Agenda item

To consider the interim head of finance’s report (to follow). 

Cabinet considered the interim head of finance’s report on the budget for 2021/22.  The report set out the revenue budget for 2021/22, and the capital programme to 2025/26.  Cabinet was asked to recommend the budget to Council at its meeting on 11 February.  The budget would also be considered by the Scrutiny Committee on 9 February. 

The report recommended an increase in council tax of £5 for a Band D property for 2021/22.  This was the maximum increase allowed under the draft referendum rules outlined in the government’s provisional settlement. 

Coronavirus had played a central part in the budget.  The council would continue to see additional costs and income losses in the new financial year.  The figures included in the budget for these were estimates only, as no-one could predict the future course of the Covid-19 pandemic.  The government had provided some support but the council was likely to see reduced income. 

The prioritisation of staff resources had meant that the budget did not include any additional budget proposals that supported the council’s priorities in its new corporate plan.  However, the report identified where existing budgets could fund corporate plan delivery activity.  Deliverability of those activities would be dependent on council resources being available to progress them.  Given the uncertainty surrounding the budget, it might be necessary to revisit the budget during the year. 

The budget also included the medium-term financial plan for the next five years.  This showed an increasing draw on reserves over the five year period, based on current estimates of future local government funding.  The increasing use of reserves was unsustainable in the medium to long term.  Cabinet would continue to review budgets in the context of the corporate plan priorities to identify ways to improve the council’s financial position. 

Cabinet supported the budget proposal and thanked the Cabinet member for finance and all officers involved in producing the budget.

RECOMMENDED:to   

(a)      to Council on 11 February 2021 that it:

(i)        sets the revenue budget for 2021/22, as set out in appendix A.1 to the interim head of finance’s report to Cabinet on 4 February 2021;

(ii)       approves the capital programme for 2021/22 to 2025/26 as set out in appendix D.1 to that report, together with the capital programme changes as set out in appendix D.2 to that report;

(iii)      sets the council’s prudential limits, as listed in appendix E to that report;

(iv)      approves the medium-term financial plan to 2025/26 as set out in appendix F to that report; 

(v)       allocates £500,000 to fund the Communities Capital and Revenue grant scheme;

(vi)      asks officers to review the Medium-Term Financial Strategy following the 2021 spending review and Ministry of Housing, Communities and Local Government announcements of changes to the council’s future funding streams. 

RESOLVED: to

(b)      agree that the Cabinet member for finance, in conjunction with the interim head of finance, may make minor adjustments to the interim head of finance’s report and the prudential indicators, should they prove necessary prior to its submission to Council on 11 February 2021.