Agenda and minutes

To confirm as a correct record

These minutes were approved as a correct record.

Progress continued to be made in respect of the finance improvement programme and an underspend of £100,000 against the revenue budget baseline of £10.6 million was projected. This represented an improvement of £300,000 since the previous month and was partly due to revenue underspends on salaries, some of which had been capitalised in accordance with the recently adopted policy for the flexible use of capital receipts. The revised capital programme had been reduced to £15.7 million and was forecast to be £600,000 underspent. The Chief Finance Officer explained her intention to ensure that, next year, the Council’s capital programme will provide a more realistic estimate of actual expenditure and that future carry forwards of unspent capital budgets would no longer be guaranteed.

Members were advised that 50% provision had been made against the loan repayment due from Freedom Leisure. However, this debt hadn’t been written down and was still expected to be repaid in full. It was also confirmed that Officers had worked closely with Freedom Leisure regarding the submission of a grant application for £140,000 (by the Council) to Sport England for a share of national funding to support leisure centres during the pandemic. The reduction in the adverse budget variance regarding Freedom Leisure was explained.

In response to the debate, Members were advised that Council Tax and business rate collection levels were improving but that the impact of shortfalls would not be known until the end of the year. Officers confirmed that Government (Section 31) grants to had been received to compensate the Council for business rate collection shortfalls.

Officers responded to questions from Members concerning other budget variances, including those regarding property investment income, external legal advice, and the application of Minimum Revenue Provision.      

            R E S O L V E D – that that the Committee’s forecast revenue and capital budgets            position for the year be noted.

An initial version of the Strategic Plan for the Council (20/21 to 23/24) had been approved by the Committee on the 28^th July 2020. This had been on the understanding that:

·      the plan would be kept under review in response to changing circumstances; and

·      all four Policy Committees should own and monitor delivery of the relevant parts of the Plan which fall within their respective terms of reference (in this respect, the Housing Committee had reviewed applicable actions at its meeting on the 19^th November 2020).

An updated version of the plan, showing latest progress against each item where appropriate, was presented. The covering report acknowledged that, due to the impact of the national lockdown, progress in certain areas may not be possible until the summer / autumn. It was also stated that any further actions to deliver the plan’s priority outcomes which have additional resource implications will be brought to Members for approval.

The Committee was invited to comment on progress made against the plan and to identify any aspects requiring additional attention of a change of approach. Various views and suggestions were expressed during the debate, including:

·           all Executive Heads and Chief Officers should be shown as being responsible for the implementation of the financial recovery plan; and

·           the actions should be prioritised and, where possible, made ‘smarter’ with more quantitative information where appropriate.

            R E S O L V E D – that Members’ feedback be noted and reflected in the next iteration of the plan.

A report was presented to enable the Committee to consider its draft revenue budget, charges for services and a capital programme for 2021/22. This had been informed by the Member workshops during the previous autumn and the current Medium Term Financial Plan. The report outlined key budget principles and headline saving proposals, together with the main service functions and salary costs relevant to the Committee.

The Chief Finance Officer explained that the Committee’s budget comprised both ‘business as usual’ items (including salary costs) and corporate items that the Committee couldn’t influence. She also referred to the Government’s provisional financial settlement for the sector which was only for the one year (2021/22) and the fact that future local government finance reforms could present significant challenges for Tandridge. Given this uncertainty, it was necessary to establish financial resilience and flexibility to deal with unforeseen events without having to draw upon reserves, hence the provision of a general fund contingency budget.    

Members discussed the scope for taking a more strategic approach for addressing budgetary tensions between committees as part of the Council-wide budget setting process. As far as the budget setting for 2021/22 was concerned, it was acknowledged that this Committee would be responsible for addressing such tensions at its meeting on the 2^nd February and for making clear recommendations for consideration by Council on the 11^th February.

Notwithstanding these issues, the Chair observed that, as far as this current meeting was concerned, the Committee was being asked to make decisions about its own draft budget. 

            R E S O L V E D – that

A.    subject to further consideration by the Committee on the 2nd February 2021 as part of the Council wide budget setting process (to be ratified by Full Council on 11th February 2021):

(i)          the Committee’s draft revenue budget for 2021/22 be in the sum of £4,316,274, as shown in Appendix A

(ii)        the Committee’s draft capital programme for 2021/22 be in the sum of £5,366,600 for 2021/22, as shown in Appendix B; and

B.    in accordance with the Committee’s delegated powers, the fees and charges for 2021/22, as detailed in Appendix C be agreed.

The Local Government Finance Act 1992 required the Council to calculate and approve the tax base for the forthcoming financial year. A report was submitted to enable the Committee to fulfil this function on the Council’s behalf.

            R E S O L V E D – that:

A.    the gross Council Tax Base for 2021/22 is determined at 38,921.6 after taking account of the Councils agreed Council Tax Support Scheme, and

B.    the net Council Tax Base for 2021/22 is determined at 38,454.5 after adjustment by 1.2% to allow for irrecoverable amounts, appeals and property base changes.