Agenda item

Purpose of Report

To consider the draft Medium Term Financial Strategy for the period 2020-2025 and the draft budget and Council Tax proposal for 2020/21 for consultation and scrutiny.

Decision

(1)       That the Executive approves for consultation and scrutiny:

·         The draft Medium Term Financial Strategy 2020-2025 and

·         The draft Capital Strategy 2020-2025

(2)       That these included the following specific elements:

·         a proposed Council Tax increase of 1.9% for 2020/21;

·         a proposed housing rent increase of 2.7% for 2020/21;

·         the Council being a member of the Lincolnshire Business Rates Pool in 2020/21;

·         the draft General Fund Revenue Forecast 2020/21-2024/25 as shown in Appendix 1 of the report and the main basis on which the budget had been calculated;

·         the draft General Investment Programme 2020/21-2024/25 as shown in Appendix 2 and the main basis on which the budget had been calculated;

·         the draft Housing Revenue Account Forecast 2020/21-2024/25 as shown in Appendix 3 and the main basis on which the budget had been calculated;

·         the draft Housing Investment Programme 2020/21-2024/25 as shown in Appendix 4 and the main basis on which the programme had been calculated.

(3)       That delegated authority be granted to the Chief Finance Officer for approval of the final Business Rates Base for the financial year commencing 1 April 2020 and ending 31 March 2021 and submission of the base (via the NNDR1 return) to the Ministry of Housing, Communities and Local Government by 31 January 2020.

(4)       That, subject to (3) above, all changes to the base estimated in the draft Medium Term Financial Strategy 2020-25 be reported to the Executive as part of the final Medium Term Financial Strategy 2020-25 on 24 February 2020.

Alternative Options Considered and Rejected

None.

Reason for Decision

Prior to submission of the Medium Term Financial Strategy 2020-2025 and the budget and Council Tax proposal for 2020/21 to Full Council, the initial draft as appended to the report would be subject to public consultation and member scrutiny via the Budget Review Group.

The report provided an overview of the General Fund, which included updates on the following:

·         provisional finance settlement 2020/21;

·         revenue support grant;

·         new homes bonus;

·         business rates retention;

·         council tax;

·         spending plans;

·         the Council’s Towards Financial Sustainability Programme;

·         robustness and adequacy of the budget and reserves.

An overview of the Housing Revenue Account was also set out in the report and provided updates on the following:

·         housing rents;

·         financing the capital programme;

·         robustness and adequacy of the budget and reserves.

The report also provided updates on the General Investment Programme, the Housing Investment Programme and the Capital Strategy.