Agenda item

Report of the Deputy Director of Finance (Section 151 officer) attached.

The Cabinet Member for Finance, Property and Assets (Councillor Matthew Tomlinson) and the Section 151 Officer (James Thomson) presented a report that set out the Council’s proposed Revenue Budget for 2021/22 and forecasts for the two years thereafter.

The report proposed a freeze on council tax rates and members were informed that this would be of some help to residents who had undoubtedly experienced difficulties from the COVID-19 pandemic.  A 1.99% increase was proposed for the years 2022/23 and 2023/24.

The report also highlighted the financial impact on the council of issues in the leisure industry, as a result of COVID-19. Members were aware that proposals to bring management of the borough’s leisure facilities in-house had recently been approved by Cabinet and Council and the report provided budgeted costs for running the leisure centres. It was predicted that the project would breakeven in the 2024/25 financial year.

Members were assured that the council was in a healthy and robust financial position and the Cabinet Member commended the work of staff during the pandemic.

Consultation on the budget was widely discussed and members were pleased to note that approximately 100 responses had been received online so far. Other stakeholders, such as Lancashire County Council, would be consulted with once the budget was approved by Cabinet and members were encouraged to publicise the consultation to residents in their wards.

In response to a query regarding why consultation was already underway as the report stated it would not begin until after receiving Cabinet’s approval, the Cabinet Member advised that he and officers wanted to facilitate as much consultation with the public as possible.

Members queried the projected deficit in business rates income and asked if these could be redistributed from other authorities. In response, it was advised that such practice was subject to government approval but that spreading the deficit over a number of years if income fell short would be permitted.

However, the Section 151 Officer expressed confidence in the income levels of business rates and did not anticipate any major impact from the projected deficit.

Responding to a member query regarding temporary impacts of COVID-19 and Brexit on income through fees and charges, the Cabinet Member expressed confidence that these would not be permanent. An increase in subscriptions to the green waste scheme and in income through planning applications was highlighted as assurance.

Members were also advised that a £346k surplus was anticipated in 2021/22 with deficits forecasted in the years following. The predictions had accounted for worst possible situations.

Members raised the subject of funding for My Neighbourhood Community Hubs. It was advised that each Hub would have financial autonomy as long as spending complied with the council’s corporate priorities.

In reference to additional funding to invest in the council’s priorities, members queried how value-for-money would be ensured and what return was anticipated. In response members were advised that a return on investment in all corporate priorities was expected and that value-for-money would be assessed in terms of both financial outcomes and social value.

Commitment to including members in the development of the Council’s transformation programme was welcomed.

Members were pleased to note that a review of the council’s reserves was ongoing and that the community hubs and credit union had been partially funded from reserves.

On the topic of leisure services, members were interested to hear what financial opportunities the in-house management provisions would bring. The Cabinet Member advised that it would support the local economy by keeping money in South Ribble.

Regular progress updates on leisure centre management was requested by the Committee.

The deliverability of the capital programme was raised and the Cabinet Member expressed belief that this was realistic and manageable.

Members asked the Cabinet Member if the Scrutiny Committee had been fair in its questioning and how it could be more robust in scrutinising future budgets. In response, the Cabinet Member welcomed the work and questions of the committee and expressed belief in the value of the committee’s role in the decision-making process. Hopes were expressed that the budget could be considered earlier in the year by the Scrutiny Committee going forwards.

The committee thanked the Cabinet Member and the Section 151 Officer for their attendance.

RESOLVED: (Unanimously)

That 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; and

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