Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
As part of the current budget and planning
process, issues that require key decisions to be taken may well
arise. This will include the HRA report.
Cabinet received a report from the Director of Corporate Services which provided Cabinet with information on the Council’s latest General Fund Revenue budget proposals and resulting Council Tax requirement. Further information was provided regarding the Council’s proposed Capital Programme as well as its Treasury Management and Capital Strategies and the Section 151 Officer’s statement on the adequacy of reserves. The report sought Cabinet’s approval and recommendations to Full Council.
The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:
Revenue Budget, Capital Programme and Reserves Position
Proposals to be put forward by Cabinet should fit with any external constraints and the budgetary framework already approved. The recommendations as set out in the report meet these requirements; the detailed supporting budget proposals are then a matter for Members.
Treasury Management Strategy
To approve the framework as attached to the report, allowing for any amendments being made under delegated authority prior to referral to Council. This is based on the Council continuing to have a comparatively low risk appetite regarding the security and liquidity of investments particularly, but recognising that some flexibility should help improve returns, whilst still effectively mitigating risk. It is stressed that in terms of treasury activity, there is no risk free approach. It is felt, however, that the measures set out above provide a fit for purpose framework within which to work, pending any update during the course of next year.
If Cabinet or Budget Council changes its Capital Programme from that which is proposed in this report then this would require a change in the prudential indicators which are part of the Treasury Management Strategy. Delegation to the Finance Portfolio Holder is therefore requested in order to ensure that Cabinet’s final capital programme proposals are reflected in the Treasury Management Strategy
Councillor Whitehead proposed, seconded by Councillor Hanson:-
Councillors then voted:-
(1) That Cabinet recommends the following for approval to Budget Council:
· The 2021/22 General Fund Net Revenue Budget and resulting Council Tax Requirement excluding parish precepts (as set out in Appendix A to the report) and supporting budget proposals (as set out in Appendix B to the report).
· The Section 151 Officer’s statement on the adequacy of reserves and advice that the minimum level of balances be increased to £3.5M, subject to annual review.
· the resulting position on reserves (as set out in Appendix C to the report).
· the updated Capital Programme covering financial years 2021/22 to 2024/25 (as set out in Appendix D to the report).
· the updated position on budget transfers (as set out in Appendix I to the report)
(2) That the Finance Portfolio Holder be given delegated authority to finalise the Revenue & Capital Budgets and Treasury Management Framework, as updated for Cabinet’s final budget proposals, and outcomes of the Final Local Government Settlement for referral on to Budget & Performance Panel and Council.
(3) That the Finance Portfolio Holder be given delegated authority to agree the revision of the Medium-Term Financial Strategy, as updated for Cabinet’s final budget proposals, for referral on to Council.
Officers responsible for effecting the decision:
Director of Corporate Services
Chief Finance Officer
Reasons for making the decision:
The budget incorporates measures to make progress in addressing the climate emergency and digital improvements as well as activities to address wellbeing, health and community safety. The budget framework in general sets out a financial plan for achieving the Council’s corporate priorities which incorporate the above cross cutting themes. The decision enables Cabinet to make recommendations back to Full Council in order to complete the budget setting process for 2021/22.
Report author: Paul Thompson
Publication date: 11/02/2021
Date of decision: 09/02/2021
Decided at meeting: 09/02/2021 - Cabinet