Agenda item

General Revenue Budget, Council Tax Levels and Capital Programme 2020/21

Meeting of Budget, Council, Thursday, 27th February, 2020 7.00 pm (Item 281.)

To determine the General Revenue Budget, Council Tax Levels and Capital Programme for 2020/21. To enable the Council to make the required decisions, the following documents are submitted:-

a) General Fund Revenue Budget 2020/21

The proposals put forward by the Cabinet on 12^th February 2020 are set out in the attached report. The final proposals of the Controlling Group will be submitted at the meeting.

b) General Fund Capital Programme 2020/21

The proposals put forward by the Cabinet on 12^th February 2020 are set out in the attached report. The final proposals of the Controlling Group will be submitted at the meeting.

c) Comments and Recommendations of Overview and Scrutiny

The Resources Overview and Scrutiny Committee met on 18^th February 2020 to consider the budget proposals for 2020/21. The Committee’s comments will be reported at the meeting.

NOTE: In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote will be required in respect of this decision.

Minutes:

Before the start of the budget debate, the Mayor reminded Members of the usual order and format of the debate, a copy of which had been circulated at the commencement of the meeting. There were no comments raised on the proposed order of debate.

The Leader of the Council presented the proposed Revenue and Capital Budget and Council Tax Levels for 2020/21. Proposals for the 2020/21 General Fund Revenue Budget and Capital Programme had been put forward at Cabinet on the 12^th February 2020 and had been recommended to Council for approval.

The Leader put forward an updated report, circulated at the meeting, setting out the Council’s budget requirement for 2020/21, its Precept on the Collection Fund and the formal details surrounding the Precept of other bodies on the Collection Fund and seeking permission to continue to allow former Area Council budgets for Capital and Revenue to be retained by those groups or their successors and for additional payment or payments to be made to Lancashire Pension Authority if surplus funds existed.

The Chair of the Resources Overview and Scrutiny Committee, Councillor Noordad Aziz, indicated that, at the annual Budget Overview and Scrutiny meeting on 18^th February 2020, the Committee had reviewed the Revenue and Capital Budget proposals submitted by the Leader of the Council. No alternative budgets had been proposed.

The budget proposals submitted had been reviewed and discussed in depth by the Committee, and the following recommendations were submitted to Council:

“That Council notes the following resolutions of the Resources Overview and Scrutiny Committee:-

(1) That the Committee gave consideration and noted the content of the reports relating to; Medium Term Financial Strategy 2020/21 – 2022/23, Prudential Indicators Monitoring & Treasury Management 2020/21, General Fund Revenue Budget 2020/21 and Capital Programme 2020/21;

(2) That the Committee thanked the Leader of the Council and Portfolio Holder for Resources for their participation in the Scrutiny meeting and debate;

(3) That the Deputy Chief Executive, and all other officers involved, be commended for their work in producing the budget.

(4) That the Committee recommends the urgent establishment of a Cross Party Working Group to look at resolving issues associated with Clayton Boxing Club and their search for a new facility in Clayton-le Moors following a Sport England grant of £50,000 towards this project.

(5) That having reviewed and debated the budget submitted, the Committee supports the content of the Revenue and Capital Budget reports as outlined.”

Councillor Aziz added that the Committee had also made some general observations that the language used around borrowing was relatively negative and that a more neutral stance might be adopted which could, for example, encourage ‘Invest to Save’ schemes.

The Leader responded that, on behalf of the Cabinet, he was happy to endorse the recommendations of the Resources Overview and Scrutiny Committee.

A MOTION was proposed by Councillor Miles Parkinson and seconded by Councillor Joyce Plummer:-

“That the recommendations for the General Fund Revenue Budget, General Fund Capital Programme Budget and Council Tax Levels for 2020/21, now submitted by the Controlling Group of the Council, be approved.”

No alternative proposals were submitted by the opposition (Conservative Group).

The Leader of the Council outlined the Controlling Group’s vision for Hyndburn, which would focus on: ‘Where we have been - Where we are today - Where we are going’. A new building wrap, to reflect the new theme, would be provided on the Broadway frontage of the Town Hall Offices, replacing the aging Accrington Pals wrap. It was acknowledged that a vibrant future could only be achieved in collaboration with all stakeholders.

