Agenda item

To consider Item 7

The Deputy Director of Finance and Assets advised Members that the report presented the proposed revenue and capital Medium Term Financial Plan (MTFP) for the financial years 2021/22 to 2025/26. The MTFP was closely linked to the Financial Strategy, approved in December 2020 which was the link between the Authority’s long-term service objectives and its financial capacity. The financial settlement by Government had recently been announced and within the settlement it confirmed that authorities without any specific council tax freedoms, could increase council tax by up to 1.99% without the need for a referendum.

The Deputy Director of Finance and Assets advised Members that the Authority had also seen a reduction in its Council Tax base by 0.65%. For comparison, in previous years the Council Tax base had increased in the region of 1.5% to 2%. To counter some of this reduction, the Government had announced an additional £670m unringfenced grant that would be distributed to authorities in recognition of the increased costs of providing local Council Tax support following the Covid-19 pandemic. Indicative figures published on 18 December 2020 show the Authority would receive in the region of £336k which had been reflected in the projections under the heading Council Tax Support Grant.

The Deputy Director of Finance and Assets advised Members that without sufficient time to undertake a full comprehensive spending review due to the Covid-19 Pandemic, the Government had effectively rolled forward amounts within the settlement funding assessment for 2020/21 and increased these by the rate of inflation as at September 2020. The exception was the pension grant funding which was a flat cash settlement and expected to be included in future years’ settlement funding assessment and subject to review as part of the anticipated three-year comprehensive spending review. It was anticipated that next year the Government would revert to a three-year comprehensive spending review whereby all funding would be subject to review.

The Deputy Director of Finance and Assets advised Members that in terms of the Authority’s budget setting process, this year officers reverted back to the incremental budgeting setting approach when developing the budget proposal for 2021/22. With the projected reductions in council tax base and business rates funding, the budget setting process was scrutinised by Officers and Members to ensure only proposals which added value for money were approved.

The Deputy Director of Finance and Assets advised Members as to the contents of an updated Appendix 1 and updated Appendix 2 from those contained in the Agenda Pack and that the figures within them could not yet be finalised as more data was still being received in respect of National Non-Domestic Rates information from Buckinghamshire Council. As the situation was dynamic further revised Appendices 1 and 2 would be provided to the Authority meeting on 17 February which would be the figures on which the Authority would base its decision to approve the revenue budget, capital programme, and precept.

RESOLVED –

That the Authority be recommended to:

1(a) Note and have due regard to the report and Statement of the Chief Finance Officer (see section 8 of Annex A).

1(b) Approve a Council Tax precept of £67.16 for a band D     equivalent property (a 1.99% increase from 2020/21 - equal to 2.5p per week) and the revenue budget as set out in Appendix 1.

1(c) Approve the capital programme as set out in Appendix 2.

2          Not hold a referendum to increase Council Tax above the 2% threshold for 2021/22.

3          Note that a referendum may need to be considered for 2022/23 depending on the outcome of the Comprehensive Spending Review.