Agenda item

Report of the Director of Finance & Resourcing (Treasurer) and Chief Fire Officer (DSFRA/20/4) attached.

The Authority considered a joint report of the Director of Finance & Resourcing (Treasurer) and the Chief Fire Officer on the proposed 2020-21 revenue budget and associated Council Tax levels.

The provisional local government finance settlement announced on 19 December 2019 indicated an increase in Settlement Funding Assessment (SFA) for this Authority of 1.61% over 2019-20 (from £21.961m to £22.319m).  There had, however, been an overall reduction of 24.12% since 2015-16 (from £29.413m to £22.319m).  Additionally, the Ministry for Housing, Communities and Local Government had reduced the threshold for increases in Council Tax beyond which it would be necessary to hold a referendum from 3% to 2% for the 2020-21 financial year.  The Authority had previously made representations for a fixed increase of £5.  While these had not proven successful to date, representations would continue to be made to seek to alter future funding settlements.

Two budgetary options were presented for consideration by the Authority:

·        Option A, representing no increase in Council Tax over 2019-20; and

·        Option B, representing a 1.99% increase in Council Tax over 2019-20.

The Core Budget Requirement for 2020-21 (which included provision for pay and inflation, inescapable commitments and new investment linked to the Safer Together programme) had been identified at £80.343m, representing an increase of £5.201m (6.92%) over the budget for 2019-20.  This amount exceeded the funding available under both Options A and B and consequently the report identified revenue budget savings totalling £1.323m to be achieved during 2020-21, with the remaining budget shortfall being met from reserves (£1.167m) and a reduction in the revenue contribution to capital (£1.634m for Option A; £0.577m for Option B).

In accordance with the Local Government Finance Act 1992, non-domestic rate payers had been consulted on expenditure proposals for 2020-21.  Additionally, telephone and on-line surveys of businesses and residents had been undertaken.  The detailed survey results were appended to the report but in summary the majority of respondents felt it would be reasonable for the Authority to consider increasing its precept for 2020-21, with those who agreed being predominantly in favour of an increase of 2.99% or above.  Both businesses and residents agreed that the Service provided value for money and were satisfied with the services provided.

Also appended to the report was a statement prepared by the Chief Finance Officer in accordance with Section 25 of the Local Government Act 2003 on the robustness of the budget estimates and the adequacy of the level of reserves.

The proposed revenue budget and associated Council Tax levels had been considered by the Resources Committee (budget) meeting on 13 February 2020 which had resolved to recommend that the Authority approve Option B (Minute RC/14 refers).

RESOLVED

(i).         that, as recommended by the Resources Committee (budget) meeting on 13 February 2020, the level of Council Tax in 2020-21 for a Band D property be set at £88.24, as outlined in Option B of report DSFRA/20/4, representing a 1.99% increase over 2019-20;

(ii).        that, accordingly, a Net Revenue Budget Requirement for 2020-21 of £77.276m be approved;

(iii).       that, as a consequence of the decisions at (i) and (ii) above:

(A).       the tax base for payment purposes and the precept required from each billing authority for payment of a total precept of £54,212,834 (Option B), as detailed on page 3 of the respective budget booklet (circulated separately with the agenda for the meeting) and reproduced in the following table, be approved:

(B).       that the Council Tax for each property band A to H associated with the total precept of £54,212,834 (Option B), as detailed on page 3 of the respective budget booklet and reproduced in the table below, be approved:

(iv).      that the Treasurer’s “Statement on the Robustness of the Budget Estimates and the Adequacy of the Authority Reserve Balances”, as set out at Appendix A to report DSFRA/20/4 and reproduced at Appendix A to these Minutes, be approved.

(SEE ALSO MINUTE DSFRA/35(c) ABOVE).