Agenda item

Resolved: that the Committee refer its views to Mayor and Cabinet as follows –

·                The Committee acknowledges the difficult circumstances facing the Council – and it commends the work of officers in responding to the pandemic – whilst also managing critial services and identifying additional cuts to budgets.

·                The Committee believes that the hard work and dedication of Council officers in developing the 2021-22 budget should be recognised and praised.

5.1.      Mayor Egan addressed the Committee – noting the challenging financial situation facing the Council following more than ten years of austerity. He highlighted that the Council’s budget was half of what it was in 2010 and that there were now 1000 fewer members of Council staff. Whilst lamenting the need to make cuts and set a balanced budget he also outlined some of the successful work carried out by the Council in restrained circumstances.

5.2.      Kathy Freeman presented the budget report – the following key points were noted:

•           There is a legal requirement for the Council to set a balanced budget.

•           The impact of the pandemic had been significant on the Council’s finances.

•           The figures in the report are based on the provisional local government settlement.

•           The fair funding and business rates reviews have been delayed – and the medium term financial strategy (whilst prudent) could not account for significant swings in funding.

•           The Council’s general fund budget would be a net requirement of £243m in 2021-22 (which would incorporate cuts of £28m from two rounds of cuts proposals).

•           It is proposed that there be a council tax increase of 4.99% (including a 3% increase to fund social care).

•           The Council will continue its prudent approach to treasury management.

•           The capital programme is proposed to be £184m in 2021-22.

•           Work is taking place to enable the Council to recover from the pandemic – whilst ensuring financial resources are used effectively to support the recovery of the whole borough.

•           A number of spending controls are in place to tackle overspending pressures.

•           Funding had been set aside for service development, transformation and the delivery of cuts proposals.

5.3.      Kathy Freeman responded to questions from the Committee – the following key points were noted:

•           End of year overspending (currently projected to be £3.2m would have to be taken from un-earmarked reserves).

•           Funds had been set aside for risks and pressures (which had been the case for a number of years – as outlined in the medium term financial strategy). This was not a ‘contingency fund’ to cover unachieved cuts.

•           Councils are funded on the basis of the census – which did not take account of the changes in population between censuses.

•           There were potential benefits from the business rate pool when things were going well. In the context of the pandemic (and associated financial risks) the Council was in a better position out of the pooling arrangements.

•           There remained risk and uncertainties in achieving the plans set out in the budget.

5.4.      Resolved: that the Committee refer its views to Mayor and Cabinet as follows –

•           The Committee acknowledges the difficult circumstances facing the Council – and it commends the work of officers in responding to the pandemic – whilst also managing critical services and identifying additional cuts to budgets.

•           The Committee believes that the hard work and dedication of Council officers in developing the 2021-22 budget should be recognised and praised.