Agenda item

Report No: CAB/WS/20/025

Portfolio Holder: Cllr Sarah Broughton       Lead Officer: Rachael Mann

RECOMMENDED TO COUNCIL: (25 February 2020)

That:-

1.       The revenue and capital budget for 2020-2024, including the capital budget flexibility set out in paragraph 5.7, attached at Attachment A and as detailed in Attachment D (Appendices 1-5), Attachment E (Appendices 1-3) and Attachment F to Report No: CAB/WS/20/025, be approved.

2.       The additional business rate reliefs set out in paragraphs 2.8-2.10 of Report No: CAB/WS/20/025, in support of our business community in particular our town centres and high streets in West Suffolk, be approved.

3.       Having taken into account the conclusions of the Assistant Director’s (Resources and Performance) report on the adequacy of reserves and the robustness of budget estimates (Attachment C) and the Medium Term Financial Strategy (MTFS) (Attachment D), particularly the Scenario Planning and Sensitivity Analysis (Attachment D, Appendix 5) and all other information contained in Report No: CAB/WS/20/025, the Cabinet recommends a £4.97 increase in Band D council tax across both predecessor areas of St Edmundsbury and Forest Heath.  This assumption is based on the option to harmonise the two predecessor areas by April 2022.  The level of Band D council tax for 2020/2021, therefore, be recommended to be set at £183.78 for the predecessor area of St Edmundsbury and £163.98 for the predecessor area of Forest Heath.  (Note: the level of council tax beyond 2020/21 will be set in accordance with the annual budget process for the relevant financial year.).

4.        The Assistant Director (Resources and Performance), in consultation with the Portfolio Holder for Resources and Performance, be authorised to transfer any surplus from the 2019/2020 revenue budget to the Invest to Save Reserve as detailed in paragraph 7.4, and to vire funds between existing Earmarked Reserves (as set out at Attachment D, Appendix 3) as deemed appropriate throughout the medium term financial planning period.

5.       The Flexible Use of Capital Receipts Strategy as set out in Attachment G, be approved.

(Report No: CAB/WS/20/025)

The Cabinet received this report which explained that the Cabinet was required to recommend to Council the budget and the level of council tax required to fund the Council’s activities over the next year.  The Cabinet supported the budget proposals for securing a balanced budget for 2020/2021, as previously considered and recommended by the Performance and Audit Scrutiny Committee and incorporated into Report No: CAB/WS/20/025.

In 2020/2021 it was being recommended for a £4.97 increase in Band D council tax across both predecessor areas of St Edmundsbury and Forest Heath.  The budget for council tax for 2020/2021 and future years was based on the option to harmonise the two predecessor areas (St Edmundsbury and Forest Heath) using the average Band D rate across both predecessor areas, harmonising the council tax bills by 2022/2023, whilst maximising the Council Tax receipts to protect services and to support the Council’s investment plans.  For 2020/2021 this represented an average Band D monthly increase of 97p (for the predecessor area of Forest Heath) and 14p (for the predecessor area of St Edmundsbury).

Therefore, it was being recommended that the level of Band D council tax for 2020/2021, be set at £183.78 for the predecessor area of St Edmundsbury and £163.98 for the predecessor area of Forest Heath.

In addition, the Government had announced that additional business rates measures would apply from 1 April 2020.  These measures would increase the current retail discount and extend that discount to cinemas and music venues; extend the duration of the local newspapers office space discount and introduce an additional discount for public houses.  Therefore, it was also being recommended to support these additional rate reliefs to facilitate delivery of the Council’s ambition to support its town centres and high streets in West Suffolk.

RECOMMENDED TO COUNCIL: (25 February 2020)

That:-

1.           The revenue and capital budget for 2020-2024, including the capital budget flexibility set out in paragraph 5.7, attached at Attachment A and as detailed in Attachment D (Appendices 1-5), Attachment E (Appendices 1-3) and Attachment F to Report No: CAB/WS/20/025, be approved.

2.           The additional business rate reliefs set out in paragraphs 2.8-2.10 of Report No: CAB/WS/20/025, in support of our business community in particular our town centres and high streets in West Suffolk, be approved.

3.           Having taken into account the conclusions of the Assistant Director’s (Resources and Performance) report on the adequacy of reserves and the robustness of budget estimates (Attachment C) and the Medium Term Financial Strategy (MTFS) (Attachment D), particularly the Scenario Planning and Sensitivity Analysis (Attachment D, Appendix 5) and all other information contained in Report No: CAB/WS/20/025, the Cabinet recommends a £4.97 increase in Band D council tax across both predecessor areas of St Edmundsbury and Forest Heath.  This assumption is based on the option to harmonise the two predecessor areas by April 2022.  The level of Band D council tax for 2020/2021, therefore, be recommended to be set at £183.78 for the predecessor area of St Edmundsbury and £163.98 for the predecessor area of Forest Heath.  (Note: the level of council tax beyond 2020/21 will be set in accordance with the annual budget process for the relevant financial year.).

4.           The Assistant Director (Resources and Performance), in consultation with the Portfolio Holder for Resources and Performance, be authorised to transfer any surplus from the 2019/2020 revenue budget to the Invest to Save Reserve as detailed in paragraph 7.4, and to vire funds between existing Earmarked Reserves (as set out at Attachment D, Appendix 3) as deemed appropriate throughout the medium term financial planning period.

5.           The Flexible Use of Capital Receipts Strategy as set out in Attachment G, be approved.