Agenda item

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 see that the ambitious capital and climate change budgets remained and noted the inclusion of replacement refuse vehicles with those that were more environmentally friendly. He also thanked the Finance Team for their hard work but noted that the loss of the New Homes Budget loomed large in the near future. He noted the financial plans outlined in the Medium term Financial Strategy and Transformation Strategy designed to mitigate the £3.25m loss of the Revenue Support Grant, and stated that whilst he understood the reasons behind the need to increase Council Tax he felt uneasy about the hardship this imposed upon the poorest in Rushcliffe’s communities.

Councillor Jones recognised that putting forward a firm and balanced budget was difficult in the current circumstances and thanked staff for their efforts in this respect. He went on to comment upon the complexity and depth of the budget report in highlighting the current financial position and future risks. He highlighted his concerns relating to the growing disparity between rich and poor communities in the Borough, especially given the Council’s ability to draw in a larger fund as a result of the high proportion of larger properties in the Borough than in other areas. Councillor Jones drew Council’s attention to the increase in the West Bridgford Special Expense and questioned whether this was as a result of internal accounting changes putting the full cost of events that attracted visitors from across the Borough, and beyond, to the town and whether this was a just change. He also questioned the Council’s investment in two out of town office developments over the last few months in light of plans to take on debt related to the development of a new leisure centre in Bingham.

Councillor R Mallender recognised that officers had done an excellent job in attempting to mitigate the impact of the Covid-19 pandemic but informed Council that the true impact of the virus was probably yet to be seen. He commented on the size and complexity of the budget report and expressed the hope that there may be time next year to present the budget in terms the lay person could understand. Councillor Mallender was very pleased to see that the climate change fund had been protected, that greener refuse vehicles were being purchased, and that the environment was being taken into account in the Council’s new developments despite the additional costs involved in the build stage.

Councillor Thomas expressed her thanks for the effort of the Finance Team in bringing forward a balanced budget but expressed significant concerns about the West Bridgford Special Expense given that other areas of the Borough received much less. She suggested that activities in West Bridgford were being subsidised by the rest of the Borough.

Councillor Purdue-Horan echoed the comments of other Councillors especially in relation to the efforts of the Executive Manager – Finance and Corporate Services and Financial Services Manager. As Chairman of the Governance Scrutiny Group, he had the pleasure of scrutinising the budget position throughout the year and informed Council that he was always impressed with the quick, comprehensive and understandable responses the Group received to their queries. He informed Councillors that, unlike other councils, the focus on investing in our communities and building for the future would continue despite the financial difficulties caused by the Covid-19 pandemic because it was important to plan for a more stable and prosperous future.

Councillor Edyvean responded to a number of concerns raised by councillors including the green credentials of the Development Corporation, the future of the New Homes Bonus, and the level of the West Bridgford Special Expense which was lower now than it was in 2016/17. He also clarified that the Transformation Strategy outlined a vision of smarter and better operations and was not a by-word for cuts.

Councillor Robinson also reflected upon the comments made by fellow Councillors and reminded them that a few years ago the Council was recognised nationally as Commercial Council of the Year for its approach to asset investment and income generation such as that demonstrated by recent purchases. He informed Councillors that the budget supported the aspirations of the Council and that officers would continue to be guided by Councillors to take advantage of opportunities, delivering future financial stability for the Council.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was taken for this item as follows:

FOR: Councillors R Adair, S Bailey, K Beardsall, A Brennan, B Buschman, R Butler, N Clarke, T Combellack, J Cottee, G Dickman, A Edyvean, L Healy, R Inglis, R Jones, A Major, R Mallender, D Mason, A Phillips, F Purdue-Horan, S Robinson, K Shaw, D Simms, J Stockwood, Mrs M Stockwood, R Upton, D Virdi, R Walker, D Wheeler, J Wheeler and G Williams

AGAINST: Councillor C Thomas

ABSTENTION: Councillors B Bansal, N Begum, M Gaunt, P Gowland, B Gray, L Howitt, S Mallender, J Murray, J Walker and L Way

It was RESOLVED that:

a)    the report of the Council’s Responsible Financial Officer on the robustness of the Council’s budget and the adequacy of reserves (as detailed at Annex A) be accepted;

b)    the budget setting report and associated financial strategies 2021/22 to 2025/26 (attached Annex B) including the Transformation Strategy and Efficiency Plan (Appendix 3) to deliver efficiencies over the five-year period be adopted;

c)    the Capital Programme as set out in Appendix 4 be adopted;

d)    the Capital and Investment Strategy at Appendix 5 be adopted;

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

f)      the Special Expenses for West Bridgford, Ruddington and Keyworth, Appendix 1 are set, 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);

g)    With regards to recommendations e) and f), the associated Bands in accordance with the formula in section 36(1) of the Local Government Finance Act 1992 are set; and

h)    the Pay Policy Statement at Appendix 7 is adopted.