Issue - meetings

Consideration was given to a report of the Director of Finance which provided the Cabinet with the forecast budget reduction requirement and the budget proposals for 2020/21 together with forecast budget reduction requirement estimates for the period 2021/22 to 2024/25, having regard to the Provisional Local Government Finance Settlement published on 20 December 2019.

The report set out proposals for the Council’s Revenue Budget for 2020/21 and Medium Term Financial Strategy for 2020/21 to 2024/25. It advised Members of the key financial challenges and issues which would be faced by the Council over the forecast period and set out the revenue budget proposals for 2020/21 together with updated budget reduction requirement estimates for the period 2021/22 to 2024/25.

Members noted the purpose and scope of the Medium Term Financial Strategy and how it had a vital role to play in enabling the translation of the Council’s ambition and priorities into action. They were advised of the national policy landscape and economic context in which the Council was setting its revenue budget for 2020/21 and Medium Term Financial Strategy to 2024/25.

The report highlighted policy announcements and implications which arose from the Government’s 2019 Spending Round presented on 4 September 2019, the Local Government Finance Settlement 2020/21 Technical Consultation and the Provisional Local Government Finance Settlement (LGFS) published on 20 December 2019.The report also detailed key budget adjustments and expenditure pressures which underpinned the forecasts that provided the backdrop for the Council’s Medium-Term Financial Strategy.

The Cabinet was informed that the key adjustments to funding confirmed in the 2020/21 Provisional LFGS were:

·         An increase in expected Core Government Funding over previous estimates of £6.664m (estimates assumed the continuation of austerity);

·         An additional £10.596m of Government Grants over and above the expected level - primarily the continuation of previously time limited Improved Better Care Fund and Winter Pressures Grants (totalling £2.708m) and the 2020/21 Social Care Support Grant (£6.954m).

The Provisional LGFS confirmed referendum limits for a general purpose Council Tax increase and the Government would permit rises of up to 2% per annum for 2020/21 without the need to hold a referendum. The Government also confirmed the continued ability to charge an Adult Social Care Precept allowing up to a 2% increase in Council Tax for 2020/21 (ringfenced for use for Adult Social Care). The Council Tax referendum limits for 2020/21 applicable to the Council therefore allowed an overall increase of 4%.

Members were reminded that the Council Tax policy approved within the 2019/20 budget was that for 2020/21 Council Tax would increase by 2% for the Adult Social Care Precept (ASCP) and 1.99% for general purposes; an overall increase of 3.99%. whilst the capping criteria for 2020/21 would permit this approach, mindful of the financial position of the Authority but also the impact of a further increase in Council Tax on the citizens of Oldham, a revision to Council Tax Policy was proposed with the retention of the 2% increase in relation to the ASCP but a reduction to the  ...  view the full minutes text for item 8