Agenda item

Budget Report and Medium Term Financial Strategy 2021/22

Report of the Cabinet Member for Corporate Delivery/Chief Finance Officer

Minutes:

Consideration was given to a report of the Cabinet Member for Corporate Delivery / Chief Finance Officer which provided the proposed Revenue Budget, Capital Programme and Council Tax 2021/22 for recommendation to Budget Council 3rd March 2021. The information contained in the report is subject to the approval of the Mayor of Greater Manchester Council Tax precepts for 2021/22.

 

The report also outlined the Medium Term Financial Strategy 2021/22 to 2025/26. The Medium Term Financial Strategy provides the latest budget position for the Council, sets out the key financial challenges and issues which

will be faced over the period, and provides details of the assumptions and estimates which underpin the budget. The strategy also takes account of the latest known developments both regional and at a local level.

 

Alternatives considered:

No alternatives were presented.

 

Resolved:

1.    That Cabinet recommends to Council:

·         The proposed revenue budgets outlined in Appendix 1, based on a budget requirement of £235.984m for 2021/22;

·         Subject to confirmation of the Mayor of Greater Manchester precepts:

a) A Council Tax for district purposes of £1,727.37 for Band D properties (4.99% increase) for 2021/22;

b) A Council Tax (including precepts) of £2,036.62 for Band D properties (4.74% increase);

·         To note the position in relation to Education Services Grant and Schools Funding. Cabinet delegate the decision regarding any changes to the final allocations for the Dedicated Schools Grant to the Director of Children’s Services and the Chief Finance Officer in consultation with the Cabinet Members for Getting a Good Start and Corporate Delivery;

·         To note the approval at Cabinet 1st December 2020 to earmark £0.5m of one off funds in contingency, which will be allocated to Adult Care Service in 2021/22 if additional demand pressures materialise;

·         To note that any final balance on the 2020/21 budget will be transferred to the Equalisation Reserve;

·         To approve the updated Budget Carry Forward policy, as detailed in Appendix 3. of the report;

·         To approve the proposed Capital Programme for 2021/22 to 2025/26 as detailed at Appendix 4 of the report, noting that some of the assumed external funding included in the programme is still subject to clarification from Government and in some cases may involve bids for funding. It is therefore recommended that all approvals are subject to confirmation of funding allocations;

·         To approve that the Chief Finance Officer, in consultation with the Cabinet Member for Corporate Delivery, be given delegated authority to finalise the 2021/22 Discretionary Business Rate Relief Policy following the Government’s 2021 Budget which will take place on 3rd March 2021;

·         To approve that new spending proposals requiring additional revenue and capital resources should only be considered during the financial year, in extreme circumstances as determined by the Budget and Policy Framework. The proposals would need to be reported to the next available Council meeting in accordance with the Budget & Policy Framework;

·         To approve the Council’s updated Medium Term Financial Strategy 2021/22 to 2025/26, as provided at Appendix 6 of the report;

·         To approve the Pay Policy Statement, as detailed in the report of the

Head of Workforce & Organisational Development at Appendix 5 and the publication of the Pay Policy Statement before the 31st March 2021.

 

Reasons for the decision:

Cabinet members are required to consider and recommend to Budget Council before the 11th March 2021:

a) A balanced Revenue Budget for 2021/22 and provisional budgets for 2022/23 to 2023/24.

b) The Council Tax increase for 2021/22.

 

The Medium Term Financial Strategy provides a key part of the budget setting process.

Eligible for call in – no

Supporting documents: