Agenda item

Recommendation to Council - Medium Term Financial Strategy and Council Strategy 2021-22

Meeting of Cabinet, Wednesday 27 January 2021 10.00 am (Item 7.)

To approve the Medium Term Financial Strategy (MTFS) and Revenue and Capital Budget 2021/22 for recommendation to County Council, including the proposals set out in the annexes relating to the detailed MTFS.

Supporting Documents:-

Appendix 1 Council Strategy

Appendix 2 Medium Term Financial Strategy

Appendix 3 Budget Consultation Report

Appendix 4 Corporate Scrutiny Committee minutes (7 January 2021)

Appendix 5 Due Regard Statement (see separate pack)

The decision to take into account the outcomes of the recent formal budget consultation and feedback from the Corporate Overview and Scrutiny Committee.

Cllr Shaun Parsons (Chairman of the Corporate Overview and Scrutiny Committee) to present the Scrutiny Committee’s observations following consideration of the draft budget proposals at the budget scrutiny meeting on 7 January 2021.

Decision:

Cllr Lynden Stowe, Cabinet Member for Finance and Change, presented for approval, the Medium Term Financial Strategy, (MTFS), and the final revenue and capital budget proposal for 2021/22, for recommendation to County Council on 17 February 2021.

Having considered all of the information, including the outcomes of the council’s formal budget consultation, the due regard statement relating to the decision and the observations from the Corporate Overview Scrutiny Committee meeting on 7

January 2021, Cabinet noted the reasons for the recommendations and,

RESOLVED to:-

1. To approve the Refreshed Council Strategy for submission to County Council (Appendix 1).

2. To approve changes to the draft budget and to approve the MTFS and final revenue and capital budget for 2021/22 for recommendation to County Council, including all of the proposals set out in the annexes of the detailed MTFS (Appendix 2).

3. To consider the outcome of the budget consultation as set out in Appendix 3 and the report from the Corporate Overview and Scrutiny Committee (COSC) in Appendix 4.

4. To note the schools funding allocations, the provisional local government finance settlement and forecast reserve movements as summarised in this report and set out in the MTFS.

5. To recommend to Council a revenue budget of £481.755 million, a band D council tax of £1,409.22 and consequential precepts on District Councils.

6. To note the Capital Strategy and Treasury Management Strategy & Investment Strategy as set out in Annexes 7 & 10 of the detailed MTFS.

7. To note the Risk Management Policy Statement & Strategy as set out in Annex 11 of the detailed MTFS.

Minutes:

Cllr Lynden Stowe, Cabinet Member for Finance and Change, presented for approval, the Council Strategy, the Medium Term Financial Strategy, (MTFS), and the final revenue and capital budget proposal for 2021/22, for recommendation to County Council on 17 February 2021.

In making his recommendations, Cllr Stowe highlighted that the budget represented an increase in revenue spending of around £13m. Referring to Children’s Services he outlined that there was a continuing increase in the numbers of children being looked after by the Council. He explained that the budget was about investing in people as well as investing in ‘place’. Embedded within the budget was the response to climate change and he stated that since 2006 the Council had cut corporate CO2 emissions by 97%. He referred to the commitment to plant 35 million trees in ten years. The strategy was now more explicit regarding the response to climate change in response to the points raised by scrutiny.

He outlined the current financial pressures leading to a £1.7 million overspend but stated that the figure was continuing to improve and senior management understood the need to reduce it further.

Cllr Shaun Parsons brought members attention to the minutes and summary from the budget scrutiny session held by Corporate Overview and Scrutiny Committee. He thanked all the Cabinet Members and Officers who were in attendance. It had provided an opportunity for members to clarify points and gain a greater understanding of the budget.

Cabinet Members thanked Cllr Stowe for his commitment to the budget, prudent financial management and for providing a budget that would respond to climate change. They commented on how the budget would provide all the elements to support their portfolios in particular in children services and in adult social care.

It was stated that national funding had been provided to help support the Council during the Covid-19 pandemic.Delivery in relation to Highways and the £150m investment had continued throughout the year despite the challenges of the pandemic.Members noted the investment in flood alleviation, with the Cabinet Member thanking highways officers for their hard work and support.

The Leader of Council thanked Cllr Stowe and reflected on the funding from national government that had supported the Council in relation to the pandemic. He stated that the settlement reflected the amount of work carried out by local government and the challenges going forward. He emphasised the importance of the investments made by the Council and the way that funding was used to provide real investment in the front line and in community infrastructure. He outlined one amendment to the budget relating to inconsistencies to the target date for achieving a carbon neutral county, confirming that those would be amended to reflect the 2045 commitment.