Issue - meetings

Report of Chief Finance Officer

Lead Cabinet member: Councillor Stephen Holt

Recommended to Full Council (Budget and policy framework):

(1) The General Fund budget for 2020/21 (Revised) and 2021/22 (Original).

(2) The Capital Programme and Financing for 2020/21(Revised) and 2021/22 (Original).

(3) An increase in the Council Tax for Eastbourne Borough Council of 2% resulting in a Band D charge of £256.74 for 2021/22.

(4) The revised General Fund capital programme 2021/22 as set out at Appendix 3 to the report.

(5) To note the section 151 Officer’s sign off as outlined in the report.

(Key decision):

(6) To delegate authority to the Chief Finance Officer in consultation with the Lead Member for Finance to:

·        approve the making of all future loans to Aspiration Homes LLP and all drawdowns under both future and existing facilities.

·        approve the loans as a Restricted Matter under the LLP Agreement with Lewes District Council.

·        approve all documentation required to ensure compliance with the UK’s new subsidy control regime and so that Right to Buy receipts are appropriated in accordance with all relevant requirements; and

·        determine the terms of all agreements and associated documentation required to put into effect these delegations and to authorise the execution of all such documentation on behalf of the Council.

The Cabinet considered the report of the Chief Finance Officer, regarding the updated General Fund budget and Medium Term Financial Strategy, together with updated Capital Programme position.

Councillor Holt presented the proposed budget and referred to section 2.1 of the report, that detailed the financial impact of Covid-19, including additional costs to the Council of £3.7 million and projected loss of £10 million. Thanks were conveyed to the Chief Finance Officer and the finance team for their work in preparing the reports during an extremely challenging period.

During August 2020, the Chief Finance Officer initiated a formal notification process with the Ministry of Housing, Communities and Local Government (MHCLG), asking for financial support or capitalisation directive.

On 2nd February 2021, Luke Hall, MP and Minister of State for Regional Growth and Local Government in a letter addressed to Cllr Tutt, Leader of the Council, approved a total capitalisation direction to fund revenue expenditure not exceeding?£6.8m, for the financial year 2020/21 and up to £6m for 2021/22. Councillor Holt added that there were significant costs associated with MHCLG’s capitalisation offer and wanted the Secretary of State to reconsider some of the conditions laid out to ensure best value for all. Thanks were conveyed to Caroline Ansell, MP for Eastbourne for her continued support on behalf of the Council.

The Scrutiny Committee at its meeting on 8 February 2021 recommended that the Cabinet accept the offer of support from MHCLG. Councillor Tutt confirmed that MHCLG had set a deadline of 9 February 2021 for a response to the offer. Councillor Tutt confirmed that he had accepted the offer, on behalf of the Council.

The budget proposed a rise in council tax of just under 10p a week, despite the pandemic leaving the council with a significant shortfall in funding. The proposed increase would ensure the council could continue to deliver essential services to residents and support businesses.

The Chief Executive gave an overview of the programme of activities as part of the Council’s Recovery and Reset programme to revise service delivery and achieve the required savings.

Councillors Tutt and Shuttleworth declared a prejudicial interest in the sixth officer recommendation as members of the AHLLP Executive Committee. They withdrew from the meeting whilst this section of the item was discussed and determined. Councillor Holt chaired the meeting for the duration of this section.

Recommended to Full Council (Budget and policy framework):

(1) The General Fund budget for 2020/21 (Revised) and 2021/22 (Original).

(2) The Capital Programme and Financing for 2020/21(Revised) and 2021/22 (Original).

(3) An increase in the Council Tax for Eastbourne Borough Council of 2% resulting in a Band D charge of £256.74 for 2021/22.

(4) The revised General Fund capital programme 2021/22 as set out at appendix 3 to the report.

(5) To note the section 151 Officer’s sign off as outlined in the report.

Resolved (Key decision):

(6) To delegate authority to the Chief Finance Officer in consultation with the Lead Member for Finance to:  ...  view the full minutes text for item 38