Issue - meetings

To set out for cabinet consideration and recommendation to council the proposed 2020/21 budget and council tax.

The budget as presented;

a)  has been drafted on a base 3.99 per cent increase in council tax as adjusted in each of the predecessor areas by the application of the policy to achieve harmonisation from 1 April 2021 onwards.

b)  Includes provision to mitigate the deficit that is accumulating in the high needs budget of the Dedicated Schools Grant (DSG).

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

Cabinet were requested to consider and recommend to Council the proposed 2020/21 budget and council tax.

Cabinet were advised that the budget as presented had been drafted on a base 3.99 per cent increase in council tax as adjusted in each of the predecessor areas by the application of the policy to achieve harmonisation from 1 April 2021 onwards. It included provision to mitigate the deficit in the high needs budget of the Dedicated Schools Grant (DSG).

The Leader outlined an amendment to recommendation ‘d’ and an additional recommendation at ‘gi’. The revision to recommendation ‘d’ was to reduce the transfer from early years funding to the high needs block to nil. The reduction would increase the predicted accumulated deficit on the Dedicated Schools Grant as at 31 March 2021 to £8.5 million. With the in-year deficit assessed at £3million based on a £4million transfer from the schools block. The additional recommendation at ‘gi’ proposed a further £0.2million one-off contribution to the Financial Liability Reserve to bring the balance to £8.5million as at the 31 March 2021. This had been identified as £0.2million of principle repayments on assumed acquisitions were not due to commence until the 2021/22 financial year.

The Chairman of the Overview and Scrutiny Board outlined its recommendation to request that the Leader write to the Minister of Education to express Councillors concerns over the funding formula applied to BCP giving rise to the pressure on the Dedicated Schools Grant and the growing deficit to the High Needs Block. The Leader confirmed that the local MPs had already been written to on this subject and she confirmed she would also write to the Secretary of State for Education. The Chairman and Leader of the Conservative Group advised that they would like to co-sign the letter and this was welcomed.

Cabinet members welcomed the work in each of their portfolio areas that had been undertaken to produce a balanced budget which also delivered on the Council’s priorities and harmonised Council Tax in the authority more quickly than that proposed by the Shadow Authority. The Leader and Portfolio Holder for Finance thanked the Chief Financial Officer and all of the finance staff for their support in production of the budget, a process which had been underway since July 2019 and noted that the process for setting the following year’s budget would be starting soon. 

RECOMMENDED that Council:-

1)         a recorded vote be undertaken in relation to the following items as required by the Local Authorities (Standing Orders) (England) (Amendments) Regulations 2014 which came into force on the 25 February 2014;

a)         A net budget of £283m, resulting in a total Council Tax Requirement of £217.1m, is set for 2020/21 based on the settlement figures published by Government in December 2019. This is based upon:  ...  view the full decision text for item 122

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

Cabinet were requested to consider and recommend to Council the proposed 2020/21 budget and council tax.

Cabinet were advised that the budget as presented had been drafted on a base 3.99 per cent increase in council tax as adjusted in each of the predecessor areas by the application of the policy to achieve harmonisation from 1 April 2021 onwards. It included provision to mitigate the deficit in the high needs budget of the Dedicated Schools Grant (DSG).

The Leader outlined an amendment to recommendation ‘d’ and an additional recommendation at ‘gi’. The revision to recommendation ‘d’ was to reduce the transfer from early years funding to the high needs block to nil. The reduction would increase the predicted accumulated deficit on the Dedicated Schools Grant as at 31 March 2021 to £8.5 million. With the in-year deficit assessed at £3million based on a £4million transfer from the schools block. The additional recommendation at ‘gi’ proposed a further £0.2million one-off contribution to the Financial Liability Reserve to bring the balance to £8.5million as at the 31 March 2021. This had been identified as £0.2million of principle repayments on assumed acquisitions were not due to commence until the 2021/22 financial year.

The Chairman of the Overview and Scrutiny Board outlined its recommendation to request that the Leader write to the Minister of Education to express Councillors concerns over the funding formula applied to BCP giving rise to the pressure on the Dedicated Schools Grant and the growing deficit to the High Needs Block. The Leader confirmed that the local MPs had already been written to on this subject and she confirmed she would also write to the Secretary of State for Education. The Chairman and Leader of the Conservative Group advised that they would like to co-sign the letter and this was welcomed.

Cabinet members welcomed the work in each of their portfolio areas that had been undertaken to produce a balanced budget which also delivered on the Council’s priorities and harmonised Council Tax in the authority more quickly than that proposed by the Shadow Authority. The Leader and Portfolio Holder for Finance thanked the Chief Financial Officer and all of the finance staff for their support in production of the budget, a process which had been underway since July 2019 and noted that the process for setting the following year’s budget would be starting soon. 

RECOMMENDED that Council:-

1)         a recorded vote be undertaken in relation to the following items as required by the Local Authorities (Standing Orders) (England) (Amendments) Regulations 2014 which came into force on the 25 February 2014;

a)         A net budget of £283m, resulting in a total Council Tax Requirement of £217.1m, is set for 2020/21 based on the settlement figures published by Government in December 2019. This is based upon:  ...  view the full minutes text for item 122