Decision details

Council's Budget Report

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No


In general

The Cabinet:

  1. noted that the Financial Strategy of the Authority had been further developed and consisted of four linked papers. The papers and figures were subject to final review because of Government announcements and final due diligence;
  2. noted the current reports reflected the suggestions of Cabinet and Members in general made in early January, later and better information, minor presentation improvements and the inclusion of a summary balance sheet statement;
  3. allowed for this level of final change before presentation of the Financial Strategy to the Full Council in February adjustments with a cumulative net impact of £500,000 could be made on the direction of the Leader in consultation with the Portfolio Holder for Planning and the Section 151 Officer and reported back to the Council; and
  4. noted that adjustments to the papers with a value more than £500,000 were brought back to the Cabinet.


Paper A, Medium Term Financial Strategy

The Cabinet:

  1. approved the approach set out in the Medium Term Financial Strategy, particularly in respect of inflation of cost and charges and fees and the aim to maintain the financial strength of the Authority as evidenced by reserve balances; and
  2. supported the increase in the importance of the income from Qualis in respect of the medium term financial strategy and the budget.


Paper B, Budget 2020/21

The Cabinet:

  1. approved the 2020/21 budget in outline and confirmed the approach to cost and income inflation at 3.0%, noting that rents would rise per the national formula at 2.7% and car parking income would not rise at all pending the outcome of the review;
  2. approved the 2020/21 budget in outline and confirmed the list of developments for which funding would be released on implementation;
  3. approved the general and HRA capital spend of £26,119,250 in total;
  4. approved the loans to Qualis that with total up to £120m in 2020/21 as set out in the report; and
  5. approved the 2020/21 budget in outline and confirmed that the overall funding adjustments for the District Development Fund and savings and contingency were as set out, i.e. a net draw from DDF of £846,660 (£2m forecast last year), £500,000 of savings, the formation of a contingency fund assumed spent of £1,095,540.


Paper C, Prudential Indicators

The Cabinet:

  1. noted the intent of keeping the financial strength of thee Authority at current levels;
  2. noted the impact of taking loans and onwardly granting loans to Qualis with a margin of profit for the Authority;
  3. noted the general risk price approach to the loans granted to Qualis; and
  4. noted that the full set of prudential indicators along with the treasury strategy would be taken to the Full Council in February.


Paper D, Council Tax Increase

The Cabinet:

  1. to recommend the council tax increase of 1.5% (half the predicted inflation rate) for 2020/21 to full Council; and
  2. noted that in 2021/22 the options to cease or reduce council tax rates exists (though the Government expectation on what should be raised from council tax should be noted).


Report author: Nick Dawe

Publication date: 10/02/2020

Date of decision: 06/02/2020

Decided at meeting: 06/02/2020 - Cabinet

Accompanying Documents: