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Agenda item

Medium Term Financial Plan 2021-22 to 2023-24

Report of the Executive Director for Finance & Resources

Minutes:

4.1      Councillor Paul Swaddle, Cabinet Member for Finance and Smart City, 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 Swaddle summarised the revenue challenges and efficiency savings to deliver a balanced budget for 2021-2022 whilst also providing opportunities for investment in community services such as Westminster Connects and Adult and Children’s Services. 

 

4.3           The Cabinet Member highlighted that the proposals for a balanced budget for 2021/22, would include a total council tax rise of 3.5% that consists of a general increase of 0.5% and a Social Care precept rise of the allowed 3%. This would be achieved whilst maintaining the Council Tax Reduction Scheme which would mean that those residents who are least able to pay would not be liable for council tax under the scheme.  At Band D this will result in an annual increase of £15.69 or an equivalent weekly amount of 30.2p per week. The total Westminster element of council tax will therefore rise from £448.21 to £463.90 at Band D.

4.4           After a balanced budget in 2021-22 the Cabinet Member stated that the medium term financial plan forecasts a net budget gap in 2022-23 and 2023-24 as set out in the report where there would be a need to identify further savings whilst minimising, as far as possible, any impact on council services.

4.5           The Cabinet Member highlighted a small error in Appendix 6 to the report where the council tax figures had been accidentally rounded down by 1p.  This had been amended and a revised Appendix 6 had been published on the council’s website.

4.6      Gerald Almeroth, Executive Director, Finance and Resources, highlighted the summary change in the general fund budget which included a net increase of £2.8m against last year.  He explained that the small increase was due to the uncertainty over future grant funding, additional expenditure pressures and reduced income due to long term impact from Covid 19.

 

4.7      Councillor Gotz Mohindra addressed the committee in his capacity as the Chairman of the Budget Task Group which had considered budget options and draft business plan and estimates at the appropriate stages in the business planning cycle and submitted recommendations and comments to the Cabinet.  He summarised the outcome of the task group’s review which had identified a number of positive indicators including that the council has a robust reserves policy and that the budget includes flexibility to mitigate uncertainties.  The task group recognised that the delay of the fair funding review could have a potential significant impact on the council’s future revenue budget. He commented that some savings were to be delivered through staff reductions and that the task group had received explanations from Cabinet Members about mitigations for minimising the loss of corporate knowledge and experience.  He concluded that the task group considered the budget proposals to be robust.

 

4.8      The Leader of the Council expressed her gratitude to the Cabinet Member, his predecessor, Councillor Caplan and Mr Almeroth and his team for their hard work in preparing the medium term financial plan.

 

           RESOLVED:

 

           That Cabinet recommends to full Council:

 

           Council Tax

 

1.              That the council tax for a Band D property be agreed at £463.90 for 2021/22, an increase of £13.45 (3%) for the Social Care precept and £2.24 (0.5%) for general purposes;

 

2.              That, subject to the consideration of the previous recommendation, 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 2022, be as specified in the Council Tax Resolution in Appendix 6 to the report.

 

3.              That the Precepts and Special Expenses be as also specified in Appendix 6 to the report for properties in Montpelier Square and the Queen’s Park Community Council;

 

4.              That the formal resolution for 2021/22 attached at Appendix 6 to the report including the council tax requirement of £62.078m be agreed;

 

5.              Noted the proposed Greater London Authority precept (Band D) of £363.66, an increase of £31.59 rise in the adjusted Band D Precept;

 

6.              That the Council continues 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 supporting people who are lonely and isolated.

 

           Revenue Budget

 

1                That the views of the Budget Task Group set out in Appendix 7 to the report be noted.

 

2                That the proposed General Fund net budget requirement of £182.745m summarised in Appendix 4 to the report be noted.

 

3                That the savings and growth proposals for 2021/22 to 2023/24 set out in Appendix 1 2 and 3 to the report be approved;

 

4                That the Equality Impact Assessments included in Appendix 5 to the report be received and noted to inform the consideration of the budget;

 

5                That the Housing Revenue Account Business Plan 2021/22 and 30-Year Housing Investment Plan presented concurrently to Cabinet on 15 February 2021 that recommends the HRA budget and rent levels for 2021/22 be noted.

 

           Capital Programme

 

That the Capital Strategy 2021/22 to 2025/26, forecast position for 2020/21 and future years’ forecasts summarised up to 2034/35 report also presented to Cabinet on 15 February 2021 that recommends the Council’s capital programme and financing be noted.

 

 

 

           Reserves, Balances and Budget Estimates

 

1.          That the reserves policy as set out in section 13 be noted;

 

2.          That the views of the Section 151 Officer with regards to estimates           underpinning the proposed budget changes and reserves levels in          section 13 be noted.

 

           Treasury Management and Investment Framework

 

1.        That the Treasury Management Strategy for 2021/22 including the annual investment strategy, borrowing limits and prudential indicators summarised in this report and set out detail in a concurrent report on this agenda be noted.

2.        That the 2021/22 Integrated Investment Framework report also concurrently on this agenda, which sets out the policies and framework for future investment decisions for the Council 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.

 

 

 

 

 

 

 

 

 

          

 

Supporting documents: