Agenda item

The Cabinet considered a report of the Director of Corporate Resources regarding the Council’s proposed 2020/21 to 2023/24 Medium Term Financial Strategy (MTFS), following consideration of the draft MTFS by the Cabinet in December 2019 and the Overview and Scrutiny bodies in January and receipt of the Local Government Finance Settlement.  A copy of the report, marked ‘Agenda item 6’, is filed with these minutes.

 

The Director reminded members that the final Settlement was still awaited but was not expected to change substantially from the provisional version. 

 

The Leader and Mr. Shepherd CC commended Mr. Rhodes’ commitment as the Cabinet Lead Member for finance and resources and thanked the Overview and Scrutiny bodies for their input.  They noted that the Council still faced huge financial challenges and the many uncertainties, detailed in the report, were making it difficult to plan for the next four years.

 

RESOLVED:

 

(i)       That the comments of the Overview and Scrutiny Committees and the Scrutiny Commission set out in Appendix O to the report be noted;

 

(ii)       That the following be recommended to the County Council:

 

(a)    That subject to the items below, approval be given to the Medium Term Financial Strategy which incorporates the recommended revenue budget for 2020/21 totalling £390m as set out in Appendices A, B and D of the report and includes the growth and savings for that year as set out in Appendix C;

 

(b)    That approval be given to the projected provisional revenue budgets for 2021/22, 2022/23, and 2023/24, set out in Appendix B to the report, including the growth and savings for those years as set out in Appendix C, allowing the undertaking of preliminary work, including business case development, consultation and equality and human rights impact assessments, as may be necessary towards achieving the savings specified for those years including savings under development;

 

(c)    That approval be given to the early achievement of savings that are included in the MTFS, as may be necessary, along with associated investment costs, subject to the Director of Corporate Resources agreeing to funding being available;

 

(d)    That the level of earmarked funds as set out in Appendix J be noted and the use of those earmarked funds as indicated in that appendix be approved;

 

(e)    That the amounts of the County Council's Council Tax for each band of dwelling and the precept payable by each billing authority for 2020/21 as set out in Appendix L (including 2% for the adult social care precept) be approved;

 

(f)     That the Chief Executive be authorised to issue the necessary precepts to billing authorities in accordance with the budget requirement above and the tax base notified by the District Councils, and to take any other action which may be necessary to give effect to the precepts;

 

(g)    That approval be given to the 2020/21 to 2023/24 capital programme as set out in Appendix E;

 

(h)    That the Director of Corporate Resources following consultation with the Lead Member for Resources be authorised to approve new capital schemes, including revenue costs associated with their delivery, shown as future developments in the capital programme, to be funded from funding available;

 

(i)     That the financial indicators required under the Prudential Code included in Appendix M, Annex 2 be noted and that the following limits be approved:

 

	2020/21 £m	2021/22 £m	2022/23 £m	2023/24 £m
Operational boundary for external debt
i)   Borrowing	264	264	263	263
ii)  Other long term liabilities	1	1	1	1
TOTAL	265	265	264	264
Authorised limit for external debt
i)   Borrowing	274	274	273	273
ii)  Other long term  liabilities	1	1	1	1
TOTAL	275	275	274	274

 

(j)     That the Director of Corporate Resources be authorised to effect movement within the authorised limit for external debt between borrowing and other long-term liabilities;

 

(k)    That the following borrowing limits be approved for the period 2020/21 to 2023/24:

 

                     (i)       Upper limit on fixed interest exposures 100%;

                     (ii)       Upper limit on variable rate exposures 50%;

                     (iii)      Maturity of borrowing:-

 

	Upper Limit	Lower Limit
	%	%
Under 12 months	30	0
12 months and within 24 months	30	0
24 months and within 5 years	50	0
5 years and within 10 years	70	0
10 years and above	100	25

 

 

 

 

 

 

 

(l)     That the Director of Corporate Resources be authorised to enter into such loans or undertake such arrangements as necessary to finance capital payments in 2020/21, subject to the prudential limits in Appendix M;

 

(m)   That the Treasury Management Strategy Statement and the Annual Investment Strategy for 2020/21, as set out in Appendix M, be approved including:

 

(i)       the Treasury Management Policy Statement; Appendix M, Annex 4;

(ii)      the Annual Statement of the Annual Minimum Revenue Provision as set out in Appendix M, Annex 1; 

 

(n)    That the Capital Strategy (Appendix F), Corporate Asset Investment Fund Strategy (Appendix G), Risk Management Policy and Strategy (Appendix H), Earmarked Funds Policy (Appendix I), and Insurance Policy (Appendix K) be approved;

 

(o)    That it be noted that the Leicester and Leicestershire Business Rate Pool will continue for 2020/21;

 

(iii)      That the Director of Corporate Resources following consultation with the Cabinet Lead Member for Resources be authorised to make any changes to the provisional MTFS which may be required as a result of issues arising between the Cabinet and County Council meetings, noting that any changes will be reported to the County Council on 19 February;

 

(iv)      That it be noted that following the enactment of the relevant legislation a report will be presented to the Council’s Constitution Committee and thereafter to the County Council regarding the proposed addition to the County Council’s Constitution (Part 2, Article 12.04) to confirm that the Director of Corporate Resources, as the Chief Financial Officer, is the Responsible Officer for the Leicestershire County Council Local Government Pension Scheme;

 

(v)      That the Leicestershire School Funding Formula be amended to reflect two additional funding factors - sparsity and pupil mobility - for 2020/21.

 

(KEY DECISION)

 

REASONS FOR DECISION:

 

To enable the County Council to meet its statutory requirements with respect to setting a budget and Council Tax precept for 2020/21, to allow efficient financial administration during 2020/21 and to provide a basis for the planning of services over the next four years.   

 

The amendment to the Leicestershire School Funding Formula, consultation on which took place in autumn 2019, will ensure that it fully reflects the National Funding Formula.