Agenda item

(i)            That the Revenue and Capital Budgets as detailed in this report and in the report to Cabinet dated 15 January 2020 be recommended to Full Council for approval.

(ii)           That the updated Medium Term Financial Strategy 2020/21 to 2024/25 (Appendix 2) be recommend to Full Council for approval.

(iii)          That the strategy for ensuring a balanced revenue outturn position for 2019/20 be approved.

(iv)          That the 2020/21 Borough Growth Fund priorities as set out at paragraph 4.5 be approved.

(v)           That the calculation of the Council Tax base and the Council Tax increase to be proposed for 2020/21 of £5 (2.55%) per Band D equivalent property be recommended to Full Council for approval.

(vi)          That the proposed Empty Homes Premium for long term empty properties (2-5 years 100%, 5-10 years 200% and 10 years plus 300%) be approved.

(vii)        That the proposed change in accounting policy for Minimum Revenue Provision from the straight line basis to the annuity basis (as per the Treasury Management Strategy) be approved.

(viii)       That the risk assessment at Appendix 3 and S151 Officer’s recommendation on the level of reserves and contingencies provisionally required to be maintained in 2020/21 be recommended to Full Council for approval.

(ix)          That the Flexible Use of Capital Receipts Strategy (Appendix 6), updated for 2020/21, be recommended to Full Council for approval.

(x)           That the Capital Strategy (Appendix 8) for 2020-30 be recommended to Full Council for approval.

(xi)          That the Treasury Management Strategy (Appendix 9) for 2020/21 be recommended to Full Council for approval.

(xii)        That the Investment Strategy (Appendix 10) for 2020/21 be recommended to Full Council for approval.

(xiii)       That the Local Council Tax Reduction Scheme (Appendix 11) for 2020/21 be recommended to Full Council for approval.

A report was submitted to Cabinet asking to recommend the 2020/21 General Fund Revenue Budget and the 2020/21 Capital Programme to Full Council at its meeting on 19 February, 2020.

The Revenue Budget and Capital Programme were considered by the Finance, Assets and Performance Scrutiny Committee on 16 January, 2020.

The Portfolio Holder for Finance and Efficiency, Councillor Stephen Sweeney thanked officers for their hard work in preparing the Budget and Capital Programme.

Members were advised that the Borough Council’s element of Council Tax would, this year, be an increase of 2.55% which equated to 10p per week or less for 82% of households.

Members’ attention was drawn to paragraphs 4.2 and 4.3 which showed factors giving rise to the budget gap and savings and funding strategies.

The Leader, Councillor Simon Tagg stated that this was a positive budget and referred Members to paragraph 4.5, the Borough Growth Fund.   Members’ attention was drawn to a supplementary paper presented at the meeting which expanded upon the four bullet points contained within paragraph 4.5 of the published agenda:

Borough Growth Fund

4.5 The savings and funding strategies identified in the table above and in

Appendix 1 will enable further investment of £250,000 in the Council’s priorities as per the Council Plan 2018-2022 via the Borough Growth Fund.  In accordance with the ‘Statutory Guidance on the Flexible Use of Capital Receipts’, the ‘Borough Growth’ fund will continue to be used to provide pump-priming investment in initiatives that are forecast to generate on-going revenue savings through reducing the costs of service delivery or through the generation of additional income.  The Council’s Section 151 Officer will determine whether any proposed use of the fund complies with this guidance on a case-by-case basis.  Priorities for 2020/21 are:

Council Modernisation – Local Services That Work For Local People (£80,000)

As part of the Council’s commitment to introducing streamlined and speedy processes to improve services to residents, we will embed digitalisation in everything we do, and we will take the first steps to introduce AI and Robotics into service delivery.

At the same time, we are investing in creating a workforce fit for the future by developing the skills of our staff and also investing in apprenticeship opportunities.

We will implement a Workforce Development Plan based around the ethos of ‘One Council’.

Building Financial Sustainability (£50,000)

With our Executive Director for Commercial Development & Economic Growth now in place the Council has embraced commercial working practices to reduce costs and generate income.

We will use innovative models to ensure that when development opportunities arise the Council retains an income stream or reinvests the income into other opportunities.

Recycling and Climate Change (£50,000)

2020 will see the launch of the new Recycling Service, which will make it easier for residents to recycle and finally put this area of the Council’s business on a sound financial footing.

As part of the Council’s commitment to a sustainable environment, we will plant more trees as part of a Borough-wide Carbon Capture Parks Initiative and also make bids for funding in the next round of the Government’s Urban Tree Challenge and Woodland Carbon Guarantee.

We will develop a Sustainable Environment Strategy that will address the recommendations of the Scrutiny Task and Finish Group.

Town Centres (£70,000)

The Council will invest to support the Town Deal Bids for Kidsgrove & Newcastle and the Future High Street Fund (FHSF) bid for Newcastle town centre to create a legacy of schemes to take advantage of further funding opportunities.

We will support the next phase of the rejuvenation of the historic Market and continue to implement the Council’s Car Park Strategy and use promotion of ‘Experience Newcastle’ to increase income from car parks, market stalls and bring empty Council properties back into use.

The Leader advised that, in relation to the above, the former registrars building at Sidmouth Avenue was a good example of taking a commercial approach to property.

The Council’s new Recycling Service would be rolled out from May, 2020.  In addition, single use plastics would be phased out.

Members all welcomed the budget, Councillor Northcott stated that it was a prudent and safe budget and also ambitious.   Councillors Johnson and Waring were pleased to see additional money in the Borough Growth Fund.

Resolved:                 (i)         That the Revenue and Capital Budgets as detailed

in the report and in the report to Cabinet dated 15 January 2020 be recommended to Full Council for approval.

(ii)          That the updated Medium Term Financial Strategy 2020/21 to 2024/25 (Appendix 2) be recommend to Full Council for approval.

(iii)         That the strategy for ensuring a balanced revenue outturn position for 2019/20 be approved.

(iv)         That the 2020/21 Borough Growth Fund priorities as set out at paragraph 4.5 be approved.

(v)          That the calculation of the Council Tax base and the Council Tax increase to be proposed for 2020/21 of £5 (2.55%) per Band D equivalent property be recommended to Full Council for approval.

(vi)         That the proposed Empty Homes Premium for long term empty properties (2-5 years 100%, 5-10 years 200% and 10 years plus 300%) be approved.

(vii)        That the proposed change in accounting policy for Minimum Revenue Provision from the straight line basis to the annuity basis (as per the Treasury Management Strategy) be approved.

(viii)       That the risk assessment at Appendix 3 and S151 Officer’s recommendation on the level of reserves and contingencies provisionally required to be maintained in 2020/21 be recommended to Full Council for approval.

(ix)         That the Flexible Use of Capital Receipts Strategy (Appendix 6), updated for 2020/21, be recommended to Full Council for approval.

(x)          That the Capital Strategy (Appendix 8) for 2020-30 be recommended to Full Council for approval.

(xi)         That the Treasury Management Strategy (Appendix 9) for 2020/21 be recommended to Full Council for approval.

(xii)        That the Investment Strategy (Appendix 10) for 2020/21 be recommended to Full Council for approval.

(xiii)       That the Local Council Tax Reduction Scheme (Appendix 11) for 2020/21 be recommended to Full Council for approval.