Meeting documents

To consider a report with recommendations from the Leader of the Council, arising from the Cabinet meeting held on 8 February 2021.

The recommendations relate to:

•         Medium Term Financial Plan – 2021/22 Budget and Council Tax Setting – Paper A.

•         Treasury Management Strategy 2021/22 – Paper B.

The Medium-Term Financial Plan 2021/22 (including the Revenue Budget, the Capital Strategy and Minimum Revenue Provision etc as set out in Paper A and its appendices).

 

The Council RESOLVED to:

 

Approve the General Fund net revenue budget for 2021/22 of £356,072,100 and the individual service budgets for 2021/22 as outlined in Appendix 1 including:

 

a) The transformation, savings and income generation plans outlined in Appendix 2(i), in conjunction with the Equalities Impact Assessments where required in Appendix 2 (ii).

 

b) The additional funding requirements set out in Appendix 3.

 

c) An increase in Council Tax of 1.99% in 2021/22 (an increase of £25.66 per Band D property).

 

d) An increase of 3.00% to Council Tax for the Adult Social Care Precept is approved in recognition of the current demands and financial pressures on this service. This is equivalent to an increase of £38.67 on a Band D property.

 

e) Agree to continue the Council Tax precept of £12.84 within the base budget for the shadow Somerset Rivers Authority (representing no increase). This results in a Council Tax Requirement of £2,560,700.

 

f) Agree the precept requirement of £269,934,700 and set the County Council precept for Band D council tax charge at £1,353.53 for 2021/22.

 

g) The use of reserves for once-off spend and the overall estimated position of Earmarked Reserves outlined in Appendix 4.

 

h) Note the adequacy of General Reserves at £19.690m within a risk assessed range requirement of £18.70m - £20.67m.

 

i) The Capital & Investment Strategy attached at Appendix 6.

 

j) The Capital Programme for 2021/22 of £152.138m including new capital bids of £73.913m outlined in Appendix 7, planned sources of funding, and notes the overall programme of £231.711m for 2022/23 to 2023/24, outlined in Appendix 8.

 

k) The Minimum Revenue Position Policy attached at Appendix 9.

 

l) The Capital Prudential Indicators outlined in tables 12-18.

 

m) Delegate any amendments within the final Government Financial Settlement and the final Business Rates amendments to the Director of Finance in consultation with the Leader of the Council.

 

n) Approve a grant of up to £400,000 to Citizens Advice Somerset finance from Covid-19 funding with the allocation decisions delegated to the Section 151 Officer in consultation with the Cabinet Member for Resources based upon suitable business plans.

 

(NB – Recommendation (n) was agreed as an amendment at the meeting)

 

Treasury Management Strategy 2021/22

 

The Council RESOLVED to:

 

1. Adopt the Treasury Management Strategy (as shown in section 12 of the report).

 

2. Approve the Treasury Investment Strategy (as shown in Section 13 of the report) and proposed Lending Counterparty Criteria (attached at Appendix B to Paper B).

 

3. Adopt the Prudential Indicators (as set out in section 14 of the report).

The Council considered a report by the Leader and Cabinet setting out recommendations arising from Cabinet meetings held on 16 December 2020, 20 January and 8 February 2021 on the Medium-Term Financial Plan and related matters and the Treasury Management Strategy Statement.   

 

Medium Term Financial Plan 2021/22 Budget and Council Tax Setting – Paper A including: the Revenue Budget; the Capital Strategy; the Minimum Revenue Provision Statement; and the Section 25 Statement from the Section 151 Officer 

Cllr David Fothergill, Leader of the Council, made a speech introducing the Medium-Term Financial Plan 2021/22 and the budget.  Matters referred to by Cllr Fothergill included:

 

Reflecting on the Council’s response to the Covid-19 pandemic and he provided a detailed overview of the wide range of activities and support undertaken by all staff, volunteers, partners and service providers across all sectors in Somerset. Recognising that although the pandemic had brought hardship and grief, he suggested a period of applause and Members joined him and in so doing thanked and acknowledged the commitment and hard work of everyone in Somerset during the emergency response to the Covid-19 pandemic.

Suggesting the creation of a ‘Somerset Medal’ to be awarded as a symbol of recognition to those who had contributed in the towns, parishes and communities for the benefit of others during the pandemic.

Looking forward to the year ahead and the Council’s improved financial position (as reflected in the agenda papers) putting in place a progressive budget for Somerset, that included increased funding for Adults Services (£10m), Children’s Services (£9m), Climate change initiatives (£6.5m), Major infrastructure schemes (£130m) and he hoped all Members would endorse the budget.

Noting the forthcoming Government consultation on local government reform in Somerset, and he reflected on how the unified approach of One Somerset had already shown its merits as the County came together for the benefit of all residents and he believed working together as one would benefit all residents in future.

 

Medium Term Financial Plan 2020/21 - 2022/23 - Reports and Proposals

The Chair of Council invited Cllr Mandy Chilcott, Cabinet Member for Resources, to introduce the Medium-Term Financial Plan (MTFP) proposals which were set out in the Leader and Cabinet’s report to Council as Paper A (and its appendices).   

 

Cllr Chilcott indicated that the MTFP was considered by the Council’s three Scrutiny Committees ahead of the Cabinet meeting on 8 February 2021.  The Scrutiny Committees received an update and overview that summarised key messages from the MTFP (2021/22) Strategy Report approved by Cabinet on 16 December 2020.  This included an overall assurance narrative from the Cabinet Member for Resources and the Section 151 Officer alongside more details about the key areas of focus for transformation in the next few years, and further explanation of the reasons for movements in the levels of spend and funding between the years over the MTFP period.

 

The Scrutiny Committees had provided challenge to the process and while none had made any formal recommendations, each had made comments and observations regarding the proposed MTFP, which were set out in the report. The Cabinet duly considered the MTFP and feedback from the Scrutiny Committees, and at its meeting on 8 February 2021 endorsed the recommendations, for approval by Council.

 

Cllr Chilcott reminded Members of the need to consider the Section 151 Officer’s statement in Appendix L to Paper A regarding the robustness of the estimates and the adequacy of the reserves and balances and to have due regard to the equalities impact assessments within the papers.

 

Proposed Amendment

Further to Cllr Fothergill’s budget speech, Cllr Chilcott, seconded by Cllr Liz Leyshon, moved that the recommendations relating to the Medium Term Financial Plan 2021/22 of the Leader and Cabinet be amended by the addition of the following, as set out in Annex A to the report:

 

To provide a grant of up to £400,000 to the Citizens Advice and for this to be financed from the Covid-19 funding that the Council has received.

 

Cllr Liz Leyshon, Opposition Spokesperson for Resources, confirmed her support of the proposed amendment and she thanked Officers for their work and she suggested that the Scrutiny for Policies and Place Committee might like to invite Citizens Advice to provide an update to one of its future meetings.

 

A named vote was taken on the proposed amendment, with votes being cast as follows:

For   Cllr Mike Best Cllr Neil Bloomfield Cllr Ann Bown Cllr Peter Clayton Cllr Mike Caswell Cllr Mandy Chilcott Cllr John Clarke Cllr Simon Coles Cllr Adam Dance Cllr Martin Dimery Cllr Bob Filmer Cllr David Fothergill Cllr Giuseppe Fraschini Cllr Andrew Govier Cllr Anna Groskop Cllr David Hall Cllr Philip Ham Cllr Mark Healey Cllr Nigel Hewitt-Cooper Cllr James Hunt Cllr John Hunt Cllr David Huxtable Cllr Andy Kendall Cllr Christine Lawrence Cllr Mike Lewis Cllr Liz Leyshon Cllr Jane Lock Cllr Tony Lock Cllr Dave Loveridge Cllr Tessa Munt Cllr Terry Napper Cllr Frances Nicholson Cllr Graham Noel Cllr Linda Oliver Cllr John Parham Cllr Claire Paul Cllr Hazel Prior-Sankey Cllr Mike Pullin Cllr Leigh Redman Cllr Bill Revans Cllr Mike Rigby Cllr Dean Ruddle Cllr Nigel Taylor Cllr John Thorne Cllr Gemma Verdon Cllr Linda Vijeh Cllr William Wallace Cllr Alan Wedderkopp Cllr Josh Williams Cllr Rod Williams Cllr John Woodman

Against

Abstain

 

The Council therefore RESOLVED by 51 votes to 0 to adopt the amendment.

Substantive Motion and Decisions

 

Cllr Fothergill, Cllr Chilcott and Jason Vaughan responded to further points of clarification etc raised by members on matters including:

 

Cllr Prior-Sankey, Chair of the Adults and Health Scrutiny Committee, noted the demographic additional demands increase and additional money for Discovery and the employment support for Discovery and the Cabinet Member for Adult Social Care noted those details had been considered by Adults and Health Scrutiny and he highlighted further details were provided on page 49 of the agenda pack.

 

Cllr Liz Leyshon, Opposition Spokesperson for Resources, noted the low Council Tax base and the resultant low income from Council Tax in Somerset and the difficulties this imposed would continue whatever the outcome of local government reorganisation. She welcomed the capital budget proposals and investment plans for specific areas, and regarding borrowing she noted table 6 on page 118 showed that by 2023-2024 the Council’s borrowing would stand at £504m.

 

(The Chair left the meeting and the Vice Chair took the Chair for the remainder of this agenda item) 

 

Cllr Ruddle asked given the Council’s projected shortfall how the proposed savings targets would be achieved and he asked about borrowing in 2021 on page 118 and in response Cllr Chilcott noted the Council’s reserves were within the required range for budget contingencies and the Director of Finance confirmed the Council’s internal borrowing details were set out in page 117 of the agenda pack.

 

Cllr David Fothergill, seconded by Cllr Mandy Chilcott, moved the recommendation relating to the Medium-Term Financial Plan 2021/22 (Paper A), as amended, as the substantive motion. 

 

A named vote was taken on the motion, with votes being cast as follows:

For Cllr Mike Best Cllr Ann Bown Cllr Peter Clayton Cllr Mike Caswell Cllr Mandy Chilcott Cllr John Clarke Cllr Simon Coles Cllr Adam Dance Cllr Martin Dimery Cllr Bob Filmer Cllr David Fothergill Cllr Giuseppe Fraschini Cllr Anna Groskop Cllr David Hall Cllr Philip Ham Cllr Mark Healey Cllr Nigel Hewitt-Cooper Cllr James Hunt Cllr David Huxtable Cllr Andy Kendall Cllr Christine Lawrence Cllr Mike Lewis Cllr Liz Leyshon Cllr Jane Lock Cllr Tony Lock Cllr Tessa Munt Cllr Terry Napper Cllr Frances Nicholson Cllr Graham Noel Cllr Linda Oliver Cllr John Parham Cllr Claire Paul Cllr Hazel Prior-Sankey Cllr Mike Pullin Cllr Bill Revans Cllr Mike Rigby Cllr Dean Ruddle Cllr John Thorne Cllr Gemma Verdon Cllr Linda Vijeh Cllr William Wallace Cllr Alan Wedderkopp Cllr Josh Williams Cllr Rod Williams Cllr John Woodman

Against

Abstain Cllr Andrew Govier Cllr John Hunt Cllr Dave Loveridge Cllr Leigh Redman

 

The Council RESOLVED by 45 votes to 0, with 4 abstentions, to adopt the substantive motion, and accordingly to:

Approve the General Fund net revenue budget for 2021/22 of £356,072,100 and the individual service budgets for 2021/22 as outlined in Appendix 1 including,

 

a) The transformation, savings and income generation plans outlined in Appendix 2(i), in conjunction with the Equalities Impact Assessments where required in Appendix 2 (ii).

 

b) The additional funding requirements set out in Appendix 3.

 

c) An increase in Council Tax of 1.99% in 2021/22 (an increase of £25.66 per Band D property).

 

d) An increase of 3.00% to Council Tax for the Adult Social Care Precept is approved in recognition of the current demands and financial pressures on this service. This is equivalent to an increase of £38.67 on a Band D property.

 

e) Agree to continue the Council Tax precept of £12.84 within the base budget for the shadow Somerset Rivers Authority (representing no increase). This results in a Council Tax Requirement of £2,560,700,

 

f) Agree the precept requirement of £269,934,700 and set the County Council precept for Band D council tax charge at £1,353.53 for 2021/22.

