Issue - meetings

To consider the report of the Director Finance.

Agreed:

RECOMMENDED that Council: -

(1)        note the contents of the report; and

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

Reason for Decision: As set out in the report.

The Executive received the report on the strategic overview of the budgetary position for the 2021/22 financial year and beyond, which included an indication of the likely level of available resources, the current demand for resources and the proposals to ensure that a balanced budget is achieved. Members noted that 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 the following:-

·         the Government, through its Local Government Finance Settlement, had announced a Lower Tier Services Grant as a one off, one year settlement. This equated nationally to £110 million with Exeter’s allocation to be £228,000 which would result in the Council’s core spending power remaining the same as the current financial year;

·         a higher contribution had been received in respect of the New Homes Bonus compared with the previous Medium Term Financial Plan;

·         the Referendum Principles for the Council Tax set by the Government would allow Councils to increase the tax by £5 or 2% whichever was the higher. A £5 increase equated to 10p a week;

·         the Medium Term Financial Plan had built in a drop in Business Rates Income as a result of the Covid-19 Pandemic; and

·         savings would be required to achieve a reduction of £6.1 million up to the period 2024/25.

The Leader thanked the Treasury Team for their work on the budget.

RECOMMENDED that Council: -

(1)        note the contents of the report; and

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