Issue - meetings

Budget 2021/2022

Meeting: 28/01/2021 - Cabinet (Item 57)

57 The 2021/22 Budget and the Medium Term Financial Strategy to 2024/25 pdf icon PDF 358 KB

To receive a report from the Cabinet Member for Finance & Assets

Additional documents:

Decision:

RECOMMENDED TO COUNCIL

 

i)          That the level of Council Tax for 2021/22 increases from £152.52 by £5 (3.28%) to £157.52 at Band D.

(ii)        That the net revenue budget set out in Appendix A for 2021/22 of £13.039m is approved.

(iii)       That Special Expenses of £309,920 set out in Appendix C and a Band D charge of £26.01 are agreed in respect of the unparished area for 2021/22. 

(iv)       That the capital programme for 2021/22 set out in Appendix D be approved and that the indicative capital budgets in the programme for future years be noted.

(v)       That the projected future budgets on the revenue account in 2022/23 to 2024/25 are noted and the Medium Term Financial Strategy continues to be reviewed and refined to ensure that decisions are taken to set balanced budgets in these three years.

(vi)       That the Minimum Revenue Provision Statement set out in Appendix E is approved.

(vii)      That the Capital Strategy, Treasury Strategy, Investment Strategy and prudential indicators and limits for 2020/21 to 2023/24 set out in Appendix F are approved.

(viii)     To note the statement on the robustness of the level of reserves in Appendix H.

(ix)       That the increases to fees and charges set out in Appendix I are approved.

 (x)      Delegate to the Director of Community Services in consultation with the relevant Cabinet lead temporary changes to fees and charges in the form of offers and incentives during the year.

REASON

 

To meet the Council’s statutory requirement to approve the budget and the prudential indicators before the start of a new financial year.

Minutes:

The Cabinet Member for Finance & Assets reported details of the proposed 2021/22 revenue and capital budgets and revised MTFS, following the government’s draft financial settlement. The net budget requirement for 2021/22 was £1.8m higher than in 2020/21 because of the impact of the Covid-19 pandemic, in particular its impact on parking and leisure services.  

 

The Council was able to set an overall balanced budget due to unexpectedly generous government funding announced on 17 December.  The Council had also taken prompt action and reduced expenditure by £1.4m through staff savings. The Cabinet Member confirmed a £7m capital programme, as set out in the report. 

 

With regards to the proposed increase in council tax, the Cabinet Member advised that despite this increase, HDC would continue to have the lowest council tax of any district or borough in West Sussex. 

 

The MTFS for 2022-25 was based on the latest information, although the outlook remained uncertain for a number of reasons, which were summarised by the Cabinet Member. 

 

With regards to the longer-term indicative and potential capital commitments outlined in Appendix J, the Cabinet Member and the Leader emphasised that these were included as an overview of potential commitments and options for the future, and were not part of a capital programme.

 

The Director of Corporate Resources explained the importance of maintaining reserves above the minimum level of £6m, as agreed by Council. This approach gave flexibility and headroom to deal with any unforeseen issues that might arise in the future, which was particularly important because of the unprecedented uncertainty brought by the pandemic.

 

RECOMMENDED TO COUNCIL

 

i)          That the level of Council Tax for 2021/22 increases from £152.52 by £5 (3.28%) to £157.52 at Band D.

(ii)        That the net revenue budget set out in Appendix A for 2021/22 of £13.039m is approved.

(iii)       That Special Expenses of £309,920 set out in Appendix C and a Band D charge of £26.01 are agreed in respect of the unparished area for 2021/22. 

(iv)       That the capital programme for 2021/22 set out in Appendix D be approved and that the indicative capital budgets in the programme for future years be noted.

(v)       That the projected future budgets on the revenue account in 2022/23 to 2024/25 are noted and the Medium Term Financial Strategy continues to be reviewed and refined to ensure that decisions are taken to set balanced budgets in these three years.

(vi)       That the Minimum Revenue Provision Statement set out in Appendix E is approved.

(vii)      That the Capital Strategy, Treasury Strategy, Investment Strategy and prudential indicators and limits for 2020/21 to 2023/24 set out in Appendix F are approved.

(viii)     To note the statement on the robustness of the level of reserves in Appendix H.

(ix)       That the increases to fees and charges set out in Appendix I are approved.

 (x)      Delegate to the Director of Community Services in consultation with the relevant Cabinet lead temporary changes to fees and charges in the form of offers and incentives during the year.  ...  view the full minutes text for item 57