Issue - meetings

The report of the Executive Manager – Finance and Corporate Services is attached.

The Leader and Portfolio Holder for Strategic and Borough Wide Leadership, Councillor Robinson presented the report of the Executive Manager – Finance and Corporate Services outlining the Council’s Financial Strategy and Budget for 2020/21.

Councillor Robinson reflected on his presentation of the 2020/21 budget twelve months ago. It had been a sound budget and he had been optimistic about the year ahead – no one could have predicted the national lockdown that had been enforced ten days later and the year that had followed. The budget picture this year was very different. The Council’s income had been decimated, and the pandemic had significantly increased expenditure. However, he wanted to focus on three principles underpinning the budget for the coming year – consolidation, ambition and recovery.

Councillor Robinson drew Council’s attention to the 20% and 10% reduction in the Council’s projected income (such as that from car parking and community hall bookings) as the community recovered from the Covid-19 pandemic and the two year pay freeze for all Council officers. He highlighted the anticipated budget deficit of approximately £1.5m over the next two years as a result of Covid-19, which would be funded by Council reserves built up over the last few years, before the Council moved into a surplus position in 2023/24, allowing reserves to be replenished.

Councillor Robinson recognised that additional Government grants had helped significantly in managing the cost of the pandemic, before outlining the Council’s ambitious Capital Investment Projects amounting to £38m over the next five years, delivering a new leisure centre, community facility and office complex in Bingham, as well as a Crematorium for the Borough in Stragglethorpe; he reminded Council that the Capital Programme was also used to improve and maintain existing assets, to protect investment and respond to market demands. He went on to focus on the green credentials of all new capital projects within the Borough, linking into the Council’s climate change commitments. Good news was balanced with risk analysis, Councillor Robinson mentioned both the Fairer Funding Review and the much anticipated Business Rates Review, which were both outstanding. Both were areas of uncertainty for the Council, but must be seen in the context of other projects the Council was able to influence, such as the creation of new jobs through investment in the Development Corporation. He concluded by recognising that the outlook remained challenging, but the budget was robust, affordable, deliverable and ambitious before asking the Executive Manager – Finance and Corporate Services to pass on his sincere thanks to the Finance Team for their efforts in bringing forward a balanced budget. 

Councillor Edyvean thanked the Executive Manager – Finance and Corporate Services and his team for presenting a prudent and balanced budget, despite the difficulties faced by the Council this year.

Councillor Gray reported that, as usual, the proposed budget had been the source of much debate within the Labour Group. The Council had weathered the pandemic well, but the full effects have not yet been realised. He was pleased to  ...  view the full minutes text for item 50