Agenda item

The Council is required to set a balanced budget and agree the level of Council Tax for 2021/22 and this report contains a summary of the proposals that have been considered for inclusion.  The proposals were considered and scrutinised in detail by the Budget Joint Overview and Scrutiny Committee on 13 January 2021.  The draft proposals have been considered by Cabinet on 12 January 2021 and the final proposals were recommended by Cabinet on 2 February 2021

Members were presented with the Budget Proposals for 2021/22 and indicative budgets for 2022/23 and 2023/24, by the Cabinet Member for Finance and Resources.  There was a requirement for the Council to set a balanced budget and agree the level of Council Tax for 2021/22.  Members were presented with a summary of the proposals. 

 

It was highlighted that the proposals were also considered and scrutinised in detail by a meeting of Budget Joint Overview and Scrutiny on, 13 January 2021, followed by consideration at a meeting of Cabinet on 12 January 2021.  A public consultation was undertaken with South Kesteven residents and businesses, during the period 13 – 27 January 2021.   The final draft proposals were then considered by Cabinet on 2 February 2021 and were recommended to full Council for approval. 

 

General Fund

 

The Cabinet Member for Finance and Resources advised Members that at the Cabinet Meeting due to be held on 2 March 2021, a decision would be taken to no longer allocate £100,000 from the Local Priorities Reserve to underwrite the Public Realm Improvements, to support the unveiling of the Baroness Thatcher Statue.  Therefore, the Reserve Movements for 2020/21, at Appendix C to the report would be updated.

 

It was noted to Members that 34% of responses from the Public Consultation were in support of a £5 rise in Council Tax per Band D Property, on SKDC’s element of the Council Tax, which was approximately 9% of the total sum paid by residents.

 

A review had been undertaken on the proposals of the Indicative Fees and Charges for Stamford’s Pay & Display car parks, after feedback given at the meeting of Budget Joint Overview and Scrutiny. The Cabinet Member for Finance and Resources was pleased to advise that the proposals had been reduced by 10p, therefore 1-hour car parking in Stamford, from April 2021 would be £1.20.  The reduction in projected income would be met from applying for an additional Government Grant, that was mentioned in the provisional settlement announcement. 

 

The Council’s companies would continue to feature as a core part of the Service Delivery model, the report detailed funding levels for each company.  The Companies Committee would continue to review those levels, especially with the impact of the closure of leisure facilities during the current lockdown. Members were re-assured that the Council’s financial situation was strong, despite the financial challenges. 

 

The pay proposals had been formulated for 2021/22, following the Government’s guidance of a public sector pay freeze, except for a 1% rise for those earning less than £24,000. The Cabinet Member for Finance and Resources gave thanks to Councillor Louise Clack who had highlighted that the Council had an opportunity to follow the Real Living Wage, which had also been noted by the Chancellor.  This was to be incorporated into the Budget Proposal, which impacted several recommendations, which would be detailed to Members in due course.

 

Housing Revenue Account (HRA)

 

The HRA was facing a financial challenge with lower than expected rent increases and rises in expenditure, which meant that only a 12-month budget could be presented, rather than 36 months to avoid a negative working balance being reached.

 

Capital programmes would not require any external borrowing, funds would be drawn from the Council’s Reserves, this would however require careful monitoring. 

 

The Cabinet Member for Finance and Resources highlighted the changes to the recommendations detailed within the report, for both the General Fund and HRA.

 

The Leader of the Council reflected on the last 12 months and his personal thanks were expressed to Council staff, partners, businesses, communities and Members. The work of all involved was highlighted to support the residents and businesses of South Kesteven. Members were encouraged by the Leader to support the recommendation for the Council to support the Real Living Wage and to approve the Budget. 

 

A Point of Order was raised, with a proposal that each element of the Budget be considered separately, that Paragraph 4.11.5 of the Constitution, Rules of Debate be suspended; to allow Members to speak more than once.  The Chief Executive advised that a vote would need to be taken by Members to suspend the Rules of Debate.

 

The proposal was seconded, followed with a vote by exception. The vote fell, Paragraph 4.11.5 of the Constitution would remain, Members would not be permitted to speak more than once.

 

Councillor Clack thanked the Cabinet Member for Finance and Resources, officers and all those involved for incorporating her suggestions on the Real Living Wage into the recommendations for the Budget.

During debate Members raised the following points and questions:

·            Welcomed the addition of the Real Living Wage to the pay proposals for 2021/22.

·            Welcomed the withdrawal of the decision to underwrite the unveiling event of the Baroness Thatcher Statue.

·            The Budget included support towards the Compliance Action Plan for the HRA.  Many aspects of housing were being reviewed and proposals of a Rent Guarantee scheme were being considered. It was anticipated that 73 new homes would be delivered in the next financial year.

Councillor Phil Dilks proposed an amendment to the Budget in light of the withdrawal of the decision to underwrite the unveiling event of the Baroness Thatcher Statue; That the £100,000 be allocated instead to underwrite food banks and other appropriate charitable and or voluntary initiatives providing assistance to those South Kesteven residents struggling to put food on the table, during the Covid-19 pandemic. The proposal was seconded, debate followed on the proposed amendment to the Budget.

Members raised the following points:

 

·            Food banks in the area were well stocked by businesses, supermarkets and other individuals in the area.

·            Members could use the Individual Ward Members Grant Scheme to offer support. 

·            Clarification was also provided that SKDC supported local food banks, through a Government grant.

·            Members had visited and were in touch with a great number of local foodbanks and had seen that they were well supported, however should they require any further support, they should get in touch with the Council.

·            Monetary support had been offered to food banks by local groups, in some instances, these had been declined due to overwhelming support received.

·            Was there potential for the £100,000 to be directed to other charities, who may be finding it difficult during the pandemic.

 

Councillor Dilks made a request for a recorded vote to take place on the proposed amendment.  As the Constitution required 10 Members to be in support of a recorded vote and only 7 were in support, a vote by exception took place.  The vote fell.

 

Members continued to debate the substantive motion on the Council’s Budget. The following points were raised:

 

·            It was recognised that the circumstances during the current year had proven difficult, but it was clear that Members and officers were committed to providing a balanced budget.

·            It was noted that InvestSK Ltd’s funding by SKDC had been greatly reduced as part of the Budget proposals and there was concern as to why it had been proposed.

·            Disappointment that the Individual Ward Members Grant Scheme would not remain at £1000 but be reduced back to £500.

·            Greatly appreciative of the 10p reduction in the proposed raise on car parking fees for Stamford.

·            Welcomed the removal of the Deeping Special Expenses area.

·            If Individual Members Grant Scheme were not used, could they be rolled over from the 2020/21 budget to the 2021/22 budget.

·            If the Deepings Leisure Centre all weather pitch allocation had been rolled over into 2021/22 budget.

·            How much of the InvestSK Ltd’s allocated Budget was not used for staffing expenses.

·            House building: could information be provided where houses were to be built.

·            Concerns that parking income projections were optimistic, especially given the lockdown and the facilities in car parks for payment.

·            When would details on the Leisure Improvement Programme be available.

·            How many apprentices were paid less than £7 per hour.

·            Hope that the Special Expenses Area for Bourne would also be removed in the future, as with the Deepings.

 

Councillor Baxter proposed an amendment to recommendation 12 of the Budget. To withdraw the 3% increase of HRA Services charges on the cost of communal facilities and rooms, the proposal was seconded.  Members debated the proposal, with the following points being raised:

·            Concerns about where the withdrawal of the 3% would be funded from.

·            Residents were keen for the communal areas to be back in use, once the current restrictions were lifted, a rebate on rents would be provided to residents who were not able to use those facilities.

·            Residents should be supported with no rises as much as possible, especially given the level of Reserves the Council had in place.

 

A vote by exception took place, the vote fell.

 

Members continued considering the substantive motion, on the Council’s Budget:

·            It was noted that Members had many opportunities to consider and scrutinise the Budget proposals.

·            Welcomed the emphasis on cleaning within the community incorporated in the Budget

The Cabinet Member Finance and Resources and the Interim Director of Finance (s151 Officer) addressed questions and comments made by Members:

 

·      86% of InvestSK Ltd’s Budget allocation was for specific staff related expenditure.

·      The Ward Members Grant Scheme would remain at £500; they were increased to £1000 by the Leader of the Council, during the onset of the pandemic and subsequent lockdown.  Due to the current deficit status of the General Fund a rollover of unused Members’ budgets would not be prudent.

