Issue - meetings

To consider the Medium Term Financial Strategy & 2021/22 Budget

Councillor Hargreaves presented the budget and highlighted a number of alterations that had been made:-

·         The text in the ‘risk item’ section which related to the Local Plan had been updated.

·         Annex A1 – Sports Facilities and Climate Change Reserve – on both these items the text had been changed to indicate that if the money was not spent it would be rolled over rather than put back into the general fund.

·         MTFS page 63, the text had been added to make clear that 40% of Business Rates income was not retained but was calculated on a tariff basis. 

·         General Funds Reserves – changes had been made to make it clearer that the opening balance is boosted by Business Rates section 31 grant to fund the additional relief for Business Rates waived due to the crisis This will be paid out in the following year.

·         The reserve for the Local Plan wording had been changed and the word ‘new’ removed with regards to ‘sustainable new communities’.  Officers had been given the ability to amend various fees.

 Councillor Sell thanked officers for their work.  He asked the Director, Finance and Corporate Services to give a brief overview of the impact of Covid-19 on the Council’s finances. 

The Director, Finance and Corporate Services said initially there had been concern and emergency spending had been implemented in the early stages of the pandemic to manage the situation, mainly the cash flow.  The government funding provided the money needed and had announced funds for next year to cover losses of income, for example, car parking. 

He said the budget had been compiled by taking views on expected income and were the best estimates of the position at this time.

Councillor Sell asked what the effect of Business Rates going from 40% to 75% retention and the removal of the new homes bonus would be on the Council’s finances. 

Councillor Hargreaves said the 75% retention of Business Rates was included in the Business Rates reform, and these reforms had not taken place.  This rolled into the Fair Funding Review which had also been delayed.  The Council would not keep the full 75% it would be a proportion.  This also applied to the replacement for the new homes bonus, consultation was due to take place later this year. 

Councillor Sell said the Town and Parish Councils were the only tier of local government that were not capped. 

The Director, Finance and Corporate Services added that the document on page 66 set out the position for future years excluding the new homes bonus and using a lower income figure for Business Rates retention. 

The Chief Executive lost connection and left the meeting at 7:50pm.

Councillor Dean said the Commercial Strategy on page 42 and the section on risks raised the on going issue of the accounts not being signed off due to a governance issue and the external investigation.  He said the Council was  continuing to borrow money and had a £300m liability.  He asked if all  ...  view the full minutes text for item 5