Agenda item

Division/Wards Affected: All

Purpose: To update Cabinet with the consultation responses to the draft budget proposals issued by them on the 20^th January in respect of the Capital and Revenue budgets for 2021/22.

To update members with implications arising from the Provisional Local Government Settlement announcement of the Welsh Government as well as providing update with regards to the awaited Final Settlement announcement.

To make recommendations to Council on the Capital and Revenue budgets and level of Council Tax for 2021/22.

To receive the Responsible Financial Officer’s Prudential Indicator calculations for capital financing.

To receive the statutory report of the Responsible Financial Officer on the budget process and the adequacy of reserves.

Author: Peter Davies – Chief Officer for Resources (S151 officer)

Contact Details: peterdavies@monmouthshire.gov.uk

That Cabinet considers the responses to consultation and recommends to Council:

a) The 2021/22 revenue budget as attached in Appendix I1.

b) The 2021/22 to 2024/25 capital programme as attached in Appendix J1.

That Cabinet acknowledges that the final budget proposals proposed look to support the priorities of the council and specifically seek to recognise:

a) In full, all pay and pension-related spending pressures in our schooling system;

b) The increasing demand placed on children’s social care services, adult social care and our children with additional learning needs budgets;

c) Significant service pressures within the passenger transport unit and within recycling and waste and that look to ensure that the Council supports and sustains key service delivery;

d) Investment that ensures that homeless people are provided adequate support, advice and accommodation in their time of need;

e) An ongoing commitment to recognise and value the contribution made by the workforce and ensuring that local government staff are paid no less than the wage set by the Living Wage Foundation. And that as a result of the Cabinet decision in January is also extended to apprenticeship roles within the Council.

That a 3.89% increase in the Band “D” equivalent Council Tax is used as the planning assumption in the budget model and to apply for County purposes in 2021/22, reduced from the previous proposed increase of 4.95% and as a result of public consultation.

That Cabinet approves the revised saving and pressure proposals, updated following public consultation, scrutiny and more up to date information being made available since the draft proposals were released on consultation on 20th January 2021.

That Cabinet approves the changes and additional investment in the draft capital budget proposals and programme for 2021/22 and indicative capital budgets from 2022/23 to 2024/25.

That Cabinet recommends Council to dispose of assets identified in the exempt background paper at best value.

That Cabinet considers the Responsible Financial Officer’s report on the robustness of the budget process and the adequacy of reserves issued under the provisions of the Local Government Act, 2003, together with an assessment of the current and future financial risks facing the Council.

That Cabinet adopts the Responsible Financial Officer’s report on Prudential Indicators.

That Cabinet approves that:

a)     Further work is undertaken to develop a balanced Medium Term Financial Plan.

b)     Regular review is undertaken of the MTFP to ensure it remains up to date, and that includes an assessment of evidence based pressures and risks, underlying modelling assumptions and the ongoing affordability implications of the Corporate Plan.