Issue - meetings

(A)     Confirm the savings proposals, after consideration of the comments from Audit and Governance Committee, to be taken forward, subject to detailed impact assessments and accepting that some may need to be reconsidered in the light of the current pandemic;

(B)     Agree, as guidance to officers, that the budget proposals should be based on a Council Tax increase of £5, general inflation assumption of up to 1% and that the provision for the national pay award will be up to 2%;

(C)     Endorse the production of a phased capital programme over 5 years to better reflect actual phasing of delivery and more realistic revenue impacts of capital financing; and

(D)     Endorse the additional programme of work to transform the Council and place it on a financially sustainable footing as set out in paragraph 4.7.

The Executive Member for Financial Sustainability submitted a report setting out the Budget for 2021/22 and Medium Term Financial Plan 2021/24.

Councillor Williamson explained that the preparatory work had commenced and that the Council had a sizeable gap in its budgets despite the financial sustainability measures which had been introduced.  He explained that the gap next year was £1M, the same again for following year and a further £2M for 2023/24. Councillor Williamson said that by the time the Council reached 2023 the Council’s net revenue budget will need to be net £4M lower than it is now. 

It was noted that Leadership Team had been tasked to review net costs to meet the reduction targets. These proposals were set out in Appendix A of the report. It was noted that savings proposed, exceeded the amount which the Council needed to save for the next two years. Appendix B set out the Executive’s initial views on what might be taken forward which still left a gap of £200K this year and a significant gap for 2023/24. Leadership Team was proposing to carry out further work in relation to the Medium Term Financial Strategy to assist in further targeting of reductions in net cost such has how the Council could adapt to different ways of working, following the impact of Covid-19. 

Councillor Williamson referred to the approach taken in relation to the Council’s capital projects as a project total all in one year and then rolled forward and the problems this approach had with loan and financing arrangements. He said that the capital programme would now be presented as a rolling 5 year programme reflecting phasing over those five years and the financing costs being reflected in the revenue account. 

Councillor Williamson referred to the Council’s approach to Council Tax and the Government’s expectation that should be raised by a maximum of £5 on a Band D household which would provide the Council with £310K this year and next year. The gap would not be bridged unless the Council does the same again, next year and the following. It was noted that no comments were received when the matter was considered by Audit and Governance Committee. 

Councillor Redfern was concerned about savings proposed and the assumptions in relation to Hertford Theatre i.e. an increased return of £410K. She felt that this had not been sufficiently justified in her view and that there had been no justification for the uplift of footfall. She asked if the impact of new evening parking charges had been considered.

Councillor Buckmaster said that business case reviews had been undertaken on all the capital projects and the Executive was satisfied all the capital projects going forward would be viable.  He said that Hertford Theatre was subsidised and that the Council improving facilities there would offer more opportunities. Councillor Buckmaster did not believe that we needed to be pessimistic or that people would not want to socialise after Covid-19 adding that the Council was going from a position  ...  view the full minutes text for item 261