Agenda item

To note issues associated with the policy and resources strategy and agree recommendations.

It was not possible to circulate this report five clear days in advance of the meeting. The chair agreed to accept this item as urgent as the council was committed to publishing budget proposals at the earliest possible opportunity to ensure they were available to the public for comments and questions. Presenting the report to cabinet on 8 December 2020 gave the opportunity for debate prior to presentation of budget figures to cabinet on 19 January 2021. Under the council’s constitution, there is a requirement for the overview and scrutiny committee to review and challenge budget proposals and this is due to take place on January 2021.

RESOLVED:

Decisions of the Cabinet

1.  That the outcome of the Spending Review delivered on the 25 November and that the provisional local government finance settlement is due to be published on the 17 December 2020 (paragraphs 22-24 of the report) be noted.

2.  That it be noted that the intention is to prepare a balanced one year 2021-22 budget for approval by cabinet in advance of council assembly in February 2021.

3.  That it be noted that the budget proposals for 2021-22 contained within the report include:

·  Estimated general grant resources of £153.231m, an increase of £0.914m from 2020-21

·  Other grant income of £74.447m, including estimated additional social care grant of £2.3m and homelessness grant of £2.0m

·  Estimated retained business rates income of £18.961m, a decrease of £5.778m from 2020-21

·  Estimated council tax revenues of £123.024m, including a council tax increase of 4.99% (3% adult social care precept and 1.99% general increase)

·  A forecast deficit on the collection fund in 2020-21 after Government funding of £4.5m to be recovered over three financial years commencing in 2021-22

·  Pay provision and contractual inflation of £6.3m. 

4.  That the current budget options proposed to help achieve a balanced 2021-22 budget (Appendices B to E of the report) be noted including:

·  Efficiency savings of £10.712m

·  Net income reduction of £1.078m

·  Savings impacting on services of £2.741m

·  Commitments and growth of £12.368m.

5.  That it be noted, in order to ensure that the base budget is on a secure financial footing a number of commitments are proposed for 2021-22, including £4.55m for leisure services, £4m for temporary accommodation and homelessness and £3.4m for social care (Appendix E of the report).

6.  That the updated budget gap for 2021-22 of £9.518m be noted.

7.  That officers will complete further work in light of the provisional settlement, when published, to present a fully balanced budget position for cabinet on 19 January 2021.

8.  That the departmental narratives and the ongoing equality analyses of the budget proposals (Appendix A of the report)  be noted.

9.  That the ongoing discussions regarding the continuation of the London Business Rates Pool arrangement into 2021-22 be noted.

10.  That officers be instructed to undertake further consultation for new budget options where necessary or appropriate; and

11.  That it be noted that the report to cabinet on 19 January 2021 will be considered by overview and scrutiny committee and that any recommendations arising will be incorporated into the final report to cabinet on 2 February 2021 for recommendation to council assembly on 24 February 2021.

Decision of  the Leader of the Council

12.  That authority be delegated to the cabinet member for finance and resources to determine continuation of the Pooling arrangements in 2021-22.