Agenda item

Cabinet, at its meeting on 4 February 2021, will consider a report on the draft revenue budget 2021/22, and the capital programme to 2025/26.

The report of the interim head of finance, which Cabinet will consider on 4 February 2021 is attached.  

The recommendations of Cabinet will be circulated to all councillors following the Cabinet meeting.

The Scrutiny Committee will consider this report at its meeting on 9 February 2021. Any views will be reported to Council.

The chairman referred to regulations that require councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget, including amendments, and the council tax. In accordance with the regulations he would call for a named vote on each of these matters at this meeting.

The chairman reminded councillors that they were not entitled to vote on any issue affecting the level or administration of the council tax or other decisions which might affect the making of any such calculation such as the budget, if they were over two months in arrears with their council tax payments. Where such circumstances applied, councillors were under a statutory obligation to disclose the restriction placed on them and refrain from voting at the relevant meeting. No councillor made any such declaration.

Council noted the report of the chief finance officer on the robustness of the budget estimates and the adequacy of the reserves.

Council considered Cabinet’s recommendations, made at its meeting held on 4 February 2021, on the revenue budget for 2021/22 and the capital programme to 2025/26. Scrutiny Committee had considered the report of the interim head of finance on 9 February and had made no recommendations. 

Councillor Rawlins, Cabinet member for finance, presented Cabinet’s proposals for the revenue budget and capital programme. He moved and Councillor Sue Cooper, Leader of the council, seconded a motion to approve Cabinet’s recommendations as follows:

1.         to set 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;

2.         to approve 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;

3.         to set the council’s prudential limits, as listed in appendix E to that report;

4.         to approve the medium-term financial plan to 2025/26 as set out in appendix F to that report; 

5.         to allocate £500,000 to fund the Communities Capital and Revenue grant scheme;

6.         to ask 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. 

The majority of councillors supported the budget recognising the challenging environment caused by the pandemic. The view was expressed that the council could not continue to rely on reserves, which were diminishing, to support a budget deficit. Those who spoke against the budget expressed the view that the budget deficit of £4million was too large and of the need to bring the budget back into balance.

In accordance with regulations requiring councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget the chairman called for a recorded vote which was carried with the voting being as follows:

RESOLVED: to

1.    set 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;

2.    approve 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;

3.    set the council’s prudential limits, as listed in appendix E to that report;

4.    approve the medium-term financial plan to 2025/26 as set out in appendix F to that report; 

5.    allocate £500,000 to fund the Communities Capital and Revenue grant scheme;

6.    ask 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.