The Head of Finance introduced the report, which had been prepared in the context of the continued impact of the Covid-19 pandemic and the proposed re-prioritisation of the Strategic Plan objectives as reported to the Policy and Resources Committee in July 2020.

The Committee were informed that Council Tax charge would likely increase by 2% and that the same level of income would be retained under the business rates retention scheme as in the previous year. It was noted that the Local Government Finance Settlement was to be released in the near future.

The cost of borrowing for the capital programme would be reduced by around 1%, providing that the Council was not investing solely for yield.

The results of the resident’s survey were highlighted, with the two most important services identified as waste collection and parks and open spaces. The proportion of residents that believed the Council’s services represented value for money remained similar to previous years, with a smaller proportion reporting dissatisfaction in Maidstone as a place to live.

The strategic revenue projections would be updated to reflect the announcement of the spending review and the local government finance settlement, with further detailed budget proposals to be presented to the Committee in January 2021. 

In response to questions, the Head of Finance confirmed that the projected reduction in business rate income arose from the projected reduce growth in the monies retained through the business rates pool and retention scheme. It was likely that the Council would enter the business rates pool for the next financial year. The use of the New Homes Bonus to bridge the Council’s budget gap over the next few years was referenced. 

RESOLVED:  That the Medium-Term Financial Strategy be noted and the Committee’s comments be taken into account.