Agenda item

Council Tax and Budget Setting, Medium Term Financial Strategy(Report by the Chief Finance Officer)

 

FINAL COUNCIL TAX RESOLUTIONS TO FOLLOW

 

At the time of publication of this agenda the major preceptorshad not met to agree their budgets.  

 

A copy of the report to be considered by Cabinet on 24 February is attached.

 

Councillor Jonathan Noble introduced a report by the Chief Finance Officer which outlined the 2021/2022 revenue and capital position for the General Fund and proposals for the setting of discretionary fees and charges.

 

The Local Government Act 2003 introduced a requirement for the Chief Financial Officer to report on the robustness of the budget. The estimates had been prepared in a prudent manner, although it was highlighted that there were a number of elements outside of the Council’s control. These had been identified within the report and would be mitigated through the budget monitoring and risk management processes of the Council.

 

The proposed budget showed a balanced position for 2021/22 followed by the need to make approximately £500K of savings in future years in order to maintain a balanced budget position without drawing down on reserves.

 

The capital programme totalled £4.8m over 5 years which remained affordable and sustainable over that period.

 

The budget assumed an increase in the Council Tax of £4.95 (2.57%) for 2021/22 and 2% per annum thereafter.  This was in line with current known referendum limits of £5 or 2% whichever was the greater.  The proposed increase allowed for £36k growth for implementation of the Living Wage Foundation and £60k for Internal Drainage Board Levy increases to be absorbed.  There was also a £100k provision for potential sales and fees income shortfalls, following additional risks to income collection levels.

 

For future years it was expected that the predicted deficit would be approximately £500k per annum.  This had been reduced by around £200k per annum following the Council’s decision to enter into a shared arrangement for back office functions with PSPSL.  It was expected that the required savings could at least partially be offset by further Strategic Alliance savings, and other service reviews that would be undertaken during the following year.

 

It was noted that the Council was expected to hold around £13m in reserves at the end of 2021/22.

 

When introducing the report, the Portfolio Holder referred to the funds received from central government to compensate for losses incurred as a result of the Covid-19 pandemic lockdowns.  A prudent approach had been adopted to recognise reductions in funding from government in future years and the proposal under consideration was a balanced recovery budget.

 

The draft budget had been published on the Council’s website for consultation with all stakeholders, including the local business community and responses were set out in Appendix 9 of the report.  In addition Members had been consulted through various forums including the Corporate and Community Committee, and Audit and Governance Committee on the governance aspects of the budget preparation and comments were set out in Appendices 10 and 11 respectively. 

 

Cabinet had considered the report at its meeting on 24 February and recommended the budget and medium term financial strategy 2021/22 to 2025/26 to Council for approval.

 

It was moved by Councillor Jonathan Noble and seconded by Councillor Paul Skinner

 

1. That the Council approves capital and revenue budgets for 2021/22, the 5 years Medium-Term Financial Strategy for 2021/22 to 2025/26 and the associated financial strategies as shown in the attached budget setting report.

 

2. That the Council agrees the formal Council Tax resolutions as detailed at Appendix 12 and 13 (Parishes, BTAC special expense, the County Council and the Police and Crime Commissioner for Lincolnshire are also dealt with as a part of this resolution). This includes a 2.57% increase in Boston’s element of the Council Tax, the Band D Council Tax being £197.91.

 

An amendment was moved by Councillor Anne Dorrian and seconded by Councillor Peter Watson:-

 

That there be a zero increase in the Boston Borough Council element of the council tax for 2021/22.

 

The Section 151 Officer advised Council that if a zero increase was agreed, there would be a deficit of £100k which would need to be funded from reserves in order to achieve a balanced budget.  It would also result in £500k of lost income to the Council in future years.  The impact on council tax bills would be a reduction of £3.30 for Band A, £3.80 for Band B and £4.95 for Band D.

 

Debate ensued on the merits of the substantive motion and the amendment, key points being made of:-

 

• Boston was one of the poorest areas of the County with lowest incomes and every penny counted to many people. 
• It was important to recognise the welfare of people.
• People deserved a break after suffering a year with the Covid-19 pandemic.
• Reserves should be used to balance the budget for 2021/22 and help the community.
• The impact on future years and necessary savings if a zero increase was agreed.
• It was important to provide the services residents needed and could only be maintained by increasing council tax.
• An alternative budget should have been produced to demonstrate the cuts which would be made in future years to compensate for a zero increase.
• Investment was required in services to improve the cleanliness of the town, HMO inspections and enforcement etc.

 

On being put to the vote the amendment was lost.

 

            For                                          Against                                  Abstain

 

            Bedford                                  Abbott

            Bell                                         Ashton

            Cooper                                   A. Austin

            Dorrian                                   R. Austin

            Hastie                                     Brown

            Rush                                      Cornah

            Watson                                  Dani

            Welbourn                              Evans

            Woodliffe                               Goodale

                                                            Griggs

                                                            Noble

                                                            Pickett

                                                            J. Skinner

                                                            P. Skinner

                                                            Stevens        

                                                            Welton

 

The substantive motion was put to the vote and it was

 

RESOLVED   That the Council approves capital and revenue budgets for 2021/22, the 5 years Medium-Term Financial Strategy for 2021/22 to 2025/26 and the associated financial strategies as shown in the attached budget setting report.   That the Council agrees the formal Council Tax resolutions as detailed at Appendix 12 and 13 (Parishes, BTAC special expense, the County Council and the Police and Crime Commissioner for Lincolnshire are also dealt with as a part of this resolution). This includes a 2.57% increase in Boston’s element of the Council Tax, the Band D Council Tax being £197.91.

