Agenda item

The Director: Governance and Partnerships submitted reports relating to: –

 

Financial Strategy, Budget 2021/22 and Medium Term Financial Plan 2020/24;

 

Capital Investment Strategy and Capital Programme 2020/2024;

 

Treasury Management Strategy 2021/2022, and the Director: Business Development submitted the following report -

 

Implementation of the 2021/2022 Pay Policy Statement.

 

Each of the above issues were addressed within separate reports. The Council operated within legally defined powers to fulfil a range of duties through its local service offer. These included powers to raise funding to meet the costs of delivery. The Council must decide on its spending power, taking into account how much government grant, business rates it would receive and the level of Council tax it wished to set. The Council also had a legal requirement to set a balanced budget for the next financial year and a robust forecast for the medium term financial planning period. In line with the council’s ambition to be financially sustainable, a three year plan had been produced which would support the council in linking its anticipated resources over the period to its strategic direction.  It was important to note that the numbers were less certain further into the plan due to the potential structural changes to local government finance addressed in the report.

 

The costs of running local services were partly met from local taxation, and partly from government grant. The balance between local and central funding had shifted considerably over the past decade, and would continue to do so over the medium term financial planning period with a greater emphasis on local autonomy driven by a greater reliance on locally generated income. The Director in her report on the Financial Strategy, Budget 2021/22 and Medium Term Financial Plan 2020/24 addressed key issues and relevant factors with supporting appendices under the following headings: –

 

·           Local Government Finance Settlement 2021/22;

·           Future of Local Government Finance;

·           Local Strategic Context;

·           Members’ Allowances

·           Financial Strategy, and

·           Financial Resilience.

 

The Council also received a report from the Director of Governance and Partnerships seeking approval of the council’s Capital Investment Strategy and Revised Capital Programme 2020-24, which included a revised Capital Investment Programme of £127.2m. These were set out in an appendix to the report. The Capital Programme 2020/24 built upon the latest approved programme 2020/23 approved by Cabinet in February 2021 and proposed a continuation of the lifecycle maintenance requirements for core assets and infrastructure in 2023/24. Schemes worked up through the business case process and re-prioritisation requirements were reported through the Executive throughout the year.

 

The report explained that capital expenditure was a key enabler for the Council to fulfil its duties and delivery of its ambitions and Council Plan priorities. Investment in the right things could underpin and support the achievement of improved outcomes for people who live in North Lincolnshire.  Capital investment also contributed to efficiencies in the safe operation of the council and supports long-term financial sustainability.

 

Also presented for Council’s consideration and approval by the Director was the council’s Treasury Management Strategy for 2021/22. The Treasury Management Strategy Statement was set out in appendix 2 of the report. The report also requested the Council to adopt the Prudential Code 2017, the CIPFA Treasury Management in Public Services Code of Practice and related MHCLG Guidance, and approve the Treasury Management Policy Statement set out in appendix 1 of the report, the proposed Prudential Indicators 2020/23, the policy on Minimum Revenue Provision, and the Investment Counterparties and Limits and Maturity Structure of Borrowing Limits as referred to in the Strategy Statement.

 

In addition, the implementation of the 2021/2022 Pay Policy Statement report submitted by the Director: Business Development outlined and sought approval of the council’s Pay Policy Statement for 2021/22 in accordance with Section 38 of the Localism Act 2011. The Council was required by the above Act to prepare an annual Pay Policy Statement for each council financial year, to be approved by Council.  The statement attached as an appendix to the report set out the council’s own policy on a range of issues relating to the pay of its workforce, particularly its senior staff (or ‘chief officers’) and its lowest paid employees.

 

Moved by Councillor R Waltham MBE and seconded by Councillor R Hannigan –

 

The Council is recommended to resolve as follows:

That the recommendations contained within report 3(a) be approved and adopted, subject to the following changes and additions:

 

Council Tax and Adult Social Care Precept

(a)  That the proposed 1.99% increase in general council tax be amended to 1.48% in 2021/22 only;

(b)  That the proposed 3% increase in adult social care precept be spread over the years 2021/22 and 2022/23, with 2% levied in 2021/22 and the remaining 1% levied in 2022/23:

 

·       Appendix 1 substituted by Revised Appendix 1 of Report 3(a) (enclosed).

·        Table 1, 2 and 3 in Appendix 2 substituted by Table 1, 2 and 3 in Revised Extract of Appendix 2 of Report 3(a) (enclosed).

·       Appendix 5 substituted by Revised Appendix 5 of Report 3(a) (enclosed);

 

(c) That the recommendations contained within report 3(b) be approved and adopted;

(d) That the recommendations contained within report 3(c) be approved and adopted,   and

(e)  That the recommendations contained within report 3(d) be approved and adopted.

 

TECHNICAL BUDGET RECOMMENDATIONS

Revised Appendix 1

of Report 3(a)

 

That the following technical recommendations be approved:

 

1                That the general council tax band D rate be set at £1,404.94, which represents an increase of 1.48% from the total 2020/21 band D rate.

 

2                That the adult social care precept band D rate be set at £164.51, which represents an increase of 2.00% from the total 2020/21 band D rate.

 

3                At the meeting held on 25^th January 2021 Council set the following amounts for the year 2021/22:

 

(a)            49,640.3 as its Council Tax Base for the year [Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended by the Localism Act 2011 (the "Act"), and

 

(b)            the Council Tax Base for each part of the area as shown in Revised Appendix 5 of report 3(a), column 2

 

4                That the following amounts for 2021/22, as required by the Local Government Finance Act 1992 as amended, be approved:

 

5                That it be noted that for the year 2021/22 the Police and Crime Commissioner for Humberside and the Humberside Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as set out in Revised Appendix 5 of report 3(a).

