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.

 

Decision:

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.

 

 

Supporting documents: