Decision Maker: Executive
Decision status: For consultation
Is Key decision?: No
Is subject to call in?: No
RESOLVED to note the following observations made by the Overview and Scrutiny Committee in response to the Service and Financial Planning 2021/22 report:
1. That the Overview and Scrutiny Committee thanks the Executive Member for Finance, Executive and Officers for preparing initial revenue and capital budget proposals for 2021/22
2. That the Overview and Scrutiny Committee considers the following to be achievable, realistic and based on sound financial practices and reasonable assumptions:
a) Revenue Budget Savings and Additional Income proposals totalling £2.094m.
b) Revenue Budget Growth proposals totalling £0.812m
c) Forecast ongoing income budget pressures in 2021/22 as a consequence of the COVID-19 pandemic totalling £1.610m (to be met by one-off funding from the Government Funding Risk Reserve)
d) Capital Programme Growth and Reprofiling proposals resulting in a net reduction in the five-year Capital Programme of (£0.286m)
e) Revenue Reserve Balances at 1 April 2020 of £35.391m
3. That the Overview and Scrutiny Committee considers the potential negative impact of the savings and growth proposals on service delivery to be minimal and concluded that the Council was managing its finances well on behalf of its residents.
4. That the budget proposals for 2020/21 included an allowance of £1.256m for the use of reserves including £1m to fund the headroom contingency budget, or a net increase of £256k excluding the headroom contingency budget. For 2021/22 no headroom budget has been established, and a drawing of £539k from reserves is planned. Any overspending will require further drawings from reserves.
5. That implementation of the Council’s Commercial Strategy is vital to meeting the budget gaps in future years, as government funding is further reduced. The Overview & Scrutiny Committee notes that no substantial additional commercial income from investments is included in the 2021/22 budgets.
6. That some capital budgets for investment are yet to be finalised, as well as a number of revenue budget items, and for this reason the Overview and Scrutiny Committee has yet to draw a conclusion on the overall budget proposals for 2021/22.
Wards Affected: (All Wards);
Contact: Catriona Marchant, Democratic Services Officer Email: firstname.lastname@example.org Tel: 01737 276066.
Report author: Alex Berry
Publication date: 17/12/2020
Date of decision: 17/12/2020
Decided at meeting: 17/12/2020 - Executive