The Leader and Cabinet Member for Finance introduced the report which set-out the Medium Term Financial Plan and 2020/21 Budget.  The Cabinet Member stated that the report fulfilled the Council’s obligation to have regard to the CIPFA Financial Management Code, as set-out on page 5 of the report.

The Leader and Cabinet Member for Finance drew attention to the recommendations in the report, and commented as follows:

Recommendation (1) (To approve the 2020/21 Revenue Budget proposals).  The Leader and Cabinet Member for Finance considered it was a balanced revenue budget which did not take any money from the general reserves.  He referred Members to paragraph 3.3 of the report, which outlined how officers had been able to secure a surplus of £15,000 which would be transferred to the General Fund.  The Cabinet Member stressed the importance of ensuring budgets were balanced particularly given the uncertainty of future government funding.  The Cabinet Member explained that the New Homes Bonus was likely to be replaced by a housing incentivisation grant which of course would be dependent on further housing, and referred to paragraph 2.5 of the report, which showed that the Lower Medway Internal Drainage Board (LMIDB) had increased their precept by 3.6%, which had put an additional £14k cost pressure on the Council.  He considered the LMIDB costs should be included as part of the council tax precept and not come directly from the local authority budget.  

Recommendation (2) (To approve the proposed Council Tax Band D increase for 2020/21 to £179.37) – The Cabinet Member reported that an increase of £4.95 a year was proposed.  He stated that this was in-line with the Medium Term Financial Plan agreed in February 2019.   The Cabinet Member explained that it was important to consider that increases to council tax overall would be high due to pressures Kent County Council (KCC) had providing services.

Recommendation (4) (To approve the Capital Strategy) – The Cabinet Member reminded Members that the Council could not borrow money from its base budget, and that until the Spirit of Sittingbourne, the Council did not have a capital programme.  He considered that the levels of borrowing by the Council were deliverable, unlike other authorities whose commercial investments had not gone well.  The Cabinet Member referred to paragraph 2.13 of the report which set-out their principles on what the Capital Strategy should reflect: investing in affordable and social housing taking account of social value; using the ability to borrow at low rates of interest; and manageable long-term borrowing.  He stated essentially this meant being prudent, whilst achieving a good social outcome.  

Recommendation (7) (To consider the recommendation of the Scrutiny Committee).  The Cabinet Member referred to paragraph 1.3 of the report which set-out the recommendation from the Scrutiny Committee meeting held on 22 January 2020.  He stated that it was intended to support the recommendation, and details of how this could be funded would be presented to the next Full Council meeting on 26 February 2020.

The Cabinet Member proposed the recommendations and these were seconded by Councillor Mike Baldock.

The Cabinet Member for Health referred to Appendix VI on page 32 of the report, and reported that with regard to replacing the public toilets at Barton’s Point, the shower block also needed to be replaced so the budget of £100,000 may need to be increased.  The Chief Financial Officer agreed to look into the matter for the Cabinet Member.

The Leader and Cabinet Member said it was a good budget and thanked finance officers and strategic management team for their work. 

A Member asked how many years it had been since the Council had not used its reserves to achieve a balanced budget?  The Chief Financial Officer agreed to find out for Members.

Recommendations:

(1)      That the 2020/21 Revenue Budget proposals be approved.

(2)      That the proposed Council Tax Band D increase for 2020/21 to £179.37 be approved.

(3)      That the Medium Term Financial Plan be noted.

(4)      That the Capital Strategy be approved.

(5)      That the Capital Programme proposals be approved.

(6)      That the additional amount of Council Tax for Parish Precepts be noted.

(7)      That the recommendation of the Scrutiny Committee be supported.

(8)      That the Minimum Revenue Provision Statement as set-out in Appendix VIII be approved.