Agenda item

To consider a report of the Director of Corporate Resources regarding the 2021/22 Revenue Budget and Precept.

Cabinet considered the report of the Director of Corporate Resources regarding the revenue budget and precept 2021/22.

With the agreement of the Chairman, Councillor House addressed Cabinet, paying tribute to all public sector staff through the pandemic. He highlighted that the Council’s accounts were not initially signed off by the auditors, that the estimated cost impact of Covid had been revised and pointing out that the Council was not financially viable in the medium term, asked for details of how financial sustainability would be achieved.

With the agreement of the Chairman, Councillor Porter addressed Cabinet, also noting her appreciation of the work of Council staff. The presentation of figures in the budget report was queried and Councillor Porter questioned the support for access to high performance broadband and for IT equipment for children. She also noted the financial pressure on schools relating to dedicated schools grant (DSG) deficit and the impact of changes to home to school transport provision.

The Director of Corporate Resources clarified the presentation of the figures relating to the precept proposals. She confirmed that £1million to support broadband remained in the capital budget and noted that the school DSG deficit issue was a national problem, which the County Council was not allowed to subsidise. It was confirmed that work was underway with the transport sector with regards home to school transport.

In introduction to the report, the impact of the Covid pandemic was highlighted and it was confirmed that an almost balanced position had been achieved. The medium term presented a more significant challenge, although the shortfall had reduced from £210million to £88million, the shifting nature of crisis made projecting figures difficult. The projected shortfall was a risk to financial sustainability in the medium term and the uncertainty in this area was exacerbated by the lack of a medium term financial settlement or stability of funding of social care from government. Recommendations on the council tax precept, the level of support received from government, changes to the Members’ devolved budgets, support for climate change initiatives, the reserves strategy and treasury management were highlighted to Members.

Cabinet welcomed the report and noted that although auditors had sought more information on the accounts leading to a delay, they had been given an unqualified sign-off. It was agreed that balancing the budget to within £3.8million had been a remarkable achievement and hoped that in the future a three year rolling settlement would be forthcoming from government to provide stability in medium term planning. Members recognised the benefit of a prudent reserves strategy to allow budget pressures to be met and noted that in the future the reserves would need to be replenished. The changes to the Members’ devolved grant budgets were welcomed.  

The recommendations set out in the report were considered and agreed. A

decision record is attached to these minutes.