Issue - meetings

This report updates the Council’s financial forecast and recommends financial targets for preparing the draft budget for 2021/22.

The Panel received the report on the proposed budget targets for 2021/22.

The following matters were debated by Councillors:

·                     The operation of MHCLG’s Income Compensation Scheme

·                     The margin for error within the forecasts

·                     The level and purposes for which reserves are earmarked, and whether reserves could be replenished in future

·                     How the forecasts are derived and linked to Appendices 1 and 2.

·                     The appropriateness of a CPI pay award in the current climate

·                     How New Homes Bonus has prudently been set-aside in previous years and could now be used to part fund the Council’s in year budget deficit, via a transfer from the Corporate Projects Reserve.

·                     How the Council must take an enterprising approach to income generation and delivering services

·                     That proposed savings must be realistic and deliverable

Following consideration of the above matters and the report’s contents, the Panel agreed to recommend to the Strategy and Resources Committee:-

(1)          The following overall revenue budget target for 2021/22:-

i.                That estimates be prepared including the delivery of savings already identified in the Financial Plan for 2021/22 totalling £336,000.

ii.                That estimates include options to reduce organisational costs by £1,290,000 subject to government grant announcement, in order to minimise the use of working balances and maintain a minimum working balance of £2.5 million in accordance with the medium term financial strategy. The £1,290,000 should be funded as set out in Section 9 of this report.

iii.                That at least £210,000 additional revenue is generated from an increase in discretionary fees and charges;

iv.                That a provision for pay award is made of £408,000 that would allow for a 2% cost of living increase;

v.                That a £950,000 contingency is provided for within the 2021/22 budget to mitigate the potential impact of Covid-19 on the Council’s finances in 2021/22.

(2)          That officers are tasked in delivering a list of costed options that can be implemented to address any budget shortfall for 2021/22.

(3)          The budget reporting timetable as set out in section 10 of the report.

(4)          That 2020/21’s projected deficit be funded as set-out at paragraph 6.7 of the report.