Minutes:
The Full Council considered report FIN/511of the Head of Corporate Finance, which set out the projected financial position for 2021/22 to 2025/26 for the General Fund, Housing Revenue Account, capital programme and the underlying assumptions. The report also set the policy framework for the budget process, recognising that there were a range of options for capital investment, income generation, savings and Council Tax levels; none of which can be considered in isolation. The overall objective was to work towards a balanced General Fund budget over a four year period, rather than previously three year period as a result of the impact of the pandemic.
It was noted that currently there was a budget deficit of £2.250m for 2021/22 before use of reserves and before any savings are identified, on the basis of a Council tax increase of 2.37% which is £4.95 on a Band D in property 2021/22.
The item had been previously considered at the Overview and Scrutiny Commission and Cabinet on 23 November 2020 and 25 November 2020 respectively. Councillor Lamb moved the recommendation which was seconded by Councillor Crow, who both spoke on the report.
Following the conclusion of the debate, the Mayor invited the Democratic Services Manager to commence the voting process. Before the vote commenced, it was confirmed that none of the Labour or Conservative Members requested to vote as an individual, rather than through their respective Group block vote.
For the recommendation: Labour block vote of 14 votes, and Conservative block vote of 17 votes. (31)
Against the recommendation: None (0)
Abstentions: Councillor Sudan (1)
The Mayor declared the recommendation was carried – votes in favour 31, and votes against 0 with 1 abstentions.
RESOLVED
That Full Council approves the Budget Strategy 2021/22 to 2025/26 and:
a) Notes 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) Notes 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) Notes, 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) Works 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) Agrees that savings, efficiencies and increased income identified by officers are approved in order to reduce the budget gap.
f) Notes 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) Notes 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) Approves the revised Crawley Homes capital investment plan in Appendix E which includes the financial year 2023/24.
i) Notes that the Budget is aligned to the Council’s Corporate Priorities.