Issue - meetings

Financial Strategy 2021/22 to 2025/26

Meeting: 11/02/2021 - Executive (Item 100)

Financial Strategy 2021/22 to 2025/26

Decision:

Recommended: That Council approve the budget proposals outlined in the report and annexes; in particular:

a) The net revenue expenditure requirement of £131.392m;

b) A council tax requirement of £98.051m;

c) The revenue growth proposals as outlined in the body of the report;

d) The 2021/22 revenue saving proposals outlined in Annex 2;

e) The fees and charges proposals outlined in Annex 3;

f) The consultation feedback set out in Annex 4;

g) The Housing Revenue Account (HRA) growth set out in Annex 5, the HRA savings proposals set out in Annex 6, the HRA 2021/22 budget set out in Annex 7, and the HRA 30-year plan set out in Annex 8.

h) The dedicated schools grant proposals outlined in paragraph 156; and

i) The use of £52k New Homes Bonus to fund one-off investment, as outlined in paragraph 87.

Reason: To ensure that a legally balanced budget is set.

Minutes:

[See also under Part A]

The Chief Finance Officer presented a report which asked Executive to recommend to Council the financial strategy for 2021/22 to 2025/26, including detailed revenue budget proposals for 2021/22.

The strategy would deliver a balanced budget for 2021/22, with savings proposals totalling £7.9m.Overall, £12.5m additional revenue funding would be added to the budget to meet continuing pressures on adult social care and children’s services, support the council’s response to the Covid-19 pandemic and maintain progress on the objectives of the Council Plan. The proposals were predicated on a basic council tax increase of 1.99% in 2021/22, plus an additional increase of 3% in line with the government’s social care precept. The net revenue budget of £131.392m would be funded by council tax income of £98.051m and retained business rates of £33.341m.

The report included statutory advice from the s151 Officer, at paragraphs 202-224. A summary of the budget expenditure and savings proposals was provided in Annexes 1 and 2, with HRA growth and savings proposals in Annexes 5 and 6. Results of consultation with residents and businesses were detailed in Annex 4; it was noted that responses had increased from 825 to 2,251 this year.

In response to comments made under Public Participation, officers confirmed that proposals to review adult social care staffing would involve exploring options; there was no fixed view at this stage. Members supported the recommendations in the report, commenting individually on their respective portfolio areas. The Chair highlighted the increase in funding to crucial services and the need for the council to achieve a stable position in the face of unprecedented financial pressures.