Agenda item

Budget & Policy Framework Update 2020/21 to 2024 (including Treasury Management and Capital Strategy)

(Cabinet Member with Special Responsibility Councillor Whitehead)


Report of Director of Corporate Services   (report to follow)


(Cabinet Member with Special Responsibility Councillor Whitehead)


Cabinet received a report from the Chief Finance Officer which set out the latest position in respect of the Budget and Policy Framework including Cabinet’s proposed revenue budget for 2020/21 and Capital Programme for 2020/21 to 2023/24. The report also set out the Treasury Management Framework for Cabinet adoption and provided an update on the revision of the Medium Term Financial Strategy.


The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:


Revenue Budget


Cabinet may adjust its revenue budget proposals, as long as the overall budget for 2019/20 balances and fits with the proposed council tax level.


Capital Programme


           Cabinet may adjust its capital investment and financing proposals to reflect spending commitments and priorities but in deciding its final proposals should have regard to the prudential code requirements that all capital expenditure should be prudent, affordable and sustainable.


Treasury Management Framework


            Cabinetmayputforwardalternativeproposalsoramendmentstotheproposed Strategy in Appendix H to the report,butthesewouldhave tobeconsideredinlightoflegislative,professional andeconomicfactors,andimportantly,anyalternativeviewsregardingtheCouncil’s riskappetite.Assuchnofurtheroptionsanalysisisavailableatthis time.


           Furthermore,theStrategymustfitwithotheraspectsofCabinetsbudgetproposals, suchas commercial investments together with traditional deposit interestestimatesandunderlyingprudentialborrowingassumptions, feedingintoPrudentialand TreasuryManagementIndicators.There areno options available regarding other components of the overall framework,


Officer Preferred Option (and comments)


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 meet these requirements; the detailed supporting budget proposals are then a matter for Members.


           Treasury Management Strategy


           To approve theframework as attached to the report, allowing for anyamendments being made underdelegatedauthoritypriortoreferraltoCouncil. ThisisbasedontheCouncil continuingtohave acomparatively lowriskappetiteregardingthesecurityandliquidity of investmentsparticularly,butrecognisingthat someflexibilityshouldhelpimprove returns,whilststilleffectivelymitigatingrisk.Itisstressedthatintermsof treasuryactivity, thereisnoriskfreeapproach.Itisfelt,however, thatthemeasuressetoutabove providea fitfor purpose frameworkwithinwhichtowork,pending anyupdate duringthe course of next year.


IfCabinet orBudget Councilchanges itsCapital Programmefrom thatwhich isproposed 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


In view of questions regarding differentiating between approved and pre-approved Reserves Councillor Whitehead proposed, seconded by Councillor Sinclair-


“That the recommendations, as set out in the report, be approved with the following insertion at the end of recommendation (1) “subject to the refinement of any technical and material errors that may be identified.”


Councillors then voted:-


Resolved unanimously:


(1)          ThatCabinetrecommendthefollowingforapprovaltoBudgetCouncil, subject to the refinement of any technical and material errors that may be identified:


-        The2020/21 General Fund Net Revenue Budget and resulting Council Tax Requirement excluding parish precepts (Appendix A to the report) and supporting budget proposals (Appendix B to the report).


-        TheSection 151Officer’sstatementontheadequacyofreservesandadvicethatthe minimum levelofbalancesbeincreasedto£2.5m,subjecttoannualreview.


the resulting position on provisions and reserves (Appendix C to the report).


the updated Reserves Strategy (Appendix D to the report).


the updated four year Capital Programme covering financial years 2020/21 to 2023/24 (Appendix E to the report).


2)    That the Finance Portfolio Holder be givendelegated authority toagree the Treasury Management Framework, as updated for Cabinets finalbudget proposals,forreferralon to 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 Officer Finance


Reasons for making the decision:


The decision enables Cabinet to make recommendations back to Full Council in order to complete the budget setting process for 2020/21.


Supporting documents: