Agenda item

Report of Councillor Holt on behalf of the Cabinet.  Referred from Cabinet on 10 February 2021.  To include decisions in respect of:

-       General Fund Budget 2021/22 and Capital Programme.

-       Housing Revenue Account (HRA) Revenue Budget and Rent Setting 2021/22 and HRA Capital Programme 2020-24; and

-       Treasury Management and Prudential Indicators 2020/21, Capita Strategy and Investment Strategy.

Please note: that the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 requires named votes to be taken and recorded when setting the annual budget and council tax, this to include votes on any amendments and substantive motions.

Councillor Holt moved and Councillor Tutt seconded the recommendations set out in the agenda, in relation to the Council Budget and setting of the Council Tax for 2021/22.   This incorporated recommendations from Cabinet in respect of the General Fund Budget 2021/22 and Capital Programme, Housing Revenue Account Revenue Budget and Rent Setting 2021/22 and HRA Capital Programme 2020-24, the Treasury Management and Prudential Indicators for 2020/21, Capital Strategy and Investment Strategy.

Councillor Smart moved and Councillor di Cara seconded an amendment, which had been circulated to all Councillors, to add the following as an additional recommendation (11):

“Eastbourne Borough Council is pleased to receive the offer of exceptional financial support from the Government, will fulfil its statutory obligations, and will revise its budget as necessary when the requirements of the Capitalisation Direction are known, including the recommendations of the mandated external assurance review.”

Councillor Holt as Cabinet Member for Finance presented the budget. He highlighted the impact of coronavirus on the authority and the local area, and its impact on the Council’s finances, and expressed his condolences to the families of those who had lost their lives.  He advised that the Council had achieved over £4.8m savings or efficiencies over the last year but had faced a loss of 60% of its income due to the impact of Covid 19. He advised that there had been extensive external scrutiny of the Council’s financial position, and on the basis of this the Government had provided a loan and capitalisation direction to the Council, which would enabled it to achieve a balanced budget and to stabilise its position during the next year, and he set out the context of the plans for this recovery in terms of Council investments, strategies and partnership working.  He thanked the Chief Finance Officer and her team for their work on the budget. 

Councillor Smart responded to the budget proposals on behalf of the opposition and presented his amendment.  He paid tribute to residents and Council employees in their response to Covid 19, and in particular the speed of business grant distribution.  He expressed his concerns that the final audited accounts for 2018/19 and 2019/20 had not yet been presented to the Council, and as to the uncertainties this created for the budget proposals.  He stated his view that the loss of income was not the major contributor to the shortfall experienced by the Council but was due to choices made by the administration over the last few years. He welcomed the external assurance review required by Government as part of its capitalisation direction, and suggested that a revised budget be prepared after this review, and asked that an additional Council meeting be added in September if necessary to consider this.

The Council debated the budget in full, and Councillor Smart and Councillor Holt were given the opportunity to sum up at the end of the discussion. 

As part of her contribution to the discussion, Councillor Bannister paid tribute to the work of Phil Evans, Director of Tourism and Enterprise, who was leaving the Council, and on behalf of the Council extended her thanks to him for his excellent work and wished him well for the future, and this was echoed by other Councillors.

The Mayor reminded Councillors that all votes in relation to the setting of the Council Tax were named votes in accordance with legislation.

The amendment was then put to a named vote and was lost by 16 against, 9 votes for, and 1 abstention:

For: Councillors Ansell, Belsey, di Cara, Freebody, Lamb, Metcalfe, Murdoch, Smart and Taylor (9).

Against: Councillors Bannister, Burton, Choudhury, Diplock, Dow, Holt, Maxted, Miah, Morris, Murray, Rodohan, Shuttleworth, Swansborough, Tutt, Vaughan and Whippy (16).

Abstention:  Councillor Wallis (1).

The original motion was then put to a named vote and carried by 16 votes for, 1 against and 9 abstentions:

For: Councillors Bannister, Burton, Choudhury, Diplock, Dow, Holt, Maxted, Miah, Morris, Murray, Rodohan, Shuttleworth, Swansborough, Tutt, Vaughan and Whippy (16).

Against: Councillor Belsey (1).

Abstention:  Councillor Ansell, di Cara, Freebody, Lamb, Metcalfe, Murdoch, Smart, Taylor and Wallis (9).

8.        To note that East Sussex County Council, the Police and Crime Commissioner for Sussex and the East Sussex Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992, as amended, for each category of dwellings in the Council’s area as indicated in the table below.  

9.        That the Council, in accordance with Sections 30 to 36 of the Local Government Finance Act 1992, as amended, hereby sets the aggregate amounts shown in the table below as the amounts of Council Tax for 2021/22 for each of the categories of dwellings.

10.      Determine that the Council’s basic amount of Council Tax for 2021/22 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992, as amended.

As the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2021/22 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK Local Government Finance Act 1992, as amended.

(Note – at the end of this agenda item at 19.47 the Council meeting adjourned for a short recess for 5 minutes).