Agenda item

To receive the recommendations from the meeting of Cabinet held on 28 January and, if approved, to adopt the recommendations therein:

(a)   2021/22 Council Tax Reduction (CTR) Scheme (the report of the Cabinet Member for Finance & Assets is online at: Cabinet Agenda item 7 )

(b)   The 2021/22 Budget and the Medium Term Financial Strategy to 2024/25 (the report of the Cabinet Member for Finance & Assets is online at: Cabinet Agenda item 6 ) and to receive an addendum to the report to Cabinet and note the revised recommendation ii) regarding net revenue budget

2021/22 Council Tax Reduction (CTR) Scheme

The Cabinet Member for Finance & Assets gave an overview of Horsham’s current CTR scheme, which provided financial support for those on low incomes. The current scheme reduced the amount of Council Tax paid by working aged customers in financial difficulties.

The Cabinet Member advised that the Council’s scheme was one of the most generous in the country and, given the challenges caused by the pandemic, Cabinet recommended that the scheme remain unchanged for the next financial year. The proposal was seconded by Councillor Ray Dawe.

RESOLVED

That a ‘no-change’ CTR scheme for 2021/22 be approved.

REASON

CTR schemes are annual schemes and therefore require an annual review and approval, even when no changes to the scheme are being proposed.

The 2021/22 Budget and the Medium Term Financial Strategy to 2024/25

Further to the detailed consideration of the budget for 2021/22 by the Cabinet, Councillor Paul Clarke, Cabinet Member for Finance & Assets introduced this item.  The Council had been able to set an essentially balanced budget despite all the problems and uncertainties caused by the pandemic, as a result of unexpectedly generous government funding and prompt actions taken by the Council.  He confirmed that the £7m capital programme would be retained.  With regards to the £5 increase in Council Tax, the Cabinet Member advised that HDC would continue to have the lowest Council Tax of any district or borough in West Sussex.  He stated that the MTFS was based on the current outlook, but the degree of uncertainty remained high at this time. 

The Cabinet Member advised that, since publication of the report to Cabinet, a change had been made effecting the funding, leading to a small increase in the projected deficit for 2021/22 and in the MTFS.  The Cabinet Member moved that the recommendations set out in the Council agenda be approved.  Councillor Ray Dawe seconded the proposal.

Councillor Frances Haigh, Leader of the Liberal Democratic Group said this had been a very challenging year and paid tribute to those who had given time and energy to support their community throughout the pandemic. She recognised that the Council had continued to deliver its services effectively despite additional costs and the loss of income from parking, leisure services and commercial property.  She commended the Cabinet for grasping the nettle with an increase in Council Tax.  However, she considered the assumptions in the MTFS to be unduly pessimistic, and stressed the need to support communities as society recovers from the effects of the pandemic.  

In response to queries regarding the potential capital commitments outlined in Appendix J, the Director of Corporate Resources advised that these were included as an overview of potential commitments and options for the future, which were not fully detailed or costed, and were not part of a capital programme.

The Cabinet Member emphasised the impossibility of accurate assumptions and the need to be prudent at this time of unprecedented uncertainty. It was also noted that the MTFS would continue to be reviewed and refined. 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the voting in respect of the motion was recorded and was as follows:

FOR THE MOTION:  Councillors: Matt Allen, Andrew Baldwin, Tony Bevis, John Blackall, Toni Bradnum, Alan Britten, Karen Burgess, Peter Burgess, Jonathan Chowen, Philip Circus, Paul Clarke, Roy Cornell, Christine Costin, Mike Croker, Ray Dawe, Brian Donnelly, Ruth Fletcher, Billy Greening, Frances Haigh, Tony Hogben, Nigel Jupp, Liz Kitchen, Lynn Lambert, Richard Landeryou, Gordon Lindsay, Tim Lloyd, John Milne, Colin Minto, Christian Mitchell, Mike Morgan, Roger Noel, Bob Platt, Louise Potter, Josh Potts, Stuart Ritchie, Kate Rowbottom, Jack Saheid, Jim Sanson, David Skipp, Ian Stannard, Diana van der Klugt, Claire Vickers, Belinda Walters, James Wright, Tricia Youtan

AGAINST: None

ABSTAIN: None

ABSENT: Councillors: Chris Brown, Godfrey Newman

The motion was declared CARRIED and it was:

RESOLVED

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 £13.072m 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.