Agenda item

The Portfolio Holder for Corporate Resources proposed that the Executive Budget as set out in the agenda papers and that the recommendations as per the circulated report be approved.

In presenting the budget, the Portfolio Holder for Corporate Resources thanked officers for their preparation of the budget and the Overview and Scrutiny Committee for their work and input into the budget proposals.

He stated that the budget addressed the councils funding shortfall whilst delivering its commitment to addressing climate change, increase planning enforcement and affordable housing and continuing to provide a capital programme which met the requirements in the Council Strategy. He was grateful to the Overview & Scrutiny Committee for the review of the rural aid which would continue with a budget of £26,000 and a revised criteria. He commented that the criteria would not include the reserves that the smaller parishes had set aside for Elections. With the changes to business rates, new homes bonus and the ceasing of right to buy payments from Teign Housing the Council had to look to become more commercial going forward.

This was seconded by the Leader.

Councillor Clarance as budget spokesperson for the opposition commented that the unpalatable cuts that were being proposed could be avoided if less funds were transferred from the revenue account to the capital account and the reduction in funding from the capital account be made up by increasing borrowing.

Some Members who objected to the proposed budget raised concerns regarding the negative impact of charging for Sunday parking; the cuts in the councillor’s community funds and rural aid and the charge for parish/towns to empty dog bins.

Members in support of the budget commented that this was a balanced budget to bridge the funding gap that had to be addressed by the reduction in central government funding.

RESOLVED:-

a          That the Teignbridge band D council tax for 2020/21 is increased by 2.94% or £5 to £175.17 per annum

b          That general reserves are increased to 12.3% of the net revenue budget for 2020/21 or just under £2.0 million

c          That £100,000 of the general reserve balance in any one year continues to be available to the Executive to meet unexpected expenditure in addition to the agreed revenue budget

d          That all other decisions with regard to budgetary change will be approved by reference to virement rules in the financial instructions

e          That the summary revenue budget for 2020/21 is £16.1 million as shown at appendix 4. In particular the revenue budget includes:

• Assumptions of a 2% pay deal with higher increases for those on lower grades from 1 April 2020

• Revenue contributions to fund capital at £0.6 million in 2020/21 and increasing slightly thereafter

• Rural aid reducing to £26,000 from 1 April 2020

• A reduction in the councillors community fund grant to £1,000 each

f           That fees and charges are approved as shown summarised at appendix 6. This includes an increase in parking income of £185,000 from last years base budget

g          That the capital programme as shown at appendix 7 is approved. In particular this includes:

• Increasing jobs and homes through continuing support for housing whilst backing business and encouraging community-led planning

• Infrastructure delivery plan investment contributing to improving education, transport links, sports and open spaces

Three major town centre investments will be funded mainly from prudential borrowing.  There is also a provision for potential Future High Street fund projects. These would be funded from a combination of government grant and other co-funding, including CIL, grant and prudential borrowing. There are also provisions for employment site investment to be funded through prudential borrowing. Both the Future High Street fund and employment site projects are indicative projects only. They are described as provisions and are not being approved in this budget. Individual business cases will be brought to members for consideration as they are

h         That the prudential indicators are noted and the prudential limits approved all as set out in appendix 11

i           That the updated treasury management strategy statement and authorised lending list as set out in appendix 12 is approved together with the capital strategy in appendix 12a

j           That each scheme will be considered on its merits as explained at the end of appendix 12 to decide the calculation of minimum revenue provision for capital expenditure in 2020/21

k          That the treasury management mid-year review for 2019/20 as taken to Executive on 28 November and shown in appendix 13 is noted     

l           That the council tax resolutions as recommended in appendix 16 are approved

m         That the Commercial Strategy in appendix 8 is approved and authority is delegated to the Chief Finance Officer to approve the purchase of assets meeting the criteria in section 6 of the Strategy.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014the recorded vote was as follows:-

Voting for:-

Councillors Austin, Connett, Cook, (D) Cox, (H) Cox, Dewhirst, Eden, Evans, Foden, Goodman-Bradbury, Hayes, (G) Hook, (J) Hook, Jefferies, Jenks, MacGregor, Keeling, Morgan, Nutley, Nuttall, Parker, (J) Petherick, (L) Petherick, Purser, Rollason, Swain, Taylor and Wrigley.

(28 Members)

Voting against:-

Councillors Bradford, Bullivant, Clarance, Daws, Gribble, Haines, Hocking, Jeffrey, Kerswell, Mullone, Orme, Parker-Khan, Patch, Peart, Phipps, Russell and Thorne.

(17 Members)

Absent:-

Councillors Colclough and Tume

(2 Members)