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:

 

 

£

General Fund Revenue Budget

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: