Agenda item

This report sets out Cabinet’s proposals for the capital and revenue budgets for 2021/22. In accordance with the Constitution, Council is required to approve the capital and revenue budgets, rent increases and council tax for 2021/22.

Background:

 

This report provided details of the revenue and capital budget proposals for 2021/22.

 

The Cabinet had considered initial budget proposals on 17 November 2020, which had been developed in accordance with the principles set out in the Medium Term Financial Strategy (MTFS) 2021-2023.

 

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 2 February 2021.

 

It was noted that an overarching Diversity Impact Assessment, as set out in Appendix 8 to the report, summarised the results of Diversity Impact Assessments. These 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 following recommendations, as amended from those set out in section 24 of the report:

 

“Council are recommended to:

 

a)  Approve the recommendations of Employment Matters Committee on 26 January 2021 that £903,914 is allocated for pay awards. In addition, a one-off sum of £450,000 be approved to be funded from reserves, and that the authority to agree how the 2021/22 pay award for colleagues is allocated will be delegated to the Head of Paid Service.

 

b)  Approve the general fund gross, income and net revenue estimates as summarised in Appendix 1 to the report in the sum of £350.009million, with the £3.155million deficit being met from revenue reserves. In addition, add the following sums:

 

1)  £1,002,990 for the Holiday Activities and Food Programme, to be met from specific Government grant;

 

2)  £400,000 for the Modern Medway Fund to be met on a non-recurring basis from revenue reserves;

 

3)  A one-off additional £450,000 for the staff pay award to be met from revenue reserves.

 

c)  Approve the additions to the capital programme set out in Table 9 of the report, subject to the addition of £582,000, using the capital receipts flexibility, to continue work on the Children’s Improvement Programme.

 

d)  Note the Kent Police and Crime Commissioner’s precept requirement, as set out in paragraph 15.2 of the report.

 

e)  Note the proposed Kent Fire and Rescue Service precept requirement, as set out in paragraph 15.3 of the report.

 

f)    Note the parish council precept requirements of £523,658 as detailed in paragraph 15.4 of the report and at Appendix 4 to the report.

 

g)  Approve the basic rate of Council Tax at band D for 2021/22, before adding the police, fire and parish precepts, at £1,545.47, an increase of 4.994% as set out in paragraph 16.1 of the report.

 

h)  As part of the budget proposals, approve fees and charges, as recommended by Cabinet and set out in the booklet 'Medway Council - Fees and Charges April 2021' as set out in Appendix 6 to the report and subject to the following changes, which have a negligible impact on the budget:

 

1)  No uplift on vehicle licence fees;

2)  No uplift on drivers licence fees.

 

i)    Approve the Flexible Use of Capital Receipts Strategy set out at Appendix 7 to the report;

 

j)    Agree the recommendations set out at 14.3 to 14.11 of the report with regard to the Housing Revenue Account and detailed in the following appendices:

 

1)  The proposed increase in rents as set out at Appendix 3a;

2)  The proposed service charges as set out at Appendix 3b;

3)  The budget proposed as summarised at Appendix 3c;

4)  The 30 year business plan projections at Appendix 3d.

 

k)  Adopt the formal resolution for the Council Tax requirement and schedule of Council Tax charges for 2021/22 as set out in Appendix 5 to the report, to incorporate any amendments arising from this meeting and from the meeting of the KFRS on 23 February to agree their precept as set out in paragraph 15.3 of this report.

 

l)    Note 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.

 

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

 

For – Councillors Aldous, Brake, Buckwell, Rodney Chambers OBE, Chitty, Doe, Etheridge, Filmer, Gulvin, Mrs Josie Iles, Steve Iles, Jarrett, Kemp, Pendergast, Potter, Tejan, Rupert Turpin, and Wildey (18)

 

Against – Councillors Browne, Cooper, Hubbard, Johnson, Khan, Maple,Murray, Osborne, Prenter, Sands and Andy Stamp (11)

 

There were no abstentions.

 

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

 

Decision:

 

The Council:

 

a)  Approved the recommendations of Employment Matters Committee on 26 January 2021 that £903,914 be allocated for pay awards. In addition, a one-off sum of £450,000 was approved to be funded from reserves, and the authority to agree how the 2021/22 pay award for colleagues is allocated was delegated to the Head of Paid Service.

 

b)  Approved the general fund gross, income and net revenue estimates as summarised in Appendix 1 to the report in the sum of £350.009million, with the £3.155million deficit being met from revenue reserves. The addition of the following sums was agreed:

 

1)  £1,002,990 for the Holiday Activities and Food Programme, to be met from specific Government grant;

 

2)  £400,000 for the Modern Medway Fund to be met on a non-recurring basis from revenue reserves;

 

3)  A one-off additional £450,000 for the staff pay award to be met from revenue reserves.

 

c)  Approved the additions to the capital programme set out in Table 9 of the report, subject to the addition of £582,000, using the capital receipts flexibility, to continue work on the Children’s Improvement Programme.

 

d)  Noted the Kent Police and Crime Commissioner’s precept requirement, as set out in paragraph 15.2 of the report.

 

e)  Noted the proposed Kent Fire and Rescue Service precept requirement, as set out in paragraph 15.3 of the report. 

 

f)    Noted the parish council precept requirements of £523,658 as detailed in paragraph 15.4 of the report and at Appendix 4 to the report.

 

g)  Approved the basic rate of Council Tax at band D for 2021/22, before adding the police, fire and parish precepts, at £1,545.47, an increase of 4.994% as set out in paragraph 16.1 of the report.

 

h)  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 2021' as set out in Appendix 6 to the report and subject to the following changes, which have a negligible impact on the budget:

 

1)    No uplift on vehicle licence fees;

2)    No uplift on drivers licence fees.

 

i)    Approved the Flexible Use of Capital Receipts Strategy set out at Appendix 7 to the report.

 

j)    Agreed the recommendations set out at 14.3 to 14.11 of the report with regard to the Housing Revenue Account and detailed in the following appendices:

 

1)  The proposed increase in rents as set out at Appendix 3a;

2)  The proposed service charges as set out at Appendix 3b;

3)  The budget proposed as summarised at Appendix 3c;

4)  The 30 year business plan projections at Appendix 3d.

 

k)  Adopted the formal resolution for the Council Tax requirement and schedule of Council Tax charges for 2021/22 as set out in Appendix 5 to the report, to incorporate the following amendments arising from this meeting, [as set out in paragraphs 1 to 4 below] and from the meeting of the KFRS on 23 February to agree their precept as set out in paragraph 15.3 of this report.

 

Amendments to Appendix 5:

 

1)    Amount in paragraph 2, Appendix 5 becomes £134,577,565. Full paragraph to read:

 

‘Calculate that the Council Tax requirement for the Council’s own purposes for 2021/22 (excluding Parish precepts) is £134,577,565.’

 

2)    Amount in paragraph 3(a), Appendix 5 becomes £556,804,143. Full paragraph to read:

 

‘£556,804,143 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.’

 

3)    Amount in paragraph 3(b), Appendix 5 becomes £421,702,920. Full paragraph to read:

 

‘£421,702,920 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act;’

 

4)    Amount in paragraph 3(c), Appendix 5 becomes £135,101,223. Full paragraph to read:

 

‘£135,101,223 being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act);’

 

l)    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.