Agenda item

Revenue Budget Proposals 2021-22

Minutes:

E.59/20

The Executive was presented with a report that outlined the draft revenue budget proposals for 2021/22.  The Leader highlighted the differences made to the report subsequent to the Joint Overview & Scrutiny Panel/ Development Management Committee meeting held on the 14th January 2021. 

 

The Chair of the Overview & Scrutiny Panel then spoke to Recommendation vi) options a) and b).  Since the Joint Meeting, he had discussed both options with the Section 151 Officer and had decided that he was in favour of option b).  This retained the remainder of the unallocated New Homes Bonus monies for 2021/22, £122,274 to be held in Reserve against the potential of a shortfall when the replacement to the New Homes Bonus was finally announced for 2022/23. The £122,274 unallocated New Homes Bonus from 2021/22 and the £235,016 unallocated New Homes Bonus from 2020/21 could then be retained to fund the £546,000 of New Homes Bonus funding needed to fund the revenue base budget in 2022/23.

 

The Executive then voted on option b) of recommendation vi, and this was carried unanimously.

 

It was noted that there had been good collaborative work on this budget across the political spectrum.  The Leader outlined that the proposed £200,000 to be allocated to fund the Climate Change Action Plan should be used for projects which not only impacted on climate change but also helped ensure a green recovery, and help the Council achieve its aim of a zero carbon future. 

 

Following a question from a Non-Executive Member, the Leader confirmed that specific projects would be determined by the Action Plan and The COVID-19 Recovery Plan.  The Leader confirmed she has already asked officers to look at Climate Change and Biodiversity Regeneration projects that would help to support green recovery.  It was noted that officers were currently fully engaged in responding to the pandemic, but it was hoped that within a month or so officers would be able to develop these projects.

 

It was then:

 

rECOMMENDED

 

That the Executive RECOMMEND to Council:-

 

i)        to increase Council Tax for 2021/22 by £5 (Band D of 175.42 for 2021/22 – an increase of 10 pence per week or £5 per year – equates to a 2.93% increase);

ii)       to approve the financial pressures shown in Appendix A of the presented agenda report (amounting to £696,761);

iii)      to approve the net contributions to/(from) Earmarked Reserves of £414,600 as shown in Appendix D of the presented agenda report, including the proposed use of £746,000 of New Homes Bonus funding to fund the 2021/22 Revenue Budget as set out in section 4.24 of the report;

iv)      to approve the savings of £122,191 (as shown in Appendix A of the presented agenda report);

v)       to approve the Partnership funding levels (as set out in Section 5 of the presented agenda report), including a £10,000 contribution to the CVS in 2021/22 and 2022/23

vi)      the allocation of £500,000* for funding for the Recovery and Renewal Plan and a further £200,000* funding for the Climate Change Action Plan, to be funded by:

             a. withdrawing the contribution to the Planning Earmarked 

                 Reserve in 2021-22 of £50,000;

             b. utilising £200,000 of New Homes Bonus funding from

                 2021-22 (instead of using £200,000 of New Homes

Bonus funding for the 2021-22 Capital Programme); and

             c. using £450,000 of funding from the Business Rates

                 Retention Earmarked Reserve;

 

(*This funding is to be put into an Earmarked Reserve for the purpose stated)

vii)     to transfer £380,789 (the fifth tranche of COVID funding as set out in sections 1.9 and 11.2 of the presented agenda report), into a COVID Earmarked Reserve, to protect against future COVID losses in 2021/22;

viii) to set its total net expenditure for 2021/22 (as shown in Appendix B of the presented agenda report) as £9,676,767;

ix)      that the minimum level of the Unearmarked Revenue Reserve be maintained at £1.5million; and

x)      that the level of reserves as set out within this report and the assessment of their adequacy and the robustness of budget estimates be noted.  (NB. this is a requirement of Part 2 of the Local Government Act 2003).

 

Supporting documents: