Issue - meetings

Cabinet received a report on the draft revenue budget and capital programme. Given the levels of uncertainty around government funding levels beyond 2021/22 and the difficulties with accurately forecasting the longer-term implications arising as a result of the pandemic the revenue budget proposed within the report is for 2021/22 only. This ensures that the Council does not make decisions based on assumptions which are impossible to estimate at this stage given the international, national and local fiscal impact of the pandemic.

RESOLVED: That the draft revenue budget and capital programme be approved and it be noted that a supplementary report, the formal Council Tax Resolution, will accompany the final Budget to Full Council.

Cabinet received a report on the draft revenue budget and capital programme. Given the levels of uncertainty around government funding levels beyond 2021/22 and the difficulties with accurately forecasting the longer-term implications arising as a result of the pandemic the revenue budget proposed within the report is for 2021/22 only. This ensures that the Council does not make decisions based on assumptions which are impossible to estimate at this stage given the international, national and local fiscal impact of the pandemic.

The Leader introduced the report and referred to the impact of the covid-19 pandemic which had heavily influenced the structure of the budget including income generation and expenditure. Therefore for the first time a one year revenue budget had been produced rather than three of four years because of the uncertainty. The government had also only produced a one year spending review. The Local Government Settlement was only received on 17 December 2020. The budget set out two categories of expenditure, revenue (day to day expenditure) and capital (invest in one off assets). On the revenue side this had been impacted by covid-19 with income generation (e.g. car parking, commercial property, leisure services and council tax and business rate income) and also the need to support residents and businesses in the County. There have been additional government grants to help with the budget. There has been a loss of rental income, parking income (£5.3 million less), reduction on council tax and business rates (£5 million each) and leisure (£2 million less). The costs have gone up quite significantly in areas such as home to school transport (£4.5 million) and adult social care. The Council were hoping to make significant savings as a result of becoming unitary. The proposal was to have a normal council tax increase of 1.99% which covered the basic increase in costs but the government had also advised that the Council could raise an extra 3% for an adult social care precept to cover the increased costs; this needed a national solution. However, because of the recent pandemic Cabinet Members had considered that only a 2% increase should be proposed with a 1.99% basic increase. This left a small gap which would be covered by general reserves.

Finally on the capital programme the Leader thanked the Deputy Leader Katrina Wood for her work on this area and outlined the following highlights:-

·         £161 million over the next four years for schools

·         £128 million on highways including £17.4 on plane and patch

·         £20 million on waste (new vehicles)

·         £16 million on housing and homelessness

·         £15 million on leisure services

·         £39 million on economic recovery

The risks involved were outlined in the report. The Head of Finance added that this draft budget would be scrutinised by Budget Scrutiny from 11 January 2021 with a revised budget being considered by Cabinet on 16 February and Council 24 February 2021. The public were welcome to submit questions to budget scrutiny.

During discussion the following points were noted:-

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