Agenda item

To consider and note the report.

Howard Hamilton-Smith advised of and presented a report to the Committee which was also to be presented to the meeting of the Executive on 15^th February 2021 to consider the estimates of revenue income and expenditure for 2021/22 and to make recommendations to Full Council about next year`s Revenue Budget.

The Committee was advised that the Executive was recommended to adopt the following resolution:

That Full Council be re recommended to:

     I.        Endorse the approach that has been adopted in developing budget proposals that reflect the Council`s Strategic Objectives for 2021/22; and

    II.        Approve the proposals contained in the report; and

  III.        Set a Council Tax Requirement of £7,266,131 for the financial year 2021/22; and

  IV.        Set a Net Budget Requirement of £15,415,612 for 2021/22.

   V.        Receive and consider the statutory report issued by the Head of Finance and Property under the Local Government Act 2003; and

  VI.        Authorise the Chief Operating Officer/Heads of Service to progress action plans to deliver the 2021/22 budget; and

VII.        Approve a Council Tax (Band D) figure of £312.28 for this Council for the year commencing 1^st April 2021 and adopt the statutory resolution to set the full Council Tax for the year.  This is equivalent to a 1.99% Council tax increase.

Howard advised that in relation to recommendation VII as detailed above, the final Budget Settlement had been announced by the Government since publication of the report in which there was a £52.00 difference from the provisional Budget Settlement and as a result there would be no change to the 1.99% proposed Council tax increase as detailed above.

Grounds for the above recommendations were outlined within the report.

Members made the following points and received the following responses:

Capital element of budget – revenue implications – Post Covid, there will be a recession.  Significant effect on unemployment in Burnley.  Anything we can do to put emphasis in capital projects and spending on initiatives that create jobs ought to be a high priority.  Please take this into account.

Area covered by Economic Recovery Strategy puts emphasis on innovation attracting new business so on.  Important to have flexibility within overall budget to ensure that Officers of Council and Lead Executive Members are not financially constrained from seeking new investment and support particularly in terms of jobs within Burnley.  There ought to be that flexibility.

Business Hardship Fund for first furlough period.  How will support be provided, grant, loan or investment in a company?  I feel we should consider all the options.  Are we at the stage of considering these options?

We are looking at how the Hardship Fund will be delivered. It will be reviewed as we go along.

Identified key areas of risk.  Should also identify the key indicators related to each of those major areas and to be a way of measuring what is happening in relation to those risks with a trigger point to Full Council/Scrutiny Committee to look at those changes in the overall risk level as things continue to develop.  It is going to be a very big challenge.  It is important that we have access to early, thorough and immediate access to information which draws out major risks as they develop and occur.

Risks are picked up by the Audit and Standards Committee, monitored, flagged, reviewed and reported regularly as a matter of course throughout the year. 

Agree with 1.99 precept. We are chronically underfunded for an authority with the responsibilities that we have. 

Much uncertainty in the budget going forward. The increase is required to provide funding for economic and community recovery initiatives in addition to enabling the Council to deal with ongoing financial pressures within the budget next year.  With regard to Government funding, Burnley fares badly against the England average This is reflected by the fact that the Government has provided the Council with some one-off funding within the Budget Settlement to ensure that the Council hasn’t received less funding than it did last year.

IT WAS AGREED

That the report be noted.