3 Budget Targets 2021/22 PDF 130 KB
This report updates the Council’s financial forecast and recommends financial targets for preparing the draft budget for 2021/22.
Additional documents:
Minutes:
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.