Agenda item

Budget Framework, Medium Term Financial Strategy and the Corporate Capital Strategy 2021/22- 2030/31

Meeting of Council, Thursday 25th February 2021 5.30 pm (Item 10.)

(a) To receive the recommendations of Cabinet and approve the Council Budget for 2021/2022, the Medium Term Financial Strategy and the Corporate Capital Strategy and the proposed approach to carbon budget set out in:

(i) The Leaders Report to the Cabinet meeting on 11 February 2021

(pages 19-26)

(ii) The Cabinet minutes from 11 February 2021 (pages 27-30)

(iii) The Cabinet report from 11 February 2021 on the Budget and Medium Term Financial Strategy 2021/22 – 2023/24 (pages 31-143)

(b) To calculate the sums required for the purposes of sections 31A, 31B and

34-36 of the Local Government Finance Act 1992 and to set the Council Tax for 2021/22 in accordance with section 30 of the same Act. (pages 145-149)

A named vote will be held in relation to (a) and (b) above and on any proposed amendments

Minutes:

The Leader presented the Council budget for 2021/22, the Medium Term Financial Strategy and the Corporate Capital Strategy 2020/21-2022/23.

The Leader moved the recommendation under 10(a), which was seconded by Councillor Sleigh.

That Full Council be recommended to:

i. Approve a budget for 2021/22 of £151.372 million, including the forecast balances on the budget strategy reserve;

ii. Approve the Medium Term Financial Strategy 2021/22 – 2023/24, and the Corporate Capital Strategy, incorporating the Council’s strategy on the flexible use of capital receipts;

iii. Approve the fees and charges proposed within each portfolio (Appendix D of the report of the Director of Resources and Deputy Chief Executive);

iv. Approve the proposed carbon budget, as outlined at paragraph 3.30 and detailed in the report to the Budget Strategy Group attached at Appendix E of the report of the Director of Resources and Deputy Chief Executive;

v. Approve an increase in the level of the general council tax in 2021/22 of 1.99%;

vi. Approve an increase in the adult social care precept in 2021/22 of 1.50%; and

vii. Approve a budget for the Council of £151.372 million for 2021/22, funded by Band D council tax of £1,460.24 (£1,313.60 for general council tax and £146.64 for adult social care).

There then followed a sequence of amendments which were proposed as follows:

Amendment One: £10 million borrowing to support Community Led Development

Councillor Allen proposed the amendment which was seconded by Councillor McLoughlin.

“Ring-fence up to £10 million for PWLB borrowing for the purposes of lending to Community-Led Development schemes within the borough. The finance arrangements will be net neutral to the Council across the life of the scheme, as borrowing, interest and administration costs will be repaid by the developer/scheme.”

The following Members voted for the Amendment:

Councillors Adeyemo, Allen, Ashraf, Brain, Burn, Buxton-Sait, Caudwell, Fairburn, Groom, Hamilton, A Hodgson, T Hodgson, Macnaughton, McCarthy, McLoughlin, Sexton, Slater, K Thomas, Williams, Wilson

The following Members voted against the Amendment:

Councillors Allsopp, Blunt, Butler, Courts, Davis, Dicicco, Gough, K Grinsell, R Grinsell, Hawkins, Hogarth, Mrs Holl-Allen, Holt, Howell, Mackenzie, Mackiewicz, Meeson, Parker, Potts, Qais, Richards Rolf, Ryan, Sleigh, P Thomas, Tildesley, Mrs Wild

The following Members abstained on the Amendment:

Councillors Cole, Nash, Rebeiro

Amendment One was lost.

Amendment Two: Fairness Commission

Councillor Ashraf proposed the Amendment which was seconded by Councillor Sexton.

We recognise the hard work of our public health team in drafting a preliminary inequality strategy, and we propose that a more detailed strategy be co-produced together with all the communities and organisations that we serve.

Solihull Council will set up a Fairness Commission to run for one year to explore the very high and entrenched levels of inequality (and health inequality) seen in our borough and make recommendations as to how we can begin to reduce these gaps.

This will be initially funded from the budget strategy reserve (one half time FTE for a year, plus £10k running costs for a year = £41,000 p.a.) to set up and run the Commission for twelve months, with the expectation that the identified savings in service provision over the following two years will return a net-neutral position for the Council at the end of the MTFS period.

The impact on the figures shown in the budget reports to Full Council is attached for information.

	2021/22 £'000 One-off	2022/23 £'000 One-off	2023/24 £'000 One-off	2023/24 £'000 Ongoing
Costs	41	0	0	0
Additional savings	0	(41)	0	(41)
Additional contribution to/(use of) budget strategy reserve	(41)	41	0	41
Impact on proposed net budget	0	0	0	0

The following Members voted in favour of the Amendment:

Councillors Adeyemo, Allen, Ashraf, Brain, Burn, Buxton-Sait, Caudwell, Cole, Fairburn, Groom, Hamilton, A Hodgson, T Hodgson, Macnaughton, McCarthy, McLoughlin, Nash, Sexton, Slater, K Thomas, Williams, Wilson

The following Members voted against the Amendment:

Councillors Allsopp, Blunt, Butler, Courts, Davis, Dicicco, Gough, K Grinsell, R Grinsell, Hawkins, Hogarth, Mrs Holl-Allen, Holt, Howell, Mackenzie, Mackiewicz, Meeson, Parker, Potts, Qais, Rebeiro, Richards, Rolf, Ryan, Sleigh, P Thomas, Tildesley, Mrs Wild

Amendment Two was lost.

