Issue - meetings

Report of the Head of Finance

Presented by the Corporate Portfolio Holder

The Corporate Portfolio Holder presented the report to Members.

He advised that the report asked Cabinet to agree the 2020/21 budget proposals for statutory and public consultation on the council’s website and that the draft General Fund Budget for next year projected a balanced budget with a £847k surplus.  He noted that it was better than had been anticipated due to the deferral of the local government funding reforms to April 2021.

He highlighted that the report included a range of budget proposals including savings, cost pressures, staffing increases and developments to service areas and that the key features for the next year included:

-       A new £1m Climate Change Reserve set aside to cover the additional costs to the General Fund on becoming carbon neutral.

-       Incorporation of budgetary provision for tree maintenance and for maximising external funding, as a result of consultation with the Corporate Scrutiny Committee on 7 November;

-       Inclusion of  £570k Journey to Self Sufficiency savings target, following a redesign of the programme; and

-       Details around proposed charge variations for next year – a new approach for the next year in line with the Corporate Charging Policy.

He informed that there was no proposed increase in Council Tax  and that Business Rates growth for the  next year had been assessed as significant largely due to growth in the north of the district.

He advised that funding estimates would be refined following approval of the council tax and business rates bases in January and receipt of the provisional Local Government Finance Settlement which had been delayed until after the General Election. He noted that adequate reserves remained in place with the forecast self-sufficiency reserve balance of £5.3m at 31 March 2021, subject to the council using the reserve to generate revenue as part of the Journey to Self-Sufficiency Programme and a further £1.5m agreed minimum operating balance.

He stated that the draft budget for Special Expenses included proposed increases in the precept for next financial year to fund planned maintenance, the phasing out of the Localisation of Council Tax Support Grant and maintain a balanced position, and that the final position for special expenses was likely to change as a result of the work to set the council tax base for next year. 

He outlined that the consultation would be undertaken throughout December and early January, with responses reported to Cabinet and Council as part of the approval process for the final budget. 

It was moved by Councillor N J Rushton, seconded by Councillor R Blunt and

RESOLVED THAT:

1.    The 2020/21 General Fund and Special Expenses budget proposals be  agreed for statutory consultation; and

2.    The assurance statement by the S151 Officer be noted.

Reason for decision: Required to complete 2020/21 budget process.