·      HRA new build properties had been addressed earlier in the meeting by the Cabinet Member for Planning and Housing.

·      Car Parking fees had been determined through modelling of usage, prior to Covid-19 restrictions.

·      Removal of the Deepings Special Expenses Area account was due to this no longer being required as the costs were no longer being incurred.  Consideration of the remaining Special Expenses Areas were incorporated into the Work Programme for the forthcoming year, where they would be carefully considered.

 

The Chairman requested that the Chief Executive guide Members through voting on the Budget Proposals for 2021/22 and Indicative Budgets for 2022/23 and 2023/24. 

 

A recorded vote was taken on recommendations 1 – 9, appendix H and the inclusion of the Real Living Wage in the Pay Proposals, of the Budget:

 

For:          Councillors Adams, Bellamy, Bisnauthsing, Bosworth, Broughton, Chivers, Clack, Cooke, Cottier, Crawford, Dawson, Dobson, Exton, Fellow, Goral, Griffin, Jeal, Johnson, Kaberry-Brown, Kingman, Knowles, Lee, Manterfield, Mason, Milnes, Moran, Moseley, Reid, Sandall, Selby, Jacky Smith, Judy Smith, Stevens, Adam Stokes, Ian Stokes, Thomas,

                Trollope-Bellew, Trotter, Ward, Hannah Westropp, Hilary Westropp, Wheeler, Whittington, Jane Wood, Paul Wood, Woolley, Linda Wootten and Ray Wootten (48)

Against:    (0)

Abstain:    Baxter, Dilks, Hanson and Steptoe (4)

DECISIONS:

General Fund

Full Council:

1.     Set a General Fund budget requirement of £13.893m for 2021/22 detailed at section 3 of the report and shown in detail at Appendix A (inclusive of special expenses) to the report.

2.     Approved a Council Tax level of £168.62 for 2021/22 (Band D property).

3.     Noted the indicative base estimates for 2022/23 and 2023/24 as detailed in the summary at Appendix A to the report.

4.     Approved the General Fund Capital programme for 2021/22 to 2023/24 and      the slippage for 2020/21 as detailed at section 5 of the report and shown at Appendix B.

5.     Approved the General Fund Capital Financing statement detailed at       Appendix B to the report.

6.     Approved the movements in General Fund Revenue and Capital reserves and balances detailed at section 7 of the report and shown at Appendix C incorporating a reduction of the Local Priorities Reserve by £24k to a balance of £4.045m as at March 2022.

7.     Approved the fees and charges detailed at section 9 of the report and shown at Appendix D.

8.     Approved the Treasury Management Strategy detailed at section 8 of the report and provided at Appendix G.

9.     Delegated any necessary changes to the 2021/22 Budget Framework and Treasury Management Strategy to the Council’s Section 151 Officer in consultation with the Cabinet Member for Finance and Resources following confirmation of the Future High Streets Fund funding award.

 

A vote by exception was taken for the HRA, recommendations 10 – 17 of the report. The vote was carried.

 

DECISIONS:

 

Housing Revenue Account

 

Full Council:

 

10.   Approved the Housing Revenue Account (HRA) dwelling rent increases of 1.5% (CPI + 1%) in accordance with Government guideline rent providing an average rent of £80.78 (an average rental increase of £1.19 per a week).

11.   Approved an increase in HRA garage rents of 3%.

12.   Approved an average increase of 3% in HRA service charges for communal facilities and communal rooms.

13.   Approved an increase in shared ownership rents by 1.5% (CPI +1%).

14.   Approved the HRA Revenue Summary for the year 2021/22 shown at Appendix A and increase the total expenditure (line 15) by £12k to £18.018m.

15.   Approved the Housing Investment Programme for 2021/22 to 2023/24 and the slippage for 2020/21 as detailed at section 5 of the report and as shown at Appendix B.

16.   Approved the HRA Capital Financing statement detailed at Appendix B to the report.

17.   Approved the movements in HRA Revenue and Capital reserves and balances detailed at section 7 of the report and shown at Appendix C incorporating a reduction in the Working Balance by £12k to a balance of £1.55m as at March 2022.

(The Chairman called a short recess at 15:36, returning at 15:46)

(15:46 Councillor Mark Whittington left the meeting)

(15:49 Councillor David Bellamy left the meeting)