 

g) The use of reserves for once-off spend and the overall estimated position of Earmarked Reserves outlined in Appendix 4.

 

h) Note the adequacy of General Reserves at £19.690m within a risk assessed range requirement of £18.70m - £20.67m

 

i) The Capital & Investment Strategy attached at Appendix 6.

 

j) The Capital Programme for 2021/22 of £152.138m including new capital bids of £73.913m outlined in Appendix 7, planned sources of funding, and notes the overall programme of£231.711m for 2022/23 to 2023/24, outlined in Appendix 8.

 

k) The MRP Policy attached at Appendix 9.

 

l) The Capital Prudential Indicators outlined in tables 12-18.

 

m) Delegate any amendments within the final Government Financial Settlement and the final Business Rates amendments to the Director of Finance in consultation with the Leader of the Council.

 

n) Approve a grant of up to £400,000 to Citizens Advice Somerset finance from Covid-19 funding with the allocation decisions delegated to the Section 151 Officer in consultation with the Cabinet Member for Resources based upon suitable business plans.

(NB – Recommendation (n) was the amendment agreed at the meeting)

 

Treasury Management Strategy Statement 2020/21 – Paper B

 

The Vice Chair invited Cllr Mandy Chilcott, Cabinet Member for Resources, to introduce proposals for the strategy and associated activities for the management of the Council’s cash flows, borrowing and treasury investments and the associated risks to underpin the Council’s business and service objectives which were set out in the report to the Cabinet attached to the Leader and Cabinet’s report to Council as (Paper B (and its appendices)). 

 

Cllr Chilcott, Cllr Fothergill and Jason Vaughan responded to further points of clarification etc raised by members on matters including:

 

Cllr Leyshon and Cllr Ruddle wished to record thanks to Officers for their diligence and experience in managing Somerset’s money and borrowing so carefully.

 

Cllr John Clarke asked about total external borrowing and how this had been calculated as it appeared as if borrowing and debt would be increasing and in response the Director of Finance explained that the figures on page 145 comprised cumulative figures for all of the details provided in the budget papers such as the capital programme and all of the schemes approved and how those would be potentially funded.

 

Cllr Mandy Chilcott, seconded by Cllr David Fothergill, moved the recommendation relating to the Treasury Management Strategy 2021/22, noting that sections 2, 3 and 4 should read 12, 13 and 14.

 

A named vote was taken on the motion, with votes being cast as follows:

For Cllr Mike Best Cllr Ann Bown Cllr Peter Clayton Cllr Mike Caswell Cllr Mandy Chilcott Cllr John Clarke Cllr Simon Coles Cllr Adam Dance Cllr Martin Dimery Cllr Bob Filmer Cllr David Fothergill Cllr Giuseppe Fraschini Cllr Andrew Govier Cllr Anna Groskop Cllr David Hall Cllr Philip Ham Cllr Mark Healey CllrNigelHewitt-Cooper Cllr James Hunt Cllr John Hunt Cllr David Huxtable Cllr Andy Kendall Cllr Christine Lawrence Cllr Mike Lewis Cllr Liz Leyshon Cllr Jane Lock Cllr Tony Lock Cllr Tessa Munt Cllr Terry Napper Cllr Frances Nicholson Cllr Graham Noel Cllr Linda Oliver Cllr John Parham Cllr Claire Paul Cllr Hazel Prior-Sankey Cllr Mike Pullin Cllr Leigh Redman Cllr Bill Revans Cllr Mike Rigby Cllr Dean Ruddle Cllr Gemma Verdon Cllr Linda Vijeh Cllr William Wallace Cllr Alan Wedderkopp Cllr Josh Williams Cllr Rod Williams Cllr John Woodman

Against

Abstain Cllr Dave Loveridge

 

The Council RESOLVED by 47 votes to 0, with 1 abstention, to:

 

1. Adopt the Treasury Management Strategy (as shown in section 12 of the

report).

2. Approve the Treasury Investment Strategy (as shown in Section 13 of the

report) and proposed Lending Counterparty Criteria (attached at Appendix B to Paper B).

3. Adopt the Prudential Indicators (as set out in section 14 of the report)

 

(Following a motion by the Vice Chair of the Council, the meeting was adjourned between 12.15pm and 12.20pm)