Issue - meetings

Report of the Interim Section 151 Officer attached.

The Cabinet Member for Finance, Property and Assets (Councillor Matthew Tomlinson) and the Interim Section 151 Officer (Jane Blundell) presented a report that set out the Council’s proposed Revenue Budget for 2020/21 and Medium-Term Financial Strategy for 2020/21-2023/24.

The report proposed a 1.99% increase in council tax and members were informed that this would enable the Council to reduce charges to residents around green waste collection and replacement bin charges and would provide some extra funding to projects like the Holiday Hunger Scheme.

It was also proposed that reserve accounts would remain unused for a 12-month period and reserves for City Deal and business rates would be retained.

Members acknowledged funding gaps highlighted within the report and sought clarification on the measures being taken to reduce these. Emphasis was placed on a widespread list of initiatives, such as the Leyland Music Festival, which would increase income and would help to mitigate any risk posed by funding gaps.

In response to a query about business rate risk, members were informed that any potential risks would be minimised due to reserves amounting to £2.6 million. Confirmation was also provided that the current pooling arrangements would remain in operation for 2020-21.

Members requested an update on the second phase implementation of the council’s status as a living wage employer, which would mean that the council would require partner companies and organisations to pay the living wage. This would be contained within the budget for 2021/22 and members expressed their enthusiasm for this.

Clarification was sought as to the rationale for a 1.99% increase in council tax. It was suggested that a £5 increase per band D property may be more suitable in generating additional funding, but members were advised that a 1.99% increase is the minimum government expectation and would enable more residents to save money. 

The deliverability of the Capital Strategy was questioned due to slippage experienced in previous years. Assurances were given that slippage was to be expected in any budget forecast and that the Cabinet Member and officers were confident that all aspects of the Capital Strategy could be delivered.

Members noted a significant forecasted increase in expenditure for leisure and sport within the Capital Programme. This would largely enable refurbishment of the borough’s leisure centres and comparisons were made between this forecasted cost and the cost of the previous plans for a new leisure campus in Leyland. A full audit was being undertaken regarding the previous administration’s costings for a new leisure centre and the committee requested that the findings of this be shared once complete. 

Discussions focused around the impact of Brexit on the budget and uncertainties surrounding the impact of Brexit upon businesses in South Ribble were acknowledged.

Members were informed that the Council was in receipt of grants amounting to £17,000 which had not yet been allocated but could be allocated to departments that may be affected by Brexit.

Further information on the methods of consultation on the budget were requested and it was understood that  ...  view the full minutes text for item 43