Issue - meetings

To consider the report of the Chief Finance Officer.

The Executive received the report which provided a strategic overview of the budgetary position for the 2020/21 financial year and beyond, the potential level of available resources and the proposals to ensure that a balanced budget was achieved. The Council was required to set a balanced budget and Council Tax prior to the start of the financial year.

Particular reference was made to there being a one year business rate retention roll over in 2020/21 which would support the Council to spend on services. To support a balanced budget a £5 a year, an increase in Council Tax would be proposed, although it was for Members to determine the rate of Council Tax. The proposal would keep the reserves above the £3 million level as set by the Section 151 Officer. It was highlighted that the Government was committed to a fair funding review and intended to implement it in 2021/22.

Members noted that the New Homes Bonus settlement amount for 2019/20 was a one year figure only and would likely be phased out over the medium term financial plan period. The new business rate retention scheme would reset business rates back to its baseline and would mean, within the next three years, there would be a need for £3.7 million reductions.

During the discussion, the following points were raised:-

·         The £5 Council Tax increase for Band D equated to less than 10p a week, but Council Tax was also set by other authorities;

·         When the Government undertakes a review they create a consultation paper which Exeter City Council would respond to. Going forward there was likely to be a phased approach for resetting business rates but there would be a one-off complete reset back to the baselines of the business rates in 2021-22.

RECOMMENDED that Council:-

(1)  note the contents of the report; and

(2)  approve the proposals to establish a balanced revenue budget and capital programme.