K Cook, C J Davie, R G Davies, B M Dobson, M T Fido, I G Fleetwood, M A Griggs, R Grocock, A G Hagues, M J Hill OBE, R J Kendrick, S R Kirk, Mrs C J Lawton, C S Macey, C E H Marfleet, C Matthews, A P Maughan, D McNally, Mrs A M Newton, C R Oxby, N H Pepper, C L Perraton-Williams, E J Poll, Mrs S Rawlins, C R Reid, R P H Reid, P A Skinner, Mrs E J Sneath, H Spratt, A N Stokes, M J Storer, C L Strange, E W Strengiel, Mrs C A Talbot, M E Thompson, R H Trollope-Bellew, M A Whittington, Mrs S Woolley, L Wooten, R Wootten, N Worth, B Young.

 

Those voting FOR – 54

 

Those voting against the motion:

 

M D Boles, K J Clarke, G E Cullen, Mrs J E Killey, R B Parker, S R Parkin, R A Renshaw.

 

Those voting AGAINST – 7

 

Those abstaining:

 

A Bridges

 

ABSTENTIONS – 1

RESOLVED

 

That the Council:

 

1.    Has due regard to the responses to the consultation on the Council's budget proposals as contained in the appended Budget Book (Appendix D - Budget Consultation Feedback);

 

2.    Has due regard to the Section 151 Officer's Statement on the Robustness of the Budget and the Adequacy of Reserves as set out in the appended Budget Book (Section 11 - Section 151 Officer's Statement on the Robustness of the Budget and Adequacy of Reserves);

 

3.    Has due regard to the Impact Analysis relating to increasing the Council Tax by 3.50% in 2020/21 set out in the appended 'Budget Book' (Appendix C – Impact Analysis relating to increasing the Council Tax by 3.50% in 2020/21);

 

4.    Approves:

 

4.4 The service revenue budgets for 2020/21 contained in the appended Budget Book, (Table 3 - Net Service Revenue Budget 2020/21);

 

4.5 The capital programme and its funding contained in the appended Budget Book (Section 8 - Capital Programme) and (Appendix P - Capital Programme);

 

4.6 The County Council element of the council tax for a Band D property at £1,337.58 for 2020/21 contained in the appended Budget Book (Appendix B - County Precept 2020/21);

 

            As together being the Council's Budget.

 

5.    Approves the Council's Medium Term Financial Strategy contained in the appended Budget Book (Appendix E – Medium Term Financial Strategy);

 

 

6.    Approves the Council's Capital Strategy 2020/21 contained in the appended Budget Book (Appendix O – Capital Strategy 2020/21);

 

7.    Approves the Council's Flexible Use of Capital Receipts Strategy 2020/21 contained in the appended Budget Book (Appendix G - Flexible Use of Capital Receipts Strategy);

 

8.    Approves the prudential targets for capital finance and notes the prudential indicators contained in the appended Budget Book (Appendix N - Prudential Indicators);

 

9.    Approves that the minimum revenue provision (MRP) be based on the asset life method, charged on an annuity basis for major infrastructure projects and in equal instalments for all other assets, over the estimated life of the assets acquired through borrowing as set out in the appended Budget Book (Section 10 - Minimum Revenue Provision).

 

10. Approves the transfer of £5.000m from earmarked reserves arising from underspends in Dedicated Schools Grant to the 2019/20 Children's Services capital programme, to support the Building Communities of Specialist Provision Strategy.

 

11. Approves the establishment of a Development Fund earmarked reserve to fund new initiatives as set out in the appended Budget Book (Section 6 - Reserves, paragraph 6.3).

 

(NOTE: Councillor S P Roe returned to the Council Chamber at 12.01pm)