Agenda item

The chairman introduced the report which set out the latest position on the Medium-Term Financial Strategy (MTFS), savings plans and capital programme. He drew the committees attention to (i) paragraph 1.3.2 which set out the summary of changes that had occurred since September 2020, (ii) table 6, paragraph 1.3.4 which set out next year’s projections and the changes and (ii) recommendation 4 which sought agreement to consult  on the 3% Social Care Precept

The Director of Resources (Section 151 officer) confirmed that there was a working group in place that monitored on a weekly basis the following areas;

(i) the impact of Brexit – in particular food shortage in the short-term period and that this was mitigated by the work that had been done during Covid on the essential supplies hub and work with the VCS.

(ii) The other main concern was around employment.

Both these areas had been factored into the business planning process and would continue to be monitored.

With regards to the chargeable garden waste service the chairman clarified there were now various pricing options in place and that there been an increase in the uptake of the service.

With regards to Children’s placements, Councillor Longstaff Chairman of Children, Education and Safeguarding Committee confirmed that the building of Woodside Care Home was due to finish around April 2021. The council was also working with other London Boroughs to try and ensure that children where possible could be place within rather than outside boroughs. 

With regards to the CSG savings the Deputy Chief Executive clarified that in terms of next year specifically, the contractual saving had been factored in. But with year 6/7 having been delayed due to Covid they wouldn’t be delivered in short to medium term but in the medium to longer term the indicative figures had been included.

With regards to reserves the Director of Resources clarified the reserves that were reducing were service specific reserves.

With regards to Fairer Charging and the increase to home care, Councillor Sachin Rajput Chairman of Adults and Safeguarding Committee clarified that the charge was just for the home care provided and the cost involved was to ensure a fair price. He further clarified that only those who could afford to pay would be asked to contribute and that their income and expenses would be taken into account – this provided a safeguard for those individuals   

Upon being put to the vote the recommendations as set out in the report were declared carried. The vote was recorded as follows;

RESOLVED to -

1. Approves delegated authority to the Director of Resources (S151 Officer) to amend the MTFS in line with the 2021/22 Local Government Finance Settlement, to enable the 2021/22 Budget Consultation process to commence as discussed in paragraph 1.2.3;
2. Notes the summary of the November 2020 Spending Round announcement, initial financial implications for Local Government in 2021/22 and economic outlook in paragraphs 1.2.4 to 1.2.11;
3. Agrees to consult on the use of the Council’s flexibility to raise the level of General Council Tax by 1.99% in 2021/22 as discussed in paragraph 1.3.5;
4. Agrees to consult on the use of the Council’s flexibility to apply a 3.00% Social Care Precept, to help fund pressures in social care as set out in paragraph 1.3.5;
5. Approves and note the updates to the 2021/22 MTFS and estimate of 2022-25 budget gap. This will be updated to take account of information from the December 2020 finance settlement;
6. Notes the current MTFS attached as Appendix A and key components summarised in paragraphs 1.3;
7. Agrees that the savings proposals as set out in Appendix B, subject to consultation and equalities impact assessment, come back to Policy and Resources Committee in February 2021 for referral to Full Council in March 2021 for final approval of the 2021/22 budget including Council Tax;
8. Notes the plans to commence the MTFS process to identify savings for 2022/23 to a balance the gap earlier in 2021/22 as discussed in paragraph 1.3.14;
9. Notes the council’s expression of interest in participating in the London Business Rates Pool for 2021/22 discussed in paragraph 1.3.8, subject to final details and other announcements, this will be presented to Committee in February 2021 for approval;
10. Approves the proposed fees and charges for referral to Council for decision in Appendices C1 to C5 and discussed in paragraph 1.3.17;
11. Notes the General Fund revenue forecast for October 2020 discussed in paragraphs 1.4.2 to 1.4.4
12. Approves and note as required the virements and commitments from the Contingency budget, the position for which is summarised in paragraph 1.4.7 and discussed further in paragraphs 1.4.12 to 1.4.15;
13. Approves and note as required the virements between services set out in paragraphs 1.4.10 and 1.4.15;
14. Notes the position on earmarked reserves in section 1.5;
15. Approves the amended capital programme (including additions) as set out in paragraph 1.6.2 and Appendix D;
16. Approves the changes to the existing Capital Programme in relation to slippage as set out in and paragraph 1.6.5 and Appendix D;
17. Approves the changes to the existing Capital Programme in relation to additions in paragraphs 1.6.6 to 1.6.12 and deletions in 1.6.13; 
18. Notes the Recovery Planning Programme update in section 1.7;
19. Notes the Quarter 2 2020/21 Corporate Risk Register discussed in section 1.8 and presented in Appendix E;
20. Approve that the council’s budget consultation will be launched in the week of 14 December 2020 after which the budget with a cumulative equality impact assessment will be considered by the Committee in February 2021, before it is referred to council.