 

For                                          Against                                  Abstain

           

            Abbott                                     Bedford

            Ashton                                   Bell

A.   Austin                              Cooper

R. Austin                               Dorrian

Brown                                    Goodale

Cornah                                  Hastie

Dani                                       Rush

Evans                                     Watson

Griggs                                    Welbourn

Noble                                     Woodliffe

Pickett

J. Skinner

P. Skinner

Stevens

Welton

 

 

COUNCIL TAX RESOLUTIONS

 

1.         it be noted that on 1 March 2021 the Council calculated the Council Tax Base 2021/22.

            (a)  for the whole Council area as 19,621.70; and

            (b)  for dwellings in those parts of its area to which a Parish precept relates as in the table below:

           

	2020/2021			2021/2022
Parts of the Council’s Area: Parishes of	Tax Base	Precepts   (£)	Council Tax Band D (£)	Tax Base	Precepts   (£)	Council Tax Band D (£)	C/Tax Increase/(Decr) (£)	C/Tax Increase/(Decr) (%)
Algarkirk	103.50	7,727.40	74.66	102.50	8,837.40	86.22	11.56	15.48
Amber Hill	87.10	3,419.00	39.25	87.60	3,499.00	39.94	0.69	1.76
Benington	160.70	17,500.00	108.90	165.20	17,500.00	105.93	(2.97)	(2.73)
Bicker	280.30	25,000.00	89.19	276.70	25,550.00	92.34	3.15	3.53
Butterwick	404.20	30,000.00	74.22	409.70	30,000.00	73.22	(1.00)	(1.35)
Fishtoft	2,131.60	33,624.30	15.77	2,167.30	32,739.00	15.11	(0.66)	(4.19)
Fosdyke	146.50	12,000.00	81.91	147.60	12,600.00	85.37	3.46	4.22
Frampton	457.90	22,880.10	49.97	459.90	22,880.10	49.75	(0.22)	(0.44)
Freiston	328.80	30,000.00	91.24	329.30	32,500.00	98.69	7.45	8.17
Holland Fen with Brothertoft	201.10	3,250.00	16.16	197.00	3,250.00	16.50	0.34	2.10
Kirton	1,625.70	70,000.00	43.06	1,671.50	75,000.00	44.87	1.81	4.20
Leverton	195.00	15,000.00	76.92	195.60	15,000.00	76.69	(0.23)	(0.30)
Old Leake	644.10	42,096.00	65.36	649.50	42,096.00	64.81	(0.55)	(0.84)
Sutterton	521.50	28,350.00	54.36	528.60	29,767.00	56.31	1.95	3.59
Swineshead	943.20	32,332.00	34.28	979.60	33,756.00	34.46	0.18	0.53
Wigtoft	146.30	9,115.00	62.30	149.20	10,211.00	68.44	6.14	9.86
Wrangle	440.30	21,000.00	47.69	442.10	22,000.00	49.76	2.07	4.34
Wyberton	1,129.10	50,875.00	45.06	1,156.90	50,875.00	43.98	(1.08)	(2.40)
Sub-Total: Parishes	9,946.90	454,168.80	45.66	10,115.80	468,060.50	46.27	0.61	1.34
Boston Special Expense Area	9,306.00	702,696.00	75.51	9,505.90	716,192.00	75.34	(0.17)	(0.20)
Total	19,252.90	1,156,864.80	60.09	19,621.70	1,184,252.50	60.35	0.26	0.43

 

2.         Calculate that the Council Tax requirement for the Council’s own purposes for 2021/22 (excluding Parish precepts) is £3,883,331.

 

3.         That the following amounts be calculated for the year 2021/22 in accordance with Sections 30 to 36 of the Act:

 

           

(a)	£39,245,269	being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act (including Special Expense and Parish Precepts).
(b)	(£34,177,686)	being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
(c)	£5,067,583	being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year.
(d)	£258.26	being the amount at 3(c) above, all divided by 1(a) above, calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts and Special Expenses).
(e)	£1,184,252	being the aggregate amount of all special items (Parish precepts and Special Expenses) referred to in Section 34(1) of the Act (as per 1(b) above).
(f)	£197.91	being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by 1(a) above, calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates.

 

4.         To note that the County Council and the Police and Crime Commissioner have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

 

5.         That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2021/22 for each part of its area and for each of the categories of dwellings.

 

 

VALUATION BANDS
	A £	B £	C £	D £	E £	F £	G £	H £
Lincolnshire County Council	909.44	1,061.01	1,212.59	1,364.16	1,667.31	1,970.45	2,273.60	2,728.32
Lincolnshire Police and Crime Commissioner	177.54	207.13	236.72	266.31	325.49	384.67	443.85	532.62
Boston Borough Council	131.94	153.93	175.92	197.91	241.89	285.87	329.85	395.82
Average Parish Excluding Special Expense Area	15.90	18.55	21.20	23.85	29.15	34.45	39.75	47.70
BTAC Special Expense Area	24.33	28.39	32.44	36.50	44.61	52.72	60.83	73.00
Aggregate of Council Tax Requirements	1,259.15	1,469.01	1,678.87	1,888.73	2,308.45	2,728.16	3,147.88	3,777.46

 

6.         The Council has determined that its relevant basic amount of Council Tax for 2021/22 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.  As the billing authority, the Council has not been notified by a major Precepting authority that its relevant basic amount of Council Tax for 2021/22 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK Local Government Finance Act 1992.

 

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