Issue - meetings

To consider and decide on the recommendations as set out in the attached report.

RESOLVED –  That Full Council be recommended:

1.     That the changes to the base budget along with the assumptions and approach set out throughout the report be approved.

2.     That the responses to the budget consultation set out at Appendix P to the report be approved;

3.     That the rolling forward of the capital programme including additional gross funding of £3,072,050 for new schemes list within the report be approved; and

4.     That an increase in the ‘Base Amount’ of Council Tax of £5 per annum for a Band D property be approved.

REASON FOR DECISION:

To deliver a sustainable budget to deliver the Council’s key objectives.

Lee Colyer, Director of Finance, Policy and Development introduced the Report that outlined the assumptions that had been built into the budget for 2020/21.  Discussion and responses to Members questions included the following matters.

-       This was the 4^th Report in setting the 2020/21 budget.

-       The Queen’s Speech on 19 December 2019 included a number of items that were significant to the Council.  

-       Government intended to increase retail discount relief from 33% to 50%.

-       The Queen’s Speech also included details of a Planning White Paper that would make the planning process clearer and address resource issues currently experienced at local authority level.

-       The Provisional Local Government Finance Settlement was published on 20 December 2019.  The settlement was for one year only.  It included Revenue Support Grant of which the Council received nothing, and the Baseline funding level which was the minimum amount of Business Rates that the Council was able to retain, £0.04. The Baseline had increased by 1.6%, which equated to about an additional £40,000.

-       The settlement included a decision by Government to consult on the future of the New Homes Bonus.  As a result of this decision, legacy payments would no longer be paid. The Council had expressed their disappointment at this decision in their response to the Government’s Technical consultation on the issue.

-       There was no proposal by Government to uplift the £5 deminimus Council Tax limit for the Shire District Councils.

-       Central Government would deliver their budget on 11 March 2020.  This date was after most Councils had set their budget and Council Tax.  As such and in the absence of national economic data that would not be available, local economic data would be used to inform the process. 

-       Business rate growth was critical to the ability of the Council to fund local services across the Borough.  Business rate income came predominately from the urban parts of the Borough.  There were over 4,000 businesses in the Borough with a combined rateable value of £136m.

-       The four year Capital Programme would be rolled forward for another year.

-       A budget survey was undertaken and received 199 responses, compared to just 56 last year.

-       The current  level of Business Rates had a huge impact on local businesses, particularly those in the retail trade.  The Council should encourage Government to look at ways to reduce the level of Business Rates to help businesses through this difficult period. 

-       There would also be a need to consider the effects of Climate Change and the measures that could be introduced to try and solve some of the issues.

-       The Council’s concern regarding the lateness of the Local Government settlement should be brought to the attention of Greg Clark MP to take forward to the Secretary of State at the Ministry of Housing, Communities and Local Government.

-       The elements included in the Capital Programme that related to the Assembly Hall Theatre would go to maintain and improve the service.  ...  view the full minutes text for item 126

To consider and provide a recommendation to Cabinet on the proposals set out in the attached Report.

Lee Colyer, Director of Finance, Policy and Development introduced the Report that outlined the assumptions that had been built into the budget for 2020/21. 

Discussion and responses to Members questions included the following matters:

-       This was the 4^th Report in the process of setting the budget.

-       The Queens Speech (19 December 2019) included the importance of Business Rates to local authority funding, retail discount relief would increase from 33% to 50% and a proposed Planning White Paper that would make the planning process clearer and address resource issues experienced at local authority level.

-       The provisional Local Government Finance Settlement 2020/21 was announced on 20 December 2019.  The settlement was for 1 year only which made strategic financial planning difficult. 

-       The settlement included a decision by Government to consult on the future of New Homes Bonus spring 2020. 

-       Legacy payments for New Homes Bonus would no longer be paid.  TWBC responded to a Government Technical consultation (closing on 17 January 2020)  their disappointment that the 4 years of Legacy payments, as originally agreed by Government would not be paid.  Councillors endorsed the response to the consultation and the Leader had taken the issue up with Greg Clark MP.

-       There were no proposals to uplift the £5 deminimus Council Tax limit for Shire councils. 

-       The Government’s Budget date had been set for 11 March 2020. 

-       Expenditure for 2020/21 had been set at £67.4m.

-       Government would be undertaking a spending review during the next year that would set out the Departmental spending limits for all Central Government Departments. 

-       TWBC had done well in the retention of Business Rates due to the higher rateable values that could be attributed to new buildings, new car showrooms and further buildings to come including the new Premier Inn. 

-       Calverley Square had expected to provide a £34m increase in wider economic benefits which would have resulted in a much higher business rate yield. 

-       It would be important to attract inward investment into the Borough.  The Council continued to work with British Land regarding the improvements to the shopping centre.  There were good reasons to be optimistic, the Borough was reasonably placed to benefit from Business Rate growth.

-       Recruitment continued to be challenging, with Planning highlighted as a particularly difficult area to recruit staff.  The Council were being proactive and looking at different methods of advertising.

-       The £2.3m funding strategy for Calverley Square was the level needed  for the year 2022.   The funding strategy was phased in over a period of time.  The elements of the funding strategy which were in the base budget  was £328,000.  The share of Business Rates was not included as this had a direct relationship with the Calverley Square scheme going forward and the uplift in economic value.

RESOLVED – That the recommendations to Cabinet as set out in the report be supported.