Agenda item - Revenue & Capital Budget Planning and Resource Update 2020/21 to 2023/24

Report of the Executive Director Finance & Resources (copy attached)

RESOLVED: That the Committee -

1.    Noted the resource and net expenditure projections for 2020/21 and the Medium Term Financial Strategy (MTFS) projections set out in the body of the report and Appendices 1, 2 and 3 based on a 1.99% Council Tax increase.

2.    Noted the predicted budget gaps for 2020/21 to 2023/24 to be adopted for budget setting purposes as detailed at paragraph 4.20.

3.    Instructed the Executive Leadership Team (ELT) to develop 4-Year Budget Plans including investment and savings proposals to address the predicted budget gaps for the period 2020/21 to 2023/24 based on the assumptions in this report, and for consideration by Policy, Resources & Growth Committee.

4.    Agreed to explore options for reviewing the Council Tax Reduction Scheme (CTR). This could include:
    (i) full subsidy of the scheme, or other amendments to alleviate    the   strain on the city’s poorest households;
    (ii) with details on the financial implications and necessary community consultation resulting from any change brought to a future committee.

5.    Noted the resource projections for the 5-Year Capital Investment Programme as shown in Appendix 4.

6.    Given the reduction in number of CTR scheme claimants (detailed in 1.19) that Committee agreed to sufficiently promote the CTR consultation and discretionary fund with partners, with a future report to be provided to this committee on the improved promotion work done

29.1 The Committee considered the report of the Executive Director Finance & Resources which provided a budget planning and resource update for the 2020/21 annual budget process together with an updated Medium Term Financial Strategy (MTFS) covering the period 2010/21 to 2023/24, based on latest information and resource projects.

29.2  The Chair noted that the Green Group had submitted an amendment and asked Councillor Mac Cafferty to present it.

29.3  Councillor Mac Cafferty said that there should be a consultation on the Council Tax Reduction Scheme (CTR) to look at how people on low incomes could be supported. He noted that recent figures showed that 68% of people living in the city were on Universal Credit. The amendment proposed that CTR scheme be reviewed and that be backed up with a discussion on promoting the Discretionary Fund. Councillor Mac Cafferty proposed the following amendment (changes in bold):

            2.1      Note the resource and net expenditure projections for 2020/21 and the Medium Term Financial Strategy (MTFS) projections set out in the body of the report and Appendices 1, 2 and 3 based on a 1.99% Council Tax increase.

2.2      Note the predicted budget gaps for 2020/21 to 2023/24 to be adopted for budget setting purposes as detailed at paragraph 4.20.

2.3      Instruct the Executive Leadership Team (ELT) to develop 4-Year Budget Plans including investment and savings proposals to address the predicted budget gaps for the period 2020/21 to 2023/24 based on the assumptions in this report, and for consideration by Policy, Resources & Growth Committee.

2.4 Agree to explore options for the proposed approach to reviewing the Council Tax Reduction Scheme (CTR). as set out in Appendix 2;
This could include:

- full subsidy of the scheme, or other amendments to alleviate the strain on the city’s poorest households;

 -with details on the financial implications and necessary community consultation resulting from any change brought to a future committee.

2.5 Note the resource projections for the 5-Year Capital Investment Programme as shown in Appendix 4.

2.6 Given the reduction in number of CTR scheme claimants (detailed in 1.19) that Committee agrees to sufficiently promote the CTR consultation and discretionary fund with partners, with a future report to be provided to this committee on the improved promotion work done.

29.4    Councillor Osborne formally seconded the amendment.

29.5    Councillor Mac Cafferty referred to Appendix 5 to the report and asked what the ‘Insurance Fund’ covered. The Deputy Chief Finance Officer said he didn’t have the full list, but the Council did have a range of insurance policies covering things such as employer liability, vehicles, fire risk etc. The Council also decided what excess to have and so there was some residual insurance risk it needed to cover itself, and there were also some buildings which it couldn’t buy cover for or were too expensive to do so and so the Council would self-insure some risks. To determine the level of cover the Council used a professional actuary service to advise on the insurance. Councillor Mac Cafferty referred to ‘Carry Forwards’ and was concerned that sums could be carried over for a number of years and then the reasons for using the money changed over time. He was advised that each year there would be a ‘Carry Forward’ figure which was part of the TBM provisional outturn report which would be different each year. It was a number of grant funded or project spend items where the item wasn’t completed by the end of the year and therefore the funding for it rolled forward to the next year.

29.6    Councillor Yates referred to the Green Group amendment and said that this was the right time to do it and so the Labour Group would be supporting it.

29.7    The Committee voted on the amendment and it was agreed.

29.8    RESOLVED: That the Committee -

1.    Noted the resource and net expenditure projections for 2020/21 and the Medium Term Financial Strategy (MTFS) projections set out in the body of the report and Appendices 1, 2 and 3 based on a 1.99% Council Tax increase.

2.    Noted the predicted budget gaps for 2020/21 to 2023/24 to be adopted for budget setting purposes as detailed at paragraph 4.20.

3.    Instructed the Executive Leadership Team (ELT) to develop 4-Year Budget Plans including investment and savings proposals to address the predicted budget gaps for the period 2020/21 to 2023/24 based on the assumptions in this report, and for consideration by Policy, Resources & Growth Committee.

4.    Agreed to explore options for reviewing the Council Tax Reduction Scheme (CTR). This could include:
    (i) full subsidy of the scheme, or other amendments to alleviate    the   strain on the city’s poorest households;
    (ii) with details on the financial implications and necessary community consultation resulting from any change brought to a future committee.

5.    Noted the resource projections for the 5-Year Capital Investment Programme as shown in Appendix 4.

6.    Given the reduction in number of CTR scheme claimants (detailed in 1.19) that Committee agreed to sufficiently promote the CTR consultation and discretionary fund with partners, with a future report to be provided to this committee on the improved promotion work done