Agenda item

Report of the Chief Officers Executive

The Chief Officers Executive submitted a report (previously circulated) to seek approval for a Medium Term Financial Plan (MTFP) for 2021/22 to 2024/25, including setting a budget and Council Tax increase for 2021/22.

The submitted report stated that the Council had faced significant challenges over the previous decade following the economic downturn and reduction in public sector spending. It was reported that the Council had been successful in responding to these challenges, however it was becoming more difficult particularly in respect of a growing elderly population, pressure in the Children’s Social Care sector, and the major economic impact of Covid-19, which had had a direct impact on the Council’s finances this year, and would be felt for years to come.

The submitted report stated that the Council had received its definitive financial settlement on 17 December 2020, and confirmed a number of funding streams announced in the spending review for 2021/22, including Social Care Grant, Covid-19 support, the continuation of the Revenue Support Grant and an Adult Social Care precept.  

The submitted report outlined that the Council had undertaken a significant consultation exercise in 2016, following an in-depth and detailed review of all services, which had resulted in the agreement of a Core Offer budget and allowed for a small futures fund allocated to discretionary services. In addition, in subsequent MTFPs, Members agreed to use unallocated balances of £6.5m to invest in five areas which hold great value to the community.  

The submitted report stated that the core offer remained challenging, with some significant pressures arising in social care and the ongoing impact of Covid-19, however through tight financial management, innovative financial investments, and increased income from economic growth successes, it was anticipated that the Council could deliver the agreed balanced plan, extend the MTFP for a further year to 2024/25, whilst retaining usable balances of £3.738m.

The following amendment to the Motion was moved by Councillor Harker, and seconded by Councillor McCollom:

‘To replace paragraph 7 of Item 5 (Medium Term Financial Plan) with the following:

Council are requested to:

(a) Approve the Revenue MTFP as set out in Appendix 7 including the following: 

(i)             Council tax increase of 1.99% for 2021/22. 

(ii)            The Schedule of Charges as set out in Appendix 3. 

(iii)          The Futures Fund investment into 2024/25 as set out in paragraph 62. 

(b) Approve a delegation for Cabinet to vary the Revenue Budget for 2021/22 by up to £0.5m without further Council approval.

(c) Defer the Adult Social Care Precept of 3% until 2022/23’

In accordance with Council Procedure Rules, a request was made by five Members for a named vote on the Amendment. A named vote was taken of those Members present at the meeting and there appeared:-

For the Amendment – The Mayor; Councillors Ali, Cossins, Crumbie, Harker, Haszeldine, Heslop, Holroyd, C. L. B. Hughes, L. Hughes, Layton, Lister, McCollom, M. Nicholson, Paley, A. J. Scott, Snedker and Wallis (18)

Against the Amendment – Councillors Bartch, Bell, Dr. Chou, Clarke, Crudass, Mrs. Culley, Donoghue, Dulston, Durham, Howell, Johnson, B. Jones, Mrs. D. Jones, Keir, Laing, Lee, Marshall, Mills, K. Nicholson, Preston, Renton, Mrs. H. Scott, Tait, Tostevin and Wright (25)

Abstentions – Councillors Allen, Boddy and Curry (3)  

The Amendment was Lost.

In accordance with the requirements of the Budget and Policy Framework Rules a vote on the recommendation was taken of those Members present at the meeting and there appeared:-

For the Motion – Councillors Bartch, Bell, Dr. Chou, Clarke, Crudass, Mrs. Culley, Donoghue, Dulston, Durham, Holroyd, Howell, Johnson, B. Jones, Mrs. D. Jones, Keir, Laing, Lee, Marshall, Mills, K. Nicholson, Preston, Renton, Mrs. H. Scott, Snedker, Tait, Tostevin and Wright (27)

Against the Motion – The Mayor; Councillors Ali, Cossins, Crumbie, Harker, Haszeldine, Heslop, C. L. B. Hughes, L. Hughes, Layton, Lister, McCollom, M. Nicholson, Paley, A. J. Scott and Wallis (16)

Abstentions – Councillors Allen, Boddy and Curry (3)  

Motion Carried. 

RESOLVED - (a) That the Revenue MTFP, as set out in Appendix 7 of the submitted report, be approved, including the following;

(i)             Council tax increase of 1.99% plus a 3% Adult Social Care Precept to help fund social care for 2021/22 totalling 4.99%.

(ii)            The Schedule of Charges as set out in Appendix 3.

(iii)          The Futures Fund investment into 2024/25, as detailed in Paragraph 62 of the submitted report.

(b) That a delegation for Cabinet to vary the Revenue Budget for 2021/22 by up to £0.5m without further Council approval, be approved.

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.