Agenda item - 2021/22 Budget and Financial Strategy

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

It was RESOLVED that Cabinet recommends that Council

a) adopts the budget setting report and associated financial strategies 2021/22 to 2025/26, 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 Investment Strategy as set out in Appendix 5 of the Annex;

d) sets Rushcliffe’s 2021/22 Council Tax for a Band D property at £147.36 (increase from 2020/21 of £4.62 or 3.24%;

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 Expense Areas:

i) West Bridgford £49.65 (£48.51 in 2020/21);

ii) Keyworth £3.41 (£3.76 in 2020/21);

iii) Ruddington £4.00 (£4.12 in 2020/21);

f) adopts the Pay Policy Statement as set out in Appendix 7 of the Annex; and

g) agrees the proposal that the Year 1 funding for the Development Corporation be approved prior to receiving formal Government approval and financial support for the scheme (capped at £0.17m along with the conditions as set out at paragraph 4.2 (l) of the report).

The Portfolio Holder for Finance presented the report of the Executive Manager – Finance and Corporate Services outlining the Council’s proposed budget for 2021/22, the five-year Medium Term Financial Strategy (MTFS) from 2021/22 to 2025/26, which incorporated the revenue budget, the proposed Capital Programme, the Transformation Strategy and the Capital and Investment Strategy.

The Portfolio Holder for Finance referred to the unprecedented events, which had taken place during the last year, and to the significant economic impact on local government finances. It was noted that this Council had always managed its finances prudently, which had enabled it to deal with the current financial difficulties. The proposed budget would ensure that the Council remained financially resilient, would continue to deliver its statutory services and to focus on much needed economic recovery. The budget would ensure continued support for the most vulnerable in the community, whilst remaining committed to carbon reduction and supporting the environment. Cabinet was advised that the economic situation going forward remained uncertain, and it was therefore important to remain prudent, with substantial reserves in place and that any opportunities to increase the Council’s reserves to deliver its Corporate Priorities and to mitigate future risks would be taken. It was noted that the projected loss of income and increased expenditure for 2021/22 would equate to an anticipated budget deficit of £1.5m over the next two years, and it was confirmed that this would be a manageable risk.

In respect of the Council’s Capital Programme, the Portfolio Holder for Finance reiterated that the Council continued to have an ambitious programme, with over £38m planned investment over the next few years, details of which were highlighted in the report. To fund those investments, it was noted that it was likely that some external borrowing would be required; however, it was confirmed that the repayments had been built into both the budget and the revised MTFS.

In respect of Council Tax, the Portfolio Holder for Finance advised that it was proposed to raise Council Tax by 3.24%, which ensured that Rushcliffe’s Council Tax remained the lowest in Nottinghamshire and in the lowest quartile nationally.

The Portfolio Holder for Finance acknowledged the additional financial support provided by Central Government to local councils, which had been invaluable to mitigate loss of income and to reduce some of the financial pressures. The Government’s’ support for local businesses was also acknowledged, with over £38m being distributed locally.

The Portfolio Holder for Finance referred to the proposed funding for the first year of the Development Corporation and reiterated the importance of this project going forward.

In conclusion, the Portfolio for Finance confirmed that the uncertain financial future remained a challenge, the Council’s financial strategies continued the progress already made to ensure that the Council’s financial plans were robust, affordable and deliverable. The budget had been designed to ensure the continued delivery of high-quality services, whilst being financially and environmentally sustainable and the Executive Manager – Finance and Corporate Services, the Financial Services Manager and their team were thanked for their continuing hard work.

In seconding the recommendation, Councillor Edyvean reiterated the comments made regarding the unprecedented year that the Council had faced and agreed that to produce such a comprehensive, prudent budget had been a challenge. It was noted that the Council remained ambitious, with several significant schemes on course to be delivered through the Capital Programme, including the Bingham Hub and the Crematorium, and the Council’s continued support of the Development Corporation was also welcomed.

The Leader conveyed his thanks to the Executive Manager – Finance and Corporate Services and his team for their hard work during this challenging time. The continued ambition of this Council was reiterated, and it was a credit to all those involved currently and previously that the Council remained in such a strong, resilient financial position going forward.