60 Revised draft GF budget 2020/2021 (01:24:19) PDF 126 KB
To receive a report from the Deputy Chief Executive (S151) reviewing the revised draft General Fund budget changes identified and discuss any further changes required in order for the Council to move towards a balanced budget for 2020/21.
This report will be considered by the Cabinet on 16 January 2020. The Economy Policy Development Group are asked to feed back any comments they may have to the Cabinet for their meeting on 13 February before the budget is finally agreed by Council on 26 February 2020.
Additional documents:
Minutes:
The Group had before it, and NOTED, a report * from the Deputy Chief Executive (S151) presenting the revised draft budget changes identified and discussing any further changes required in order for the Council to move towards a balanced budget for 2020/21. This report had been considered by the Cabinet at its meeting on 16 January 2020, however, the Group were asked whether they wished to feed back any further comment to the Cabinet for them to consider at their meeting on 13 February before the budget was finally approved by Council on 26 February.
The following was highlighted within the report:
· The budget gap had been £177k but had risen to £235k following the decision of the Cabinet on 16th January in relation to car parking. Time was running out in order to find the necessary savings to close this gap.
· The budget for 2020/21 was predicated on the proposed savings listed in Appendix 2 of the report.
· There had been a general increase in the required pension contributions from employers.
· The Business Rate forecast would need to be finalised by the end of January.
· The final settlement was awaited but was not predicted to be significantly different from the provisional one received in December.
· New Homes Bonus was at serious risk.
· The Medium Term Financial Plan was already showing a gap in 2023/24 of c£1.5m.
· There were significant concerns about the budget for 2021/22.
Discussion took place with regard to:
· The Homes PDG had made a recommendation to the Cabinet to retain the weed team budget meaning, if approved, that the budget gap would worsen by a further £53k.
· The property maintenance budget.
· An increase in the number of newly built properties would mean additional Council Tax income but there would be a corresponding extra strain on services. The Council would not see a benefit from New Homes Bonus as no new payments were being made, only ones based on previous years.
· The effect of the delay with the Local Plan and the subsequent effect upon income to the Council.
· Using reserves to balance the budget was the least preferred option and could not be sustained.
Note: * Report previously circulated; copy attached to the signed minutes.