Issue - meetings

To receive the report of the Executive Director of Resources, presenting for approval the Budget for 2021/22 and Medium-Term Financial Plan 2021/22 to 2025/26.       

Members are asked to note that Cabinet considered the report at their meeting on 3 February 2021 and recommended it to Council.

Councillor Maguire moved and Councillor Caliskan seconded the report of the Executive Director Resources presenting the 2021/22 Budget and 2021/22 to 2025/26 Medium Term Financial Plan for Council approval. 

NOTED

1.            The report and recommendations had been considered at Cabinet on 3 February 2021and recommended on for Council.

2.            The following key points highlighted by Councillor Maguire, Cabinet Member for Finance and Procurement, when moving the report. 

a.    In setting the budget the following principles had been followed:  balancing the books; protecting the most vulnerable; making achievable savings; and setting realistic income targets.

b.    Thanks to the Executive Director Resources and all the officers who had worked so hard to put the budget reports together. 

c.    This was a time of great uncertainty following on from over ten years of austerity and the last year of the pandemic.  The pandemic had had a huge financial and personal impact on so many people.  Unemployment in Enfield had increased by 163% and 21,000 people were furloughed.  Many furloughed workers and local businesses faced great uncertainty.  

d.    The Government had failed to provide long promised fairer funding, the review of adult social care, the business rate reset or to give Council’s financial certainty over 3 years. This year’s budget would still only cover one year.

e.    There were so many areas were figures were uncertain including in adult social care, children’s services, temporary accommodation and the council tax collection rates

f.     The Council was looking to the Government to see if any extra help would be provided in the budget on the following day. 

g.    Table 2 in the report set out a summary of the current financial position.  Without the £29m budget gap which had arisen as a result of Covid, the Council’s finances would have been in surplus.  Tough decisions had had to be taken, despite the ability to roll forward this year’s deficit over 3 years.

h.    Enfield residents were having to make up the deficit through a higher council tax.  Government measures had made it necessary for the Council to increase the tax by 4.99% (1.99% general increase and 3% for adult social care) plus the GLA precept. 

i.      The increase worked out at £1.91 a week, a total of £1,795 for a Band D council tax-payer.  This was set out in table 4 together with information on the medium term financial plan, the schools budget, fees and charges and risks and reserves. 

j.      This had been a painful year for everyone, but the Council had managed to set a balanced budget and was able to allocate funding for its priorities including £83m for adult social care, £44m for children’s services, £40m to protect the poorest and most vulnerable, £11.6m on freedom passes, £5.6m on keeping the streets clean, £16.9m on rubbish collection, £3.5m on the environment, £3.9m on the borough’s 130 parks and open spaces, £2.9m on libraries, museums and web services. 

k.    The Council was presenting a balanced budget, which would have been in surplus, without  ...  view the full minutes text for item 6

To receive the report of the Acting Executive Director of Resources, presenting for approval the Budget for 2020/21 and Medium-Term Financial Plan 2020/21 to 2024/25.            

(Report No: 190A)

(Key Decision – Reference No: 5076)

Members are asked to note that Cabinet considered the report at their meeting on 12 February 2020 and recommended it to Council.

Councillor Maguire moved and Councillor Caliskan seconded the report of the Acting Executive Director Resources presenting the 2020/21 Budget and 2020/21 to 2024/25 Medium Term Financial Plan for Council approval.  (Report No: 190A)

NOTED

1.            Recommendations 2.1 – 2.10 had been endorsed and recommended onto Council for formal approval by Cabinet on 12 February 2020.

2.            The amendment to recommendation 2.1 (ii) set out in the green update sheet as follows:

“2.1(ii) a.  Set the Council Tax at Band D for Enfield’s services for 2020/21 at £1,363.77 (section 7), being a 1.99% general Council Tax increase and a 2.00% Adult Social Care Precept.

b.   Set the Council Tax at Band D for the total of Enfield’s services and GLA services for 2020/21 at £1,694.8

c.  Note the GLA element of the Total Band D for 2020/21 being £332.07”

3.            The following comments highlighted by Councillor Maguire, Cabinet Member for Finance and Procurement when moving the report. 

a.         That once again the Council would receive insufficient funding from the Government.  Since 2010 it had suffered a cut of more than 50%, down from £191.2m to £94.7m.  In real terms, taking account of inflation, this would be £178m.

