Issue - meetings

Budget and Council Tax Setting 2021-2022 and Future Years Forecasts

Meeting: 24/02/2021 - Full Council (Item 44)

44 Budget and Council Tax Setting 2021-2022 and Future Years Forecasts pdf icon PDF 823 KB

RECOMMENDATION

 

1.       It is recommended that the Council approve the following:

 

(a)           The revised Revenue Budget for the financial year 2020/21 and the Revenue Budget for the financial year 2021/22 as set out in the General Fund Summary (Appendix 1) which includes:

 

(i)   The establishment of a COVID-19 Fund estimated at £14.2m

(ii)  A Revenue Contribution to Capital of £2.0m

(iii)  A contribution to the Transformation Reserve of £1.0m.

 

(b)      Any variation arising from the Local Government Finance Settlement 2021/22 or any further savings made in 2020/21 arising at the year-end (after allowing for specific carry forward requests) be transferred to the COVID-19 Fund, Transformation Reserve, Revenue Reserve for Capital and General Reserves with the level of each transfer to be determined by the S.151 Officer.

 

(c)      That the level of Council Tax be increased by 1.99% for general purposes in accordance with the referendum threshold for 2021/22 announced by Government (as calculated in Appendix 2)

 

(d)      That the level of Council Tax be increased by a further 3.0% beyond the referendum threshold (as calculated in Appendix 2) to take advantage of the flexibility offered by Government to implement a "Social Care Precept"; and that in accordance with the conditions of that flexibility, the full amount of the associated sum generated of £2,558,500 is passported direct to Adult Social Care

 

(e)      That the amounts set out in Appendix 2 be now calculated by the Council for the financial year 2021/22 in accordance with Section 31 and Sections 34 to 36 of the Local Government Finance Act 1992

 

(f)       The S.151 Officer be given delegated authority to implement any variation to the overall level of Council Tax arising from the final notification of the Hampshire Police & Crime Commissioner, Hampshire & Isle of Wight Fire & Rescue Authority and Parish and Town Council precepts, and amend the calculations set out in Appendix 2 accordingly

 

(g)      The savings proposals for each Portfolio amounting, in total, to £3.5m for 2021/22 and continuing into future years as set out:

 

 

Portfolio

Controllable Budget

Savings Proposal

£

£

%

Adult Social Care, Public Health & Housing Needs*

52,885,965

1,567,000

3.0%

Children's Services, Education & Skills

25,799,771

481,000

1.9%

Community Safety & Digital Transformation

8,939,086

175,800

2.0%

Environment, Heritage & Waste Management

8,826,020

308,400

3.5%

Infrastructure & Transport**

11,637,618

101,000

0.9%

Leader & Strategic Partnerships

822,326

0

0.0%

Planning & Housing Renewal

2,410,804

8,500

0.4%

Regeneration & Business Development

5,146,580

137,500

2.7%

Resources

10,935,643

720,800

6.6%

Grand Total

127,403,813

3,500,000

2.7%

 

*Excludes the additional funding passported through to Adult Social Care of £4.4m (which if included would result in an overall increase of 5.4%) and the additional funding for Children's Services, Education & Skills of £1.6m (which if included would result in an overall increase of 4.4%)

 

** Excludes £19.4m of PFI grant funding, on a Gross expenditure basis the savings amounts to 0.3%

 

(h)      Directors be instructed to start planning how the Council will achieve the savings requirements of £9.0m for the 3 year period 2022/23 to 2024/25 and that this be incorporated into Service Business  ...  view the full agenda text for item 44

Additional documents:

Minutes:

A 2021/22 budget and Council Tax setting report had been received from the Leader of the Council and the Deputy Leader. Amendments, from the Liberal Democrats, Cllr Geoff Brodie and the Island Independent Group had been submitted, they had been accepted by the Section 151 Officer as being legal and presenting a balanced budget.

 

The Leader and Deputy Leader spoke on the budget proposals recommended by Cabinet.

 

The proposers of the amendments spoke in turn on their budget proposals.

 

The Leaders of the other groups were asked if they would like to make comment on the budget proposals, however it was declined at this stage.

 

Other members of the council also made comment on the budget proposals.

 

The Leader, the other proposers of amendments and the other group leaders then summed up.

 

Adjournment

 

At the conclusion of the debate the chairman called for a brief adjournment.

 

Following the adjournment, the Leader moved the recommendation by Cabinet which was duly seconded.

 

An amendment to the proposal attached as Amendment 1 (and forming part of these minutes) was moved by Cllr Garratt and duly seconded.

 

A named vote was taken the results were as follows:

 

For: (10)

 

Cllrs Debbie Andre, Reg Barry, Rodney Downer, Paul Fuller, Andrew Garratt, John Howe, Michael Lilley, John Medland, Lora Peacey-Wilcox, Shirley Smart.

 

Against: (26)

 

Cllrs Barry Abraham, Paul Bertie, Michael Beston, Paul Brading, Geoff Brodie, George Cameron, Vanessa Churchman, Steve Hastings, Stephen Hendry, John Hobart, Richard Hollis, Stuart Hutchinson, John Kilpatrick, Clare Mosdell, Michael Murwill, John Nicholson, Tig Outlaw, Gary Peace, Graham Perks, Matthew Price, Chris Quirk, Ian Stephens, Dave Stewart, Brian Tyndall, Ian Ward, Wayne Whittle.

 

Abstained: (2)

 

Cllrs Julie Jones-Evans, Karl Love.

 

An amendment to the proposal attached as Amendment 2 (and forming part of these minutes) was moved by Cllr Geoff Brodie and duly seconded.

