Agenda item

The Cabinet Member for Finance, Performance and Core Services introduced the Council’s proposed budget framework for 2020/21 which incorporated the following:

·  The General Fund revenue budget for 2020/21;

·  The level of Council Tax for 2020/21;

·  The Medium Term Financial Strategy (MTFS) for 2020/210 to 2023/24;

·  The draft Capital Investment Programme for 2020/21 to 2023/24; and

·  An update on the Dedicated Schools Grant and Local Funding Formula for Schools.

The Cabinet Member stated that, notwithstanding the fast-growing population and huge increases in demand for services, the Council must strive to attain its vision of a Borough where people thrived and were proud to live.

The Cabinet Member for Educational Attainment and School Improvement referred to the need to top-slice the schools funding block and the pressure that would create, particularly in special schools.  She also referred to the fluctuations in school numbers, largely stemming from new housing developments in the Borough.

Members discussed the social impacts of the Government’s austerity measures, including extortionate rents, poverty and inadequate support for schools and the challenges these posed to the Council and its partners in meeting residents’ needs.

Cabinet resolved to recommend the Assembly to:

(i)  Approve a base revenue budget for 2020/21 of £155.796m, as detailed in Appendix A to the report;

(ii)  Approve the adjusted Medium Term Financial Strategy (MTFS) position for 2020/21 to 2023/24 allowing for other known pressures and risks at this time, as detailed in Appendix B to the report, including the additional cost of borrowing to accommodate the capital costs associated with the implementation of the MTFS;

(iii)  Delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Performance and Core Services, to finalise any contribution required to or from reserves in respect of the 2020/21 budget, pending confirmation of levies and further changes to Government grants prior to 1 April 2020;

(iv)  Approve the Statutory Budget Determination for 2020/21 as set out at Appendix C to the report, which reflects an increase of 1.99% on the amount of Council Tax levied by the Council, an Adult Social Care precept of 2.00% and the final Council Tax proposed by the Greater London Assembly (3.6% increase), as detailed in Appendix D to the report;

(v)  Note the update on the current projects, issues and risks in relation to Council services, as detailed in sections 9-12 of the report;

(vi)  Approve the Council’s draft Capital Programme for 2020/21 totalling £318.006m, of which £72.540m are General Fund schemes, as detailed in Appendix E to the report;

(vii)  Approve the Flexible Use of Capital Receipts Strategy as set out in Appendix F to the report;

(viii)  Note the update on Dedicated Schools Funding and approve the Local Funding Formula factors as set out in section 15 and Appendix G; and

(ix)  Note the Chief Finance Officer’s Statutory Finance Report as set out in section 15 of the report, which includes a recommended minimum level of reserves of £12m.