Agenda item

Report of Chief Finance Officer

Lead Cabinet member: Councillor Zoe Nicholson

Recommended to Full Council (Budget and policy framework):

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

(2) An increase in the Council Tax for Lewes District Council of £5 (per annum) resulting in a Band D charge for general expenses of £197.08 (per annum) for 2021/22.

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

(4) To endorse the continuation of the Flexible use of Capital Receipts and refers on to Council for approval.

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

(Key decision):

(6) That as soon as practicable officers bring to Cabinet a report on the statutory process for amending the Council Tax Reduction Scheme for 2022/23 and which sets out the financial and other implications of providing a 100% discount to qualifying persons.

(7) That, in order to maximise the assistance to working age residents in financial distress, officers combine the remaining Council Tax Hardship Scheme funds (as previously agreed at Cabinet on 10 December 2020) with the council tax relief grant made available under the recent Spending Review, to provide a lump sum payment in 2021/22 to qualifying persons, which in certain cases would – taking into account the council tax reduction awarded – equal 100% of their council tax liability.

(8) To approve, as a Restricted Matter under the LLP Agreement with Eastbourne Borough Council, the making of a loan facility [of up to £10m] by Eastbourne Borough Council (pursuant to an Eastbourne Borough Council Cabinet decision of February 2021) to AHLLP for the purpose of enabling the partnership to purchase and develop residential accommodation and other property. Also, to delegate authority to the Chief Finance Officer in consultation with the Lead Member for Finance to agree the terms of that loan facility and any associated documentation and to authorise the execution of any related documentation.

(9) To authorise the Chief Finance Officer to ensure that a new “Deed of Entrustment” and the appropriate Funding Agreements are entered into by AHLLP with Eastbourne Borough Council to ensure that:

(a) loans and other funding follow the new Subsidy Control regime which applies from 1 January 2021; and

(b) Right to Buy receipts are appropriated in accordance with legislative requirements and the retention agreement with Government in

relation to “social housing”.

(10) To delegate authority to the Chief Finance Officer to determine the terms of such agreements.

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

Despite the significant challenges of Covid-19, set out in the report, efficiencies, savings, and the limited use of reserves had made it possible for the Council to deliver a balanced budget for 2021/22.

The report also confirmed a major capital programme that focused on using the council's financial power to stimulate the local economy and tackle the climate emergency.

As part of her presentation and addressing the future recovery and conclusion of the furlough scheme, Councillor Nicholson proposed two additional resolutions, to support those in financial distress. This was unanimously agreed by Cabinet and detailed at resolutions (6) and (7) below.

The Policy and Performance Advisory Committee, at its meeting on 25 January 2021, made the following recommendation to Cabinet:

To support the recommendations in the report subject to the following amendment being considered by the Cabinet:

Recommendation ii) in the Cabinet report be amended to read…. ‘Zero increase in the Council Tax for Lewes District Council for 2021/22’.

The recommendation from the Policy and Performance Advisory Committee (PPAC), was presented by Councillor Burman, member of PPAC and considered by Cabinet during their discussions. Visiting member and Leader of the Opposition, Councillor Linington also spoke in support of the PPAC recommendation.

The report proposed a 9.6p a week increase in Council Tax for 2021/22, which equated to £5 a year in the council's share of the bill. The Cabinet advised that this ensured that the council could continue to deliver essential services to residents, support local businesses and help the wider community to recover from the economic impact of Covid-19.

Councillors MacCleary, Meyer and Nicholson declared a prejudicial interest in the second set of officer recommendations for this item as members of the Aspiration Homes LLP Executive Committee. They withdrew from the meeting whilst this section of the item was discussed. Councillor Collier was nominated to Chair the meeting for the duration of this section.

Recommended to Full Council (Budget and policy framework):

Members recommended the following proposals to Full Council:

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

(2) An increase in the Council Tax for Lewes District Council of £5 (per annum) resulting in a Band D charge for general expenses of £197.08 (per annum) for 2021/22.

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

(4) That Cabinet endorses the continuation of the Flexible use of Capital Receipts and refers on to Council for approval.

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

Resolved (Key decision):

(6) That as soon as practicable officers bring to Cabinet a report on the statutory process for amending the Council Tax Reduction Scheme for 2022/23 and which sets out the financial and other implications of providing a 100% discount to qualifying persons.

(7) That, in order to maximise the assistance to working age residents in financial distress, officers combine the remaining Council Tax Hardship Scheme funds (as previously agreed at Cabinet on 10 December 2020) with the council tax relief grant made available under the recent Spending Review, to provide a lump sum payment in 2021/22 to qualifying persons, which in certain cases would – taking into account the council tax reduction awarded – equal 100% of their council tax liability.

(8) To approve, as a Restricted Matter under the LLP Agreement with Eastbourne Borough Council, the making of a loan facility of up to £10m by Eastbourne Borough Council (pursuant to an Eastbourne Borough Council Cabinet decision of February 2021) to AHLLP for the purpose of enabling the partnership to purchase and develop residential accommodation and other property. Also, to delegate authority to the Chief Finance Officer in consultation with the Lead Member for Finance to agree the terms of that loan facility and any associated documentation and to authorise the execution of any related documentation.

(9) To authorise the Chief Finance Officer to ensure that a new “Deed of Entrustment” and the appropriate Funding Agreements are entered into by AHLLP with Eastbourne Borough Council to ensure that:

(a) loans and other funding follow the new Subsidy Control regime which applies from 1 January 2021; and

(b) Right to Buy receipts are appropriated in accordance with legislative requirements and the retention agreement with Government in

relation to “social housing”.

(10) To delegate authority to the Chief Finance Officer to determine the terms of such agreements.

Reason for decisions:

The Cabinet has to recommend to Full Council the setting of a revenue budget and associated council tax for the forthcoming financial year by law.