Issue - decisions

Councillor Russell Holland, the Cabinet Member for Finance, Education and Skills along with the Corporate Director of Finance and Assets (Section 151 Officer) submitted joint report proposing a Budget for 2020/21 and setting out the financial context for 2021/22 and beyond.  It was noted that, under the Council’s Constitution, the Cabinet is required to recommend a budget to Council as part of its formal Council Tax Setting responsibilities.

Councillor Holland introduced his report setting out the implications of the delay in having government grants confirmed owing to the General Election, the continuing demographic pressures, and the desire to provide long-term support for arts groups that would be addressed in a proposed amendment to Appendix 3. He explained that the Council had received a grant of £60k, which had allowed officers to make new proposals to assist the arts groups that had previously expected an £80k cut. Councillor Holland also informed Cabinet of statutory changes imminent regarding the Dedicated Schools Budget. He reminded Members that the budget itself would not be determined until Council on 20^th February 2020.

Councillors Dale Heenan, Jim Grant, Jane Milner-Barry, and Bob Wright asked a range of questions about the budget covering:

·         Whether austerity is continuing for local government and the role of central government in funding the projected increased demand for adult social care,

·         How the proposed budget changes might affect services for the vulnerable,

·         Why Cabinet Members had not brought forward earlier the savings identified in this budget.

·         How Cabinet might work with non-executive members to identify ways to support cultural groups and activities.

·         The use of borrowing to support council and public sector schemes.

·         The proposed support for the literature festival.

·         What alternative proposals had been submitted during the three months since Cabinet approved the consultation budget.

Councillor Holland responded at the meeting.

Resolved –

1)    That the medium term financial context and impact on Swindon of the draft Local Government Finance settlement be noted;

2)    That the projected out-turn for 2019/20 be noted;

3)    That Members note the consultation feedback summarised in Appendix 2,

4)    That the detailed Dedicated Schools budget for 2020/21, based on a provisional funding envelope of £198.28m be noted;

5)    That, in line with the requirements of the Local Government Act 2003, the Corporate Director of Finance and Assets’ confirmation of the robustness of the estimates underlying the recommended Budget and adequacy of reserves in the context of the earmarked reserves and proposed budget risk contingency be noted.

6)    That the medium term financial strategy, set out in Appendix 5 be endorsed;

7)    That the specific reserves held in support of the 2020/21 Revenue Budget set out in Appendix 4 be agreed;

8)    That it be agreed that the proposed Dedicated Schools Budget (DSG) budget deficit should be recovered from within DSG income;

9)    That the Corporate Director of Finance and Assets be authorised to balance any changes between the provisional and final local government finance settlements by adjusting the Budget Risk Contingency;

10) That an updated Appendix 3 with adjusted funding for cultural groups be submitted to Full Council.

Minute for Confirmation by Full Council

11) That Council be recommended, subject to any changes resulting from the Government’s announcement of the final local government finance settlement for 2020/21,

a.    To set the 2020/21 Budget at £149.074m;

b.    To increase the Council Tax by 3.99%, comprising 1.99% for the basic amount of Council Tax and a specific adult social care precept of 2%, and;

c.    To determine that the proposed increase in the basic amount of Council Tax for 2020/21 is not excessive in accordance with Schedule 5 of the Localism Act 2011 and therefore does not trigger the requirement for a referendum.

The reasons for the decision and alternative options are as set out in the report to the meeting.