Issue - meetings

The Council has a statutory duty to set the level of council tax for the forthcoming financial year by 11 March.  Under the Budget and Policy Framework Rules of the Constitution, the Cabinet is responsible for formulating initial draft proposals in respect of the Budget.  The role of this Committee is to assist both the Cabinet and the Council in the preparation of the Budget for 2020/21 within the context of the Medium Term Financial Strategy and the Council’s priorities.

NB: The Estimates for 2020-2021 referred to in paragraph 1.1.4 of the report will be published as a supplementary paper for convenience. 

The report of the Director of Finance and Transformation referred to the responsibility of the Cabinet under the Constitution for formulating initial draft proposals in respect of the Budget.  Reference was made to the role of the Committee in assisting the Cabinet and the Council in preparation of the Budget for 2020/21 within the context of the Medium Term Financial Strategy (MTFS) and the Council’s priorities.

Details were given of the provisional Local Government Finance Settlement and the position regarding New Homes Bonus funding.  It was reported that the latter funding stream would be highly unlikely to continue and would be phased out by 2022/23.

Members were advised that the threshold for triggering a referendum on council tax was increased by 2%, or more than 2%, and more than £5. For the purposes of preparing the budget papers and updating the MTFS an increase of £5 in 20/21 had been assumed and each year thereafter.  In addition, it was proposed, subject to review each year that the maximum ‘annual capital allowance’ be increased from £200,000 to £250,000 to reflect cost inflation.

The report indicated the factors to be taken into account when updating the MTFS and referred to the Savings and Transformation Strategy (STS) which provided a structure and focus for addressing the significant financial challenge facing the Council.  Progress was reported on savings achieved and it was noted that the MTFS would continue to be updated as more information became available and the targets and timescales within the STS would be revisited and realigned with the latest projected funding gap during the budget setting process.    The latest projected ‘outstanding’ funding gap was £320,000.

Finally, reference was made to the recommendation of the Finance, Innovation and Property Advisory Board of 8 January that the budget for Christmas lighting should be capped at £40,000. 

RECOMMENDED:  That

(1)          the maximum ‘annual capital allowance’ be increased from £200,000 to £250,000, subject to review each year;

(2)          delegated authority be granted to the Director of Finance and Transformation, in liaison with the Cabinet Member for Finance, Innovation and Property, to respond to the provisional local government finance settlement as appropriate;

(3)          the draft Revenue Estimates contained in the Booklet be endorsed and commended to the Cabinet for its meeting on 13 February 2020, subject to noting the additional recommendation arising from the Finance, Innovation and Property Advisory Board of 8 January 2020 that the budget for Christmas lighting should be capped at £40,000; and

(4)          the Savings and Transformation Strategy be updated to reflect the latest projected ‘outstanding’ funding gap as part of the budget setting process.