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MTFS and Budget Proposals

Meeting: 10/02/2021 - Policy and Resources Committee (Item 160)

160 MTFS and Budget Proposals pdf icon PDF 208 KB

Additional documents:

Minutes:

The Director of Finance and Business Improvement introduced the report and noted that the budget had been under consideration for the past few months. The proposed increase in the minimum level of reserves held by the Council, from £2 million to £4 million was highlighted.

 

The Council’s budget deficit had been reduced to £1.6 million, with actions proposed to close the gap over the next three years. There was an additional £860,000 in government funding which was not ring-fenced but was intended to assist in the Council’s response to Covid-19, with any remaining funding to be diverted to the Council’s recovery strategy. The Committee would receive a report on the strategy in the future.

 

Feedback from the Council’s other Service committees on the perceived impracticality of two savings proposals was highlighted i.e., the £75,000 of savings in year three arising from planning policy, and the £120,000 arising from the restructure of democratic representation. The latter would not occur as the Democracy and General Purposes Committee had chosen not to proceed to the consultation stage for Whole Council elections. As the savings would have occurred in three years’ time, it was proposed that they be included as general savings within the Council’s budget, with new methods to generate the savings identified in the future.

 

In addressing the reference from the Strategic Planning and Infrastructure Committee, the importance of the Local Plan (LP) and planning policy development was reiterated. It was stated that whilst the £200,000 (per annum) expenditure allocated to the LP had now been found to be insufficient, the report set out a way forward that was intended to address the Strategic Planning and Infrastructure Committee’s concerns. The additional funding requirements would be identified through Officers reviewing the budget for the Local Plan and planning policy, through to the plan’s adoption in 2023. The resulting proposals would be presented to the Committee and the Strategic Planning and Infrastructure Committee.

 

In response to the concerns expressed, the Director of Finance and Business Improvement provided assurance that the proposals outlined would provide the necessary funding for the LP and planning policies.

 

The proposed increase in Council Tax was questioned due to the current economic climate. It was noted that if the Council Tax increases were not approved, there would be a financial shortfall.

 

RESOLVED: That

 

1.  The outcomes of consideration of the budget proposals by the Council’s Service Committee’s be noted;

 

2.  The updated Strategic Revenue Projection, as set out in Appendix A to the report, be agreed;

 

3.  The Budget Savings Proposals as set out in Appendix B to the report, be agreed;

 

4.  The £5.31 increase in Band D Council Tax for 2021/22 for recommendation to Council, be agreed; 

 

5.  The Revised Estimates for 2020/21 and the Budget Estimates for 2021/22, as set out in Appendix C to the report, for recommendation to Council, be agreed;

 

6.  The Capital Programme, as set out in Appendix D to the report, for recommendation to Council, be agreed;

 

7.  The Treasury Management  ...  view the full minutes text for item 160