The Cabinet considered
Report No. FIN2007, which made recommendations on the budget, Council Tax
requirement and proposals for budget savings for 2020/21.
The Cabinet was reminded
that, at its meeting on 15th October, 2019, the budget framework set out in the
Medium Term Financial Strategy 2020-24 had been approved. The Strategy provided
a risk-based General Fund balance of around £2 million. The Cabinet was advised
that the Report had been prepared on the basis that there would be no change to
the provisional local government finance settlement figure. It was proposed
that any changes which materially altered the figures contained in the budget
summary, particularly in respect of the local government finance settlement
figure or the business rates estimates, would be made by the Council’s Section
151 Officer, in consultation with the Leader of the Council and the Corporate
Services Portfolio Holder, prior to consideration of the budget by the Council
on 20th February, 2020. The Cabinet was advised that the Council was in a good
financial position for the coming year and that this would enable the Cabinet
to set a balanced revenue budget for 2020/21. Members were informed that the
Medium Term Financial Strategy was projecting a deficit from 2021/22 of £1.4
million, increasing to around £2.2 million by 2023/24.
The Capital Programme
of £52.226 million in 2020/21 was set out in Appendix 4 of the Report.
Implementation of the core programme in 2019/20 would require the use of
£44.210 million of the Council’s resources, largely through borrowing, together
with £8.017 million use of grants and contributions, including the Better Care
Fund, and an element of developers' Section 106 contributions. The main areas
where the Council would be facing increased levels of risk and uncertainty over
the medium term were set out in Section 9 of the Report. Members were informed
that the most significant risks were the move to a 75% business rates retention
model and the potential for the redistribution of funding under the Fair
Funding Review, which would reallocate resources across local authorities based
on an assessment of relative needs.
Under Section 25 of the
Local Government Act, 2003, the Executive Head of Finance, being the Council's
Chief Financial Officer, was required to report to the Council on the
robustness of the estimates contained in the budget and the adequacy of the
financial reserves maintained by the Council. The Council had to have regard to
this report when making its decisions on the budget. The Chief Financial
Officer was satisfied that the budget was robust and that it was supported by
adequate reserves.
The Cabinet
(i)
RECOMMENDED TO THE COUNCIL that approval be given to:
(a)
the General Fund Revenue Budget Summary, as set
out in Appendix 1 of Report No. FIN2007;
(b)
the detailed General Fund Revenue Budget, as
set out in Appendix 2 of the Report;
(c)
the additional items for inclusion in the
budget, as set out in Appendix 3 of the Report;
(d)
the Council Tax requirement of £6,704,629 for
this Council;
(e)
the Council Tax level for Rushmoor Borough
Council's purposes of £209.42 for a Band D property in 2020/21;
(f)
the Capital Programme, as set out in Appendix 4
of the Report;
(g)
the
Strategy for the Flexible Use of Capital Receipts, as set out in Appendix 5 of
the Report;
(h)
the
Executive Head of Finance's Report under Section 25 of the Local Government
Act, 2003, as set out in Section 10 of the Report;
(i)
the additional transfers to earmarked reserves
in 2020/21 and the holding of reserves, as set out in the Report;
(j)
the
insurance arrangements, made through the Hampshire Insurance Forum and Aon and effective
from April, 2020, resulting in an annual saving on premiums of £81,000, as set
out Table 5 of the Report; and
(ii) RESOLVED that authority be delegated
to the Council’s Section 151 Officer, in consultation with the Leader of the
Council and the Corporate Services Portfolio Holder, to make any necessary
changes to the General Fund Summary arising from the final confirmation of the
Local Government Finance Settlement and the Business Rates Retention Scheme
estimates.
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