The Leader and Cabinet Member for Finance introduced the report which set out the draft 2020/21 revenue and capital budgets and the draft Medium Term Financial Plan (MTFP).

The Cabinet Member reported that the base budget was constricted but that there was the possibility of some expansion from the reserves, although the Council would need to be prudent with its spending.  The Cabinet Member further reported that there was uncertainty around the amount of government funding that would be available with regard to business rates and that the New Homes Bonus funding would be lost.

The Cabinet Member spoke about the pressure on the budget with regard to combatting homelessness in the Borough, and that Members were asked to agree £10m borrowing facility to support affordable housing initiatives.

The Cabinet Member referred to the final sentence of paragraph 2.5 of the Committee report, which referred to £800k previously allocated to support M2 Junction 5 improvements.  The Cabinet Member explained that this money would not be used to fund those improvements but would be used to support the Council’s priorities for the Borough.  He considered it disproportionate of Kent County Council (KCC) to ask the local authority to fund this as highway improvements were the responsibility of KCC and no firm agreement had been made to do so. 

The Cabinet Member proposed the recommendations outlined in the report, and moved the following amendment by addition of a fourth recommendation:

That Members confirm the £800k previously allocated to support M2 Junction 5 improvements be now used to help achieve Council priorities.  This was seconded by the Deputy Leader and Cabinet Member for Planning.  On being put to the vote the recommendation was agreed.

The Cabinet Member for Housing considered that the £10m to support affordable housing initiatives was fairly low compared to the amount other local authorities were borrowing.  He considered this was a prudent strategy, and that the Council would be lobbying Government for long-term funding for housing.

Recommendations:

(1)      That the draft 2020/21 revenue and capital budgets be endorsed.

(2)      That the Medium Term Financial Plan be endorsed.

(3)      That £10m of borrowing facility be allocated to support affordable housing initiatives.

(4)      That the £800k previously allocated to support M2 Junction 5 improvements be now used to help achieve Council priorities.