Agenda item - Budget Setting for 2021/22 and the Medium-Term Financial Strategy 2025/26

Report of the Director of Finance

Purpose of report

This report is the culmination of the Budget and Business Planning process for 2021/22 to 2025/26 and sets out the Executive’s proposed Business Plan and related revenue budget for 2021/22, medium term financial strategy to 2025/26, capital programme to 2025/26 and all supporting policies, strategies and information.

To detail the Calculations for the amounts of Council Tax for 2021/22 and the setting of Council Tax for 2021/22.

Recommendations

Council is recommended to:

1.1 In relation to the Business Plan:

1.1.1 Approve the Business Plan at Appendix 1.

1.2 Have regard to the statutory report of the Chief Finance Officer (Section 25 report) at Appendix 2 in approving recommendations 1.3 to 1.5.

1.3 In relation to the Revenue Budget and Medium-Term Financial Strategy (MTFS):

1.3.1 Approve the net revenue budget for the financial year commencing on 1 April 2021 of £22.374m, including the budget allocations to the Directorates of the Council, as set out in Table 2;

1.3.2 Approve the MTFS and Revenue Budget 2021/22, including the Savings Proposals, Pressures and the Revenue Impacts of Capital Schemes included at Appendices 3, 4 and 5 respectively.

1.4 In relation to the Capital Programme and related strategies:

1.4.1 Approve the Capital Bids and Capital Programme at Appendix 15 and 16 respectively;

1.4.2 Approve the Capital and Investment Strategy at Appendix 17;

1.4.3 Approve the Treasury Management Strategy, including the Prudential Indicators, Minimum Revenue Provision (MRP) Policy and Affordable Borrowing Limit for 2021/22 at Appendix 18;

1.4.4 Approve the Property Investment Strategy at Appendix 19.

1.5 In relation to reserves:

1.5.1 Approve the reserves policy at Appendix 12;

1.5.2 Approve the planned level of reserves for 2021/22 – 2025/26 at Appendix 14;

1.5.3 Approve the Chief Finance Officer’s recommended minimum level of General Balances of £5m.

1.6 In relation to Council Tax:

1.6.1 Approve an increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2021 of £5, resulting in a Band D charge of £138.50 per annum;

1.6.2 Note that on 4 January 2021 Executive approved Cherwell District Council’s calculated Council Tax Base for 2021/22:

a) for the whole Council area as 55,615.9 [item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended by sections 72 to 79 of the Localism Act 2011 (“the 1992 Act”)]; and

b) for dwellings in those parts of its area to which a Parish Precept relates as in the attached Appendix 22.

1.6.3 That the Council Tax requirement for the Council’s own purposes for 2021/22 (excluding Parish Precepts and Special Expenses) is £7,702,802.

1.6.4 That the following amounts be calculated for the year 2021/22 in accordance with Sections 31 to 36 of the 1992 Act:

a) £115,532,120 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the 1992 Act, taking into account all precepts issued to it by Parish Councils and any additional special expenses;

b) £102,378,407 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the 1992 Act;

c) £13,153,713 being the amount by which the aggregate at 1.6.4(a) above exceeds the aggregate at 1.6.4(b) above, calculated by the Council, in accordance with Section 31A(4) of the 1992 Act, as its Council Tax requirement for the year (Item R in the formula in Section 31B of the 1992 Act);

d) £236.51 being the amount at 1.6.4(c) above (Item R), all divided by Item T (1.6.2(a) above), calculated by the Council, in accordance with Section 31B of the 1992 Act, as the basic amount of its Council Tax for the year (including Parish Precepts and Special Expenses);

e) £5,450,911 being the aggregate amount of all special items (Parish Precepts and Special Expenses) referred to in Section 34(1) of the 1992 Act as per the attached Appendix 22;

f) £138.50 being the amount at 1.6.4(d) above less the result given by dividing the amount at 1.6.4(e) above by Item T(1.6.2(a) above), calculated by the Council, in accordance with Section 34(2) of the 1992 Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish Precept or special item relates.;

1.6.5 It be noted that for the year 2021/22 the Oxfordshire County Council and the Police and Crime Commissioner for Thames Valley have issued precepts to the Council, in accordance with Section 40 of the 1992 Act, for each category of dwellings in the Council’s area as indicated below :

