This report gives an update on the results of a budget consultation exercise and sets out the 2020/21 Budget and Medium Term Financial Strategy for recommendation to full Council.

Further to Minute 59 of the meeting held on 16 December 2019 the Director of Resources submitted a report updating the Committee on the results of a consultation exercise on the Council’s draft Budget as well as changes arising from the publication of the Provisional Local Government Finance Settlement and other changes that had arisen since the report to the Committee in December 2019.  The following documents were attached to the report:

·         Appendix 1 - Summary of General Fund Budget 2020-21 to 2022-23

·         Appendix 2 - General Fund Revenue Budget by Service 2020-21 to 2022-23

·         Appendix 3 - Detailed General Fund Budgets 2020-21 to 2022-23

·         Appendix 4 - Housing Revenue Account Budget 2020-21 to 2022-23

·         Appendix 5 - General Fund and HRA Capital Programme 2020-21 to 2022-23

·         Appendix 6 - Flexible Capital Receipts Strategy

·         Appendix 7 - Fees and Charges

·         Appendix 8 - Equality Impact Assessment

·         Appendix 9 - Dedicated Schools Grant

·         Appendix 10 - Budget Consultation

The report explained that the budget consultation had run from 19 December 2019 to 19 January 2020, with 619 responses to the online consultation as well as direct submissions from partner organisations.  The report summarised the main topics raised in the consultation, and a detailed description of the consultation process and results was attached to the report at Appendix 10.

The report also summarised changes following publication of the draft Budget including the effects of the Provisional Local Government Finance Settlement which had been announced on 20 December 2019.  The changes had been taken into account in the overall recommended budget position, which was shown in the report and set out in detail in Appendices 1-5.  The budget made a small net contribution to reserves over the three-year period and was not reliant on the use of reserves going beyond the MTFS planning horizon.  Savings required to balance the budget were comprised of efficiency savings, invest-to-save initiatives and increased income from fees and charges.

Resolved –

That, taking due regard of the results of the budget consultation exercise (as outlined in Section 3 and set out in more detail in Appendix 10) the Draft 2020/21 General Fund and Housing Revenue Account budgets, Draft Capital Programme and Medium Term Financial Strategy as set out in Appendices 1-9, be endorsed and recommended to full Council on 25 February 2020, noting the following:

a)     the Council’s General Fund Budget Requirement of £150.1m for 2020/21 and an increase in the Band D Council Tax for the Council of 3.99% (1.99% general increase and 2.00% additional adult social care precept) or £64.93 per annum representing a Band D Council Tax of £1,692.16 per annum as set out in paragraph 8.2;

b)       the proposed efficiency savings of £6.3m together with additional income of £5.3m in 2020/21 required to achieve a balanced budget for that year as set out in Appendix 2;

c)       the overall savings proposed within the MTFS of £32.9m (of which changes to income, fees and charges is £13.5m) and three-year growth changes to service budgets of £26.6m as set out in Appendix 3;

d)       the Housing Revenue Account budget for 2020/21 of £40.9m as set out in Appendix 4 and an average increase of 3.3% in social dwelling rents from April 2020 giving a revised weekly average social rent of £102.57;

e)       the General Fund and Housing Revenue Account Capital Programmes as set out in Appendices 5a and 5b;

f)       the Strategy for the use of flexible capital receipts to deliver future transformation and ongoing savings as set out in Appendix 6;

g)       the Fees and Charges set out in Appendix 7 of the report;

h)      the allocation of Dedicated Schools Grant (DSG) as set out in Appendix 9.