 

6                That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, sets the aggregate amount of Council Tax for the year 2021/22 for each part of its area and for each of the categories of dwellings. This can be derived by combining major precepting authority precepts with individual parish or area precepts in Revised Appendix 5 of report 3(a).

 

7                That the Council’s basic amount of Council Tax for 2021/22 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.

 

8                That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act 2003 requirements (Part 2 Section 25 (1)(a) of the Act) be confirmed.

 

9                That the adequacy of reserves included in the budget is in accordance with the Local Government Act 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section 5 of the report and at Appendix 4 of report 3(a) be confirmed.

 

10             That the use of capital receipts flexibility be approved enabling spending charged to the revenue budget on service transformation to be capitalised as set out at Appendix 8 of report 3(a).

 

‘C’ Revised Extract of Appendix 2 of Report 3(a) attached

 

It was then moved by Councillor L Foster and seconded by Councillor A Davison as an amendment –

 

The Council is recommended to resolve as follows:

 

(a) That the recommendations contained within report 3(a) be approved and adopted, subject to the following changes and additions;

 

Council Tax and Adult Social Care Precept

            (b) That the proposed 3% increase in adult social care precept be spread evenly over  the years 2021/22 and 2022/23, 1.5% in each year;

 

·       Appendix 1 substituted by Revised Appendix 1 of Report 3(a) (enclosed).

·       Table 1, 2 and 3 in Appendix 2 substituted by Table 1, 2 and 3 in Revised Extract of Appendix 2 of Report 3(a) (enclosed).

·       Appendix 5 substituted by Revised Appendix 5 of Report 3(a) (enclosed).

 

  (c) That the recommendations contained within report 3(b) be approved and adopted;

 

(d) That the recommendations contained within report 3(c) be approved and adopted, and

 

(e) That the recommendations contained within report 3(d) be approved and adopted.

 

 

TECHNICAL BUDGET RECOMMENDATIONS

Revised Appendix 1

of Report 3(a)

 

That the following technical recommendations be approved:

 

11             That the general council tax band D rate be set at £1,412.67, which represents an increase of 1.99% from the total 2020/21 band D rate.

 

12             That the adult social care precept band D rate be set at £156.93, which represents an increase of 1.50% from the total 2020/21 band D rate.

 

13             At the meeting held on 25^th January 2021 Council set the following amounts for the year 2021/22:

 

(c)             49,640.3 as its Council Tax Base for the year [Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended by the Localism Act 2011 (the "Act"), and

 

(d)            the Council Tax Base for each part of the area as shown in Revised Appendix 5 of report 3(a), column 2

 

14             That the following amounts for 2021/22, as required by the Local Government Finance Act 1992 as amended, be approved:

 

15             That it be noted that for the year 2021/22 the Police and Crime Commissioner for Humberside and the Humberside Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as set out in Revised Appendix 5 of report 3(a).

 

16             That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, sets the aggregate amount of Council Tax for the year 2021/22 for each part of its area and for each of the categories of dwellings. This can be derived by combining major precepting authority precepts with individual parish or area precepts in Revised Appendix 5 of report 3(a).

 

17             That the Council’s basic amount of Council Tax for 2021/22 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.

 

18             That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act 2003 requirements (Part 2 Section 25 (1)(a) of the Act) be confirmed.

 

19             That the adequacy of reserves included in the budget is in accordance with the Local Government Act 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section 5 of the report and at Appendix 4 of report 3(a) be confirmed.

 

20             That the use of capital receipts flexibility be approved enabling spending charged to the revenue budget on service transformation to be capitalised as set out at Appendix 8 of report 3(a).

‘L’ Revised Extract pf Appendix 2 of Report 3(a) attached

 

Following completion of the debate on the budget the council proceeded to the vote.

 

Members were reminded that in accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 immediately after any vote was taken at a budget meeting the voting shall be recorded in the minutes to show whether each member present votes for or against a decision or who abstained from voting.

 

(The vote was read out as below by Democratic Services for those listening and/or watching the meeting on the council’s website).

 

The names of members voting for, against and abstaining from the amendment are as follows: –

 

 FOR: Councillors Ali, Armitage, Bainbridge, A Davison, Ellerby, L Foster, Gosling, Grant, Kirk, O’Sullivan, Rayner, Southern, Swift, Wilson and Yeadon

 

 

AGAINST:       Councillors Allcock, Armiger, Briggs, Clark, J Davison, England, Evison, T Foster, Hannigan, Marper, Mitchell, Ogg, Poole, Reed, Robinson, Rose, Rowson, N Sherwood, K Vickers,  P Vickers, Walshe, Waltham MBE and Wells.

 

ABSTAINING:     Nil

 

Amendment Lost.

 

 

           The names of members voting for, against and abstaining from the motion are as follows :–

 

FOR: Councillors Allcock, Armiger, Briggs, Clark, J Davison, England Evison, T Foster, Hannigan, Longcake, Marper, Mitchell, Ogg, Poole, Reed, Robinson, Rose, Rowson, N Sherwood, K Vickers,  P Vickers, Walshe, Waltham MBE and Wells.

 

 

AGAINST:           

 

ABSTAINING:  Councillors Ali, Armitage, Bainbridge, A Davison, Ellerby, L Foster, Gosling, Grant, Kirk ,O’Sullivan, Rayner, Southern, Swift, Wilson and Yeadon.

 

Motion Carried.