Valuation Band	Oxfordshire County Council	Police and Crime Commissioner for Thames Valley
	£	£
A	1,048.74	154.19
B	1,223.53	179.88
C	1,398.32	205.58
D	1,573.11	231.28
E	1,922.69	282.68
F	2,272.27	334.07
G	2,621.85	385.47
H	3,146.22	462.56

1.6.6 The Council, in accordance with Sections 30 and 36 of the 1992 Act, hereby sets the amounts shown in Appendix 23 as the amounts of Council Tax for the year 2021/22 for each part of its area and for each of the categories of dwellings;

1.6.7 That the Council’s basic amount of Council Tax for 2021/22 is not excessive in accordance with principles approved under Section 52ZB of the 1992 Act;

1.7 In relation to the Pay Policy Statement:

1.7.1 The in fulfilment of the requirements of Sections 38-43 of the Localism Act 2011, the Pay Policy Statement be approved at Appendix 20.

Resolved

(1) That the Business Plan (annex to the Minutes as set out in the Minute Book) be approved.

(2) That, having due regard, the statutory report of the Chief Finance Officer (Section 25 report) be noted.

(3) That the net revenue budget for the financial year commencing on 1 April 2021 of £22.374m, including the budget allocations to the Directorates of the Council (annex to the Minutes as set out in the Minute Book) be approved.

(4) That the Medium Term Financial Strategy and Revenue Budget 2021/22, including the Savings Proposals, Pressures and the Revenue Impacts of Capital Schemes (annexes to the Minutes as set out in the Minute Book) be approved

(5) That the Capital Bids and Capital Programme (annexes to the Minutes as set out in the Minute Book) be approved.

(6) That the Capital and Investment Strategy (annex to the Minutes as set out in the Minute Book) be approved.

(7) That the Treasury Management Strategy, including the Prudential Indicators, Minimum Revenue Provision (MRP) Policy and Affordable Borrowing Limit for 2021/22 (annexes to the Minutes as set out in the Minute Book) be approved.

(8) That the Property Investment Strategy (annex to the Minutes as set out in the Minute Book) be approved.

(9) That the Reserves Policy (annex to the Minutes as set out in the Minute Book) be approved.

(10) That the planned level of reserves for 2021/22 – 2025/26 (annex to the Minutes as set out in the Minute Book) be approved.

(11) That the Chief Finance Officer’s recommended minimum level of General Balances of £5m be approved.

(12) That an increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2021 of £5, resulting in a Band D charge of £138.50 per annum be approved.

(13) That it be noted that on 4 January 2021 Executive approved Cherwell District Council’s calculated Council Tax Base for 2021/22:

a) for the whole Council area as 55,615.9 [item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended by sections 72 to 79 of the Localism Act 2011 (“the 1992 Act”)]; and

b) for dwellings in those parts of its area to which a Parish Precept relates as in the annex to the Minutes (as set out in the Minute Book).

(14) That it be agreed that the Council Tax requirement for the Council’s own purposes for 2021/22 (excluding Parish Precepts and Special Expenses) be £7,702,802.

(15) That the following amounts be calculated for the year 2021/22 in accordance with Sections 31 to 36 of the 1992 Act:

a) £115,532,120 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the 1992 Act, taking into account all precepts issued to it by Parish Councils and any additional special expenses;

b) £102,378,407 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the 1992 Act;

c) £13,153,713 being the amount by which the aggregate at 1.6.4(a) above exceeds the aggregate at 1.6.4(b) above, calculated by the Council, in accordance with Section 31A(4) of the 1992 Act, as its Council Tax requirement for the year (Item R in the formula in Section 31B of the 1992 Act);

d) £236.51 being the amount at 1.6.4(c) above (Item R), all divided by Item T (1.6.2(a) above), calculated by the Council, in accordance with Section 31B of the 1992 Act, as the basic amount of its Council Tax for the year (including Parish Precepts and Special Expenses);

e) £5,450,911 being the aggregate amount of all special items (Parish Precepts and Special Expenses) referred to in Section 34(1) of the 1992 Act as per the annex to the Minutes (as set out in the Minute Book);

f) £138.50 being the amount at 1.6.4(d) above less the result given by dividing the amount at 1.6.4(e) above by Item T(1.6.2(a) above), calculated by the Council, in accordance with Section 34(2) of the 1992 Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish Precept or special item relates.