b.         Enfield also suffers from the damping mechanism, meaning it receives £11m less than Government assesses we should.  This equates to £80 for every household.  A £76m budget gap. 

c.         Many services have increased costs including social and children’s services.

d.         Nevertheless, the administration had managed to set a resilient and sustainable budget which will protect vulnerable residents.

e.         The Government’s one-off approach to funding could only be a sticking plaster.  Despite multiple promises the settlement this year only covers one year which makes planning ahead difficult. 

f.          The Adult Social Care precept will bring in £4.5m which will not be enough.

g.         However, despite reduced funding and many savings, the Council continues to provide the best possible services.

h.         Thanks to the Chief Executive, Executive Directors and all the staff who had worked so hard to find every penny of savings and deliver this budget. 

i.          This year the Council had produced a 5-year financial plan, a 10 year Capital strategy and a ten year treasury management strategy to provide additional transparency.

j.          The savings identified were realistic and achievable. It was proposed that the Council uses £1.5m of its reserves which keeps them at an acceptable level of £39m.  17% of the net budget. 

k.         Full details are set out in the report including all savings and income generation schemes, the schools’ budget, fees and charges, anticipated pressures and including an additional £10.5m for adult social care, using £1m of the Community Infrastructure levy to support the recommendations from the recent poverty commission, 0.5m for flytipping.

l.          The green update sheet contains an amendment highlighting the contribution to the Mayor of London. 

m.       The Council Tax will increase by 1.99% including the increase in the Mayor of London’s levy of 3.91%, this will result in an average increase of £1.22 a  ...  view the full minutes text for item 8

A report from the Executive Director – Resources is attached. (Report No.199, agenda part two also refers) (Key decision – reference number 5076)

(Report No.190)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources (No.190) recommending the setting of the general revenue budget and council tax for the 2020/21 financial year.

NOTED

1.            That the proposals set out in the report were the culmination of the 2020/21 budget planning process and built on previous Cabinet decisions relating to the tranche one and two savings; and, the Council Tax support scheme and business rate base decisions. The proposals reflected the discussions which had taken place on the Council’s priorities, demands and pressures. Members reiterated the need for adequate Government funding to provide a sustainable budget that was not reliant on the allocation of one-off Government resources; long-term funding was required to provide certainty and efficient future planning of services.

2.            The detail of the national context and Local Government Finance Settlement as detailed in section 4 of the report and the amendment sheet circulated at the meeting. The Council would continue to lobby the Government for timely multi-year funding settlements.

3.            That the Council’s budget was under constant review by the Cabinet Members and senior officers. The Council would continue to seek to protect its most vulnerable residents and meet service demands.

4.            As set out in the report, its purpose was to set the general revenue budget and council tax for the 2020/21 financial year. It also updated the Council’s Medium-Term Financial Plan in the light of those decisions. In summary it recommended:

·         A net revenue budget of £236.904m, a 2.56% increase when compared with 2019/2020.

·         The net revenue budget contained investment in services of £4.5m and savings/income generation proposals of £11.9m.

·         A core council tax of £1,244.57 at Band D, a 1.99% increase

·         A further £119.20 at Band D to pay for Adult Social Care as allowed by Central Government, a 2.00% increase on 2019/20.

·         This resulted in a charge for Enfield Council of £1,363.77 at Band D, a 3.99% increase: equivalent to an increase of £1.00 per week for a Band D property.

·         Additionally, the Council would levy a council tax of £332.07 at Band D on behalf of the Greater London Authority which was a 3.61% increase on last year.

·         In total the impact of these proposals would be total council tax of £1,695.84 at Band D, a 3.91% increase on the 2019/2020 level, equivalent to an increase of £1.22 per week for a Band D property.

5.            A number of areas of investment were highlighted to Members as detailed within the report including in Adults Social Care and Children’s Services; transformation; tackling youth violence; and, £1m of CIL neighbourhood funding to support the implementation of the 27 recommendation arising from the recent Poverty Commission report (Minute No.10 below referred). The budget process had sought to protect the most vulnerable in the Borough.

6.            The recommendations within the report regarding the Schools’ Budget.

7.            That the report included recommendations on the appropriate level for the Council’s contingencies, balances and earmarked reserves.

8.            That  ...  view the full minutes text for item 5