Issue - meetings

Cabinet received a report on the 2021/22 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 would ensure that the Council did not make decisions based on assumptions which were impossible to estimate at this stage given the international, national and local fiscal impact of the pandemic.

It was noted that in response to the Budget Scrutiny 2021 report (Recommendation no. 11) it had been agreed to increase capital investment in highways drainage assets by £2m (from £1.5m to £3.5m).  This would allow structural repairs to be undertaken following identification of issues through cleansing in order to allow gullies to remain clear and operational.

It was further proposed that a further £2m be added to the revenue budget (from £2.2m to £4.2m) to allow all gullies to be properly cleansed once in 2021/22 with a second cleanse of critical gullies also in 2021/22, together with ensuring that any problems identified can be programmed in and rectified.  This would be funded from the one-off use of General Fund (unallocated) reserves.  The level of reserves were now forecast to be £45m which was still circa 10% of the net operational budget.

Overall, this meant that the total budget for drainage (revenue and capital) since the draft budget had been considered by Cabinet would increase from £3.7m to £7.7m.

RESOLVED 

1)                 That a further £2m be incorporated into the revenue budget for gully clearing (increasing the budget from £2.2m to £4.2m) funded from General Fund Reserves, as discussed and agreed at the meeting, and that

Full Council be recommended to:

2)                 approve the revenue budget and capital programme (Appendices 1-3).

3)                 approve the ‘Special Expenses’ budgets, precepts and associated services for Aylesbury Town, High Wycombe Town and West Wycombe Church Yard (Appendices 5 and 6).

4)                 support the proposal to delegate to Cabinet decisions to add up to £100m to the capital programme, to be funded by Prudential Borrowing (see section 9.5).

5)                 approve the Council Tax Reduction Scheme Policy (Appendix 7).

6)                 approve the schedule of Fees and Charges as set out in Appendix 8.

And that it be noted that a supplementary report, formal Council Tax Resolution, will accompany the final Budget to full Council.

M Tett introduced the final budget report which had previously been discussed and amended to incorporate recommendations made by the Finance and Resources Select Committee’s Budget Scrutiny Inquiry Group, and changes in the Government’s finance settlement.  The following keys areas of change were highlighted:

·                    that the budget setting process had been heavily influenced by the Covid-19 pandemic and has been updated following the third national lockdown and potential ongoing financial impacts.

·                    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 was for 2021/22 only. This would ensure that the Council did not make decisions based on assumptions which were impossible to accurately estimate at this stage given the global, national and local fiscal impacts of the pandemic.

·                    The Final Local Government Settlement had been announced on 4 February 2021. There had been no changes and as such this confirmed the figures published in the Provisional Settlement which formed part of the budget proposals.

·                    Changes to the draft revenue budget were largely focussed around the heightened risks as a result of the pandemic.  In particular, losses of income linked to business rates and other service income budgets.  The third lockdown has further increased the economic uncertainty and financial risks in the 2021/22 budget.

·                    the budget proposed was built on the proposed Council Tax base and included a 1.99% increase in basic Council Tax and a 2% increase for the Adult Social Care Precept, giving a total increase of 3.99%.  Members should note that the Government had announced through the Local Government Settlement the option of councils levying up to 3% for the Adult Social Care Precept. This budget included 2% Adult Social Care Precept levied for financial year 2021/22.  However, given the ongoing and well documented pressures for adult social care providers and the increasing number of people in the county needing adult social care services the council would need to revisit this additional 1% as a potential source of additional income when considering the budget for 2022/23.

·                    The revenue budget included a small one-off use of General Fund balances (£47k) in order to produce a balanced budget and mitigate financial risks in 2021/22.

·                    The Capital Programme was balanced across its 4 years, as many schemes span multiple financial years.  The Council currently had borrowing headroom of £100m. It was proposed that Council delegate to Cabinet the addition of schemes to the Capital Programme which had a financially viable business, subject to due diligence and final Cabinet approval.

Cabinet Members were also informed that following the budget scrutiny recommendation (no. 11) asking Cabinet to consider increasing the levels of investment on drainage issues, it was proposed that Cabinet should agree to increase capital investment in highways drainage assets by £2m (from £1.5m to £3.5m).  This would  allow structural repairs to be undertaken following identification of issues through cleansing in order to allow gullies to remain clear and operational.  This  ...  view the full minutes text for item 11