Agenda item

To consider a report which presents Executive’s proposed revenue budget; capital programmes and proposals for the Programme for Growth for 2020/21 to 2022/23.

 

In accordance with The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, all local authorities must record in their minutes how each Councillor voted (or abstained from voting) on the question of Budget and Council tax setting at the ‘Budget Decision Meeting’ of the Council. This rule will therefore apply and a recorded vote will be taken on this item.

 

 

Councillor Lunn, Lead Executive Member for Finance and Resources provided a presentation on Executive’s proposed revenue budget, capital programmes and outline Programme for Growth, for 2020-21 to 2022/23. The proposed budget also set out recommendations for formal Council Tax setting.

 

The key elements of the presentation were as follows:

 

·           A Band D Council Tax increase of £5 was proposed for 2020/21 which was in accordance with the approved Medium Term Financial Strategy.

 

·           The 2020/21 budgets showed a forecasted balanced budget, after taking into account planned savings and reserve transfers.

 

·           In 2020/21 it was proposed that £10.46m be transferred to the Special Projects Reserve to support delivery of the new Council Plan objectives. In accordance with the approved Medium Term Financial Strategy (MTFS), the allocation of these receipts would be subject to confirmation as part of the next MTFS refresh and budget for 2021/22 although indicatively, it was planned that these would be allocated to the Programme for Growth.

 

·           The Medium Term Financial Plan (3 year budget) showed there was an underlying gap between core spending and current assumed core funding as a result of New Homes Bonus being phased out, and the renewable energy business rates windfalls ceasing. Beyond 2020/21 the Council awaited the outcome of the Government’s Fair Funding Review, further consultation on the future of New Homes Bonus and reform of the Business Rates Retention System, to confirm the need for and level of future savings.

 

·           Whilst there was capacity in reserves to smooth the impact of savings and manage risk, the on-going use of reserves to support the revenue budget was not a long term sustainable solution, and therefore achievement of efficiency savings and additional income generation remained crucial as plans for Business Rates and Council Tax growth were brought to fruition.

 

·           The proposed budget also included recurring revenue budget growth proposals along with Capital Programme proposals for the General Fund and Housing Revenue Account (HRA), which were funded from reserves, external funding and borrowing, along with outline proposals for an extended Programme for Growth.

 

·           The draft budget proposals had been subject to public consultation, scrutiny by the Policy Review Committee and briefings for all Councillors. The results of the consultation along with proposed officer responses were appended to the report as were the minutes of Policy Review Committee.

 

Members debated the budget proposals before them, with concerns being raised around the volume of new homes being built that did not have the necessary associated infrastructure to support them.

 

Amendments to the recommendations in the budget report were proposed and seconded. Members discussed the amendments, some expressing their support for it as it gave more Councillors an influence on how money was being spent at the Council. The importance of helping those living in the most deprived areas was emphasised.

 

Other Members disagreed and felt strongly that the proposals in the amendment would increase bureaucracy and the demand on Officer time.

 

Some Councillors agreed with the recommendation in the budget to increase the council tax by £5 in order to prevent a widening funding gap in the future. However, others felt that savings targets should be met before increasing council tax and that any increase equated to less money in the pockets of residents of the district.

 

Members felt that the P4G funding should be spent on more environmental projects in order to improve cleanliness and tackle fly tipping and the dumping of rubbish that was a real issue in some parts of the district.

 

The potential for better collaborative working between the different groups on the Council was also discussed, as well as the opportunities that this could afford for better collaborative working by Members and being able to make a real difference for local people. 

A vote was taken on the amendment with 30 in favour and 1 against. The amendment was therefore carried.

 

In line with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Chairman explained that a recorded vote must be taken on the amended proposals which had been put forward as outlined in the report.

 

For the proposal: 29

Councillors K Arthur, D Brook, D Buckle, J Cattanach, I Chilvers, J Chilvers, M Crane, S Duckett, J Duggan, K Ellis, K Franks, T Grogan, E Jordan, M Jordan, A Lee, C Lunn, D Mackay, J Mackman, R Musgrave, W Nichols, B Packham, C Pearson, N Reader, J Shaw-Wright, S Shaw-Wright, R Sweeting, M Topping, P Welburn and P Welch

 

Against the proposal: 2

                                    Councillors J McCartney and M McCartney

 

RESOLVED:

 

i)          To approve the revenue budgets, savings, capital programme and programme for Growth at Appendices A to E;

 

ii)        To agree the increase in Council Tax by £5 to £183.22 for a Band D property for 2020/21;

 

iii)       To approve the formal Council Tax resolution set out in Appendix I;

 

iv)       To agree the transfer of the Surplus of £3.176m on the HRA to the Major Repairs Reserve to support the capital programme.

 

v)        To carry out a full review of the use of Green Energy Rebates and New Homes Bonus insofar as these are utilised to fund P4G projects by:

 

a)    Considering the reallocation of the unspent P4G budget relating to abandoned or unsustainable projects where there is no progress, as part of the annual process set out below; and

 

b)   With the exception of salaries and the Town Centre Action Plans, which are supported and are recommended for inclusion in the budget, considering which new projects for the P4G (included in Appendix E2 of the agenda, and other projects suggested in respect of (vi) below), should be pursued, utilising any savings from the above, and the approximately £18 million pounds that is expected to be transferred to the SPR over the next two financial years; and

 

c)    When reviewing P4G projects to consider establishing a Programme 4 People (P4P) within the P4G budget, identifying projects, the aim of which would be to enhance the environment of the District and the lives of our residents by improving access to facilities, and addressing infrastructure shortcomings.

 

vi)      To involve all Councillors in this process by:

 

a)    Inviting all Councillors to put forward ideas for projects either individually or in Groups.

 

b)   Holding an ‘Ideas Lab’, involving all Councillors, to discuss suggestions for projects, express their views on each option (including Appendix E2 projects), and request advice from Officers on their proposals.

 

c)    Requiring Officers to compile a report outlining projects proposed at the ‘Ideas Lab’ and Appendix E2 projects and their views on financial and operational feasibility and potential costs.

 

d)   Following the Executive’s consideration of this report, for the Executive to submit a report to Full Council giving their view on the Officer’s report and their recommendations. The final decision, following consideration of the Executive’s views, would be taken by Full Council and become part of the Council’s budget for the next financial year. This would allow all Councillors to have a considered input into what projects the Council undertake.

 

e)    To repeat the ‘Ideas Lab’ at a frequency proposed by the Executive and agreed by Council to review existing and propose new ideas for P4G and P4P projects.

 

REASON FOR DECISION:

 

To ensure the Executive’s budget proposals are fully funded for 2020-21.