HC27
The Leader presented Members with a report that
outlined the Medium Term Financial Strategy for 2021/22 to
2025/26.
The budget gap for 2021/22 was estimated at
£176,000. It was noted that the
Amended budget this year had used some of the reserves but it would
not be expedient to use for next year’s budget gap, therefore
there may be a need to look at a structured approach to tackle the
gap. Options for closing the gap would
be reported to Hub Committee at the meeting on the 1st
December which would be the start of the normal round of budget
review that would culminate in Full Council being asked to adopt
the budget at its meeting on 16 February 2021. It was confirmed that lobbying of Central
Government for more funding would continue. The recommendations asked for the Hub Committee to
note the gaps and the timetable to tackle them.
During the debate it was clarified that the
anticipated income from Leisure Centres had been based on the
current renegotiated situation. The
S151 Officer confirmed that the Members Locality Fund had now been
built into the base budget and that it was still available for
Members to use, with any unspent carried forward. However, monies could not be rolled over at the
end of a four year Council administration.
Following a discussion regarding the cumulative
budget gap, it was agreed that this aspect of the Medium Term
Financial Strategy would be discussed at the next Financial
Stability Review Group meeting to determine whether this figure
should still be included.
It was noted that no council tax collection fund
surplus was assumed. The collection
rates within West Devon Borough Council (WDBC) remained at one of
the highest levels within Devon, however, the Revenues Team were
monitoring the situation with reminder notices going out in early
November and a review on collection rates would be held
thereafter. Any deficit or surplus
would be highlighted to the precepting authorities as they would
also be impacted.
Following a Member’s enquiry, the S151 Officer
confirmed that representatives from the Community Safety
Partnership were due to present their annual report to the Overview
and Scrutiny Committee meeting on 10th November which
would detail the current contribution (just under £17k) in
staffing costs from the Council. In the
event of any Members wishing to recommend any increase in funding
to the Partnership, then this would be considered during the normal
budget setting process as follows:
-
Hub Committee meeting: 1 December 2020;
-
Overview and Scrutiny Committee meeting: 19 January
2021;
-
Hub Committee meeting: 2 February 2021;
and
-
Council meeting: 16 February 2021.
It was acknowledged that although WDBC has a good
pictoral pie chart of where Council Tax was spent, it was felt that
more could be done to show this, perhaps outlining how much a
teacher costs, as an example. The
Communications Team were tasked with working on this
request.
The Leader moved the recommendations which were then
seconded by Cllr Cheadle (and carried by a Unanimous
vote).
It is recommended that the Hub
Committee has considered the Medium Term Financial Strategy and
recommend to
Council:
Recommendation 1: To set the strategic
intention to raise council tax by the maximum allowed in any given
year, without triggering a council tax referendum, to endeavour to
continue to deliver services. The actual council tax for any given
year would be decided by Council in the preceding
February.
Recommendation 2: To continue to respond
to Government consultations on Business Rates Reform
Recommendation 3: To continue to actively
lobby and engage with the Government, Devon MPs, South West
Councils, and other sector bodies such as the District
Councils’ Network and the Rural Services Network, for a
realistic business rates baseline to be set for the Council for
2022 onwards, when the business rates reset would
happen.
Recommendation 4: That West Devon Borough
Council continued to lobby in support of the Government eliminating
Negative Revenue Support Grant in 2021/22 (and thereafter) and
continued to lobby for Rural Services Delivery Grant allocations
which adequately reflected the cost of rural service
provision.
Recommendation 5: That the Council
maintained an Upper Limit on External Borrowing (for all Council
services) as part of the Medium Term Financial Strategy of
£50 million.
The Hub Committee also RESOLVED to
note:
i)
the forecast budget gap for 2021/22 of £0.175 million (2.2% of
the current Net Budget of £7.7million) and the position for
future years.
ii)
the current options identified and timescales for closing the budget
gap in 2021/22 and future years, to achieve long term financial
sustainability.