Issue - meetings

Cabinet, at its meeting on 3 February 2020, considered a report on the draft revenue budget 2020/21, and the capital programme to 2024/25.

The report of the interim head of finance, which Cabinet considered on 3 February 2020, has been circulated to all councillors. Please bring this to the Council meeting. 

The Scrutiny Committee will consider this report at its meeting on 6 February 2020. Any views or recommendations will be reported to Council.

Cabinet agreed to maintain car park fees and charges at current levels, pending a review of fees and charges later in the year.

RECOMMENDATION TO COUNCIL: to 

1.    set the revenue budget for 2020/21 as set out in appendix A.1 to the interim head of finance’s report to Cabinet on 3 February 2020;

2.    approve the capital programme for 2020/21 to 2024/25 as set out in appendix D.1 to the report, together with the capital growth bids set out in appendix D.3 of the report;

3.    set the council’s prudential limits as listed in appendix E to the report; and

4.    approve the medium-term financial plan to 2024/25 as set out in appendix F.1 to the report. 

The chair referred to regulations that require councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget, including amendments, and the council tax. In accordance with the regulations she would call for a named vote on each of these matters at this meeting.

The chair reminded councillors that they were not entitled to vote on any issue affecting the level or administration of the council tax or other decisions which might affect the making of any such calculation such as the budget, if they were over two months in arrears with their council tax payments. Where such circumstances applied, councillors were under a statutory obligation to disclose the restriction placed on them and refrain from voting at the relevant meeting. No councillor made any such declaration.

Council noted the report of the chief finance officeron the robustness of the budget estimates and the adequacy of the reserves.

Councillor Crawford, Cabinet member for finance, presented the Cabinet’s proposals for the revenue budget 2020/21 and capital programme to 2024/25.

Council thanked officers and particularly William Jacobs and Simon Hewings for their part in preparing the draft budget.  Council thanked William Jacobs for his service to the council and wished Simon Hewings well in the role.

Councillor Crawford moved and Councillor Smith seconded a motion to approve Cabinet’s recommendations as follows:

1. set the revenue budget for 2020/21 as set out in appendix A.1 to the interim head   of finance’s report to Cabinet on 3 February 2020;

2. approve the capital programme for 2020/21 to 2024/25 as set out in appendix D.1 to the report, together with the capital growth bids set out in appendix D.3 of the report;

3. set the council’s prudential limits as listed in appendix E to the report; and

4. approve the medium-term financial plan to 2024/25 as set out in appendix F.1 to the report.

Those councillors who spoke in support of Cabinet’s recommendation noted the difficult funding issues facing the council with lower central government funding, lower investment returns and a need to use reserves to balance the budget. They welcomed the budget which identified base budget and service review savings with the deletion of vacant posts. The budget included funding to support manifesto commitments - a new local plan and climate change issues with grants to support community initiatives to help tackle climate change and a budget for the Climate Emergency Advisory Committee (CEAC) to fund its one year climate emergency work programme. The funding for transformation activity will be used to identify ways to generate income and identify further areas for savings.

A number of councillors spoke in opposition to Cabinet’s budget. Small savings would have an adverse impact on small rural parishes – for example a charge for the production of neighbourhood plan maps which whilst saving £500 would involve greater costs for those involved in preparing plans. The budget proposals to axe jobs in planning enforcement and environmental health, community grants  ...  view the full minutes text for item 63

To consider the head of finance’s report (to follow).

The committee considered the Interim Head of Finance’s report on the revenue budget 2020/21 and the capital programme to 2024/25.

Councillor Crawford briefed the committee on the budget report. It was a difficult task to provide the report on time, due to the December elections. The officer’s hard work resulted in a forensic, line by line analysis of the budget.

Councillors attended a comprehensive pre-briefing on the budget report.

Council Tax announcement has been delayed until the 14February, due to the Thames Valley Police tax element being delayed.

There was a £500,000 budget for transformation, and a £5 Council Tax increase for Band D properties. Climate Emergency has been allocated £106,000.

Clarifications:

·         It was confirmed that when the budget allows next year, there will be a working group to consider a move towards a single district council.

·         Transformation will include a review of community and leisure services, to reduce losses.

·         Enforcement budget is lowered due to the department already having 14 enforcers. Further staffing would not improve outcomes.

The Portfolio Holder for finance confirmed that he had confidence in the 2020/21 budget. It was forensically carried out. 96 percent of budget lines delivered within 2 percent of budget; the variance was small. The council’s external auditors commented that this is a well-managed budget and councillors were encouraged to attend the Audit and Governance Committee if they want to.

The committee discussed budget assumptions, and clarification was given by officers and the portfolio holder.

For example, planning fees overestimation: There is little control over some budget aspects – the estimates are based on historical evidence and land in the pipeline. The budget has been produced alongside services, to identify where we can offset income and expenditure. For example, if there are less planning applications, do not recruit vacant posts.

The new IT system in Revenue and Benefits has shown a reduction in overpayments, meaning the council has less to clawback.

Thanks were given to the Officers. The committee noted the report but did not make any recommendation to Cabinet.