Agenda item

Budget and Council Tax 2020/21

The purpose of this report is to set out the Council’s budget proposals for 2020/21 and business plans for 2021/22 and 2022/23.  The report also sets out the results of the consultation, scrutiny and equalities processes.  Alongside the overall financial position facing the Council for the medium term and highlights the significant risks and issues.

 

Members are asked to note that the recommendations in the report were approved by Cabinet on 10 February 2020 for reference on to Council.

Decision:

AGREED

 

(1)          To note the decisions made by Cabinet on 10 February 2020 in relation to the budget and Council Tax 2020/2021

 

(2)          An overall 3.99% increase in the Council’s element of council tax for 2020/21, with 2% as a precept for Adult Social Care and a 1.99% general increase

 

(3)          The General Fund revenue budget for 2020/21, as summarised in Appendix A of the report.

 

(4)          The cost pressures and technical adjustments set out in Appendix B of the report.

 

(5)          The budget savings proposals set out in Appendix C of the report.

 

(6)          To note the report from the Budget Scrutiny Panel in Appendix D of the report and approve the recommendation from Cabinet that any overall underspend across the General Fund at the end of March 2020 is ring fenced and that proposals are brought forward for spending on the climate change emergency

 

(7)          The HRA budget for 2020/21, as set out in section seven of the report.

 

(8)          The dedicated schools’ grant, as set out in section eight of the report

 

(9)          The Capital Programme as set out in section nine and Appendix E of the report and that the Chief Officers be authorised to take all the necessary actions for implementation of the programmes

 

(10)       The changes to the existing Capital Programme in relation to additions of new projects, as set out in Appendix E of the report.

 

(11)       The Director of Finance be authorised to make the necessary adjustments to the Capital Programme to account for the final 2019/20 outturn position and any associated programme slippage

 

(12)       The Capital Strategy, Investment Strategy, Treasury Management Strategy and Minimum Revenue Provision Policy in Appendices G, H, I and J of the report and to note the pipeline schemes in Appendix F of the report.

 

(13)       To note he advice of the Director of Legal, HR, Audit and Investigations, as set out in Appendix K of the report.

 

(14)       The schedule of fees and charges, as set out in Appendix L of the report.

 

(15)       To note the results of the budget consultation, as set out in section six and detailed in Appendix M of the report.

 

(16)       The Pay Policy Statement for 2020/21, as set out in Appendix N of the report.

 

Council Tax recommendations

 

These recommendations only include a provisional council tax level for the GLA as its final budget was not agreed when the report was despatched.  This means that the statutory calculation of the total amount of council tax under Section 30(2) of the Local Government Finance Act 1992 cannot be carried out until the final GLA precept has been received.

 

(17)       In relation to the council tax for 2020/21 to resolve:

 

That the following amounts be now calculated as the Council’s element by the Council for the year 2020/21 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 as amended:

 

(a) £1,029,121,285  being the aggregate of the amount that the Council estimates for the items set out in Section 31A(2) of the Act.

(b) 900,990,772        being the aggregate of the amounts that the Council estimates for the items set out in Section 31A(3) of the Act.

(c) £128,130,513      being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its council tax requirement for the year.

(d) £1,312.74            being the amount at (c) above, divided by the amount for the tax base of 97,605, agreed by the General Purposes Committee on 9 December 2019, calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its council tax for the year.

 

(e)                               Valuation Bands

A

B

C

D

E

F

G

H

£

£

£

£

£

£

£

£

875.16

1021.02

1,166.88

1,312.74

1,604.46

1,896.18

2,187.90

2,625.48

 

being the amounts given by multiplying the amount at (d) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

(18)       To note that for the year 2020/21 the proposed GLA precept issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, in respect of the GLA, for each of the categories of dwellings are as shown below.  The GLA intends to agree its precept on 24 February 2020.

Valuation Bands

A

B

C

D

E

F

G

H

£

£

£

£

£

£

£

£

221.38

258.28

295.17

332.07

405.86

479.66

553.45

664.14

 

(19)       That the Council establishes a council tax setting committee, to set the council tax for the year 2020/21, in accordance with section 67(3) of the Local Government Finance Act 1992, and agrees the terms of reference, size and political composition as set out in Appendix O of the report.

 

(20)        That the Council appoints Councillors to serve on the council tax setting committee and appoints a chair and vice-chair of the council tax setting committee.

 

(21)   That the special council tax setting committee meet as soon as possible after 24 February 2020 to allow council tax notices to be issued in line with the normal statutory timetable.

 

(22)       To note that the Director of Finance has determined that the Council element of the basic amount of Council Tax for 2020/21 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992.

 

(a)          That the Director of Finance be and is hereby authorised to give due notice of the said council tax in the manner provided by Section 38(2) of the 1992 Act.

 

(b)          That the Director of Finance be and is hereby authorised when necessary to apply for a summons against any council tax payer or non-domestic ratepayer on whom an account for the said tax or rate and any arrears has been duly served and who has failed to pay the amounts due to take all subsequent necessary action to recover them promptly.

 

(c)        That the Director of Finance be and is hereby authorised to collect revenues and distribute monies from the Collection Fund and is authorised to borrow or to lend money in accordance with the regulations to the maximum benefit of each fund.

 

In accordance with Standing Order 43, as the above decisions related to the setting of the budget and Council Tax were subject to a recorded vote.

 

Prior to the above recommendations being approved alternative budget proposals, moved as an amendment to the budget report by the Conservative Group, were put to the vote and declared LOST.  The voting recorded on this amendment was as follows:

 

For the Amendment (3): Councillors Colwill, Kansagra and Maurice

 

Against the Amendment (55): Councillors Abdirazak, Aden, Afzal, Agha, Ahmed, Akram, M.Butt, S.Butt, Chan, Chappell, Chohan, S Choudhary, Choudry, Conneely, Crane, Daly, Dar, Denselow, Dixon, Donnelly-Jackson, Ethapemi, Farah, Gbajumo, Georgiou, Gill, Hassan, Hirani, Hylton, Johnson, Kabir, Kelcher, Kennelly, Knight, Lo, Long, Mahmood, Mashari, McLeish, McLennan, Miller, Mitchell-Murray, Murray, Naheerathan, Nerva, M.Patel, R.Patel, Sangani, Shah, Shahzad, Ketan Sheth, Krupa Sheth, Southwood, Stephens, Tatler and Thakkar

 

Abstentions to the Amendment (2): Councillors Ezeajughi (Mayor) and Colacicco (Deputy Mayor)

 

The substantive recommendations, as detailed above, were then put to the voted and declared CARRIED.  The voting recorded was as follows:

 

For (54): Councillors Abdirazak, Aden, Afzal, Agha, Ahmed, Akram, M.Butt, S.Butt, Chan, Chappell, Chohan, S Choudhary, Choudry, Conneely, Crane, Daly, Dar, Denselow, Dixon, Donnelly-Jackson, Ethapemi, Farah, Gbajumo, Gill, Hassan, Hirani, Hylton, Johnson, Kabir, Kelcher, Kennelly, Knight, Lo, Long, Mahmood, Mashari, McLeish, McLennan, Miller, Mitchell-Murray, Murray, Naheerathan, Nerva, M.Patel, R.Patel, Sangani, Shah, Shahzad, Ketan Sheth, Krupa Sheth, Southwood, Stephens, Tatler and Thakkar.

 

Against (4): Councillors Colwill, Georgiou, Kansagra and Maurice

 

Abstain (2): Councillors Ezeajughi (Mayor) and Colacicco (Deputy Mayor).

Supporting documents: