Agenda item

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 Plans

 

(i)             The minimum level of Revenue Balances as at 31 March 2022, predicated on the approval of £3.5m savings in 2021/22 and the establishment of a COVID-19 Fund of £14.2m, be set at £7.0m to reflect the known and expected budget and financial risks to the Council

 

(j)       Members have regard for the "Statement of the Section 151 Officer in accordance with the Local Government Act 2003"

 

(k)      The Capital Programme 2020/21 to 2025/26 set out in Appendix 5 which includes all additions, deletions and amendments for slippage and re-phasing

 

(l)       The new Capital Investment Proposals ("New Starts") - 2021/22 set out in Appendix 4 be reflected within the recommended Capital Programme 2020/21 to 2025/26 and be funded from the available Capital Resources

 

(m)     The allocation of Disabled Facilities Grants be made to the Better Care Fund, and reflected within the recommended Capital Programme 2020/21 to 2025/26

 

(n)      The S.151 Officer be given delegated authority to determine how each source of finance is used to fund the overall Capital Programme and to alter the overall mix of financing, as necessary, to maximise the flexibility of capital resources used and minimise the ongoing costs of borrowing to the Council

 

(o)      That the S.151 Officer in consultation with the Leader of the Council be given delegated authority to release capital resources held back for any contingent items that might arise, and also for any match funding requirements that may be required of the Council in order to secure additional external capital funding (e.g. bids for funding from Government or the Solent Local Enterprise Partnership)

 

(p)      The Capital Strategy 2021/22 to 2024/25, including the Minimum Revenue Provision Statement contained therein (Appendix 6)

 

(q)      The Investment Strategy 2021/22 (Appendix 7)

 

2.       It is recommended that the Council note the following in respect of the Council's Budget: 

 

(a)           The Revenue Budget 2021/22 as set out in Appendix 1 has been prepared on the basis of a 4.99% increase in Council Tax, any reduction from the overall 4.99% Council Tax increase proposed will require additional savings of £852,900 for each 1% reduction in order for the Budget 2021/22 to be approved

 

(b)           The Revenue Forecasts for 2022/23 onwards as set out in the section entitled "Revenue Forecasts 2022/23 to 2024/25" and Appendix 1

 

(c)           The estimated Savings Requirement of £9.0m for the three year period 2022/23 to 2024/25, for financial and service planning purposes, be phased as follows:

 

Financial Year	In Year Savings Requirement £m	Cumulative Saving £m
2022/23	3.0	3.0
2023/24	3.0	6.0
2024/25	3.0	9.0

 

(d)           The Transformation Reserve held to fund the upfront costs associated with Spend to Save Schemes and Invest to Save Schemes holds a very modest uncommitted balance of £2.0m and will only be replenished from contributions from the Revenue Budget and an approval to the transfer of any further savings at year end

 

(e)           Should the Council elect to reduce the level of savings below £3.0m in 2022/23 (and £3.0m p.a thereafter), the Council's financial risk will increase and therefore the minimum level of General Reserves held will also need to increase in order to maintain the Council's financial resilience

 

(f)       The Council Tax base for the financial year 2021/22 will be 53,279.6 [item T in the formula in Section 31 B(1) of the Local Government Finance Act 1992, as amended (the “Act”)].

 

(g)      The Council Tax element of the Collection Fund for 2020/21 is estimated to be a deficit of £2,438,510 which is shared between the Isle of Wight Council (86.0%) and the Police & Crime Commissioner (10.8%) and the Hampshire & Isle of Wight Fire & Rescue Authority (3.2%)

 

(h)      The Business Rate element of the Collection Fund for 2020/21 is estimated to be a deficit of £12,448,733

 

(i)             The Retained Business Rate income for 2021/22 based on the estimated Business Rate element of the Collection Fund deficit as at March 2021, the Non Domestic Rates poundage for 2021/22 and estimated rateable values for 2021/22 has been set at £23,978,748

 

(j)       The Equality Impact Assessment (attached at Appendix 8)

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 Perks, Matthew Price, Chris Quirk, Ian Stephens, Dave Stewart, Brian Tyndall, Ian Ward, Wayne Whittle

 

Abstained: (1)

 

Cllr Julie Jones-Evans

 

Voting was taken on the Substantive motion.

