Issue - meetings

Budget

Meeting: 13/02/2020 - Cabinet (Item 146)

To receive a report of the Deputy Chief Executive (S151) providing the proposals for the General Funds and the Housing Revenue Account for the year 2020/21.

Additional documents:

Minutes:

The Cabinet had before it a * a report of the Deputy Chief Executive (S151) providing the proposals for the General Fund and the Housing Revenue Account for the year 2020/21.

The Cabinet Member for Finance outlined the contents of the report stating that a temporary transfer of £284k would be required from the New Homes Bonus to balance the budget.

He outlined further movements in the budget calculation since the last meeting:

Reconciliation of further movements

Movements	Amount £k
20/21 Budget Shortfall (Cabinet Report 16/01/20)	177
Amendment to Car Parking increase	57
Business Rates Retention forecast post NNDR1	21
Contribution to Local Nature Partnership (LNP)	2
Essential car users – reduction in allowance	-9
New Cabinet Member allowance	7
Reduction in interest from GP Hub due to timing of drawdown	29
Draft budget gap for 2020/21	284

He outlined the main proposals for the HRA 2020/21 budget:

· Following new legislation an increase of CPI plus 1% (2.7%) was proposed to social housing rents

· Affordable rents to increase subject to the market rent cap (to an average of £113.59 per week (over 52 weeks)

· Garage rents from £11.10 to £11.60 per week

· Increase garage plot ground rents by £25 to £275 per annum.

Consideration was given to:

· Benchmarking of Band D Council Tax across Devon and whether there was a national scheme for benchmarking

· The contribution to the Local Nature Partnership

· The reduction in interest from the GP Hub loan

· The certain loss of the New Homes Bonus in future years and the Government’s Fair Funding Review

· The collection of garage rents over 52 weeks

· With the underspend being highlighted within the HRA whether the increase in rents was necessary

RECOMMENDED to Council that:

a) Council Tax is increased by £5 (2.46%) on a Band D property to £208.84.

b) General Fund budget for 2020/21 is approved.

c) The 2020/21 budget requires no transfer from the General Fund Balance.

d) The General Fund Budget requires a temporary transfer of £284k from the New Homes Bonus EMR.

e) HRA budget for 2020/21 be approved – Appendix 5.

f) HRA fees/charges are approved based on the attached schedule shown as Appendix 5a and 5b.

g) Work on strategic planning for delivering balanced budgets in the future is commenced in the spring.

(Proposed by the Chairman)

Notes:

i) It was noted that Cllr Miss E Wainwright arrived at the meeting at this point;

ii) *Report previously circulated, copy attached to minutes.