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Agenda item

Budget Proposals 2021/22 and Medium Term Financial Strategy

Decision:

AGREED RECOMMENDATIONS

Reasons for decision – as specified in the report

Other options considered – as specified in the report

Conflicts of interest / dispensations granted – none

 

Minutes:

RESOLVED:

 

The General Fund Budget 2021/22 and MTFS (Section 3)

a)    That the latest assumed MTFS and balanced 2021/22 budget, including the underlying principles and assumptions, be approved and recommended to Council (Paragraphs 3.1-3.30, Table 1 and Appendix A of the report)

b)    That the unprecedented level of uncertainty in the estimates due to COVID-19 and the wider local government funding outlook be noted. (Paragraphs 3.31-3.41 of the report)

c)    That the proposed 2021/22 net budgets by directorate be approved and recommended to Council. (Paragraph 3.5, Table 2 and Appendix A of the report)

d)    That the 2021/22 savings, which in some cases remain subject to consideration of individual consultations before implementation, be approved and recommended to Council. (Paragraphs 3.42-3.45, Table 6 and Appendices B1-B2 of the report)

e)    That the Dedicated Schools Grant (DSG) settlement for 2021/22 and related funding assumptions be noted. (Paragraphs 3.46-3.55 of the report)

f)     That the fees and charges policy and the GF fees and charges for 2021/22 be approved. (Paragraphs 3.56-3.63 and Appendices C1-C5 of the report)

g)    That the policy on GF contingency and reserves, including the target level of GF balances be approved and recommended to council, and the movements to/from earmarked reserves assumed as part of the 2021/22 revenue budget be agreed. (Paragraphs 3.64-3.72 and Table 7 of the report)

h)    That the Section 151 Officer be delegated responsibility for any technical adjustments required to be made to the 2021/22 budget (in line with the council’s Financial Regulations) be approved and recommended to Council.

i)     That centrally held demographic growth be allocated to service budgets if and when the need materialises and approved by the Section 151 Officer be approved and recommended to Council (Paragraph 3.9 of the report)

The HRA Budget and MTFS (Section 4)

j)     That the balanced HRA 2021/22 budget be approved and recommended to Council, and the latest estimates over the 3-year MTFS period be noted. (Paragraphs 4.1-4.3, Table 8 and Appendix D1 of the report)

k)    That the HRA rents and other HRA fees and charges for 2021/22, that are unchanged from those approved by the Executive on 21 January 2021, be noted. (Paragraphs 4.4-4.30, Tables 9-12 and Appendix D2 of the report)

Capital Investment and Treasury and Investment Management (Section 5)

l)     That the proposed 2021/22 to 2023/24 capital programme, including investment in projects related to the council’s net zero carbon priority, be approved and recommended to Council, and the latest indicative capital programme for 2024/25 to 2030/31 be noted. (Paragraph 5.1-5.5, Table 13 and Appendix E1 of the report)

m)  That the estimated funding of the 2021/22 to 2023/24 capital programme be noted, and to authority be delegated to the Section 151 Officer, where necessary, to apply capital resources to fund the capital programme in the most cost-effective way for the council. (Paragraphs 5.6-5.7 and Table 14 of the report)

n)    That the Capital Strategy, Minimum Revenue Provision (MRP) Policy Statement, Treasury Management Strategy and Investment Strategy be approved and recommended to Council. (Paragraph 5.3 and Appendices E2-E5 of the report)

Council Tax and Retained Business Rates (Section 6)

o)    That the 2020/21 council tax and business rates forecasts and budgetary impact over the medium term be noted. (Paragraphs 6.1-6.3, Table 15, Paragraph 6.17 and Table 23 of the report)

p)    That he calculations required for the determination of the 2021/22 council tax requirement and the level of council tax be approved and recommended to Council, as detailed in Section 6 of the report and summarised below:

1)    2021/22 council tax requirement of £99,248,682.10. (Paragraph 6.6 and Table 16)

2)    The relevant basic amount of Islington Band D council tax of £1,276.72, a 4.99% increase compared to 2020/21 (comprising 3.00% for expenditure on adult social care and 1.99% for other expenditure), and that this is not ‘excessive’. (Paragraphs 6.7-6.8 and Table 17)

3)    The basic amount of Islington Band D council tax for dwellings to which no special item relates (i.e. outside of the Lloyd Square Garden Committee area) of £1,276.48. (Paragraph 6.9 and Table 18)

4)    The amount of 2020/21 council tax (excluding the GLA precept) for each valuation band over each of the Council’s areas. (Paragraph 6.11 and Table 19)

5)    The total amount of 2020/21 council tax (including the GLA precept) for each valuation band over each of the Council’s areas. (Paragraph 6.13 and Table 21)

q)    That the council’s estimated retained business rates funding in 2021/22, as per the 2021/22 NNDR1 return estimate, be noted (Paragraph 6.14-6.15 and Table 22 of the report)

r)     That the London Business Rates Pool will not continue in 2021/22 be noted. (Paragraph 6.16 of the report)

s)    That the significant funding risk for the council in relation to Material Change in Circumstance (MCC) business rates appeals due to COVID-19, and that additional appeals provision for this threat in 2020/21 or 2021/22 was not included in the 2021/22 NNDR1 return, be noted (Paragraphs 6.18-6.21 of the report)

Matters to Consider in Setting the Budget (Section 7)

t)     To have regard to the Section 151 Officer’s report on the robustness of the estimates included in the budget and the adequacy of the proposed financial reserves when making decisions about the budget and the level of council tax, as required under Section 25(2) of the Local Government Act 2003, be agreed. (Paragraphs 7.1-7.9 of the report)

u)    That the Monitoring Officer comments be noted. (Paragraphs 7.10-7.14 of the report)

v)    That the Equality Impact Assessment be noted and to take fully account of it in approving the overall budget and related proposals. (Paragraphs 7.15-7.17 and Appendix F of the report)

w)   That the council invited business rate payers or representatives of business rate payers in Islington to comment on the draft 2021/22 budget proposals, as required under Section 65 of the Local Government Finance Act 1992, and that no responses were received, be noted (Paragraphs 7.18-7.20 of the report)

x)    That the Annual Pay Policy Statement 2021/22 be approved and recommended to Council. (Paragraph 7.21 and Appendix G)

 

 

 

Reasons for decision – to allow members to set the budget  

Other options considered – none

Conflicts of interest / dispensations granted – none

 

Supporting documents: