Agenda item
Council Budget and Setting of the Council Tax for 2020/21
- Meeting of Lewes District Council Full Council, Monday, 24th February, 2020 6.00 pm (Item 55.)
- View the background to item 55.
Report of Councillor Nicholson on behalf of the Cabinet. Referred from Cabinet on 10 February 2020, incorporating the recommendations from the Cabinet reports on:
· General Fund Revenue Budget 2020/21 and Capital Programme
· Housing Revenue Account (HRA) Revenue Budget and Rent Setting 2020/21 and HRA Capital Programme 2019-23
· Treasury Management and Prudential Indicators 2020/21, Capital Strategy and Investment Strategy
A copy of a General Fund amendment received from Councillor Linington is attached. Any further amendments received by the deadline of 6 pm on 23 February will be circulated.
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 on the substantive motions and any amendments.
Minutes:
The Council received the Council Budget and Setting of the Council Tax report for 2020/21, including the Section 25 Statement of the Section 151 Officer (Chief Finance Officer), a General Fund Summary and the recommendations from the meeting of Cabinet held on 5 February 2020, in respect of the:
- General Fund Budget 2020/21 and Capital Programme
- Housing Revenue Account (HRA) Revenue Budget and Rent Setting 2020/21 and HRA Capital Programme 2019-23; and
- Treasury Management and Prudential Indicators 2020/21, Capital Strategy and Investment Strategy
The recommendations 1 to 9 set out in the Chief Finance Officers’ report were moved by Councillor Nicholson and seconded by Councillor Carr.
Councillor Linington moved and Councillor Burman seconded an amendment to recommendation 1 set out on the agenda papers:
“Amendment 1 - CLIFF (Coastal Loss Innovative Funding and Finance) Rapid Scoping Review £10,000 – to join this project undertaken by Coastal Partnership East and Marsh to complete the work on considering potential finance or funding mechanisms to incentivise residents to relocate from high risk areas or provide financial protection to those that lose their homes. The first phase identified five potential financial options. The second phase will explore these in more detail and screen them for political sensitivity, financial viability, and social acceptability at different locations around the coast in England and Wales.”
Councillor Linington moved and Councillor Liz Boorman seconded a further amendment which had been circulated to Councillors:
“Amendment 2 - Wave Leisure Trust Ltd
£25,000 – to provide funding for one year towards two programmes that would otherwise be scaled back when Lewes District Funding ceases in April. The first programme is the health and well-being rural outreach programme. The second is the youth activities in Newhaven including the activities that combat anti-social behaviour. The funding will be reviewed after six months.”
The Leader of the Council (Councillor Nicholson) presented her budget speech, and agreed to incorporate amendment 1 relating to the CLIFF Rapid Scoping Review in her budget recommendation. As part of this speech she thanked the Chief Finance Officer and her team for the preparation of the budget.
Councillor Boorman spoke to Amendment 2 to recommendation 1 in relation to Wave Leisure Trust Ltd.
The budget was debated by members from across the Council.
Councillor Nicholson in summing up advised that she would not be supporting the amendment in relation to Wave Leisure Trust Ltd, as she had spoken to the Chief Executive of Wave Leisure Ltd that morning and understood the additional funding was not required.
Amendment 2 (in relation to Wave Leisure Ltd) was put to a recorded vote (in accordance with statutory requirements) and declared lost by 16 votes to 20. The recorded vote was as follows:
For the Motion: Councillors S Adeniji, N Bikson, L Boorman, P Boorman, R Burman, S Davy, L Duhigg, I Linington, J Lord, S Lord, R Maskell, J Miller, N Papanicolaou, J Peterson, K Rigden and I White. (16)
Against the Motion: Councillors G Amy, R Banks, M Bird, J Carr, R Clay, C Collier, J Denis, S Gauntlett, J MacCleary, S MacLeod, I Makepeace, M Manley, W Meyer, Z Nicholson, E O’Brien, L O’Connor, R O’Keeffe, C Robinson and A Ross. (20)
The substantive Council motion, incorporating amendment 1 was then put to a recorded vote (in accordance with statutory requirements) and declared carried by 20 votes to 16. The recorded vote was as follows:
For the Motion: Councillors G Amy, R Banks, M Bird, J Carr, R Clay, C Collier, J Denis, S Gauntlett, J MacCleary, S MacLeod, I Makepeace, M Manley, W Meyer, Z Nicholson, E O’Brien, L O’Connor, R O’Keeffe, C Robinson and A Ross. (20)
Against the Motion: Councillors S Adeniji, N Bikson, L Boorman, P Boorman, R Burman, S Davy, L Duhigg, I Linington, J Lord, S Lord, R Maskell, J Miller, N Papanicolaou, J Peterson, K Rigden and I White. (16)
RESOLVED that –
1. The recommendations as detailed in the reports from the Chief Finance Officer and the Director of Service Delivery to Cabinet on 10 February 2020 as summarised below:
General Fund Budget and Capital Programme
a. To approve the General Fund budget for 2019/20 (Revised) and 2020/21 (Original) set out in Appendix 1 to the Cabinet Report, including growth and savings proposals for 2020/21 as set out at Appendix 3 to the Cabinet report, subject to the following amendment (to be funded from reserves):
“£10,000 – to join the CLIFF (Coastal Loss Innovative Funding and Finance) Rapid Scoping Review project undertaken by Coastal Partnership East and Marsh to complete the work on considering potential finance or funding mechanisms to incentivise residents to relocate from high risk areas or provide financial protection to those that lose their homes. The first phase identified five potential financial options. The second phase will explore these in more detail and screen them for political sensitivity, financial viability, and social acceptability at different locations around the coast in England and Wales.”]
b. To approve an increase in the Council Tax for Lewes District Council of £5 resulting in a Band D charge for general expenses of £192.08 for 2020/21;
c. To approve the revised General Fund capital programme 2020/21, as set out at Appendix 5 to the Cabinet report;
d. To note the Section 25 Statement of the Section 151 Officer Sign-Off attached at Appendix 1 and set out in the Cabinet report;
Treasury Management, Prudential Indicators and Capital Strategy
e. To approve the Treasury Management Strategy and Annual Investment Strategy for 2020/21, as set out at Appendix A to the Cabinet report;
f. To approve the Minimum Revenue Provision Policy Statement for 2020/21 as set out at paragraph 8 of the Cabinet report;
g. To approve the Prudential and Treasury Indicators for 2020/21 to 2022/23, as set out at paragraph 6 of the Cabinet report;
h. To approve the Capital Strategy set out at Appendix E to the Cabinet report;
Housing Revenue Account
i. To approve the Housing Revenue Account (HRA) income and expenditure proposals, including revised HRA budget for 2019/20 and the budget for 2020/21, rents and service charges and the HRA Capital Programme including:
a. To agree HRA budget for 2020/21 and revised 2019/20 budget as set out at Appendix 1 to the Cabinet report.
b. To agree that social and affordable rents (including Shared Ownership) are increased by 2.7% in line with Government policy.
c. To agree that private sector leased property rents are increased by 3.4% (RPI+1%).
d. To agree that the revised service charges are implemented.
e. To agree that garage rents are increased by 3.4% (RPI+1%).
f. To agree that the HRA Capital Programme as set out at Appendix 2 to the Cabinet report.
2. That delegated authority is given to the Chief Finance Officer to amend the budget for any presentational changes ensuring the Council Tax Requirement remains unchanged;
3. That it be noted, that since the Cabinet meeting on 10 February the Business Rates return to the Government (NNDR1) has been finalised and the budget has been updated accordingly as shown in Appendix 2. As a result of the latest Business Rates position, it has been possible to add £450K to the Contingency Provision and transfer £202K into the Business Rates Equalisation Reserve. In addition, previously budgeted transfers from reserves of £700K, to cover additional capital financing costs and the impact of the economic downturn, are no longer required. Finally, it should also be noted that the forecast surplus of £300K together with a further £100K has been transferred into the General Fund Balance.
4. That the expenses incurred by the Council set out below be approved as Special Expenses chargeable to the residents of each of the Town/Parish areas indicated and that any other expenses (excluding local precepts) incurred by the Council be approved as general expenditure for the purposes of Section 35 of the Local Government Finance Act 1992.
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Town/Parish Area |
Special Expense |
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2020/21 |
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£ |
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Lewes |
344,430 |
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Newhaven |
134,940 |
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Telscombe |
57,720 |
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Seaford |
58,590 |
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Peacehaven |
41,100 |
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Chailey |
1,120 |
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Ringmer |
4,410 |
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Total |
642,310 |
5. That consequent upon a General Fund budget of £14,254,000 and other matters, the basic amount (Band D) of Council Tax for the Borough Council's functions will be £209.53 calculated as follows:
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General Expenses only |
Total including special items |
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£000's |
£000's |
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Gross Expenditure: |
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General Fund |
50,743 |
|
|
HRA |
16,212 |
|
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Business Rates payable to Government |
7,805 |
|
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Contributions to Reserves |
689 |
|
|
|
75,449 |
75,449 |
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Special expenses |
|
642 |
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Parish and Town Council Precepts |
|
4,198 |
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Less Income: |
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Service Income |
(54,259) |
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Other Government Grants |
(3,449) |
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Business Rates income |
(10,587) |
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Collection Fund Surplus (Council Tax) |
(83) |
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|
|
(68,378) |
(68,378) |
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COUNCIL TAX REQUIREMENT |
7,071 |
11,911 |
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Band D Council Tax |
£192.08 |
£323.57 |
The statutory resolutions relating to this matter are given at paragraphs 5 and 6 below.
6. That it be noted that at its meeting on 10 February 2020 Cabinet approved the following calculations for the year 2020/21, being made in accordance with regulations made under Sections 31(B)(4) and 34(4) of the Local Government Act 1992, as amended:-
a. 36,811.50 being the amount calculated by the Council, in accordance with regulation 3 of the Local Authorities (Calculation of the Council Tax Base) Regulations 1992 , as amended, as its Council Tax Base for the year ) Item T in the formula in Section 31B of the Local Government Finance Act 1992).
b. Part of the Council's Area Tax Base
|
Parish of Barcombe |
637.60 |
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Parish of Beddingham and Glynde |
184.00 |
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Parish of Chailey |
1,299.60 |
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Parish of Ditchling |
1,122.00 |
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Parish of East Chiltington |
192.90 |
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Parish of Falmer |
65.80 |
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Parish of Firle |
124.80 |
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Parish of Hamsey |
271.50 |
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Parish of Iford |
90.70 |
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Parish of Kingston |
428.10 |
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Town of Lewes |
6,137.90 |
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Town of Newhaven |
3,693.80 |
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Parish of Newick |
1,106.30 |
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Town of Peacehaven |
4,800.90 |
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Parish of Piddinghoe |
123.60 |
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Parish of Plumpton |
665.40 |
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Parish of Ringmer |
1,876.30 |
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Parish of Rodmell |
208.20 |
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Parish of St Ann Without |
39.60 |
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Parish of St John Without |
23.60 |
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Town of Seaford |
9,495.70 |
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Parish of Southease |
22.80 |
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Parish of South Heighton |
277.60 |
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Parish of Streat |
81.20 |
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Parish of Tarring Neville |
8.60 |
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Town of Telscombe |
2,533.60 |
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Parish of Westmeston |
153.20 |
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Parish of Wivelsfield |
1,146.20 |
7. That the following amounts be now calculated by the Council for the year 2020/21 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended:
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|
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(a) |
£80,289,345 |
being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act. |
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(b) |
£68,378,100 |
being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act. |
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(c) |
£11,911,245 |
being the amount by which the aggregate at 5(a) above exceeds the aggregate at 5(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act). |
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(d) |
£323.57 |
being the amount at 6(c) above (Item R), all divided by Item T (5 above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including local precepts). |
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(e) |
£4,840,441 |
being the aggregate amount of all special items referred to in Section 34(1) of the Act. |
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(f) |
£192.08 |
being the amount at 6(d) above less the result given by dividing the amount at 6(e) above by the amount at 4(a) above (Item T), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special item relates, |
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(g) |
Parts of the Council’s area
Being the amounts given by adding the amount at 5(f) above, the amounts of the special items or items relating to dwelling in those parts of the Council’s area mentioned above divided in each case by the amount at 5(B) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which one or more special items relate.
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(h) |
Parts of the Council’s area |
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Being the amounts given by multiplying the amounts at 6(g) above by the number which, in the proportion set out in Section 5(1) of the Act, 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 Council, 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.
8. To note that East Sussex County Council, East Sussex Fire and Rescue Authority and Police and Crime Commissioner for Sussex 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.
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9. That having calculated the aggregate in each case of the amounts at 7(h) and 8 above, the Council, in accordance with Section 30(2) 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 of the categories of dwellings shown below:
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10. Determine that the Council’s 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.
As the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2020/21 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.
Supporting documents:
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Council Tax Resolutions 2020-21, item 55.
PDF 99 KB -
Appendix 1 Chief Finance Officer Section 25 Report, item 55.
PDF 84 KB
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Appendix 2 General Fund Summary, item 55.
PDF 7 KB
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Appendix 3 Additional Town and Parish Precept Information, item 55.
PDF 13 KB
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Appendix 4 Referral from Cabinet - General Fund Revenue Budget 2020/21 and Capital Programme, item 55.
PDF 82 KB
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Appendix 5 Referral from Cabinet Treasury Management, item 55.
PDF 74 KB
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Appendix 6 Referral from Cabinet on HRA, Rent Setting, Capital Programme, item 55.
PDF 81 KB
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Budget Amendment 1 - Councillor Linington, item 55.
PDF 43 KB