Amendment Three: Property Energy Efficiency

Councillor Macnaughton proposed this Amendment which was seconded by Councillor Caudwell.

Cost

Solihull Council will set up a Property Energy Improvement Scheme for the purpose of supporting energy-efficient domestic and small commercial property retrofitting projects across the borough in the next three financial years

The anticipated cost of the scheme would be £775,000 (£700,000 + operating costs at 0.4x Band G FTE = £75,000), which will provide up to 100% funding for energy-efficient property retrofitting projects across the borough in the next three financial years (subject to eligibility criteria).

Funding

This will be funded from the budget strategy reserve. If Solihull Council receives a return on investment of any financial support extended to Birmingham Airport Holdings Limited, this income will be used to replenish the budget strategy reserve, with the intention of achieving a balanced position for the budget strategy reserve across the three-year period that the scheme is in operation.

The impact on the figures shown in the budget reports to Full Council is attached for information.

	2021/22 £'000 One-off	2022/23 £'000 One-off	2023/24 £'000 One-off	2023/24 £'000 Ongoing
Costs	725	25	25	0
Additional use of budget strategy reserve	(725)	(25)	(25)	0
Impact on proposed net budget	0	0	0	0

The following Members voted in favour of the Amendment:

The following Members voted against the Amendment:

Councillors Allsopp, Blunt, Butler, Courts, Davis, Dicicco, Gough, K Grinsell, R Grinsell, Hawkins, Hogarth, Mrs Holl-Allen, Holt, Howell, Mackenzie, Mackiewicz, Meeson, Parker, Potts, Qais, Rebeiro, Richards, Rolf, Ryan, Sleigh, P Thomas, Tildesley, Mrs Wild.

Amendment Three was lost

Council was then asked to vote on the substantive motion as moved by Leader of the Council and Council RESOLVED to:

Approve a budget for 2021/22 of £151.372 million, including the forecast balances on the budget strategy reserve;
Approve the Medium Term Financial Strategy 2021/22 – 2023/24, and the Corporate Capital Strategy, incorporating the Council’s strategy on the flexible use of capital receipts;
Approve the fees and charges proposed within each portfolio (Appendix D of the report of the Director of Resources and Deputy Chief Executive);
Approve the proposed carbon budget, as outlined at paragraph 3.30 and detailed in the report to the Budget Strategy Group attached at Appendix E of the report of the Director of Resources and Deputy Chief Executive;
Approve an increase in the level of the general council tax in 2021/22 of 1.99%;
Approve an increase in the adult social care precept in 2021/22 of 1.50%; and
Approve a budget for the Council of £151.372 million for 2021/22, funded by Band D council tax of £1,460.24 (£1,313.60 for general council tax and £146.64 for adult social care).

The following Members voted in favour of the recommendations:

Councillors Allsopp, Blunt, Butler, Courts, Davis, Dicicco, Gough, K Grinsell, R Grinsell, Hawkins, Hogarth, Mrs Holl-Allen, Holt, Howell, Mackenzie, Mackiewicz, Meeson, Parker, Potts, Qais, Rebeiro, Richards, Rolf, Ryan, Sleigh, P Thomas, Tildesley, Mrs Wild

The following Members voted against the recommendations:

The Leader then presented the recommendation under item 10(b) - The calculations and amounts of Council Tax for the year 2021/22:

RECOMMENDATION

That Council approved the sums required for the purposes of sections 31A, 31B and 34-36 of the Local Government Finance Act 1992 and to set the Council Tax for 2020/21 in accordance with section 30 of the same Act.

The following Members voted in favour of the recommendation:

Councillors Allsopp, Blunt, Butler, Courts, Davis, Dicicco, Gough, K Grinsell, R Grinsell, Hawkins, Hogarth, Mrs Holl-Allen, Holt, Howell, Mackenzie, Mackiewicz, Meeson, Parker, Potts, Qais, Rebeiro, Richards, Rolf, Ryan, Sleigh, P Thomas, Tildesley, Mrs Wild

The follow Members voted against the recommendation:

Councillors Adeyemo, Allen, Ashraf, Brain, Burn, Buxton-Sait, Caudwell, Cole, Fairburn, Groom, Hamilton, A Hodgson, T Hodgson, Macnaughton, McCarthy, Mcloughlin, Nash, Sexton, Slater, K Thomas, Williams, Wilson

The recommendation was carried.

Supporting documents: