Issue - meetings

Ahead of the Council meeting to be held on 8 February 2021 this report updates Cabinet on the emerging budget and the Medium Term Financial Strategy.

Cabinet Portfolio Holder – Councillor Peter Butlin

Councillor Peter Butlin reminded members that a report had been presented by Corporate Board to the December meeting of Cabinet concerning the budget. He particularly highlighted additional costs to the Council for children’s placement costs and in relation to the Pandemic. A 3% increase in the Social Care levy is proposed. It had been expected that there would be a 0% increase in the tax base. However, the district and borough council figures have now been received and it is now expected that the tax base will be £650k. This is good news.  Finally, Corporate Board has proposed £43 reserves to help smooth the Medium-Term Financial Strategy going forwards.

Councillor Jerry Roodhouse called for a better way to be found to fund social care costs. Levies do not provide a sustainable solution. Councillor Seccombe agreed with this point adding that funding is often raised in areas where the demand is lower than elsewhere.

Councillor Keith Kondakor observed that there is a risk if assumptions regarding Council tax growth are linked to population growth. Recent figures indicate that 1.3 million people have left the UK. This emigration will impact on income as well as employment areas such as social care where a shortage of staff may increase costs.

Regarding the funding of social care Councillor Butlin stated that many letters have been sent by the County Council to government highlighting the need to review funding arrangements.

To Councillor Kondakor, Councillor Butlin stressed that house building is a consideration, but as unemployed people do not pay Council Tax, an important aim to be to get them back in to work.

Resolved:

That Cabinet:

1)       Notes the latest resource and spending information and the impact on the emerging budget proposals;

2)       Notes the Strategic Director for Resources’ risk assessment on the level of general reserves, as detailed in Appendix A;

3)       Supports the creation of a Commercial Risk Reserve to mitigate the financial risks of the Authority’s commercial activity, funded from the temporary saving on the Authority’s borrowing costs as a result of the reprofiling of the capital programme;

4)       Agrees to publish, in light of the information provided, their 2021/22 budget resolutions for recommendation to Council on 8 February 2021; and

5)       Authorises the Strategic Director for Resources to incorporate the outstanding resource information into the budget resolutions to be considered by Council on 8 February 2021.