Agenda item

Finance and Economic Development – (C051-2020-21) - this is the draft budget proposals  for the 2021/22 budget cycle.

Detailed proposals to be published separately nearer the time of the Cabinet meeting.

(1)        The Cabinet considered the draft budget proposals; and

(2)        requested that the Stronger Council Select Committee consider the draft budget proposals, and the emerging Medium-Term Financial Plan, and make comments to Cabinet for their consideration.

The Finance and Economic Development Portfolio Holder, Councillor Philip introduced the draft budget proposals for 2021/22. He noted that this had been a most taxing year for a budget for a long time. Things would change between now and February such as the unexpected move to Tier 4 recently imposed. He would try and stay as true as possible to his initial Medium Term Finance Strategy but moving into Tier 4 may have significant impact going forward.

The report would proceed for consideration by the Stronger Council Select Committee on 19th January 2021, before returning to Cabinet. Once Cabinet had considered the views of the Stronger Council Select Committee, and the budget has been updated for the latest developments, the final Budget proposals and an updated MTFS will be submitted to Council in February.

The budget was less well developed than would normally be expected, and publication deadlines were being squeezed in order to get greater certainty, to ensure a reasonable trade-off between refinement and the need for meaningful scrutiny.

He highlighted that employee cost had gone up. They had also put in for the first time the pension fund deficit reduction payment so that we could see the impact of what’s happening there. It would have a significant impact with a net cost to the general fund of just under a half million pounds. There was some detailed work on fees and charges carried out, such as not having any increase in car parking charges. With the introduction of the vaccine there was some hope of having the leisure centres back in operation, but now with Tier 4 in operation we shall have to wait and see.  They had now determined the base for Council Tax for 2021/22, still assuming a £5 increase in a band D property. They have upped the support that we would get from government for around £1.4million and a contribution from the council’s reserves of about £1million to enable the council to balance its budget.

Councillor Brookes said that government money was available for the leisure industry and asked if we could re-coop some of our costs for the leisure centres. She was told that we had already recovered some money from the Government for the leisure area.

Councillor Brookes then asked about the loss on the HRA account for the current year and asked for more detail. She was told that this budget paper was for next year and officers would know much more in February about what is happening in the HRA as this has not been a typical year.

Councillor Wixley asked if there was any indication on when the residents in the districts would have received the vaccination, as this would affect the use of the sports centres. He was told that the vaccinations were being rolled out as quickly as possible, starting with the older generations, who also used our sport centres.

Councillor Heap noted that rates were historically low at present and asked if we could use it to help in the refinancing event. He was told that this was for the HRA and would not help the general fund.

Decision:

(1)        The Cabinet considered the draft budget proposals; and

(2)        requested that the Stronger Council Select Committee consider the draft budget proposals, and the emerging Medium-Term Financial Plan, and make comments to Cabinet for their consideration.

Reasons for Proposed Decision:

To set a framework within which the Council can develop and set its Budget for 2021/22 and update its Medium-Term Financial Strategy.

Options for Action:

None at this time.