The Borough would celebrate its heritage including:-

300^th anniversary of the birth of James Hargreaves, inventor of the Spinning Jenny;
The growth of the industrial revolution;
Significant local inventions such as khaki dye, terylene, and the mercerisation of cotton; and
Key local industries including bricks, coal, weaving and Ewbank.

Current initiatives in the Borough included signing up to the Climate Emergency Resolution. There were a number of existing successful green energy projects, including the Hyndburn Wind Farm on Oswaldtwistle Moor, Whinney Hill Energy from Waste Plant landfill gas and a solar panel farm in Altham. In addition, large companies such as Senator and Whatmore already had significant recycling programmes underway.

Moving forward, the Borough could take advantage of the green revolution by encouraging green jobs and technologies and taking care of our environment. Around £1m had already been set aside for climate change and green initiatives. Hyndburn already had the largest area of public green spaces in Lancashire and potentially could plant more woodland. The ambition was for Hyndburn to lead the way in Lancashire and be at the forefront of numerous green initiatives.

Regeneration would also be a feature of the Council’s vision. A recent cross party meeting had been held to discuss the pilot scheme to regenerate the town centre of Accrington. An initial meeting with the Government advisors would be held on 6^th March 2020. The Task Group would initially focus on Accrington, but the learning could be rolled out to the other townships and encompass wider housing and employment opportunities.

A debate on the motion then followed. Some comments and questions were raised in relation to the following matters:

Becoming a trailblazer around the green agenda;
Progress on the issue of air quality outside schools;
Increased funding for and opportunities to use the Disabled Facilities Grant (DFG);
The difficulties in utilising brownfield sites for housing development;
The possible development of an Opposition budget;
The valuable role of overview and scrutiny in the budget challenge process; and
The Council’s good track record in setting a responsible and effective budget.

The Leader of the Council summed up with the following:-

The Council would ensure that any additional DFG monies were rolled out effectively. There were many senior citizens in Hyndburn for whom adaptations would enable them to stay in their own home. However, older properties were often hard to adapt.
The local plan would address which sites would be used for housing development. It was noted that developers frequently indicated that brownfield sites were uneconomical to build on. Often the Council had to take difficult decisions around existing open space, such as Lyndon Playing Fields in Great Harwood, in order to ensure that housing and employment land needs were met.
Regarding the future vision, while some of the Borough’s industrial heritage had contributed negatively on the environment, there was now an opportunity for Hyndburn to give back to the planet. It was envisaged that the pace of green projects would increase over time.
The Town Centre Task Group would meet with civil servants next week to begin the process of shaping the future of Accrington Town Centre.

The motion was then put to the vote. In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 a recorded vote was taken. The votes were recorded as follows:-

For the Motion:

Councillor June Harrison (Mayor), Councillors Judith Addison, Josh Allen, Mohammad Ayub, Noordad Aziz, Jean Battle, Sara Britcliffe Stephen Button, Andrew Clegg, Loraine Cox, Paul Cox, Munsif Dad BEM JP, Tony Dobson, Stewart Eaves, Diane Fielding, Glen Harrison, Marlene Haworth, Eamonn Higgins, Terry Hurn, Abdul Khan, Chris Knight, Patrick McGinley, Michael Miller, Jenny Molineux, Tim O’Kane, Dave Parkins, Bernadette Parkinson, Miles Parkinson OBE, Joyce Plummer, Kath Pratt, Jeff Scales, Paddy Short and Kate Walsh

Against the Motion

None

Abstentions

None

The motion was therefore carried and it was:-

Resolved (1) That the undermentioned recommendations on the Revenue and Capital Budgets and Prudential Indicators and Treasury Management Report for 2020/21 to 2022/23 made at the Cabinet meeting on 12^th February 2020, as amended by the motion now submitted by the Controlling Group of the Council, be accepted and adopted.

(a) That Council Tax for Hyndburn Borough Council is increased by £5.00 to £250.52 for the year for a Band D property. This is equivalent to a 10p per week increase for a Band D property but most households in Hyndburn will see an annual increase of £3.34 as they live in Band A properties. The weekly increase here will be 7p.

(b) That the Budget for 2020/21 will therefore be £11,227,000 as detailed in Appendices 1 and 2 of the Cabinet report.

(c) That approval be granted to the savings approach outlined for 2020/21 as set out in Appendix 3 of the Cabinet report, to ensure the Council has a balanced budget.

(d) That during the financial year 2020/21, the Deputy Chief Executive be delegated responsibility to amend the Budget (following consultation with the Leader of the Council) for technical reasons, such as the restructuring of cost centres, the re-apportionment and re-allocation of overheads etc., provided such amendments have an overall neutral impact on the Budget.

(e) That during the financial year 2020/21, the Deputy Chief Executive be delegated responsibility to amend the Budget (following consultation with the Leader of the Council) should the estimate of Business Rates not be sufficiently accurate, by drawing on reserves if needed or paying over additional contributions to reserves.

(f) That, to aid future financial management planning, any surpluses generated during 2020/21 are set aside to help the Council reduce its cost base over the next three years, support its long term capital programme or strengthen its overall reserve position.

(g) That the New Homes Bonus and any additional funds from Government that are not ring-fenced funding as well as any further surplus on the Collection Fund can be used if required to support capital expenditure as determined by the Deputy Chief Executive in the overall financing of capital expenditure or be transferred to reserves.

(2) That the Council notes the resolutions of the Resources Overview and Scrutiny Committee of 18^th February 2020.

(3) That the Council commits to continuing to strengthen its Reserves during the year and requires the Chief Executive and the Deputy Chief Executive to take appropriate action to protect the Council’s overall financial position and further strengthen its Reserves during the forthcoming year.

(4) That the Council delegates authority to the Chief Executive to take such action as he considers necessary to implement the measures contained in this budget.

(5) That it be noted that on 15^th January 2020 the Council at its Cabinet calculated:

(a) the Council Tax Base 2020/21 for the whole Council area as 20,948 (Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended (the “Act”)) and,

(b) for dwellings in those parts of its area to which a Parish precept relates as 315.

(6) That Council agrees that the Council Tax requirement for the Council’s own purpose for 2020/21 (excluding Parish precepts) is £5,247,893.

(7) That Council agrees that the following amounts be calculated for the year 2020/21 in accordance with Sections 31 to 36 of the Act:

(a)	£53,160,589	being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils
(b)	£47,900,011	being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
(c)	£5,260,578	being the amount by which the aggregate at 7(a) above exceeds the aggregate at 7(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 31A(4) of the Act).
(d)	£251.13	being the amount at 7(c) above (Item R), all divided by Item T (5 above), calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).
(e)	£12,685	being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per the attached Appendix B).
(f)	£250.52	being the amount at 7(d) above less the result given by dividing the amount at 7(e) above by Item T (5 above), 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 Parish precept relates.

(8) That Council note that the County Council, the Lancashire Police & Crime Commissioner and the Lancashire Combined Fire & Rescue Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 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 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the table below as the amounts of Council Tax for 2020/21 for each part of its area and for each of the categories of dwellings.

Band D Council Tax Rates for Each Preceptor

(10)That the Council note the basic amount of Council Tax for 2020/21 is not considered excessive in accordance with principles approved under Section 52 ZB Local Government Finance Act 1992.

(11)That any continuing balances on Revenue or Capital previously earmarked for Area Councils continues to be set aside for use by these or their successor bodies.

(12)that the Chief Executive is given delegated authority to use the unallocated surplus generated in 2019/20 to fund any future shortfall in income or additional expenditure, to support “Invest to Save” projects that will help reduce the Council’s long term costs (including additional payments to the Pension Fund as outlined below), or support specific capital projects, or finance other commitments that he deems to be in the best long term interest of the Council or to transfer funds to Reserves as required.

(13)That the Chief Executive is given delegated authority following consultation with the Leader to make a payment to the Lancashire Pension Authority to help reduce the extent of the Council’s pension liabilities that have amassed from previous years (£36.9m as at the 31st March 2019).

The next meeting of the Council will be held on 26^th March 2020.

Supporting documents: