Agenda item

To consider the Medium Term Financial Strategy and Budget 2021-22

Councillor Hargreaves presented the report on the Medium Term Financial Strategy and Budget proposals for 2021/22. He began by thanking the Director – Resources and Finance and the Assistant Director – Resources for their excellent work during an extremely challenging year. He summarised the appendices that made up the budgetary reports and highlighted areas of note throughout the documents. He proposed the recommendations as set out in the report..

 

Councillor Coote seconded the proposals.

 

In response to a point of order raised by Councillor Criscione, the Chair said the debate would focus on the budgetary papers as a whole, including the Council Tax resolution, although a separate recorded vote would be taken on this resolution.

 

In response to a question from Councillor Sell regarding the rise in employee charges, the Director – Finance and Resources said the rise in charges related to the future investment in the Planning Department, the Little Canfield business park project and the yet unconfirmed 2% pay rise that would depend on a central Government decision.

 

In response to a question from Councillor Sell regarding the Carver Barracks running track, the Director – Finance and Resources said a report would be considered at Cabinet in March that detailed the progress of works on the running track, with a completion date due in September.

 

In response to a question from Councillor Sell in relation to Government funding for the upcoming elections, the Chief Executive confirmed that £15 million for the local elections and £16 million for the Police, Fire and Crime Commissioner elections had been made available to local authorities to ensure these elections were Covid-19 safe.

 

Councillor Criscione said the Conservative Group could not support this budget as he did not agree with the council tax rise in a time of economic hardship. Taxes should remain low to ensure more money stayed in individuals pockets. He asked why investments had not been located in the District and questioned why the Council was asking for further money from its residents, and highlighted the County Council’s decision to freeze council tax for another year. He requested that Members reject the budget regardless of party allegiance.   

 

Councillor Khan asked how much of the Climate Change budget had been spent and where; how much money had been generated by the Council’s portfolio of investments in the past financial year; and how would the budget be communicated to residents following tonight’s meeting.

 

Councillor Pepper said that no money had been spent from the Climate Change budget. An independent person would be brought in to advise on how best to spend the budget over the next three years.

 

Councillor Hargreaves said the message would be communicated by council tax bills. He said he would circulate details on the net income generated by the investments outside of the meeting.

 

Councillor Barker said there had been a mistake in the papers; those paying Band D would in fact pay £10 more a year, not £5. She could not support a budget that raised taxes in two consecutive years.

 

Councillor Hargreaves said this had been corrected and Band D tax payers would see an annual increase of £5 only.

 

Councillor Coote said he would defend the rise in council tax in order to maintain the current level of services the Council provided.

 

In response to a question regarding an adjournment, the Chief Executive said there were six further speakers and advised to adjourn following resolution of the budget item under debate.

 

Councillor Gregory said the Scrutiny Committee had been impressed by the report and praised officers for presenting a balanced budget. He said there were two issues that Scrutiny were concerned with; the Climate Change project required measures of success before money was spent and he wanted to see the Climate Change Action Plan before September 2021. He said there were also concerns with the projected expenditure on the planning department, and asked that detailed proposals be presented to Scrutiny before expenditure took place. He said that Chesterford Research Park had been a success but had added much strain to the local road network; an issue that had yet to be resolved.

 

Councillor Caton said he supported the proposals to raise council tax to ensure council services were maintained in future years.

 

Councillor Bagnall said he was disappointed with the political point scoring on display. He highlighted the fact that other local councils were raising council tax at this time.

 

Councillor Fairhurst said he supported this budget but it was unsettling that the climate change budget had yet been utilised. He asked what was holding up this critical project and feared it was already too late.

 

Councillor Asker said she supported the proposal to raise council tax to ensure spending continued on services. It was a fair proposal she was prepared to defend. She said the climate change budget would be utilised before September.

 

Councillor Hargreaves said green spending had taken place in the form of a green energy tariff. Furthermore, he said the objective was not to simply spend the budget but to spend it effectively and carefully.  

 

The Chair moved to a vote. The recommendations set out in Appendices A to H were taken first. The vote was carried 30 for, 4 against and 3 abstentions.

 

The Council Tax resolution as setout in Appendix I was necessitated by law to be determined by a recorded vote. The resolution was carried 30 for, 5 against and 2 abstentions as follows:

 

Councillor:	For, Against or Abstain
Armstrong	For
Asker	For
Bagnall	For
Barker	Against
Caton	For
Coote	For
Criscione	Against
Day	For
De Vries	For
Dean	For
Driscoll	For
Eke	For
Evans	For
Fairhurst	For
Foley	Abstain
Freeman	For
Gregory	For
Hargreaves	For
Isham	For
Jones	For
Khan	For
Lavelle	For
LeCount	For
Lees	For
Lemon	Against
Light	Against
Lodge	For
Loughlin	Abstain
Luck	For
Merifield	For
Oliver	Against
Pavitt	For
Pepper	For
Reeve	For
Sell	For
Sutton	For
Tayler	For

 

 

Council is RESOLVED to:

 

A)   Section 25 Report – Robustness of Estimates and Adequacy of Reserves:

I.             Take account of the advice in the report when determining the 2021/22 General Fund budget and Council Tax

 

II. Review the risk assessment relating to the robustness of estimates as detailed in the report

 

III. Set the minimum safe contingency level for 2021/22 at £1,458,615 million for the General Fund and £463,865 million for the Housing Revenue Account

 

IV. Agree that no transfers to or from the Working Balance should be built into the 2021/22 budget.

 

B)   Commercial Strategy

V.           Approve the Commercial Strategy 2021 - 2026.

 

C)   Medium Term Financial Strategy

VI.          Approve The Medium Term Financial Strategy

 

D)   Treasury Management Strategy

VII.        Approve the Treasury Management Strategy

 

E) Capital Strategy

VIII.       Approve the Capital Strategy

IX.          Approve the Minimum Revenue Provision (MRP) Policy.

 

F) Capital Programme

                       X.        Approve the 5 year Capital Programme

 

G)  Housing Revenue Account (HRA)

XI.          Approve the Housing Revenue Account

 

H)   General Fund Revenue and Council Tax

XII.        Approve the General Fund Council Tax requirement of                         £6,158,684.

XIII.       Approve the use of reserves

XIV.      Approve the schedule of fees and charges as set out in Annex H6.

XV.        that delegated authority is given to the Director of Public Services to amend the S106 monitoring fee, Port Health fees and trade waste fees.

 

I)     Council Tax Resolution

XVI.   Approve the Council Tax Resolution for 2021/22.

 

Councillor Driscoll proposed adjournment of the meeting until Thursday, 25 February at 7pm.

Councillor Freeman duly seconded.

 

The meeting was adjourned at 10.05pm.