Agenda item

The Cabinet considered a report of the Director of Corporate Resources setting out the proposed Medium Term Financial Strategy for 2021/22 to 2024/25. A copy of the report, marked ‘Agenda Item 4’, and a supplementary report with the detailed proposals, which was circulated separately, are filed with these minutes.

Mr Rhodes said that this would be the toughest MTFS the Council had produced in many years with an overall deficit of £92m over the next four years. He added that the consultation exercise would seek the public’s views on the draft Strategy, including the option for the Council to increase the core council tax and include an Adult Social Care precept.

In response to questions concerning the precept, the Director of Corporate Resources said that the maximum 3% rise would provide the Council with additional income of circa £9.5m for 2021/22 which would need to be spent on adult social care, an area of the Council’s services which had been particularly affected by the coronavirus pandemic.

The Leader said that a significant amount of the proposed Capital Programme related to Environment and Transport schemes and new schools which would need to be forward funded by the Council. It was therefore essential that planning authorities delivered upon Section 106 agreements in order for the developer contributions to be returned to the County Council which could then be re-allocated to support future projects. He welcomed the Authority’s intention to develop a policy which would support this process.  

RESOLVED:

a)    That the proposed Medium Term Financial Strategy, including the 2021/22 revenue budget and capital programme, be approved for consultation and referred to the Overview and Scrutiny Committees and the Scrutiny Commission for consideration;

b)    That the Director of Corporate Resources, following consultation with the Cabinet Lead Member for Resources, be authorised to –

                          I.          agree a response to the draft Local Government Finance Settlement;

                        II.          decide on the appropriate course of action for the Leicester and Leicestershire Business Rates Pool in 2021/22 and subject to agreement by all member authorities to implement this;

c)     That a further report be submitted to the Cabinet on 5 February 2021.

(KEY DECISION)

REASON FOR DECISION:

To enable the County Council to meet its statutory requirements with respect to setting a budget and Council Tax precept for 2021/22 and to provide a basis for the planning of services over the next four years.

To ensure that the County Council’s views on the Local Government Finance Settlement are made known to the Government.

To enable the County Council (alongside the pooling partners) to respond to the Ministry of Housing, Communities and Local Government in respect of the Business Rates Pool within 28 days from the draft Local Government Finance Settlement.