 

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

 

For: (24)

 

Cllrs Barry Abraham, Paul Bertie, Michael Beston, Paul Brading, 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, Dave Stewart, Brian Tyndall, Ian Ward, Wayne Whittle

 

Against: (14)

 

Cllrs Debbie Andre, Reg Barry, Geoff Brodie, Rodney Downer, Paul Fuller, Andrew Garratt, John Howe, Julie Jones-Evans, Michael Lilley, Karl Love, John Medland, Lora Peacey-Wilcox, Shirley Smart, Ian Stephens

 

Abstained: (0)

 

RESOLVED:

 

1.       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 Plans

 

(i)             The minimum level of Revenue Balances as at 31 March 2022, predicated on the approval of £3.5m savings in 2021/22 and the establishment of a COVID-19 Fund of £14.2m, be set at £7.0m to reflect the known and expected budget and financial risks to the Council

 

(j)       Members have regard for the "Statement of the Section 151 Officer in accordance with the Local Government Act 2003"

 

(k)      The Capital Programme 2020/21 to 2025/26 set out in Appendix 5 which includes all additions, deletions and amendments for slippage and re-phasing

 

(l)       The new Capital Investment Proposals ("New Starts") - 2021/22 set out in Appendix 4 be reflected within the recommended Capital Programme 2020/21 to 2025/26 and be funded from the available Capital Resources

 

(m)     The allocation of Disabled Facilities Grants be made to the Better Care Fund, and reflected within the recommended Capital Programme 2020/21 to 2025/26

 

(n)      The S.151 Officer be given delegated authority to determine how each source of finance is used to fund the overall Capital Programme and to alter the overall mix of financing, as necessary, to maximise the flexibility of capital resources used and minimise the ongoing costs of borrowing to the Council

 

(o)      That the S.151 Officer in consultation with the Leader of the Council be given delegated authority to release capital resources held back for any contingent items that might arise, and also for any match funding requirements that may be required of the Council in order to secure additional external capital funding (e.g. bids for funding from Government or the Solent Local Enterprise Partnership)

 

(p)      The Capital Strategy 2021/22 to 2024/25, including the Minimum Revenue Provision Statement contained therein (Appendix 6)

 

(q)      The Investment Strategy 2021/22 (Appendix 7)

 

2.       THAT the Council note the following in respect of the Council's Budget: 

 

(a)           The Revenue Budget 2021/22 as set out in Appendix 1 has been prepared on the basis of a 4.99% increase in Council Tax, any reduction from the overall 4.99% Council Tax increase proposed will require additional savings of £852,900 for each 1% reduction in order for the Budget 2021/22 to be approved

 

(b)           The Revenue Forecasts for 2022/23 onwards as set out in the section entitled "Revenue Forecasts 2022/23 to 2024/25" and Appendix 1

 

(c)           The estimated Savings Requirement of £9.0m for the three year period 2022/23 to 2024/25, for financial and service planning purposes, be phased as follows:

 

Financial Year	In Year Savings Requirement £m	Cumulative Saving £m
2022/23	3.0	3.0
2023/24	3.0	6.0
2024/25	3.0	9.0

 

(d)           The Transformation Reserve held to fund the upfront costs associated with Spend to Save Schemes and Invest to Save Schemes holds a very modest uncommitted balance of £2.0m and will only be replenished from contributions from the Revenue Budget and an approval to the transfer of any further savings at year end

 

(e)           Should the Council elect to reduce the level of savings below £3.0m in 2022/23 (and £3.0m p.a thereafter), the Council's financial risk will increase and therefore the minimum level of General Reserves held will also need to increase in order to maintain the Council's financial resilience

 

(f)       The Council Tax base for the financial year 2021/22 will be 53,279.6 [item T in the formula in Section 31 B(1) of the Local Government Finance Act 1992, as amended (the “Act”)].

 

(g)      The Council Tax element of the Collection Fund for 2020/21 is estimated to be a deficit of £2,438,510 which is shared between the Isle of Wight Council (86.0%) and the Police & Crime Commissioner (10.8%) and the Hampshire & Isle of Wight Fire & Rescue Authority (3.2%)

 

(h)      The Business Rate element of the Collection Fund for 2020/21 is estimated to be a deficit of £12,448,733

 

(i)             The Retained Business Rate income for 2021/22 based on the estimated Business Rate element of the Collection Fund deficit as at March 2021, the Non Domestic Rates poundage for 2021/22 and estimated rateable values for 2021/22 has been set at £23,978,748

 

(j)       The Equality Impact Assessment (attached at Appendix 8)