Agenda item

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

Resolved:  (i)      That the revocation of the 2020/21 North and West Yorkshire 50% retention business rates pool on 31 March 2021 be noted, and that City of York Council’s membership of the 2021/22 Leeds City Region 50% business rates pool from 1 April, as outlined in paragraph 106 of the report, be agreed.

Reason:     To confirm membership of the Leeds City Region 50% business rates pool for 2021/22.

                   (ii)      That the average rent increase of 1.5%, based on national formulas linked to RPI and CPI, be approved to apply to all rents for 2021/22, with the exception of Gypsy, Roma and Traveller Community site rents, to which a 1.2% increase shall apply as described in paragraphs 152 and 154.

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

[See also under Part B]

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.

Resolved:  (i)      That the revocation of the 2020/21 North and West Yorkshire 50% retention business rates pool on 31 March 2021 be noted, and that City of York Council’s membership of the 2021/22 Leeds City Region 50% business rates pool from 1 April, as outlined in paragraph 106 of the report, be agreed.

Reason:     To confirm membership of the Leeds City Region 50% business rates pool for 2021/22.

                   (ii)      That the average rent increase of 1.5%, based on national formulas linked to RPI and CPI, be approved to apply to all rents for 2021/22, with the exception of Gypsy, Roma and Traveller Community site rents, to which a 1.2% increase shall apply as described in paragraphs 152 and 154.

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