Issue - meetings

To receive and consider the recommendations of the Cabinet meeting held on 2 February (to follow), the report for which is attached.

Purpose

1.    The primary purpose of this report is to set the Council's overall Budget for the forthcoming year 2021/22 and the associated level of Council Tax necessary to fund that Budget.

2.    The report makes recommendations on the level of Council spending for 2021/22 and the level of Council Tax in the context of the Council's Medium Term Financial Strategy with its stated aim as follows:

Overall Aim

'In year' expenditure matches 'in year' income over the medium term whilst continuing the drive towards regeneration of the city, being innovative, creative whilst protecting the most important and valued services.

3.    The recommended Budget for 2021/22 has been prepared on the basis of the following:

·       The Council resolution of 11 February 2020 that set an overall savings requirement of £1.0m

·       An increase in the level of Council Tax for 2021/22 for general purposes of 1.99%

·       The flexibility to increase the level of Council Tax for an "Adult Social Care Precept", within the limits set by Central Government at 3.0%, and the direct passporting of that additional funding to Adult Social Care to provide for otherwise unfunded cost pressures.

4.    This report also provides a comprehensive revision of the Council's rolling 3 year future financial forecast for the new period 2022/23 to 2024/25 (i.e. compared to the previous forecast covering 2021/22 to 2023/24, this forecast now replaces the forecast for the previous 3 year period).

5.    The new forecast considers the future outlook for both spending and funding, and in that context, wider recommendations are made regarding the levels of reserves to be maintained and additional contributions to the Capital Programme in order to meet the Council's aspirations for the City as well as maintaining the Council's overall financial resilience throughout this uncertain period.

6.    In particular, this report sets out the following:

(a)  The challenging and uncertain financial climate facing the City Council in 2021/22 and beyond, and the consequential budget deficits that result

(b)  A brief summary of the Medium Term Financial Strategy for achieving the necessary savings

(c)  The revised Revenue Budget and Cash Limits for the current year

(d)  The Local Government Finance Settlement for 2021/22

(e) The Business Rate income for 2021/22 and future years

(f)  The Council Tax base and recommended Council Tax for 2021/22

(g) The forecast Collection Fund balance as at 31 March 2021 for both Council Tax and Business Rates

(h)  The detailed indicative savings (Appendix C) that could be made by each   Portfolio / Committee in meeting its overall savings amount in order to provide the Council with the assurance necessary to approve the recommended savings amount for each Portfolio / Committee

(i)  The proposed Revenue Budget and Cash Limits for 2021/22

(j) The forecast Revenue Budgets and revised Savings Requirements for   2022/23, 2023/24 and 2024/25

(k)  Estimated General Reserves over the period 2020/21 to 2024/25

(l)  The Medium Term Resource Strategy (MTRS) Reserve, its financial position and proposed use to achieve cashable efficiencies

(m) The proposed Capital Programme and "new starts" (including the Housing Investment Capital Programme) for 2020/21 and future years in accordance with the Capital Strategy

(n) The statement of the S. 151 Officer on the robustness of the budget in   compliance with the requirements of the Local Government Act 2003.

The detailed recommendations are set out in section 3 of the report.

Note: This report that was marked to follow was published on 27 January 2021.

RECOMMENDED to Council that the recommendations set out in section 3 of the report be approved subject to the following correction:

That the following amounts be now calculated by the Council for the financial year 2021/22 in accordance with Section 31 and Sections 34 to 36 of the Local Government Finance Act 1992.