Agenda item

Revenue budget 2021/22 and capital programme to 2025/26

Cabinet, at its meeting on 5 February 2021, will consider a report on the draft revenue budget 2021/22, and the capital programme to 2025/26.

 

The report of the interim head of finance, which Cabinet will consider on 5 February 2021, will be circulated to all councillors.  

 

The recommendations of Cabinet will be circulated to all councillors following the Cabinet meeting.

 

The Scrutiny Committee will consider this report at its meeting on 8 February 2021. Any views will be reported to Council.

 

Minutes:

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 officer on the robustness of the budget estimates and the adequacy of the reserves.

 

Council considered Cabinet’s recommendations, made at its meeting held on 5 February 2021 on the revenue budget for 2021/22 and the capital programme to 2025/26. Scrutiny Committee had considered the report of the interim head of finance on 8 February and had made no recommendations. 

 

Councillor Crawford, Cabinet member for finance, presented Cabinet’s proposals for the revenue budget and capital programme. He moved and Councillor Emily Smith, Leader of the council, seconded a motion to approve Cabinet’s recommendations as follows:

 

1.    to set the revenue budget for 2021/22, as set out in appendix A.1 to the interim head of finance’s report to Cabinet on 5 February 2021;

2.    to approve the capital programme for 2021/22 to 2025/26 as set out in appendix D.1 to that report, together with the capital programme changes as set out in appendix D.2 to that report;

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

4.    to approve the medium-term financial plan to 2025/26, as set out in appendix F to that report.

 

In introducing the budget the Cabinet member highlighted that the budget would result in an increase in council tax of £5 for a Band D property for 2021/22 - the maximum increase allowed under the draft referendum rules outlined in the government’s provisional settlement. 

 

Coronavirus had played a central part in the budget and the council was likely to continue to see additional costs and income losses in the new financial year.  The figures included in the budget for these were estimates only, as no-one could predict the future course of the pandemic.   The government had provided support for some, but not all, council losses. The council was likely to achieve lower investment income for some time to come.

 

The prioritisation of staff resources had meant that, in this budget, Cabinet had not been able to bring forward additional budget proposals to support priorities in the new corporate plan.  However, officers have identified where existing budgets could fund corporate plan delivery activity.  Deliverability of those activities would be dependent on council resources being available to progress them. 

 

The budget report also included the medium-term financial plan for the next five years.  This continued to show an increasing draw on reserves over the period, based on current estimates of future local government funding.  This increasing use of reserves was unsustainable, and officers and Cabinet would continue to review budgets in the context of the corporate plan priorities to identify ways to improve the council’s financial position. 

 

The majority of councillors supported the budget recognising the challenging environment caused by the pandemic. The view was expressed that the council could not continue to rely on reserves to support a budget deficit. Those who spoke against the budget expressed the view that the projected budget deficit over the next five years was not sustainable and expressed concern regarding the potential measures, sale of council assets, to address this.

 

In accordance with regulations requiring councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget the chair called for a recorded vote which was carried with the voting being as follows:

 

For

Against

Abstentions

Councillors

Councillors

Councillors

Jerry Avery

Matthew Barber

Paul Barrow

Eric Batts

 

Ron Batstone

Nathan Boyd

 

Samantha Bowring

Simon Howell

 

Cheryl Briggs

Janet Shelley

 

Andy Cooke

Elaine Ware

 

Andrew Crawford

 

 

Margaret Crick

 

 

Eric de la Harpe

 

 

Neil Fawcett

 

 

Andy Foulsham

 

 

Hayleigh Gascoigne

 

 

David Grant

 

 

Jenny Hannaby

 

 

Alison Jenner

 

Bob Johnston

 

Diana Lugova

 

 

Robert Maddison

 

Sarah Medley

 

Patrick O’Leary

 

 

Helen Pighills

 

Mike Pighills

 

 

Judy Roberts

 

 

Val Shaw

 

 

Emily Smith

 

Bethia Thomas

 

 

Max Thompson

 

 

Catherine Webber

 

 

Richard Webber

 

 

Total: 29

Total: 6

Total: 0

 

RESOLVED: to

 

1.    set the revenue budget for 2021/22, as set out in appendix A.1 to the interim head of finance’s report to Cabinet on 5 February 2021;

2.    approve the capital programme for 2021/22 to 2025/26 as set out in appendix D.1 to that report, together with the capital programme changes as set out in appendix D.2 to that report;

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

4.    approve the medium-term financial plan to 2025/26, as set out in appendix F to that report.

 

 

Supporting documents:

 

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