(16) That it be noted that for the year 2021/22 the Oxfordshire County Council and the Police and Crime Commissioner for Thames Valley have issued precepts to the Council, in accordance with Section 40 of the 1992 Act, for each category of dwellings in the Council’s area as indicated below :

Valuation Band	Oxfordshire County Council	Police and Crime Commissioner for Thames Valley
	£	£
A	1,048.74	154.19
B	1,223.53	179.88
C	1,398.32	205.58
D	1,573.11	231.28
E	1,922.69	282.68
F	2,272.27	334.07
G	2,621.85	385.47
H	3,146.22	462.56

(17) That the Council, in accordance with Sections 30 and 36 of the 1992 Act, hereby sets the amounts shown in the annex to the Minutes (as set out in the Minute Book) as the amounts of Council Tax for the year 2021/22 for each part of its area and for each of the categories of dwellings.

(18) That it be noted that the Council’s basic amount of Council Tax for 2021/22 is not excessive in accordance with principles approved under Section 52ZB of the 1992 Act;

(19) That, in fulfilment of the requirements of Sections 38-43 of the Localism Act 2011, the Pay Policy Statement (annex to the Minutes as set out in the Minute Book) be approved.

Prior to consideration of the item, the Chairman sought the agreement of Members to suspend standing orders with regard to the duration of the speech by the proposer of the budget, or the speeches of the Group Leaders. All other speakers would continue to have a three minute time limit. Members indicated agreement.

The Chairman reminded Council that it was required in legislation that any motion or amendment to the budget and council tax setting be taken by recorded vote and this would be done at the appropriate time.

The Director of Finance submitted a report which was the culmination of the Budget and Business Planning process for 2021/22 to 2025/26 and set out the Executive’s proposed Business Plan and related revenue budget for 2021/22, medium term financial strategy to 2025/26, capital programme to 2025/26 and all supporting policies, strategies and information.

The report also detailed the Calculations for the amounts of Council Tax for 2021/22 and the setting of Council Tax for 2021/22.

Councillor Ilott thanked the Director of Finance and the finance team who had worked hard on the budget process and submitted a balanced budget to Council. Councillor Ilott also thanked the Budget Planning Committee, Overview and Scrutiny Committee and Accounts, Audit and Risk Committee for their hard work supporting the budget setting and business plan process.

Having presented the report, Councillor Ilott proposed the Business Plan and related revenue budget for 2021/22, medium term financial strategy to 2025/26, capital programme to 2025/26 and all supporting policies, strategies and information. Councillor Wood seconded the proposal.

Councillor Woodcock, on behalf of the Labour Group, addressed Council in response to the budget and confirmed that he would be proposing no amendments.

Councillor Tyson, on behalf of the Progressive Oxfordshire Group, addressed Council in response to the budget and confirmed that she would be proposing no amendments.

Councillor Sibley had submitted apologies for the meeting and therefor did not address Council in response to the budget but had confirmed prior to the meeting that would not be proposing no amendments.

A recorded vote was taken, and members voted as follows

Councillor Hannah Banfield	Against
Councillor Andrew Beere	Against
Councillor Nathan Bignell	For
Councillor Maurice Billington	For
Councillor John Broad	Abstain
Councillor Hugo Brown	For
Councillor Phil Chapman	For
Councillor Mark Cherry	Against
Councillor Colin Clarke	For
Councillor Conrad Copeland	Abstain
Councillor Ian Corkin	For
Councillor Nick Cotter	Abstain
Councillor Surinder Dhesi	Against
Councillor John Donaldson	For
Councillor Sean Gaul	For
Councillor Carmen Griffiths	For
Councillor Timothy Hallchurch MBE	For
Councillor Chris Heath	For
Councillor Simon Holland	For
Councillor David Hughes	For
Councillor Shaida Hussain	Against
Councillor Tony Ilott	For
Councillor Mike Kerford-Byrnes	For
Councillor James Macnamara	For
Councillor Kieron Mallon	For
Councillor Nick Mawer	For
Councillor Andrew McHugh	For
Councillor Tony Mepham	For
Councillor Ian Middleton	Abstain
Councillor Perran Moon	Against
Councillor Richard Mould	For
Councillor Cassi Perry	Against
Councillor Lynn Pratt	For
Councillor George Reynolds	For
Councillor Barry Richards	Against
Councillor Dan Sames	For
Councillor Katherine Tyson	Abstain
Councillor Tom Wallis	For
Councillor Douglas Webb	For
Councillor Bryn Williams	For
Councillor Lucinda Wing	For
Councillor Barry Wood	For
Councillor Sean Woodcock	Against