 

A named vote was taken the result of which was as follows:

 

For: (16)

 

Cllrs Debbie Andre, Reg Barry, Geoff Brodie, Rodney Downer, Andrew Garratt, John Howe, Julie Jones-Evans, Michael Lilley, Karl Love, John Medland, Michael Murwill, Lora Peacey-Wilcox, Graham Perks, Matthew Price, Shirley Smart, Ian Stephens.

 

Against: (21)

 

Cllrs Barry Abraham, Paul Bertie, Michael Beston, Paul Brading, George Cameron, Vanessa Churchman, Paul Fuller, Steve Hastings, Stephen Hendry, John Hobart, Richard Hollis, Stuart Hutchinson, Clare Mosdell, John Nicholson, Tig Outlaw, Gary Peace, Chris Quirk, Dave Stewart, Brian Tyndall, Ian Ward, Wayne Whittle.

 

Abstained: (1)

 

Cllr John Kilpatrick

 

An amendment to the proposal attached as Amendment 3 (and forming part of these minutes) was moved by Cllr Debbie Andre and duly seconded.

 

A named vote was taken the result of which was as follows:

 

For (11)

 

Cllrs Debbie Andre, Reg Barry, Rodney Downer, Paul Fuller, Andrew Garratt, John Howe, Michael Lilley, Karl Love, John Medland, Lora Peacey-Wilcox, Shirley Smart

 

Against: (26)

 

Cllrs Barry Abraham, Paul Bertie, Michael Beston, Paul Brading, Geoff Brodie, George Cameron, Vanessa Churchman, Steve Hastings, Stephen Hendry, John Hobart, Richard Hollis, Stuart Hutchinson, John Kilpatrick, Clare Mosdell, Michael Murwill, John Nicholson, Tig Outlaw, Gary Peace, Graham  ...  view the full minutes text for item 44


Meeting: 11/02/2021 - Cabinet (Item 42)

42 Budget and Council Tax Setting 2021-2022 and Future Years Forecasts pdf icon PDF 823 KB

Additional documents:

Decision:

 

It is recommended that the Cabinet endorse the following:

 

(a)    The recommendations to the Council set out below.

 

It is recommended that the Council approve the following:

 

(a)    The revised Revenue Budget for the financial year 2020/21 and the Revenue Budget for the financial year 2021/22 as set out in the General Fund Summary (Appendix 1) which includes:

(i)         The establishment of a COVID-19 Fund estimated at £14.2m

(ii)        A Revenue Contribution to Capital of £2.0m

(iii)       A contribution to the Transformation Reserve of £1.0m.

(b)    Any variation arising from the Local Government Finance Settlement 2021/22 or any further savings made in 2020/21 arising at the year-end (after allowing for specific carry forward requests) be transferred to the COVID-19 Fund, Transformation Reserve, Revenue Reserve for Capital and General Reserves with the level of each transfer to be determined by the S.151 Officer.

(c)    That the level of Council Tax be increased by 1.99% for general purposes in accordance with the referendum threshold[1] for 2021/22 announced by Government (as calculated in Appendix 2)

(d)    That the level of Council Tax be increased by a further 3.0% beyond the referendum threshold (as calculated in Appendix 2) to take advantage of the flexibility offered by Government to implement a "Social Care Precept"; and that in accordance with the conditions of that flexibility, the full amount of the associated sum generated of £2,558,500 is passported direct to Adult Social Care

(e)    That the amounts set out in Appendix 2 be now calculated by the Council for the financial year 2021/22 in accordance with Section 31 and Sections 34 to 36 of the Local Government Finance Act 1992

(f)     The S.151 Officer be given delegated authority to implement any variation to the overall level of Council Tax arising from the final notification of the Hampshire Police & Crime Commissioner, Hampshire & Isle of Wight Fire & Rescue Authority and Parish and Town Council precepts, and amend the calculations set out in Appendix 2 accordingly

(g)    The savings proposals for each Portfolio amounting, in total, to £3.5m for 2021/22 and continuing into future years as set out on the next page:

Portfolio

Controllable Budget

Savings Proposal

£

£

%

Adult Social Care, Public Health & Housing Needs*

52,885,965

1,567,000

3.0%

Children's Services, Education & Skills

25,799,771

481,000

1.9%

Community Safety & Digital Transformation

8,939,086

175,800

2.0%

Environment, Heritage & Waste Management

8,826,020

308,400

3.5%

Infrastructure & Transport**

11,637,618

101,000

0.9%

Leader & Strategic Partnerships

822,326

0

0.0%

Planning & Housing Renewal

2,410,804

8,500

0.4%

Regeneration & Business Development

5,146,580

137,500

2.7%

Resources

10,935,643

720,800

6.6%

Grand Total

127,403,813

3,500,000

2.7%

 

*Excludes the additional funding passported through to Adult Social Care of £4.4m (which if included would result in an overall increase of 5.4%) and the additional funding for Children's Services, Education & Skills of £1.6m (which if included would result in an overall increase of 4.4%)

 

** Excludes £19.4m of PFI grant funding, on a Gross expenditure basis the savings amounts to 0.3%

 

(h)    Directors be instructed to start planning how the Council will achieve the savings  ...  view the full decision text for item 42

Minutes:

Members had been heavily involved for some time in producing the budget which this year had three components instead of the usual two, with the addition of the COVID budgets making it a more difficult task. Government support of £139 million had been received for grants and tax reliefs for businesses and individuals. Finance staff and other redeployed staff had processed the grants very swiftly.

 

The budget shortfall had started at £19 million, reduced to £10 million with government support and the forecast was now to be in balance by the end of the financial year. It was possible there may even be £1 million in hand.

 

Reserves had been useful over the past year in coping with the pandemic.

£14.2 million had been put aside over the next three years for increased costs due to COVID, most of which would probably be used in the first year.

 

The budget would be fully discussed at Full Council.