Agenda item

A verbal update by the Strategic Director, Environmental and Corporate Services regarding any amendments required to the draft Budget after receiving the Government settlement in December.

A verbal update by the Strategic Director, Environmental and Corporate Services, was made regarding any amendments required to the draft budget after receiving the Government’s settlement in December 2020.

Assisting with the consideration of the item: Lead Member of Finance and Property Services, Strategic Director, Environmental and Corporate Services and the Head of Financial Services.

The Strategic Director, Environmental and Corporate Services, provided a detailed update on the financial settlement received from the Government.  He stated that the budget position, as considered by the Panel in December, was slightly less favourable and down by £0.44million, however, the General Fund working balance would be up to £2.6million by March 2022.  He noted that the Council would be able to move forward with the draft budget as presented with the minor refining of calculations that routinely occurred at this stage in the process.

Summary, key points of discussion:

·         the number of one-off funding streams were highlighted, and the level of uncertainty noted. 

·         the impact on the Council’s income stream by COVID had been significant and was likely to continue during the early part of 2021.  Some income losses (i.e. car parking and leisure centres) were budgeted as one off pressures for the whole year.  The Council were preparing to claim for the previous four months from the Government.

·         it was anticipated that Supported Living additional Housing Benefit losses could rise, although it was hoped that this could be mitigated by a change in government policy or by local housing providers obtaining registered provider status.

·         clarity provided regarding Council Tax settlement and the Council Tax Base and how the process would be applied with respect to  Loughborough Special Area and the rest of the Borough.  It was noted that the proposed rise would apply to the Charnwood Borough Council precept part of the Council tax claimed and that other partners (Police and County Council etc.) would also apply their own rises.  The Borough was a low Tax council.

·         the reduction in New Homes Bonus (NHB) was disappointing but the Council had received a favourable payment of the lower tier services grant in comparison to some district councils in the area.

·         clarity was sought on the financial ‘trigger points’ that would alter the Council’s financial approach and prompt urgent action.  It was likely a trigger would be after the Government’s settlement was received in 2021 although it was anticipated that the situation would be clearer by the summer.  The Council used an MTFS tracker tool to review savings and monitor the financial situation regularly.  An updated MTFS would be submitted to Cabinet which was available for all councillors to view and it was acknowledged that the Council would look to address the deficit over the MTFS period.

The Lead Member of Finance and Property Services noted that there was still uncertainty in the financial situation of the Council and that work needed to be carried out this year to stabilise the Council’s position.  He was hopeful that progress could be made and noted that all were conscious of the need to act now.

Panel Members wished to acknowledge the work carried out by the Finance officers with respect to the draft Budget 2021-22.

RESOLVED

1.    that training be arranged in Council Tax processes for all councillors;

2.    that the update be noted.

Reasons

1.    Members recognised that Council Tax processes were complex, and that additional training would be beneficial.

2.      The Panel were satisfied with the information provided.