Agenda and minutes

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Items
No. Item

1.

Apologies

To receive apologies for absence.

Minutes:

There were no apologies for absence.

2.

Declarations of Interest

To receive any declarations of interest from Members relating to items to be considered on the agenda.

Minutes:

There were no declarations of interest reported.

3.

Draft Medium-Term Financial Strategy 2021-2026 and Draft 2021-22 Budget and Capital Programme for 2021-2031 pdf icon PDF 815 KB

To consider the Draft Medium-Term Financial Strategy 2021-2026 and Draft 2021-22 Budget and Capital Programme for 2021-2031.

Additional documents:

Minutes:

The Chief Executive reminded Members of their duty to set a balanced budget and the rate of Council Tax by 11th March.

 

The Portfolio Holder for Finance presented the Draft Medium-Term Financial Strategy 2021-2026 and Draft 2021-22 Budget and Capital Programme for 2021-2031. He explained that in addition to the usual pressures, the budget had been set against the background of the Covid-19 pandemic and that the affordability of Council Tax had been a key consideration. He noted that pandemic and the ongoing measures imposed continued to have an unprecedented detrimental financial impact on the Council that was likely to continue through 2021-22 and into future years. The additional financial support provided by Welsh Government during 2020-21 had been significant and instrumental in sustaining the Council’s financial position.  Further support was expected to be available into 2021-22 but at what level and for how long was yet to be confirmed so significant risk remained.

 

The budget and Medium-Term Financial Strategy (MTFS) was aligned with Vision 2025, the Council’s Corporate Improvement Plan and the identified the Council’s service and resource priorities for the next five financial years, with a focus on 2021-22.

 

The MTFS included the:

 

·         principles that govern the strategy and a five-year Financial Resource Model (FRM), comprising detailed proposals for 2021-22 and outline proposals for 2022-23 to 2025-26.

·         Capital Financing Strategy and the Treasury Management Strategy; and

·         Capital Programme for 2021-22 to 2030-31.

 

The Capital and Treasury Management Strategies were fundamental to the effective delivery of the Council’s priorities and Vision 2025.  Maintaining the capital programme had a significant regeneration impact for the economy of Powys alongside the direct effect of better infrastructure to deliver services.  Capital investment also had a significant input into the delivery of revenue cost reductions, and it was essential that both budget strategies were developed in tandem.

 

£11.8 m cost reductions had been identified, each of which was supported by an impact assessment. The Senior Leadership Team had provided assurance to Cabinet that they could deliver the cost reductions within the required timescales. 

 

In recent weeks there had been a series of Welsh Government announcements providing the Council with additional revenue funding for the current financial year.  Cabinet had reviewed the budget position and had proposed an amendment to the budget that had been circulated to Council. The amendment was for a council tax increase of 2.9% and the creation of a £1.8 million Powys Recovery Fund.

 

The Portfolio Holder for Finance moved the amendment which was seconded by the Leader.

 

Members of the opposition groups expressed disappointment that they had not been allowed to present their alternative budget based on a council tax increase of 1.9% on the ruling of the Section 151 Officer that it contained too much risk. They challenged the Cabinet on the affordability of a 2.9% rise in council tax, the impact of further cuts on the arts, culture and libraries budgets, cuts in Countryside Services and public toilets, the lack of impact assessments for the amendment and  ...  view the full minutes text for item 3.