Decision Maker: Executive (up to May 2024)
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: No
The Executive considered a report providing an update to the General Fund Medium Term Financial Strategy 2020/21 – 2024/25.
The Executive supported two proposed additional recommendations (Nos. 21 and 22) as follows:
21. That the additional pay inflation from the 2020/21 pay award of 2.75%, as outlined in Paragraph 4.4.5 of the report, totalling £90,460, be approved; and
22. That the budgets totalling £865,860 as outlined in the June COVID MTFS recovery report be removed from the budgets. This includes £75,000 of 2020/21 CNM spend, £152,000 of vacant posts held, £50,000 of overtime budgets, £125,000 of capital related spend, and £463,860 of other underspends identified in 2020/21.
It was RESOLVED:
1. That the change to the Medium Term Financial Strategy (MTFS) principles, as outlined in Paragraph 4.1.6 of the report, be approved.
2. That, for modelling purposes, Council Tax increases be set at the threshold of 1.99%, subject to any change in Government rules to achieve a balanced budget (as referred to in Section 4.8.12 of the report).
3. That the update inflation assumptions used in the Medium Term Financial Strategy (as referred to in section 4.4 of the report) be approved.
4. That the approach to Financial Security, as set out in Section 4.7 of the report, be approved.
5. That an amount of £200,000 for 2020/21 and 2021/22 be approved for inclusion in the budget setting process as a Transformation Fund to help deliver the Financial Security Target (as referred to in Paragraph 4.6.3(v) of the report).
6. That a General Fund Financial Security Target of £2.45Million be approved for the period 2021/22 – 2023/24, including increases in fees and charges (as referred to in Paragraph 4.7.17 of the report).
7. That an amount of £100,000 for 2020/21 be included in the budget to cover associated costs of the Devolution and Recovery White Paper (as referred to in Paragraph 4.6.3(ii) of the report).
8. That the 2020/21 1st Quarter changes to the General Fund, as outlined Paragraph 4.6.1 of the report, be approved.
9. That the financial impact of Covid-19 in 2020/21 and future years, including the estimation of income guarantee scheme, as set out in section 4.5 of the report, be noted.
10. That the budgets held as part of the June 2020 Covid-19 MTFS report be not released and be removed from the budget, as set out in Paragraph 4.7.17 of the report and based on the level of projected General Fund balances.
11. That the assumptions set out in Paragraph 4.7.17 of the report that underpins the level of Financial Security savings required in the MTFS and which supported the General Fund balances be noted.
12. That the unavoidable growth pressures, as outlined in Paragraph 4.6.2 of the report, be noted and included in the budget setting process.
13. That General Fund growth be only approved for the Council’s FTFC priorities and the growth allowance in the 2020/21 budget is £75,000, with growth above that level needing to be funded by further savings in addition to the £2.45Million target identified (as referred to in Paragraph 4.7.17 of the report).
14. That the Leader’s Financial Security Group oversees the development of the 2021/22 – 2023/24 savings package.
15. That the New Homes Bonus balances available be noted, and that growth funding of Co-operative Neighbourhood Management be included as part of the budget setting process.
16. That the revenue contribution to capital be reduced by £350,000 per year from 2020/21 as a result of the locality review sales in order to increase the resilience of General Fund balances.
17. That a minimum level of balances for the General Fund of £3.41Million be approved for 2020/21 (as referred to in section 4.11 of the report).
18. That the MTFS be regularly updated for any material financial pressures so forecasts are updated and be re-presented to the Executive for approval.
19. That, if required, public consultation be commissioned in line with the requirements of the Council’s Consultation and Engagement Strategy.
20. That the Trade Unions and staff be consulted on the key messages contained within the Medium Term Financial Strategies and more specifically when drawing up any plans where there is a risk of redundancy.
21. That the additional pay inflation from the 2020/21 pay award of 2.75%, as outlined in Paragraph 4.4.5 of the report, totalling £90,460, be approved.
22. That the budgets totalling £865,860 as outlined in the June COVID MTFS recovery report be removed from the budgets. This includes £75,000 of 2020/21 CNM spend, £152,000 of vacant posts held, £50,000 of overtime budgets, £125,000 of capital related spend, and £463,860 of other underspends identified in 2020/21
Reason for Decision: As contained in report and 21. To reflect the agreed pay award; and 22. To reflect further savings required due to Covid-19.
Other Options considered: As contained in report.
Publication date: 16/09/2020
Date of decision: 16/09/2020
Decided at meeting: 16/09/2020 - Executive (up to May 2024)
Accompanying Documents: