Decision Maker: Cabinet, Full Council
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
The report will set out financial projections
with particular reference to the period 2021/22 – 2025/26.
The report will set out the policy framework for improving
financial efficiency and meeting the long term investment needs of
the Town, as well as proposals for the annual budget
The Cabinet recommends to Full Council the approval of the Budget Strategy 2021/22 to 2025/26 and to:
a) Note the outlook for Government funding for the period 2021/22 and future years as explained in the report and in particular the delay in Local Government Funding reforms and a one year only spending review.
b) Note the creation of a Covid-19 Support Reserve to provide resource cover for any ongoing impact of Covid-19 on the Council’s medium term financial position, should no further support from Government be received in future years. This is from reviewing existing earmarked reserves.
c) Note, for the purpose of projections, the current budget deficit of £2.250m for 2021/22 before use of reserves, on the basis of a Council tax increase of 2.37% which is £4.95 on a Band D in property 2021/22. This is before any savings are identified.
d) Work towards balancing this over a four year period, including putting back into reserves when the Budget is in surplus. There may be a need to use reserves over the next 3 years to balance the budget together with ongoing savings.
e) Agree that savings, efficiencies and increased income identified by officers are approved in order to reduce the budget gap.
f) Note that savings agreed to be taken forward will be worked up and included in the Budget and Council tax report to Cabinet in February 2021.
g) Note that items for the Capital Programme are driven by the need for the upkeep of council assets and environmental obligations and schemes will also be considered that are spend to save or spend to earn but that such prioritisation should not preclude the initial consideration of capital projects that could deliver social value. That due to the pandemic new capital schemes will be standalone and will reported separately to Cabinet meetings.
h) Approved the revised Crawley Homes capital investment plan in Appendix E which includes the financial year 2023/24.
i) Note that the Budget is aligned to the Council’s Corporate Priorities.
Reasons for the Recommendations
To continue with the implementation of the Council’s budget strategy and to deal with the Council’s projected budget deficit which is higher than previously projected due to
the impact of the pandemic on future Council tax and Business rates income projections.
Report author: Karen Hayes
Publication date: 26/11/2020
Date of decision: 25/11/2020
Decided at meeting: 25/11/2020 - Cabinet
Effective from: 02/12/2020