Agenda item

This report sets out Cabinet’s proposals for the capital and revenue budgets for 2020/21. In accordance with the Constitution, Council is required to approve the capital and revenue budgets, rent increases and council tax for 2020/21.

Discussion:

 

This report provided details of the revenue and capital budget proposals for 2020/21.

 

The Cabinet had considered initial budget proposals on 19 November 2019, which had been developed in accordance with the principles set out in the Medium Term Financial Strategy. In accordance with the budget and policy framework rules within the Constitution, the Overview and Scrutiny Committees had then considered the Cabinet’s proposals prior to Cabinet’s consideration of the draft budget on 4 February 2020.

 

It was noted that an overarching Diversity Impact Assessment, as set out in Appendix 8 to the report, summarised the results of the Diversity Impact Assessments which had been completed for each of the services affected by the proposed budget changes.

 

The Leader of the Council, Councillor Jarrett, supported by the Deputy Leader and Portfolio Holder for Housing and Community Services, Councillor Doe, proposed the recommendations set out in section 22 of the report, together with the following detailed changes listed below in relation to recommendation 22.4:

 

Fund existing deficit balance contained in the report	£326,200
A further 1% increment in pay incorporating MedPay, taking this year’s increase to 2%	£601,200
Dickens 150	£150,000
Climate Change	£100,000
Child Friendly City	£100,000
Leader’s Initiatives	£27,600
Total	£1,305,000

 

The £150,000 funding for Dickens 150 will be non-recurring.

 

This additional spending of £1,305,000 is to be funded by an NDR surplus of £708,500, a more beneficial Housing Benefit Subsidy of £500,000 and an improved Medway Norse rebate of £96,500.

 

In accordance with Rule 12.5 of the Council Rules, a recorded vote on the proposal was taken.

 

For – Councillors Ahmed, Aldous, Barrett, Bhutia, Brake, Buckwell, Carr, Mrs Diane Chambers, Rodney Chambers OBE, Chitty, Clarke, Doe, Etheridge, Fearn, Filmer, Griffin, Gulvin, Mrs Josie Iles, Steve Iles, Jarrett, Kemp, Opara, Potter, Tejan, Thompson, Thorne, Tranter, Mrs Elizabeth Turpin, Rupert Turpin, Wildey and Williams (31)

 

Against – Councillors Adeoye, Bowler, Browne, Cooper, Curry, Howcroft-Scott, Hubbard, Johnson, Khan, Lloyd, Mahil, Maple, McDonald, Murray, Osborne, Paterson, Pendergast, Price, Sands, Andy Stamp and Chrissy Stamp (21)

 

There were no abstentions.

 

Note: Councillor Hackwell was not present for the recorded vote.

 

On being put to the vote, the proposal was agreed.

 

Decision:

 

a)   The Council agreed the recommendations of Employment Matters Committee on 29 January 2020:

i)             that a 1% increase in pay to be distributed as follows:

·                0.60% paid as a general cost of living increase

·                0.40% paid in accordance with the performance arrangements as detailed under MedPay, as set out in paragraph 8.3 of the report, with the addition of a further 1% increment in pay incorporating Medpay, taking this year’s increase to 2% as set out in decision c) below;

ii)            that authority be delegated to the Head of Paid Service to agree the competency based awards for staff assessed under MedPay at Levels 1A, 1B and 2 as set out in paragraph 8.4 of the report;

iii)           that the level 3 Apprentice salary be increased to £165 per week with effect from 1 April 2020 as set out in paragraph 8.5 of the report;

iv)           that funding for a review of the MedPay Scheme be approved. 

 

b)    The Council approved the creation of a new post of Assistant Director Regeneration in the Regeneration, Culture and Environment Directorate, with effect from 1 April 2020, as detailed in paragraph 6.3 of the report and shown in the structure charts for the RCE Directorate at Appendix 9, and noted that the Monitoring Officer will update the diagram showing the Council’s Management Structure accordingly (as set out in Chapter 7 of the Constitution) under his delegated authority.

 

c)    The Council approved the general fund gross, income and net revenue estimates as summarised in Appendix 1 to the report in the sum of £322.982million, which includes provision to fund recommendations a) iii) and iv) above together with following additions:

 

Fund existing deficit balance contained in the report	£326,200
A further 1% increment in pay incorporating MedPay, taking this year’s increase to 2%	£601,200
Dickens 150	£150,000
Climate Change	£100,000
Child Friendly City	£100,000
Leader’s Initiatives	£27,600
Total	£1,305,000

 

The £150,000 funding for Dickens 150 will be non-recurring.

 

This additional spending of £1,305,000 is to be funded by an NDR surplus of £708,500, a more beneficial Housing Benefit Subsidy of £500,000 and an improved Medway Norse rebate of £96,500.

 

d)    The Council approved the additions to the capital programme as set out in Table 5 of the report, the £2.5 million virement as set out in paragraph 12.7 of the report, and the £4.965million virement and additions of £672,000 and £24,000 as set out in paragraph 12.2 of the report.

 

e)    The Council approved the amended Council Tax premium for properties that remain empty and unfurnished for a period of two to five years to increase from 50% to 100%, for properties that remain empty and unfurnished for a period exceeding five years to 200%, and reduce the second home discount from 10% to Nil as set out in paragraph 3.3.3 of the report.

 

f)     The Council noted the Kent Police and Crime Commissioner’s precept requirement, as set out in paragraph 14.2 of the report.

 

g)    The Council noted the Kent Fire and Rescue Service precept requirement, as set out in paragraph 14.3 of the report.

 

h)    The Council noted the parish council precept requirements of £508,866 as detailed in paragraph 14.4 of the report and at Appendix 4 to the report.

 

i)     The Council agreed the schedule of precept instalment dates as set out in section 15 of the report.

 

j)     The Council approved the basic rate of Council Tax at band D for 2020/21, before adding the police, fire and parish precepts, at £1,471.96, an increase of 3.994% as set out in paragraph 16.1 of the report.

 

k)    The Council, as part of the budget proposals, approved fees and charges, as recommended by Cabinet and set out in the booklet 'Medway Council - Fees and Charges April 2020' as set out in Appendix 6 to the report.

 

l)     The Council approved the Flexible Use of Capital Receipts Strategy set out in Appendix 7 to the report.

 

m)  The Council agreed the recommendations set out in paragraphs 13.3 to 13.11 of the report with regard to the Housing Revenue Account and detailed in the following appendices:

·           The proposed increase in rents as set out in Appendix 3a to the report;

·           The proposed service charges as set out in Appendix 3b to the report;

·           The budget proposed as summarised in Appendix 3c to the report;

·           The 30 year business plan projections in Appendix 3d to the report.

 

n)    The Council adopted the formal resolution for the Council Tax requirement and schedule of Council Tax charges for 2020/21 as set out in Appendix 5 to the report and incorporated the amendments made above such that:

·           Paragraph 2, Appendix 5 becomes £127,761,565;

·           Paragraph 3(a), Appendix 5 becomes £539,488,981;

·           Paragraph 3(b), Appendix 5 becomes £411,218,550;

·           Paragraph 3(c), Appendix 5 becomes £128,270,431;

·           All other parts of the resolution remain as set out in Appendix 5 to the report.

 

o)    The Council noted the findings of the Diversity Impact Assessment as set out in Appendix 8 to the report, and the proposal to continue, where necessary, to report through quarterly monitoring any further unidentified or unintentional impact.