Agenda item

The Cabinet Member for Finance, Performance and Core Services introduced the Council’s proposed budget framework for 2021/22 which incorporated the following:

-  Proposed General Fund revenue budget for 2021/22;

-  Proposed level of Council Tax for 2021/22;

-  Medium Term Financial Strategy (MTFS) 2021/22 to 2024/25;

-  Draft capital investment programme 2021/22 to 2024/25; and 

-  Update on the Dedicated Schools Grant and Local Funding Formula for Schools.

The Cabinet were reminded that the budget framework for 2021/22 was prepared in the context of unprecedented uncertainty arising from the continuing impact of the COVID-19 pandemic. The impact on the community of COVID-19 had resulted in financial pressures to the Council throughout 2020/21 which would have implications for years to come.

The Cabinet Member for Educational Attainment and School Improvement raised concerns that the census data for pupil premium, based on the take up of free school meals, had been moved back, potentially creating a huge loss for schools.  This would mean that during a time of increasing child poverty, funding for the most vulnerable children in schools was being reduced.

The Cabinet Member for Health Integration and Social Care raised concerns that the Government’s lack of support for social care and recent decision to reform the NHS following the pandemic may put more obligations on the Council, without additional resources being provided.

Cabinet resolved to recommend the Assembly to:

(i)  Approve a base revenue budget for 2021-22 of £174.326m, as detailed in Appendix A to the report;

(ii)  Approve the adjusted Medium Term Financial Strategy (MTFS) position for 2021-22 to 2024-25 allowing for other known pressures and risks at the current time, as detailed in Appendix B to the report, including the revised cost of borrowing to accommodate the capital costs associated with the implementation of the MTFS;

(iii)  Note the observations made by the Overview and Scrutiny Committee at its meeting on 26 January 2021 in respect of the Cabinet’s savings and growth proposals for 2021/22 and beyond and the outcome of the public consultation on the budget proposals, as set out in section 14 of the report;

(iv)  Approve the budget savings and growth proposals for 2021/22 and beyond, as detailed in section 8 and Appendix C to the report;

(v)  Delegate authority to the Chief Financial 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 2021-22 budget, pending confirmation of levies and further changes to Government grants prior to 1 April 2021;

(vi)  Approve the Statutory Budget Determination for 2021-22 as set out at Appendix D 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 3.00% and the final Council Tax proposed by the Greater London Assembly (9.5% increase), as detailed in Appendix E to the report;

(vii)  Note the update on the current projects, issues and risks in relation to Council services, as detailed in sections 8-10 of the report;

(viii)  Approve the Council’s draft Capital Programme for 2021-22 totalling £399.105m, of which £30.845m are General Fund schemes, as detailed in Appendix F to the report;

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

(x)  Note the update on Dedicated Schools Funding and approve the Local Funding Formula factors as set out in section 13 and Appendix H to the report; and

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

  (Standing Order 7.1 (Chapter 3, Part 2 of the Council Constitution) was suspended at this juncture to enable the meeting to continue beyond the 9pm threshold).