Agenda item

Draft Budget 2021/22 and Summary Position over the Medium Term

Report of the Deputy Director of Finance and Section 151 officer enclosed.

Decision:

1)    That, subject to amendments in relation to the forecast savings from Shared Services, the contents of this report be agreed and that the following proposed budget items be noted, in particular:

-        A proposed freeze in council tax in 2021/22 with no proposed cuts to services

-        The forecast balanced budget for 2021/22 and the forecast budget position in 2022/23 and 2023/24

-        To note the impact of the challenges faced within the leisure centre industry and the subsequent budgetary impact on the council

 

2)    That the recommendations of the Scrutiny Committee be noted and agreed.

 

Minutes:

The Cabinet Member (Finance, Property and Assets), Councillor Matthew Tomlinson, presented a report of the Deputy Director of Finance/ Section151 Officer setting out the budget position for 2021/22, including the forecast for the following two years to 2023/24 and presenting the relevant proposals in respect of the use of forecast resources identified in 2021/22.Councillor Tomlinson informed members that he had given authorisation for the Budget Consultation to commence early to coincide with the publication of the report to the Scrutiny Committee.

 

At its meeting on 8 February 2021 the Scrutiny Committee made the following recommendations with regard to the Budget 2021/22 and Summary Position over the Medium Term report:

 

The Scrutiny Committee:

 

1.     thanks the Cabinet Member and Section 151 Officer for attending and presenting the detailed and clear report.

 

2.     welcomes the commitment to involve Members in developing the transformation strategy.

 

3.     invites the Cabinet Member to provide an update on leisure centre management at regular intervals.

 

4.     notes the Cabinet Member’s reassurance that the capital programme is deliverable.

 

5.     is grateful to the Cabinet Member for suggesting that Scrutiny is involved earlier in the budget process in future years.

 

Cllr Walton raised the issue of whether the Lancashire Business Rates pool would continue for 2021/22. Cllr Tomlinson responded that he was as confident as he could be that it would continue in 2021/22 and therefore this was reflected in the draft Budget. The Deputy Director of Finance reiterated that there was nothing to suggest this would not be case; however, confirmation from Central Government was still being awaited. If this was provided prior to the final Budget bring prepared by 3 March 2021 it would be updated accordingly.

 

Cllr Ogilvie referred to paragraphs 29 and 30 of the report, querying a disparity between the figures quoted in the table and the text below it with regard to forecast savings for Shared Services (which should be cumulative). The Deputy Director of Finance/Section 151 Officer confirmed that the savings for 21/22 should be £328k rising to £508k by 2023/24 and that the report would be amended to reflect the correct figures quoted prior to the report going to Council.

 

Decision made (unanimously):

 

1)    That, subject to amendments in relation to the forecast savings from Shared Services, the contents of this report be agreed and that the following proposed budget items be noted, in particular:

-        A proposed freeze in council tax in 2021/22 with no proposed cuts to services

-        The forecast balanced budget for 2021/22 and the forecast budget position in 2022/23 and 2023/24

-        To note the impact of the challenges faced within the leisure centre industry and the subsequent budgetary impact on the council

 

2)    That the recommendations of the Scrutiny Committee be noted and agreed.

 

Reasons for Decision

 

The delays from the government in reforming council funding creates significant uncertainty, however the impact of the Covid-19 pandemic on the borough’s residents over the last year has been immense. On that basis, while noting the uncertainty in Government funding reforms, it is felt a freeze in Council Tax will best support residents of South Ribble Borough for 2021/22.

 

The budget forecast over the next 3 years had been updated to take account of the following:

·       A freeze on council tax in 2021/22.

·       There is a proposed 1.99% increase in council tax in 2022/23 and 2022/23 this will be revisited every year and will be dependent upon the outcome of the Government announcements regarding the Fair Funding Review and review of the business rates system.

·       Significant investment of over £1million in revenue budgets to support the delivery of corporate strategy priorities

·       Capital investments of over £62m in corporate priority projects

·       Strategies to reduce the budget deficit in the medium term

 

 

Alternative options considered and rejected

 

Some of figures outlined in the report are estimates and based on assumptions that are likely to change. These include external risks such as changes to Government funding arrangements, changes to interest rates and national and local economic changes. In addition, the council faces internal risks such as the risks of delivering transformational change including the expansion of shared services.

 

The risks are dealt with through managing prudent levels of reserves, continually monitoring government announcements, monitoring current and future economic projections and by making prudent budget assumptions.

 

 

 

Supporting documents: