Agenda item

Report FSD20008

The report set out the initial draft 2020/21 Budget, including the full-year effect of changes agreed as part of the 2019/20 Council Tax report and savings approved during the year with the resultant impact on the Council’s medium term budget gap. A key part of the financial strategy was to highlight the budget issues for the next few years by forecasting the level of available resources and the budget pressures. The views of PDS Committees would be sought prior to the next meeting, when the Executive would make recommendations to full Council on the 2020/21 Council tax and Adult Social Care precept levels.

The report provided details of the Provisional Local Government Finance Settlement 2020/21 (published on 20^th December 2019) which represented a one year settlement, the longer term spending review having been postponed until 2020. The outcome of the Fair Funding Review and Devolution of Business Rates had been delayed by one year until 2021/22.

The Portfolio Holder for Resources, Commissioning and Contract Management announced that the budget assumed a staff pay award for 2020/21 of 2.5% across the board.

There were still outstanding issues and areas of uncertainty - any further updates would be included in the report to the next meeting.

The report had been scrutinised by the Executive, Resources and Contracts PDS Committee on 8^th January 2020, and the Committee had supported the recommendations.

RESOLVED that

(1) The initial draft 2020/21 Budget as detailed in Appendix 7 to the report, including the provision for an Education Funding Risk Reserve, IBCF hospital discharge funding reserve, Carbon Neutral Initiatives Fund and setting aside New Homes Bonus funding for housing investment, be agreed. 

(2) The initial draft 2020/21 Budget for each portfolio be referred to the relevant PDS Committees for consideration.

(3) The financial projections for 2021/22 to 2023/24 be noted.

(4) It is noted that there are still areas of financial uncertainty which will impact on the final 2020/21 Budget.

(5) The setting of the schools budget, mainly met through Dedicated Schools Grant, be delegated to the Children, Education and Families Portfolio Holder, allowing for consultation with the Schools Forum (section 11 of the report).

(6) It is noted that the outcome of consultation with PDS Committees will be reported to the next meeting of the Executive.

(7) The outcome of the consultation meetings be noted (Appendix 9 to the report).

(8) The proposed contribution of £247,844 in 2020/21 to the London Boroughs Grants Committee be agreed (section 10 to the report.)

(9) The outcome of the Provisional Local Government Finance Settlement 2020/21 be noted, as detailed in the report.

(10) The budget gap remaining of an estimated £16.9m per annum by 2023/24 and that any decisions made for the 2020/21 Budget will have an impact on the future year projections be noted.

(11) It is noted that any final decision by the Executive on recommended Council Tax and Adult Social Care Precept levels to Council will normally be undertaken at the next meeting of the Executive.