Agenda item

Report of the Executive Director, Finance and Resources

4.1      Councillor Melvyn Caplan, Cabinet Member for Finance, Property & , Regeneration, introduced the report which outlined how over the next three years the council will meet the key objectives under the refreshed City for All strategy, supported by a medium-term financial plan.

4.2      Councillor Caplan stated that the forecast for the medium term financial plan is important given the indicative assumptions of a negative outcome from the Government’s pending fair-funding review.

4.3      Councillor Caplan summarised the proposals for a balanced budget for 2020/21 which included a continuation of the Westminster Community Contribution which had supported discretionary services for three Council priorities as well as earmarking £5m in reserves for investment in green initiatives to support the Climate Emergency declaration.  He put on record his thanks to Councillor Nickie Aiken who had initiated the Community Contribution which had not only proved to be very successful but has been copied by other local authorities.

4.4      Gerald Almeroth, Executive Director, Finance and Resources, highlighted the summary change in the general fund budget which included details of the net core funding loss and growth for service specific pressures which will be balanced by proposed savings and a small increase in council tax.

4.5      Councillor Caplan and the Leader of the Council expressed their gratitude to Mr Almeroth and his team for their hard work in preparing the medium term financial plan.

RESOLVED:

That Cabinet recommends to full Council:

City for All

1.        That the City for All plan priorities set out in Section 4 of the report be noted and approved.

Council Tax

2.        That the council tax for a Band D property be agreed at £448.21 for 2020/21, an increase of £8.67 (2.00%) for the Adult Social Care precept and £6.20 (1.43%) for general purposes;

3.        That, subject to 2) above, the council tax for the City of Westminster, excluding the Montpelier Square area and Queen’s Park Community Council, for the year ending 31 March 2020, be as specified in the Council Tax Resolution in Appendix H. That the Precepts and Special Expenses be as also specified in Appendix H to the report for properties in Montpelier Square and the Queen’s Park Community Council;

4.        That the formal resolution for 2020/21 attached at appendix H to the report including the council tax requirement of £59.477m be agreed;

5.        That the proposed Greater London Authority precept (Band D) of £332.07 comprising of an increase of £10.00 for the Police element and a further £1.56 for the non-Police element be noted;

6.        That the Council continue the Westminster Community Contribution to allow the most expensive (Band H) properties in the City to voluntarily contribute towards supporting discretionary services that support the three priorities of youth services, helping rough sleepers off the streets and helping people who are lonely and isolated; 

Revenue Budget

7.        That the views of the Budget and Performance Scrutiny Task Group as set out in Appendix J to the report be noted.

8.        That the proposed General Fund net budget requirement of £179.977m summarised at Appendix C to the report and shown by service (Executive Leadership Team) in Appendix G to the report be agreed;

9.        That the savings and growth proposals for 2020/21 to 2022/23 set out in appendix G to the report is approved;

10.      That the Equality Impact Assessments included in appendix I to the report be received and noted to inform the consideration of the budget;

11.      That the Housing Revenue Account Business Plan 2020/21 and 30-Year Housing Investment Plan also presented to Cabinet on 10 February 2020 and that recommends the HRA budget and rent levels for 2020/21 be noted.

Capital Programme

12.      That the Capital Strategy 2020/21 to 2024/25, forecast position for 2019/20 and future years’ forecasts summarised up to 2033/34 report also presented to Cabinet on 10 February 2020 that recommends the Council’s capital programme and financing be noted.

Reserves, Balances and Budget Estimates

13.      That the reserves policy as set out in section 10 of the report be noted.

14.      That the views of the Section 151 Officer with regards to estimates underpinning the proposed budget changes and reserves levels in paragraph 10.21 of the report be noted.

15.      That £5m is earmarked in reserves for investment in green initiatives to support the Climate Emergency declaration;

Treasury Management and Investment Framework

16.      That the Treasury Management Strategy report for 2020/21 including the annual investment strategy, borrowing limits and prudential indicators as set out in appendix H of the report be noted.

17.      That the 2020/21 Integrated Investment Framework report also presented to Cabinet on 10 February 2020 which sets out future investment decisions be noted.

Reason for Decision

The preparation of the budget is the final stage of the annual business planning cycle leading to the approval of the Council Tax for the forthcoming financial year. There is a statutory requirement to set a balanced budget and submit budget returns to the Ministry of Housing, Communities and Local Government (MHCLG).  Approval of the revenue estimates constitutes authority for the incurring of expenditure in accordance with approved policies.