Agenda item

(To consider a report from Michelle Grady, Assistant Director – Strategic Finance, which invites the Board to consider and comment on the Council's budget proposals 2021/22, which were approved for consultation by the Executive at its meeting on the 5 January 2021. The views of the Board will be reported to the Executive when it makes its final budget proposals on 2 February 2021 as part of its consideration of this item)

Consideration was given to a report from the Assistant Director – Strategic Finance, which invited the Board to consider and comment on the Council's budget proposals 2021/22, which were approved for consultation by the Executive at its meeting on the 5 January 2021. The views of the Board would be reported to the Executive when it made its final budget proposals on 2 February 2021 as part of its consideration of this item.

The report outlined budget proposals for the next financial year 2021/22. The Provisional Local Government Finance Settlement for 2021/22 had been issued on 17 December 2020, and was expected to be in line with the Final Settlement, which was due to be published in February 2021. Further budgetary information from the Lincolnshire District Councils was awaited so the budget proposals for 2021/22 were therefore estimated at this stage. The Executive was asked to approve the proposals for the Council's budget for 2021/22, set out in this report and based on those estimates, for internal and external consultation.

The recommended option took into account the anticipated levels of Government grant and Business Rates funding to the Council and allowed for an increase in Council Tax of 1.99%. The budget included unavoidable cost pressures which would support the delivery of Council services, and a number of savings which did not impact negatively on services. The recommendation was for a one year budget for the financial year 2021/22, which took into account the expected reforms to local authority funding from April 2022. The recommended option currently presented a surplus budget of £1.921M, although this may become a deficit budget once all budgetary information had been received by the end of January 2021. If the final position was a deficit budget, then a contribution from reserves would be used to balance the budget for 2021/22.

The budget proposals reflected the level of government funding available to the Council in 2021/22. Service areas had been reviewed and the budget proposals aimed to support the Council's priorities within the financial resources available.

Members discussed the report, and during the discussion the following points were noted:

·         Adults Extra Care Housing Schemes – the Capital Programme attached at Appendix C of the report included the Dewint Court and Linelands Extra Care Housing Schemes. Including the proposed Hoplands, Sleaford Extra Care Housing Scheme in the Capital Programme would be considered by the Executive on 2 February 2021. It was confirmed that the financial allocation for the Scheme was in place.

·         A 1% increase in council tax would generate just over £3m of additional income to the Council. The Adult Care Precept of up to 3% would not be raised by the Council for 2021/22. 

·         The additional income raised by the council tax increase would enable the Council to address cost pressures, especially in relation to the Adult Social Care and Children's Services proposals, which were key services valued by residents. The costs for these services increased each year and the council tax increase helped to meet the increasing demands for these services. Council tax increases was one way to meet these costs; the other was to find further significant savings.

·         With regards to the Capital Programme, uncommitted spend had been rephased into future years which enabled the Council to bring forward costs for other schemes to smooth out the Capital Programme and reduce the impact on the Council's reserves. The uncommitted budgets related to funds allocated to a long term programme of activity for the Boston Development Schemes (Infrastructure and Economic) and Local Highways Improvements (Pinch points) – Coastal Route Schemes, for which there were no specific projects in progress.

·         Funding for the Transformation Programme had already been allocated in the budget for 2020/21. The aspirations in the Corporate Plan and Transformation Programme were now being progressed through a number of different activities. As the Corporate Plan was for 10 years, the levels in investment would change over time.

·         Covid-19 would have a huge impact on the Council's finances going forward, particularly in relation to the adult social care market. However, the Council was currently in a strong financial position which would help mitigate the impact.

·         The significant cost pressures in relation to Home to School Transport were being addressed as part of the Transformation Programme. An in depth review by an external consultant was being undertaken and the outcomes of the review would be reported back to the relevant scrutiny committees.

RESOLVED:

1.    That the Board support the budget proposals, as set out in the report;

2.    That a summary of the comments made be passed on to the Executive as part of its consideration of the final budget proposals.

(Councillors R B Parker and Mrs A M Newton wished to be recorded as abstaining from the decision on this item)