Issue - meetings

To consider an update on the General Fund Medium Term Financial Strategy 2020/21 – 2024/25.

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 1^st 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  ...  view the full decision text for item 9.