Issue - meetings

Report of the Cabinet Member Finance and Assets

The Cabinet Member Finance and Assets presented the budget report, explaining that it continued the Covid recovery work which invested in the economy and tackling climate change. He wished to place on record his thanks to all staff for their efforts during Covid and praised them for rising to the challenge. He paid tribute to the Executive Director Finance and Assets and his team for their work on distributing a total of £31.4 m of business grants to date.

He explained that the budget before Members was based on the Covid recovery budget agreed by Council in November 2020. This had focussed on certain asset disposals so the council was able to underwrite the budget for the next three years. Since November, the country had entered into a further lockdown which impacted the budget in terms of reduced income, amounting to a net £100k which would be funded from general balances. The 2021/22 budget builds on the recovery strategy. In terms of the national context, the government settlement was confirmed on 10 February and was only for one year which was disappointing, particularly as there had been promises of a business rates and fair funding review. On a positive note, government commitment to support loss of income by 75% had been extended to the end of June, although there was concern that loss of income would continue. It was therefore difficult to predict the impact of this and the impact of Covid on the potential to collect council tax and business rates. New Homes bonus had been extended for a further year and revenue support grant remained at zero. A lower tier service grant had been received amounting to £121k; this represented an adjustment grant and was top-sliced from the national new homes bonus allocation.

In terms of council tax support, more than 4,000 people locally had benefitted from the CBC scheme. The Gloucestershire business rates pool continued to prove beneficial meaning the council was £1.184m better off against its baseline target. Covid was having an impact on business rates as government had allowed zero rates. To that end, projected income has dropped but government funding was in place to cover this. Government had requested local authorities to delay billing until the national budget had been announced.

In preparing the budget, Cabinet were mindful of the economic difficulty many people and businesses were facing. The council continued to try to maximise efficiency, reduce costs and increase income where practicable and he was pleased to report that a further £400k of savings could be banked into this budget. This was an exceptional effort, given the circumstances.

The budget would continue to protect frontline services whilst investing in tackling climate change and economic growth locally. The council’s commercial strategy, adopted in 2018 would continue, maximising the use of skills and assets and aiming to achieve long term, sustainable growth. Evidence showed that Cheltenham remained an attractive place to invest which was positive in terms of the council approach.

The Cabinet Member highlighted  ...  view the full minutes text for item 10

Report of the Cabinet Member Finance and Assets to follow

RESOLVED THAT:

1.    Council be recommended to:

a.    Approve the revised budget for 2020/21;

b.    Consider the budget assessment by the Section 151 Officer at Appendix 2 in agreeing the following recommendations;

c.     Approve the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £219.08 for the year 2021/22 based on a Band D property (an increase of 2.34% or £5.00 a year for a Band D property), as detailed in paragraphs 4.17 to 4.22;

d.    Approve the growth proposals at Appendix 4 and outlined in Section 6;

e.    Approve the savings / additional income totalling £400,000 and the budget strategy at Appendix 5;

f.      Approve the use of reserves and general balances and note the projected level of reserves, as detailed at Appendix 6;

g.    Approve the capital programme at Appendix 7;

h.    Approve the programmed maintenance programme at Appendix 8;

i.      Approve the flexible use of capital receipts strategy as detailed in Appendix 9;

j.      Note that the Council will remain in the Gloucestershire business rates pool for 2021/22 (paragraphs 4.6 to 4.16);

k.     Approve the Medium Term Financial Strategy (MTFS) detailed in Section 5 and Appendix 10;

l.      Approve the Pay Policy Statement for 2021/22, including the continued payment of a living wage supplement at Appendix 11;

m.   Approve a level of supplementary estimate of £100,000 for 2021/22 as outlined in Section 14.

The Cabinet Member Finance and Assets presented the report, which formed the final stage of the council’s budget proposals and would be put before full Council on 22^nd February. He highlighted the key changes, which included a further £21k investment into the base budget to support climate change projects and the wider economic recovery. This was supported by a minimal rise in council tax, equating to under 10p a week at Band D.

He added that the Planned Maintenance Program had been reviewed by the Asset Management Working Group, which had responded positively to its proposals. Various organisations including the C5 Parish Councils Group had been briefed on the proposals too, with positive feedback. These partners had emphasised a number of topics, including climate change, the widening of the socio-economic gap during the pandemic, and the importance of playing an active role to support key sectors, including voluntary work.

He added that only three public responses had been received, likely due to the November budget review having happened relatively recently. These responses, as well as the relevant member’s replies to them, were included in the report. The budget proposals were also considered by the Budget Scrutiny Working Group, which had presented its feedback to the Overview & Scrutiny Committee. He added that CBC’s planned council tax rise of £5 a year (2.34%) was relatively low in comparison to other nearby councils.

The Cabinet Member Economy and Development praised the base budget investment in an apprenticeship program and wider economic development, and noted that it supported the objectives of the Economic Recovery Task Force.

The Leader described the report as outstanding considering the challenges faced in the last year, and praised officers for their work.

The Leader moved to a vote, where it was unanimously:

RESOLVED THAT:

1.    The revised budget for 2020/21 be approved;

2.    The budget assessment by the Section 151 Officer at Appendix 2 be considered in agreeing the following recommendations;

3.    The final budget proposals be approved, including a proposed council tax for the services provided by Cheltenham Borough Council of £219.08 for the year 2021/22 based on a Band D property (an increase of 2.34% or £5.00 a year for a Band D property), as detailed in paragraphs 4.17 to 4.22;

4.    The growth proposals at Appendix 4 and outlined in Section 6 be approved;

5.    The savings / additional income totalling £400,000 and the budget strategy at Appendix 5 be approved;

6.    The use of reserves and general balances be approved, and the projected level of reserves as detailed at Appendix 6 be noted;

7.    The capital programme at Appendix 7 be approved;

8.    The programmed maintenance programme at Appendix 8 be approved;

9.    The flexible use of capital receipts strategy as detailed in Appendix 9 be approved;

10.  It be noted that the Council will remain in the Gloucestershire business rates pool for 2021/22 (paragraphs 4.6 to 4.16);

11.  The Medium Term Financial Strategy (MTFS) detailed in Section 5 and Appendix 10 be approved;  ...  view the full minutes text for item 8