Agenda item

The Portfolio Holder for Corporate Finance and Resources to provide a report on the Revenue Budget for 2020/21 including the proposed level of council tax for borough council purposes and the Medium Term Financial Strategy 2020/24.

(1)  Cabinet NOTED the year end forecast and financial position for the General Fund and Special Expenses for 2019/20;

(2)  Cabinet RECOMMENDED to Council that

a)    The proposals for General Expenses and Special Expenses Melton Mowbray be approved for inclusion in the 2020/21 budget;

b)    The revenue budget for 2020/21 for General and Special Expenses be approved, resulting in an overall council tax increase of £5;

c)    That the permanent establishment be updated in line with the growth proposals;

d)    Any increase or shortfall against the target working balance on General Expenses at 31 March 2020, be adjusted by transfers to/from the Corporate Priorities Reserve and for Special Expenses Melton Mowbray any surplus/deficit be transferred to/from the Special Expenses Reserve;

e)    That Members note the changes made to the risk categorisation of budgets.

Councillor Ronnie de Burle, Portfolio Holder for Corporate Finance and Resources and Director for Corporate Services, Dawn Garton introduced the report, which set out the proposed General Fund Revenue Budget 2020/21 and Medium Term Financial Strategy 2020-2024 for consideration and recommendation to Council.

The latest forecasted outturn position for 2019/20 was a £98k overspend on General Expenses and £31k underspend on Special Expenses (Melton Mowbray).  The deficit demonstrated the challenging position facing the Council.  However, Strategic Leadership Team were making every effort to minimise the likelihood of drawing on reserves.  In addition, this was a balanced budget, which recognised the importance of generating income and the need to invest in high priority areas.

The provisional finance settlement figures had resulted in a ‘holding position’ but now the final settlement figures had been confirmed and were in line with those set out in the report.  The referendum limit had reduced over previous years, impacting negatively on the Medium Term Financial Strategy.    There was also uncertainty concerning future Government funding.  It was imperative that the Council progressed with an element of caution.

During discussion the following points were noted:

·         Members noted the hard work and difficult decisions which had been made to secure the best financial position for the Council.  The Corporate re-structure had helped with this.

·         Moving forward, it was vital to increase revenue and identify further savings.

·         It would be useful if Members were provided with updates on the outcomes of certain decisions (i.e. those relating to cemeteries, car parking), to assess their value and if decisions made were justified and promoted the anticipated results.

DECISIONS (KEY)

(1)  Cabinet NOTED the year end forecast and financial position for the General Fund and Special Expenses for 2019/20;

(2)  Cabinet RECOMMENDED to Council that

a)    The proposals for General Expenses and Special Expenses Melton Mowbray be approved for inclusion in the 2020/21 budget;

b)    The revenue budget for 2020/21 for General and Special Expenses be approved, resulting in an overall council tax increase of £5;

c)    That the permanent establishment be updated in line with the growth proposals;

d)    Any increase or shortfall against the target working balance on General Expenses at 31 March 2020, be adjusted by transfers to/from the Corporate Priorities Reserve and for Special Expenses Melton Mowbray any surplus/deficit be transferred to/from the Special Expenses Reserve;

e)    That Members note the changes made to the risk categorisation of budgets.

Reason for the decision

The Council, having set a Budget at the start of the financial year, needs to ensure the delivery of this Budget is achieved. Consequently, there is a requirement to regularly monitor progress so corrective action can be taken when required which is enhanced with the regular reporting of the financial position.

To propose a general fund budget and level of council tax for the 2020/21 financial year for Council’s consideration and approval that takes into account the proposals set out in the draft Corporate Strategy, also presented for approval. The proposals take into account the net amount of expenditure that the Council expects to spend in the next financial year to deliver services to our customers. The report also includes recognition of efficiencies secured and details of the funding and income received to support these services to ensure a balanced budget is proposed.

The Council also holds a number of reserves which the Council can draw upon to fund future expenses. The level of reserves is considered within this report, as is the future outlook for spending in the years ahead in order for the Council’s future financial resilience to be considered as part of the proposals.

Cabinet and Council are required to consider and approve the General Fund

Revenue Account budget proposals in order to set the budget and Council Tax for the forthcoming year.