Decision details

The Leader introduced the report of the Chief Officers Executive (previously circulated) requesting that consideration be given to the Medium Term Financial Plan (MTFP) for 2021/22 to 2024/25 (also previously circulated) for consultation including setting a budget and council tax increase for 2021/22.

The submitted report stated that over the last decade, the Council had faced significant challenges following the economic downturn and reduction in public sector spending;  to date the Council had been successful in responding to those challenges but there were still financial pressures to be faced, particularly in respect of a growing elderly population, pressure in the children’s social care sector and the economic impact of Covid-19; a number of funding streams had been announced, in the 2020 Spending Review; at the time of writing the report, the Local Government Finance Settlement (LGFS) had not been announced and that, as a result, a number of assumptions in regard to funding had been made; and that any changes to funding levels following the announcement would be reported to Cabinet in February.

It was reported that the Council undertook a significant consultation exercise in 2016, following an in-depth and detailed review of all services which resulted in the agreement of a Core Offer budget which allowed for a small futures fund allocated to discretionary services; in subsequent MTFP’s the Council had agreed to use unallocated balances of £6.5m to invest in five areas which held great value to the community; the Core Offer remained challenging with some significant pressures arising in social care and the ongoing impact of Covid-19; and that assuming the funding streams were received, the Council would still deliver the agreed balanced plan whilst retaining usable balances of £3.504m.

Details of the projected expenditure and income, budget pressures and savings, schedule of fees and charges, assumptions used to prepare estimates, projected Revenue Outturn 2020/21 and assessment of risk balances, were also appended to the submitted report.

Following a question by a Member in respect of the Council’s reserves, the Assistant Director Resources confirmed that the Council had sufficient reserves.

RESOLVED - That the Revenue Medium Term Financial Plan (MTFP), as set out in Appendix 7 of the submitted report, be approved for consultation, including:-

(a)    a Council tax increase of 1.99 per cent plus a three per cent adult social care precept to fund social care for 2021/22;

(b)    the Schedule of Charges, as set out in Appendix 3 of the submitted report; and

(c)    the Futures Fund continuation into 2024/25, as set out in paragraph 56 of the submitted report.

REASONS - (a)  The Council must set a budget for the next financial year.

(b)  To enable the Council to continue to plan services and finances over the medium term.

(c)  To ensure decisions can be made in a timely manner.