Issue - meetings

Observations of the Overview and Scrutiny Committee on the draft Budget proposals for 2020/21

Meeting: 30/01/2020 - Executive (Item 83)

83 Observations of the Overview and Scrutiny Committee on the draft Budget proposals for 2020/21

To receive the observations of the Overview and Scrutiny Committee.

Supporting documents:

Minutes:

The Executive Member for Finance, Councillor Schofield, introduced the report setting out the outcome of the Overview and Scrutiny Committee’s consideration of the draft budget proposals for 2020/21. He thanked the Members of the Overview and Scrutiny Committee, including the Budget Panel, for their engagement and robust challenge during the budget setting process. The budget proposals had benefitted from excellent Member engagement, aided as in previous years by thorough advance questions. The report and recommendations of the Panel were subsequently considered by the Overview and Scrutiny Committee in December and January.

 

The Chair of the Overview and Scrutiny Committee, Councillor Harrison, explained that the Committee considered that the budget proposals for 2020/21 were realistic, based on sound financial practices and reasonable assumptions. The impact of savings and growth proposals on service delivery were minimal and included service improvements. However, the Committee had observed that the overall increase in the Revenue budget would be unsustainable in the long term unless additional sustainable revenue income sources were found.

 

The Overview and Scrutiny Committee had subsequently noted the proposed funding for capital investments. The Minimum Revenue Provision (MRP) was forecast as £0.52m and the interest on borrowing £0.92m. This was a conservative estimate and actual costs would depend on the rate of capital spending.

 

The Leader of the Council thanked the Members of the Budget Panel and the Overview and Scrutiny Committee for their considerations, which offered assurance to residents that the budget proposals had been subject to challenge. The Leader emphasised that the desire for commercial returns meant that investment had to come first, and that the capacity to deliver the Council’s ambitions was under constant review.

 

In response to observations from Visiting Members, it was clarified that

 

·       The Housing Strategy set out a change in direction for the Council and there would be substantial investment in affordable housing; and

·       The response of the Executive to the Climate Change motion received by Council in September 2019, would be reported to the March meeting of the Executive.

 

RESOLVED: that the considerations of the Overview and Scrutiny Committee on the Budget Proposals 2020/21 and Capital Programme 2020 – 2025, be noted. 

 

Reason for decision: To take account of the views of the Overview and Scrutiny Committee on their consideration of the Budget Proposals 2020/21 and Capital Programme 2020 – 2025.

 

Alternative options: Request that the Overview and Scrutiny Committee undertake additional scrutiny of all or part of the Budget Proposals 2020/21 and Capital Programme 2020 – 2025.