Agenda item

Report of Councillor P Parkin, Portfolio Holder for Finance

 RESOLVED –

(1)   That Cabinet endorsed the proposed budget for 2020/21 for the General Fund, Housing Revenue Account and Capital Programme as part of the Council’s Medium Term Financial Plan covering the years 2020/21 to 2023/24.

(2)   That Cabinet endorsed the specific recommendations set out in Sections 6.1 to 6.7  of the report;

(3) That Cabinet endorsed a recommendation to Council that it sets it rent levels at an increase of 1.7% from 1 April 2020 and an increase of by CPI + 1% for the years 2021/22 to 2023/24;

(4) That Cabinet endorsed the specific recommendations as set out in Sections 6.9 to 6.14 of the report.

(3)  That the agreed recommendations be submitted to Council on 17 February 2020 and recommended for approval. 

REASON FOR DECISION – To enable Cabinet to consider and endorse a budget for the 2020/21 financial year and to recommend this to Council for approval. 

OTHER OPTIONS CONSIDERED & REJECTED – The Council has a statutory duty to set a balance budget for the 2020/21 financial year. 

As part of the Council’s Medium Term Financial Plan covering the years 2020/21 to 2023/24, Cabinet received a report of Councillor P Parkin, Portfolio Holder for Finance.  This report set out the proposed budget for 2020/21 for the General Fund, Capital and Housing Revenue Accounts.  Cabinet was asked to endorse the proposed budget and recommend it to Council for approval. 

Cabinet considered the proposed budget for the General Fund and Capital Programme.  Members were reminded that Council had successfully achieved the savings of £0.770m that had been required to balance the current year budget and that the forecast was now for a surplus of £0.186m to be achieved. 

Any surpluses generated, it was explained, would be transferred to reserves. 

Members heard that the proposed budget for 2020/21 included a shortfall of £0.217m, which would require further savings to be achieved.  In this context, Cabinet emphasised the importance of maintaining the Council’s momentum on progressing the growth and transformation agenda, in order to help secure the necessary efficiency savings. 

Cabinet then considered the proposed budget for the Housing Revenue Account (HRA). 

Councillor C Cupit, A Dale and A Powell declared an interest at this point in their capacity of members of the Board of Rykneld Homes Limited.  They indicated they would not participate in the debate or in Cabinet’s decision on the HRA and left the meeting. 

Cabinet discussed the proposed Housing Revenue Account (HRA) budget.  As part of this Members were reminded that from April 2020 the new Social Housing Rent Standard would come into force.  This Standard would be applied to all social housing ‘registered providers’.  It would allow them to increase their rents over the next five years by the Consumer Price Index (CPI), plus 1%.  Previously, Councils had been expected to decrease rents by 1% per annum. 

Cabinet discussed what rent increase it thought would be appropriate to recommend to Council.  Members recognised the scope which additional rent income would create in terms of investing further in the Council’s housing service.  However, Members made it clear that they were concerned about the additional financial burden which a large rent increase would place on tenants.  Cabinet did not think that this would be appropriate.  There was a consensus that it would be more appropriate to recommend a proposed increase in rents of 1.7%, which would be in line with the rate of inflation. 

RESOLVED –

(1)      That Cabinet endorsed the proposed budget for 2020/21 for the General Fund, Housing Revenue Account and Capital Programme as part of the Council’s Medium Term Financial Plan covering the years 2020/21 to 2023/24.

(2)      That Cabinet endorsed the specific recommendations set out in Section 6 of the report and agreed that they be recommended to Council on 17 February 2020 for approval. 

REASON FOR DECISION – To enable Cabinet to consider and endorse a budget for the 2020/21 financial year and to recommend this to Council for approval. 

OTHER OPTIONS CONSIDERED AND REJECTED – The Council has a statutory duty to set a balance budget for the 2020/21 financial year.