To consider the report of the Chief Officer
REVENUE BUDGET 2021/2022
provide an update on the positive provisional local government settlement for 2021/22 and its impact upon the Council’s budget. The report also outlined the proposed detailed revenue budget for 2021/22 and the proposed level of Council Tax increase for the 2021/2022 in line with the Medium Term Financial Strategy assumptions.
The Chief Officer Resources spoke to the report and outlined the National Position, Blaenau Gwent’s position, the cost pressures and growth items along with the Bridging the Gap Programme. The Chief Officer Resources referred to costs pressures anticipated with Covid-19 and advised that there was an assumption that these cost pressures would continue to be funded by Welsh Government, it was expected that confirmation of Covid funding would be announced as part of the Welsh Government’s final budget in March 2021.
The Chief Officer Resources further referred to the budget consultation which was currently ongoing and advised that to date there had been 170 responses all of which had agreed that Education, Social Services and the Environment should be the focus for budget in Blaenau Gwent. The majority of respondents agreed with the proposed increase in school budgets, however there was concern around the proposed 4% increase in Council Tax. The consultation period was still open and feedback would be reported at Full Council on 4th March, 2021.
The Chief Officer Resources informed that the report and been considered at length by the Joint Scrutiny Committee and most of the recommendations had been agreed. However, the Joint Scrutiny Committee proposed that the Council give consideration to a lower level of increase in Council Tax and the associated impact on the Council’s budget.
a) Council the 2021/2022 revenue budget as detailed in the report;
b) the Executive provided comments on the outcomes within the overall provisional RSG Settlement and note the potential for further change in the Final RSG Settlement;
c) the Executive provided comments on the outcomes within the BGCBC provisional RSG Settlement and its impact upon the Medium Term Financial Strategy;
d) the Executive considered and recommended to Council the cost pressures and growth items (£2.074m in total) identified in Appendix 3 for inclusion in the Council’s budget;
e) the Executive considered and recommend to Council an uplift of £1.472m which equates to a net 3.3% increase to the ISB. This reflects a gross uplift of 3.6% (which incorporates the Teachers pay grant transferring into the settlement of £84,000) adjusted for a £150,000 reduction in demographics;
f) the Executive considered and recommend to Council that any achievement of Bridging the Gap proposals which exceeds the in-year budget requirement be transferred into an earmarked reserve to support medium term financial planning, specifically for the later years of the Medium Term Financial Strategy; and
g) the Executive considered comments from the Joint Scrutiny Committee and recommend to Council that a Council Tax increase below the proposed 4% for 2021/22 be discussed and approved at Full Council on 4rd March, 2021.