On 1st December 2020 the Executive approved budget proposals for consultation as required with the public, interested parties, staff and the Trade Unions.

The report of the Director of Finance (Document “DE”) provides the Executive with an update on national announcements and local decisions. It also identifies issues and uncertainties which could still have a bearing on the final size of the budget for 2021-22 and future financial years.

Executive will need to have regard to this report when considering the recommendations to make to Council at their meeting on 16th February 2021 in advance of Budget Council on the 18^th February 2021

Recommendations

Executive are asked to note:

 the contents of Document “DE” and to have regard to the information contained within this report when considering the recommendations to make to Council on a budget for 2021/22 at their meeting on 16 February 2021.

That in accordance with Section 149 of the Equality Act 2010, the Executive has regard to the information contained in Appendix B and the  Annex to Appendix B together with the equality assessments when considering the recommendations to make to the Council on budget proposals for 2021-22.

(Corporate Overview & Scrutiny Committee)

(Andrew Cross – 07870 385532)

On 1st December 2020 the Executive approved budget proposals for consultation as required with the public, interested parties, staff and the Trade Unions.

The report of the Director of Finance (Document “DE”) provided the Executive with an update on national announcements and local decisions. It also identified issues and uncertainties which could still have had a bearing on the final size of the budget for 2021-22 and future financial years.

Executive would need to have regard to this report when considering the recommendations to make to Council at their meeting on 16th February 2021 in advance of Budget Council on the 18^th February 2021.

The Director of Finance reported that the final Local Government settlement was expected on 10 February 2021 and that any changes would be reflected in the final budget documents.

He advised members that a result of changes the estimated call on reserves had reduced from £12.8m to £8.3m.  The report detailed government announcements where the financial allocation was not yet known.

The Chief Executive referred to the public consultation that closed on 15 January and explained how the consultation had been carried out.  A summary of responses was included in the report with the most comments being received regarding increasing Council Tax, cultural investment plans and the youth service.  Equality Impact Assessments and mitigations were provided.  The overall assessment of the budget was that it had a low impact on people with protected characteristics.  It was noted that this would be updated for the meeting of the Executive on 16 February.

The Leader stressed that the Covid finance was one off and that budgeting for one year was challenging and provided the Council with no surety of forward funding.  She referred to the need for the Government to invest in Adult Social Care rather than it being funded through Council Tax. 

She asked the Director of Finance to confirm that he was satisfied that £10.3m be held in unallocated reserves.  He advised that a forensic review had been conducted of all reserves and that he was of the opinion that the current Covid pandemic fell into that definition a “rainy day” which would justify the use of reserves.

The Healthy People and Places Portfolio Holder was disappointed to note that despite being raised with Government by local authorities throughout the country the Green Paper on Adult Social Care was still awaited.  She urged the Government to publish the Green Paper and provide surety of funding.

The Leader concluded that the Council finances had been prudently managed, that there were no proposed redundancies or cuts to services and that calling on reserves in the current circumstances was the right thing to do.

Resolved -

(1)          That the Executive note the contents of Document “DE” and have regard to the information contained within this report when considering the recommendations to make to Council on a budget for 2021/22 at their meeting on 16 February 2021.

(2)          That in accordance with Section 149 of the Equality Act 2010, the Executive has regard to the information contained in Appendix B and the Annex to Appendix B together with the equality assessments when considering the recommendations to make to the Council on budget proposals for 2021-22.

Corporate Overview & Scrutiny Committee

ACTION: Director of Finance