Decision details

Decision Maker: Cabinet, Council

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

This report, which includes an updated Medium Term Financial Strategy (MTFS), accords with the Council’s Policy and Budget Framework and supports delivery of the updated Council Plan 2021 to 2025 and the development of an effective and efficient Council.


Decision:

Cabinet note:

 

1)    The revised Medium Term Financial Strategy 2021/22 to 2024/25 as detailed in Appendix 1 of the report.

 

2)    The aims and objectives of the Medium Term Financial Strategy which will be presented to Council for approval on 25 February 2021.

 

3)    The formal budget public consultation began on 11 November 2020 and ended on 3 January 2021. The internal consultation on staffing proposals commenced on 14 December 2020 and ended on 22 January 2021. Following the consultation, the budget proposals have been revised as shown in paragraph 1.6 and the outcome of the consultation is summarised in section 20 and Appendix 6 of the report.

 

4)    The budget proposals are based on the assumptions detailed within the Medium Term Financial Strategy and that this includes a Council Tax increase of £5.00 in 2021/22, allowable under general powers to increase Council Tax without a referendum.

 

5)    That further proposals will need to be considered to address future years budget gap in 2022/23, 2023/24 and 2024/25.

 

6)    That the Financial Policies have been reviewed and the updated Financial Policies are detailed in Appendix 4 of the report.

 

Cabinet Recommend Council to

 

Note:

 

7)    The S151 Officer’s (Executive Director of Corporate Services) statutory report regarding the robustness of the estimates and the adequacy of reserves detailed in section 13 of the report.

 

8)    That the Executive Director of Corporate Services (S151 Officer) on the 8 January 2021 calculated the Council Tax base for the whole Council area at 66,627.2 Band D equivalents and for dwellings in those parts of its area to which a parish precept relates as per Appendix 2 (available for final report to Council).

 

9)    The county, police and fire authority precepts detailed in Appendix 3 (available for final report to Council).

 

10)That as the billing authority, the Council has not been notified by any major precepting authority that its relevant basic amount of Council Tax for 2021/22 is excessive and the billing authority is therefore not required to hold a referendum, in accordance with section 52ZK of the Local Government Finance Act 1992.

 

11)The risks and sensitivities within the financial forecasts highlighted in section 10 and in Appendix 5 of the report.

 

12)That the final government grant settlement figures may not be finalised before the budget is approved and therefore any adjustments to the final figures will be matched by an allocation to or from the MTFS Risk Reserve in accordance with financial policies.

 

Determine:

 

13)That for the purposes of section 35 (2) (d) of the Local Government Finance Act 1992, any expenses incurred by the Borough Council in the financial year 2021/22 in performing functions in a part of the district which elsewhere in the district are performed by a Parish Council, shall not be special expenses of the Borough Council.

 

14)That its relevant basic amount of Council Tax for 2021/22 (£131.42 at Band D) reflects a £5.00 (3.96%) increase which is not excessive in accordance with principles approved under Section 52ZB of the Local Government Finance Act 1992.

 

Approve:

 

15)The net Council Tax requirement of £8.76M for 2021/22, the revenue estimates including the budget proposals in section 6 of the report and contributions to and from reserves as summarised in sections 7 and 9 of the report.

 

16)The Medium Term Financial Strategy, as shown in Appendix 1 of the report.

 

17)The updated financial policies set out in Appendix 4 of the report including the revised New Homes Bonus Grant allocation policy.

 

18)That the requirement for Council Tax for Borough purposes for 2021/22 be £131.42 Band D equivalent as set out in Appendix 3 (available for final report to Council).

 

19)The 2021/22 net income budget of £0.08M for the Joint Manydown Committee as set out in section 15 of the report and that the net income is shared equally between the Council and Hampshire County Council.

 

20)The Council Tax Resolution as set out in Appendix 3 (available for final report to Council) which brings together the Borough’s Council Tax Requirement and that of the other major preceptors (Hampshire County Council, Hampshire Fire and Rescue and The Police and Crime Commissioner for Hampshire) and sets the Council Tax charges for 2021/22.

 

21)That the S151 Officer (Executive Director of Corporate Services) be given delegated authority to implement any variation necessary to the overall level of 2021/22 Council Taxes in the event that any of the precepting authorities change their precept calculation from that expected and reported at the Council meeting.

 

22)The updated Financial Regulations as detailed in Appendix 7 of the report for inclusion in the council’s constitution.

 

23)The Summary Priority Plans and updated Council Plan as shown in Appendices 8 and 9 of the report.

Report author: Sarah Finch

Publication date: 10/02/2021

Date of decision: 09/02/2021

Decided at meeting: 09/02/2021 - Cabinet

Accompanying Documents: