Agenda item
2020-2024 Financial Planning and Budget Process: Cabinet’s Draft Budget and Council Tax Requirement Proposals
To receive a report of the Authority’s 2020-2024 Our North Tyneside Plan, the 2020/21 General Fund Revenue Budget, Council Tax Requirement and Council Tax Level, the 2020-2025 Investment Plan and the Treasury Management Strategy Annual Investment Strategy for 2020/21 and to consider any objections
Minutes:
The Chair explained the procedure for the meeting following the change to the Budget and Policy Framework Procedure Rules that had taken place at the 28 November 2019 Council meeting.
The Chair would request Councillor Glindon to move the Elected Mayor and Cabinet Proposals. Once those proposals were seconded, Members would then have the opportunity to ask questions relating to matters of principle.
It was moved by Councillor R Glindon and seconded by Councillor B Pickard that:
Council agree:
(a) the Our North Tyneside Plan 2020-2024;
(b) the recommendations and delegations set down in paragraph 1.5.29 of the report in relation to the 2020/21 General Fund Revenue Account Budget, the 2020/21 Council Tax Requirement and Council Tax Level for 2020/21 being the Elected Mayor and Cabinet’s Budget and Council Tax Requirement Resolution (as set out below);
(c) the Elected Mayor and Cabinet’s proposals for the 2020-2025 Investment Plan, including the Capital Investment Strategy and proposed prudential indicators for 2020/21; and
(d) the Elected Mayor and Cabinet’s proposals for the Treasury Management Strategy and Annual Investment Strategy for 2020/21.
2020/21 Council Tax Requirement Resolution
1. The recommended Budgets of the Authority be approved as noted below, subject to the variations listed in paragraphs 2 and 3 below and noting the estimated allocation of £165.721m in Dedicated Schools Grant, for 2020/21:
|
£ |
161,361,086 |
|
Total |
161,361,086 |
2. The following levies be included in the Budget Requirement:
|
£ |
The Tyne and Wear element of the Durham, Gateshead, Newcastle Upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland Combined Authority Transport Levy |
11,075,330 |
Environment Agency |
200,346 |
Total |
11,275,676 |
3. The contingency be set as follows:
|
£ |
Contingency |
6,983,255 |
Total |
6,983,255 |
4. Note that at its meeting held on 20 January 2020, Cabinet agreed the
Council Tax base for 2020/21 for the whole Authority area as 61,870 (Item T), in the Formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”) and the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012.
5. Agree that the Council Tax Requirement for the Authority’s own purposes for 2020/21 is £100,885,840 (as set down in paragraph 1.5.28, Table 4).
6. Agree that the following amounts now calculated by the Authority for the year 2020/21 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended (the Act):
(a) £368,036,610 Being the aggregate of the amounts which the Authority estimates for the items set out in Section 31A(2)of the Act.
(b) £267,150,770 Being the aggregate of the amounts which the Authority estimates for the items set out in Section 31A(3) of the Act.
(c) £100,885,840 Being the amount by which the aggregate at 6(a) above exceeds the aggregate at 6(b) above, calculated by the Authority in accordance with Section 31(A)(4) of the Act, as its Council Tax Requirement for the year (Item R in the formula in Section 31B of the Act).
(d) £1,630.61 Being the amount at 6(c) above (Item R), all divided by Item T (4 above), calculated by the Authority, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year.
(e) North Tyneside Council Valuation Bands
Council |
|
Tax Band |
£ |
A |
1,087.07 |
B |
1,268.26 |
C |
1,449.43 |
D |
1,630.61 |
E |
1,992.96 |
F |
2,355.33 |
G |
2,717.68 |
H |
3,261.22 |
Being the amounts given by multiplying the amount at 6(e) above by the number which, in the proportion set out in Section 5(1) of the Act 1992, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Authority, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.
(f) Police and Crime Commissioner for Northumbria Valuation Bands
Note that for the year 2020/21 the Police and Crime Commissioner for Northumbria have issued the following amounts in precepts to the Authority, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings in the Authority’s area, as indicated below:
Council |
|
Tax Band |
£ |
A |
91.33 |
B |
106.56 |
C |
121.78 |
D |
137.00 |
E |
167.44 |
F |
197.89 |
G |
228.33 |
H |
274.00 |
(g) Tyne & Wear Fire and Rescue Authority Valuation Bands
Note that for the year 2020/21 the Tyne and Wear Fire and Rescue Authority have issued the following amounts in precepts to the Authority, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings in the Authority’s area, as indicated below:
Council |
|
Tax Band |
£ |
A |
55.98 |
B |
65.31 |
C |
74.64 |
D |
83.97 |
E |
102.63 |
F |
121.29 |
G |
139.95 |
H |
167.94 |
(h) Total Valuation Bands
That, having calculated the aggregate in each case of the amounts at 6(e), 6(f) and 6(g) above, the Authority, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2020/21 for each part of its area and for each of the categories of dwellings shown below:
Council |
|
Tax Band |
£ |
A |
1,234.38 |
B |
1,440.13 |
C |
1,645.85 |
D |
1,851.58 |
E |
2,263.03 |
F |
2,674.51 |
G |
3,085.96 |
H |
3,703.16 |
7. The Authority’s relevant basic amount of Council Tax for 2020/21 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992, as amended.
8. The Authority’s Financial Regulations will apply to the financial management of this Budget.
9. The level of contingencies will be £6.983m as pressures incurred during 2019/20 have been recognised as part of the 2020/21 Financial Planning and Budget process.
10. It is proposed that virement levels and approvals for virement shall be in accordance with the rules set down in the Authority’s Financial Regulations in force at the time.
11. The Reserves and Balances Policy is adopted as set out and is subject to review at least annually.
12. The Chief Executive, in consultation with the Elected Mayor, Deputy Mayor, Cabinet Member for Finance and Resources and the Senior Leadership Team to manage the overall Efficiency Programme and note that decisions made under this delegated authority will be reported to Cabinet as part of the regular budget monitoring information provided.
13. The Chief Executive, in consultation with the Elected Mayor and Head of Resources, to authorise the purchase of properties, on the open market, providing value for money is demonstrated and the cost can be contained within existing financial resources of the Authority. This is to ensure that the programme of delivery of affordable homes and homes at social rent is progressed in line with the Cabinet's priorities.
14. The Chief Finance Officer be authorised to serve notices, enter into agreements, give receipts, make adjustments, institute proceedings and take any action available to the Authority to collect or enforce the collection of Non-Domestic Rates and Council Tax from those persons liable.
15. The Chief Finance Officer be authorised to disburse monies from funds and accounts of the Authority as required for the lawful discharge of its functions.
16. Agree that the Police and Crime Commissioner for Northumbria and the Tyne and Wear Fire and Rescue Authority receive payment from the Collection Fund in 12 equal instalments on the last working day of each month.
17. Payments from the Collection Fund to be made to the Authority's General Fund in 12 equal instalments on the last working day of each month.
The Chair invited Members to ask questions and then to speak on the Elected Mayor and Cabinet’s proposals.
Votes for the Elected Mayor and Cabinet’s Proposals
N Redfearn, Elected Mayor, Councillors J Allan, G Bell, L Bell, T Brady,
B Burdis, C Burdis, J Cassidy, K Clark, D Cox, S Cox, N Craven, J Cruddas, E Darke, L Darke, C Davis, S Day, D Drummond, P Earley, R Glindon,
S Graham, M Hall, J Harrison, Janet Hunter, John Hunter, C Johnson,
J Kirwin, K Lee, F Lott, W Lott, G Madden, M Madden, A McMullen, J Mole,
T Mulvenna, A Newman, P Oliver, K Osborne, J O’Shea, E Parker-Leonard,
A Percy, S Phillips, B Pickard, M Rankin, P Richardson, W Samuel, J Stirling, M Thirlaway, J Walker and M Wilson.
Votes against the Elected Mayor and Cabinet’s Proposals
Councillors A Austin, K Barrie, L Bartoli, S Brockbank, N Huscroft, P McIntyre and J Wallace.
The motion, on being put to the meeting, was approved by 50 votes to 7 votes.
The Chair announced that the Elected Mayor and Cabinet’s Budget and Council Tax Requirement Resolution for 2020/21 had been approved by the Council and therefore the meeting provisionally scheduled for 5 March 2020 was no longer required.
Supporting documents:
- 1. 2020-2024 Financial Planning and Budget Process Council 20 February 2020 FINAL, item C56/20 PDF 330 KB
- 2. Appendix A - Front Sheet, item C56/20 PDF 32 KB
- 3. Cabinet Report 3 February 2020, item C56/20 PDF 143 KB
- 4. Annex 1, item C56/20 PDF 478 KB
- 5. Appendix A 2020 - 2024 Our North Tyneside Plan, item C56/20 PDF 57 KB
- 6. Appendix B 2020-24 Budget and Financial Plan, item C56/20 PDF 114 KB
- 7. Appendix C - 2020-21 Efficiency Savings, item C56/20 PDF 15 KB
- 8. Appendix D(i) - 2020-25 investment plan, item C56/20 PDF 86 KB
- 9. Appendix D(ii) HRA Capital Investment Plan 2020-2025, item C56/20 PDF 25 KB
- 10. Appendix D(iii) Prudential Indicators 2020-24, item C56/20 PDF 108 KB
- 11. Appendix D(iv) Capital Investment Strategy 2020-2025, item C56/20 PDF 158 KB
- 12. Appendix E - Treasury Management Strategy Statement and Annual Investment Strategy 2020-21, item C56/20 PDF 53 KB
- 13. Appendix F Budget Engagement Summary 2020-21, item C56/20 PDF 48 KB
- 14. Appendix G Reserves and Balances Policy 2020-21, item C56/20 PDF 93 KB
- 15. Appendix H Timetable, item C56/20 PDF 57 KB
- 16. Appendix I - 2020-21 Report of the Overview, Scrutiny and Policy Development Committee, item C56/20 PDF 121 KB
- 17. Appendix J Glossary, item C56/20 PDF 84 KB
- 18. Appendix B - Front Sheet, item C56/20 PDF 26 KB
- 19. Budget Proposal Resources Treasury management 2020-24, item C56/20 PDF 155 KB
- 20. Budget Proposal 2020 -2024 School Development Service, item C56/20 PDF 144 KB
- 21. Budget Proposal template 2020 -2024 C&AM Asset Management Fees and Charges, item C56/20 PDF 163 KB
- 22. Budget Proposal template 2020 -2024 C&AM How we are organised, item C56/20 PDF 155 KB
- 23. Budget Proposal EHL HIF Project 2020 -2024, item C56/20 PDF 156 KB
- 24. Budget Proposal EHL Recycling Costs 2020 -2024, item C56/20 PDF 144 KB
- 25 Budget Proposal EHL Trading Companies 2020 -2024, item C56/20 PDF 153 KB