Agenda item

The Executive Member for Corporate Resources, Councillor Keeling presented the agenda report on the final financial plan proposals for 2021/22 to 2023/24. He commended all staff for finding savings of £2million, and in particular the Chief Finance Officer (CFO) and his team for producing a balance budget for 2021/22.

The proposals included recommended revenue and capital budgets for 2021/22 and planned in outline for 2022/23 and 2023/24. The Executive would be considering the budget and recommendations from this Committee at its meeting on 11 February 2021, and then Council on 22 February 2021.

The Committee noted the current budget position and the savings that would need to be found in future years, to deal with budget gaps of £1.2m and £2.6m expected respectively for 2022/23 and 2023/24. He confirmed that the New Homes Bonus that would continue for another year was being reviewed by Government and there was no details of what could replace it going forward. Business rates were also being reviewed by Ministers, and there was no central government direction on the local government reform. 

The Chief Finance Officer advised that Government would be advising the 2021/22 final settlement the following day. The budget figures reflected the effects of the latest lockdown, the mid-year review of Treasury Management and costs of service areas. He reported on the income and expenditure for the revenue and capital budgets. The former would be partly funded over the medium term by savings found, additional income and use of earmarked reserves built up to cover anticipated future reductions in funding, however work was still required to identify the significant budget gaps for 2022/23 and 2023/24 amounting to £3.8m. In addition further savings were required to meet aspirations of the capital programme in future years. Contributions to capital had been reduced to zero to support the revenue budget and should be reestablished at around £0.5m per annum.

The 2021/22 budgets could be balanced using ear marked reserves. The CFO referred to the statutory requirement to balance the budget each year, and the potential need to issue a Section 114 notice if it was not achievable to balance the budget for 2022/23 or 2023/24.

A roll call was taken as attached and the following recommendation was carried by a majority vote and one abstention.

RECOMMENDED

1.      The following proposals be considered together with any subsequent consultation comments for approval by Council as the final budget for 2021/22 and the outline plan for the subsequent years 2022/23 and 2023/24.

The proposed budget includes:

·       An increase in council tax of £5 or 2.85% to £180.17

·       Continued funding for a climate change officer and enhanced planning enforcement

·       Increased provision in the capital programme for climate change projects

·       The continuing reduction in new homes bonus

·       Other central funding reductions – in particular provisional assumptions for business rates for future years and reset of the baseline

·       Reserves at 13.0 % of the net revenue budget or   just under £2.0 million

·       Increased support for housing including the Teignbridge 100 whilst backing business and bringing people and organisations together for local neighbourhood planning      

·       Infrastructure delivery plan investment funded by community infrastructure levy and external sources where available

·       Continuation of grant funded South West Regional Monitoring Programme

·       Town centre investment in infrastructure and employment

·       Use of long term borrowing where appropriate       

·       Assumptions of a 1.5% pay deal

·       Rural aid funding frozen during the Covid 19 pandemic

2.      That Council notes the mid year review of Treasury Management at appendix 8 of the agenda report.