Issue - meetings

(to follow)

The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept the report as urgent in order to update the 2020-21 to 2022-23 budget planning process and the detailed work on budget proposals following the Spending Review announcement on 4 September 2019. This work continues over the coming months in order to meet the timetable to prepare a budget proposal for submission to council assembly in February 2020.

RESOLVED:

That the following be noted:

1.  The outcome of the Government’s 2020-21 Spending Review announced on 4 September 2019, set out in paragraphs 16 to 19 of the report.

2.  The Ministry for Housing Communities and Local Government (MHCLG) has confirmed that the Fair Funding Review, 75% business rate retention and business rates reset will be delayed until 2021-22.

3.  The updated 2020-21 budget forecast, based on the latest information and the following revised assumptions, indicates a budget funding gap of £7.5m:

·  an inflation increase of 1.84% in the Settlement Funding Assessment

·  additional grant funding announced in the Spending Round for social care, high needs and tackling rough sleeping and homelessness will be passported to those services

·  an index linked increase in Public Health Grant and Better Care Fund allocations

·  that other major grant funding sources, i.e. Improved Better Care Fund, Social Care Grants and New Homes Bonus will continue at 2019-20 levels (as previously assumed)

·  the business rate baseline reset, that will significantly impact those authorities that have experienced the greatest growth since inception of the existing BRR system in 2013-14, will be deferred until 2021-22.

4.  The funding gap will reduce by £2.3m should the council decide to increase council tax by 2% for adult social care.

5.  The funding gap will reduce by a further £2.3m should the council decide to increase council tax by 2% in line with the proposed referendum principle level.

6.  As agreed in July 2019, the strategic director of finance and governance with the support of other strategic directors and their teams will prepare a one year budget for 2020-21 based on cash-limiting departmental budgets at 2019-20, setting out the risks of this approach and how these risks will be managed.

7.  The strategic director of finance and governance will seek to prepare with other officers indicative savings options and commitments for 2021-22 and 2022-23 as part of the risk mitigation required to support this approach.

8.  Cabinet will receive further reports as further funding information becomes available and as budget plans for 2020-21 are developed.