Agenda item

To seek Cabinet’s approval of the latest financial forecast and final General Fund budget proposals 2021/22 (including Council Tax proposals) for recommendation to Council on 16 February 2021.

RESOLVED that –

a)    the latest financial forecast set out in Appendix A to item A.8 of the Report of the Corporate Finance & Governance Portfolio Holder, along with the savings and cost pressures set out in Appendices B and C respectively to that report that form the firm proposals for the 2021/22 budget be agreed and that therefore it is recommended to Full Council that a Band D Council Tax for district services of £177.64 for 2021/22 (a £5 increase), along with the associated council tax requirement of £8.604m be approved.

b)    the Portfolio Holder for Corporate Finance and Governance be authorised to agree the ‘technical’ appendices and resolutions for the budget proposals for recommending to Full Council on 16 February 2021;

(c)  in consultation with the Leader of the Council and the Corporate Finance and Governance Portfolio Holder, the Chief Executive reports directly to Full Council in respect of the formal resolutions necessary to implement the Executive’s budget proposals along with any late information or notifications received from the Government;

(d)  in respect of the Treasury Strategy 2021/22, the Portfolio Holder for Corporate Finance and Governance be authorised to approve the draft Strategy for consultation with the Resources and Services Overview and Scrutiny Committee; and

(e)   the council tax discount policy for young people leaving care, as set out in Appendix D to the aforementioned report, be endorsed and recommended to Full Council for formal adoption.

The Cabinet gave consideration to a report of the Corporate Finance & Governance Portfolio Holder (A.8) which sought its approval of the latest financial forecast and final General Fund budget proposals for 2021/22 (including council tax proposals) for onward recommendation to Council.

Cabinet recalled that, at its meeting held on 18 December 2020, it had considered the Updated Financial Forecast / Budget 2021/22. The forecast at that time had provided for a deficit of £1.647m that was to be met by drawing down money from the Forecast Risk Fund.

Subsequently, the Updated Financial Forecast had been subject to consultation with the Resources and Services Overview and Scrutiny Committee which had met on 14 January 2021 to consider it and the Committee’s comments had been considered earlier in the meeting.

It was reported that since the Cabinet’s meeting on 18 December 2020, additional changes had been required, primarily as a result of new or revised information becoming available which had included the Government’s Financial Settlement announcements. Those changes had result in a reduced deficit for 2021/22 of £1.227m, a change of £0.420m compared to the £1.647m deficit presented to Cabinet in December. Appendix A to the Portfolio Holder’s report provided further details across the various lines of the forecast, with the most significant change being the receipt of the revenue support grant from the Government.

Members were aware that in previous years, this report had set out the full detailed estimates along with the various resolutions / ‘technical’ appendices required for Full Council in February. However, given the increased and on-going COVID 19 workload of a number of officers who played a key role in developing the budget, it had not been possible to finalise this more detailed information at this stage. However, the most up to date forecast, savings schedule and cost pressure summary were set out in the Portfolio Holder’s report, with a recommendation included that would delegate approval of the more detailed budget information and associated ‘technical’ appendices and resolutions to the Portfolio Holder for Corporate Finance and Governance.

Cabinet was advised that this budget position could change as further adjustments might be required as part of finalising the budget for presenting to Council on 16 February 2021, with a further delegation included in the Portfolio Holder’s recommendations to reflect this.

It was reported that based on the final proposed budget for 2021/22, the Council Tax requirement was £8.604m, which was based on a £5 increase for this Council’s services, with a Band D council tax of £177.64. These figures would remain unchanged and therefore would be reflected in the various budget resolutions / ‘technical’ appendices proposed to be delegated to the Portfolio Holder for Corporate Finance and Governance.

Cabinet was aware that the Council’s annual budget and the district and parish elements of the council tax would be considered by Full Council at its meeting due to be held on 16 February 2021 with approval of the ‘full’ council tax levy for the year to be considered by the Human Resources and Council Tax Committee later on during February 2021.

Members were informed that, similarly to last year, the approval of the associated Treasury Strategy for 2021/22 for consultation with the Resources and Services Overview and Scrutiny Committee was recommended to be delegated to the Portfolio Holder for Corporate Finance and Governance.

Cabinet was reminded that, as agreed by Full Council at its meeting held in November 2020, a council tax discount policy for young people leaving care had now been finalised, which was set out in Appendix D to the Portfolio Holder’s report.

Having considered all of the information and advice contained in the Portfolio Holder’s report:-

It was moved by Councillor G V Guglielmi, seconded by Councillor Stock OBE and:-

RESOLVED that –

a)    the latest financial forecast set out in Appendix A to item A.8 of the Report of the Corporate Finance & Governance Portfolio Holder, along with the savings and cost pressures set out in Appendices B and C respectively to that report that form the firm proposals for the 2021/22 budget be agreed and that therefore it is recommended to Full Council that a Band D Council Tax for district services of £177.64 for 2021/22 (a £5 increase), along with the associated council tax requirement of £8.604m be approved.

b)    the Portfolio Holder for Corporate Finance and Governance be authorised to agree the ‘technical’ appendices and resolutions for the budget proposals for recommending to Full Council on 16 February 2021;

(c)  in consultation with the Leader of the Council and the Corporate Finance and Governance Portfolio Holder, the Chief Executive reports directly to Full Council in respect of the formal resolutions necessary to implement the Executive’s budget proposals along with any late information or notifications received from the Government;

(d)  in respect of the Treasury Strategy 2021/22, the Portfolio Holder for Corporate Finance and Governance be authorised to approve the draft Strategy for consultation with the Resources and Services Overview and Scrutiny Committee; and

(e)   the council tax discount policy for young people leaving care, as set out in Appendix D to the aforementioned report, be endorsed and recommended to Full Council for formal adoption.