Agenda item

Budget and Financial Strategy 2020/21

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

Decision:

It was RESOLVED that Cabinet recommends that Council

a) adopts the budget setting report and associated financial strategies 2020/21 to 2024/25, as set out in the Annex to the report, including the Transformation Strategy and Efficiency Plan, as set out in Appendix 3 of the Annex, to deliver efficiencies over the five-year period;

b) adopts the Capital Programme as set out in Appendix 4 of the Annex;

c) adopts the Capital and Investment Strategy as set out in Appendix 5 of the Annex;

d) sets Rushcliffe’s 2020/21 Council Tax for a Band D property at £142.74; and

e) sets the Special Expenses for West Bridgford, Ruddington and Keyworth, as set out in Appendix 1 of the Annex, resulting in the following Band D Council Tax levels for the Special expenses Areas:

i) West Bridgford £48.51

ii) Keyworth £3.76

iii) Ruddington £4.12

Minutes:

The Portfolio Holder for Finance presented the report of the Executive Manger – Finance and Corporate Services outlining the Council’s proposed budget for 2020/21, the five year Medium Term Financial Strategy (MTFS) from 2020/21 to 2024/25, which incorporated the revenue budget, proposed Capital Programme, the Transformation Strategy and the Capital and Investment Strategy.

The Portfolio Holder for Finance advised that the Council continued to face challenges, as the uncertainty remained regarding Council-funding streams. The proposed budget was designed to meet both local and national challenges. The Council continued to be committed to delivering growth and prosperity, supporting the most vulnerable in the community and promoting health and well-being and protecting the environment. Nationally there was continued uncertainty regarding the New Homes Bonus and Business Rates and those risks had been built into the budget. The Council recognised the ongoing pressures on the retail sector, with car parking fees remaining the same for the past three years, and there would be no increase this year. Garden waste collection charges had also not increased in three years; however, with inflationary increases and anticipated budget pressures going forward, it was proposed to increase charges by £5 for the first and subsequent bins. This charged would not be increased for a further three years. Councillor Moore referred to an amendment in the report in respect of paragraph 4.2(g) and page 4 of the Executive Summary, which incorrectly referred to the second green bin price being £35. The correct price was £25; therefore all references to £35 in the report would be amended to £25. This service represented excellent value for money for Rushcliffe residents. An important issue for the Council was its commitment to commercial investments and the income derived from it, which was anticipated to rise to £2.1m over the period of the MTFS. The fund was well managed and proportional to the risks and opportunities associated with those investments. The Council’s Capital Programme over the next five years would be substantial, with all available capital receipts being used to fund the programme, to reduce borrowing to a minimum. The new leisure centre at Bingham and the crematorium were ambitious projects requiring careful financial planning and that had been built into this project. Maintaining an appropriate level of reserve to manage risk and maintain resilience was important. The Budget predicted reserves of £5.9m by 2024, against a current reserve of £5.5m. Measures to improve the environment and reduce carbon omissions had already affected both the revenue and capital budgets and would continue to do so. It was therefore proposed to transfer £1m from the Organisation Stabilisation Reserve to a new Climate Change Action Reserve. In line with Government recommendations, the budget for Council Tax proposed an increase of 3.59% to £142.74, which equated to an increase of £4.95 or a 10 pence increase per week for an average Band D property, which ensured that Rushcliffe’s Council Tax would remain the lowest in Nottinghamshire and within the lowest quartile nationally. The budget continued recent progress to ensure Council plans were robust, affordable and deliverable. The budget was designed to ensure that the Council provided high quality services and was financially and environmentally stable. The Executive Manager – Finance and Corporate Services and his team were thanked for all of their hard work.

In seconding the recommendation, Councillor Edyvean referred to the well-balanced budget which underpinned the sound financial management of this Council and he thanked all the officers involved for their hard work. He hoped that all members of the Council recognised the ethos behind the Council’s approach to commercialisation in its broadest sense.

Councillor Upton stated that he was pleased to support the recommendations as it again illustrated the Council’s sound financial management. The Council provided excellent services and good value for money, which were regularly shown to be valued by local residents through the customer survey results. He thanked officers for their hard work.

Councillor Robinson reiterated the thanks already conveyed to officers and referred to the challenging situation externally faced by the Council. The Council was now beginning to see a positive financial return from the income streams from its commercial investments, with the goal to become self-sustainable in the future. The highlight of the budget involved the capital projects and it was wonderful to see the continued ambition and diversity of this Council to deliver the best services to residents whilst maintaining a well-balanced budget.