At its meeting on 5 February 2020 the Executive Committee considered the 2020/21 budget and RECOMMENDED TO COUNCIL that:

1.   A net budget of £8,956,607 be APPROVED.

2.   A Band D Council Tax of £124.36, an increase of £5.00 per annum, be APPROVED.

3.   The use of New Homes Bonus, as proposed in Paragraph 3.5 of the report, be AGREED.

4.   The addition of £183,965 to the capital programme to fund new ICT requirements, as outlined in Paragraph 9.5 of the report, be AGREED.

5.    The capital programme, as proposed in Appendix A to the report, be AGREED.

(If a Councillor intends to move a Motion or Amendment in relation to the Council’s annual budget, the text of the proposed Motion or Amendment must be submitted in writing to the Borough Solicitor by 9.00am on the working day preceding the day of the Council meeting).  

75.1           At its meeting on 5 February 2020 the Executive Committee considered the 2020/21 budget and made a recommendation to Council.  

75.2           The report which was considered by the Executive Committee had been circulated with the Agenda for the current meeting at Pages No. 14-28.

75.3           In proposing the recommendation, the Chair of the Executive Committee explained that this was the most important thing the Council did throughout the year and a lot of hard work went into putting together a balanced budget both from Officers and Members across the Council. The Lead Member for Finance and Asset Management seconded the recommendation from the Executive Committee and conveyed special thanks to the Head of Finance and Asset Management for the work he had put into ensuring the Council had a budget it considered acceptable.

75.4              During the brief discussion which ensued, a Member questioned what the £20,000 for the climate emergency would cover and he was advised that this was an ongoing commitment to help support work across the Borough. The Council was also considering putting in place a new post which would help it meet its climate emergency commitments; the £20,000 funding was meant to be a starting point in delivering this as a priority of the Council. Referring to the capital programme, and the provision of a new bridge in Ashchurch, a Member questioned whether any allowance had been made for cost overruns. In response, the Head of Finance and Asset Management advised that the project cost included a contingency of 12.5%; work was still ongoing but the consultants currently working on the project had indicated the funding available would be adequate. 

75.5          The proposal was seconded and, in accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, voting on the proposal was recorded as follows:

75.6           Accordingly, it was

                  RESOLVED         1.    That a net budget of £8,956,607 for 2020/21 be                                                   APPROVED.

2.    That a Band D Council Tax of £124.36, an increase of £5.00 per annum, be APPROVED. 

3.    That the use of New Homes Bonus, as proposed in Paragraph 3.5 of the report, be AGREED.

4.    That the addition of £183,965 to the capital programme to fund new ICT requirements, as outlined in Paragraph 9.5 of the report, be AGREED.

5.    That the  ...  view the full minutes text for item 75

To recommend a budget for 2020/21 to the Council. 

That it be RECOMMENDED TO COUNCIL that:

1.   A net budget of £8,956,607 be APPROVED.

2.   A Band D Council Tax of £124.36, an increase of £5.00 per annum, be APPROVED.

3.   The use of New Homes Bonus, as proposed in Paragraph 3.5 of the report, be AGREED.

4.   The addition of £183,965 to the capital programme to fund new ICT requirements, as outlined in Paragraph 9.5 of the report, be AGREED.

5.    The capital programme, as proposed in Appendix A to the report, be AGREED.

83.1           The report of the Head of Finance and Asset Management, circulated at Pages No. 38-52,  set out a proposed budget for 2020/21 which the Committee was asked to recommend to Council for approval.

83.2           The Head of Finance and Asset Management drew attention to a number of key points. He explained that the local government finance settlement would be rolled over for a further year with an uplift in funding in line with inflation - this would only generate an additional £31,000 given that the base funding level was so low. In terms of New Homes Bonus funding, for 2020/21 the Council would receive £3.73million from the Scheme; however, there was the potential that the funding may be withdrawn after that and this was of significant concern to the Council given the amount that was utilised to support the base budget. For 2020/21, the proposed use of New Homes Bonus included support to the base budget; planning appeals; climate emergency support; HGV driver training; collection of small electrical equipment; IT and digital development plan; Borough Elections; business rates intelligence; Community Funding Officer; Heritage Action Zone match funding; Economic Development and Tourism Officer; tourism study; Medium Term Financial Strategy reserve; investment fund; and pay award contingency. Referring to business rates retention, the Head of Finance and Asset Management explained that the government’s intention had been to move the local authority sector as a whole to a 75% retention scheme from 1 April 2020; however, this had now been delayed for one year and the current 50% retention scheme would instead apply for 2020/21. It was estimated that the growth retained under the 50% scheme would increase by around £60,000 to £739,000. Referring to Council Tax, the Head of Finance and Asset Management advised that, given the level of deficit for 2020/21 and the medium term financial forecast of continued deficits, it was necessary to recommend an increase in Council Tax of £5 per year at Band D level – the equivalent of 4.19% - in order to balance next year’s budget. The recommended increase should mean the Council remained within the bottom 10 precepting authorities. Referring to Paragraph 6.0 of the report - budget proposals – Members were advised that the projection within the Medium Term Financial Strategy had highlighted a potential deficit of £0.8million for 2020/21 and this had been reflected in the draft budget requirements put forward by service areas. Significant savings and increased income had been made to offset the deficit and this had resulted in the net cost of services only increasing by £183,777 (2.09%) for the next financial year. Particular attention was drawn to the estimates for 2020/21 which included an allowance for a 2% pay award – however, negotiations between Unions and the employers were yet to progress with Unions requesting a pay award significantly in excess of inflation; should agreement be reached which was in excess of 2%, a contingency within New Homes Bonus allowed coverage up to a level of 3%. The  ...  view the full minutes text for item 83