Issue - meetings

[To consider and determine the Council’s budgetary provisions for the forthcoming municipal year:

·       Capital Programme 2020-2021 to 2024-2025 quarter three review and 2021- 2022 to 2025-2026 budget strategy

·       Treasury Management Strategy 2021-2022 

·       Final Budget and Medium-Term Financial Strategy 2021-2022 to 2023-2024

·       Council Tax Formal Resolutions.]

1.      That the revised City of Wolverhampton Council Capital Strategy be approved.

2.      That the revised, medium term General Revenue account capital programme of £316.4 million, an increase of £1.6 million from the previously approved programme, and the change in associated resources be approved.

3.      That the authorised borrowing limit for 2021-2022 to support the capital strategy as required under Section 3(1) of the Local Government Act 2003 to be set at £1,166.2 million (PI3, Appendix 3 of the Cabinet report); the forecast borrowing is below the authorised borrowing limit.

4.      That the Treasury Management Strategy Statement 2021-2022 as set out in Appendix 1 of the Cabinet report be approved.

5.      That the Annual Investment Strategy 2021-2022 as set out in Appendix 2 of the Cabinet report be approved.

6.      That the Prudential and Treasury Management Indicators as set out in Appendix 3 of the Cabinet report be approved.

7.      That the Annual Minimum Revenue Provision (MRP) Statement setting out the method used to calculate MRP for 2021-2022 as set out in Appendix 4 of the Cabinet report be approved. 

8.      That the method used to calculate MRP for 2020-2021 as set out in the Annual MRP Statement approved by Council on 4 March 2020 be amended to the method as set out in Appendix 4 of the Cabinet report.

9.      That the Treasury Management Policy Statement and Treasury Management Practices as set out in Appendix 6 of the Cabinet report be approved.

10.   That authority continues to be delegated to the Director of Finance to amend the Treasury Management Policy and Practices and any corresponding changes required to the Treasury Management Strategy, the Prudential and Treasury Management Indicators, the Investment Strategy and the Annual MRP Statement to ensure they remain aligned. Any amendments would be reported to the Cabinet Member for Resources and Cabinet (Resources) Panel as appropriate.

11.   That authority continues to be delegated to the Director of Finance to lower the minimum sovereign rating in the Annual Investment Strategy, in the event of the UK’s credit rating being downgraded by the third credit rating agency, due to the unprecedented impact of Covid-19 on the economy.

12.   That the net budget requirement for 2021-2022 of £258.5 million for General Fund services (paragraph 10.1 of the Cabinet report) be approved.

13.   That the Medium Term Financial Strategy (MTFS) 2021-2022 to 2023-2024 as detailed in Table 4 and the budget preparation parameters underpinning the MTFS as detailed in Appendix 2 of the Cabinet report be approved. 

14.   That a Council Tax for Council services in 2021-2022 of £1,765.49 for a Band D property, being an increase of 4.99% on 2020-2021 levels, which incorporates the 3% increase in relation to Adult Social Care, in line with Government expectations. (paragraph 8.4, Table 1 of the Cabinet report) be approved.

15.   That work starts on developing budget reductions and income generation proposals for 2022-2023 onwards in line with the Five Year Financial Strategy (paragraph 10.5 of the Cabinet report).

16.   That revisions to  ...  view the full decision text for item 6

Councillor Louise Miles presented the Final Budget Report 2021-2022 which encompassed the Capital Programme 2020-2021 to 2024-2025 quarter three review and 2021- 2022 to 2025-2026 budget strategy, Treasury Management Strategy 2021-2022, Final Budget and Medium-Term Financial Strategy 2021-2022 to 2023-2024, Council Tax Formal Resolutions for approval.

Councillor Louise Miles outlined the recommendations of the report, drawing Councillor’s attention to the challenges that the Council faced. She advised the proposed budget was balanced without the need to make significant or fundamental cuts to services.

Councillor Louise Miles advised that the Final Budget Report was underpinned by the Our Council Plan and Relighting our City Commitment to ensure that resources were aligned with the priorities of the Council.

Councillor Louise Miles advised that the Council was committed to supporting residents, children and young people, more good jobs and investment in the city and the City’s green agenda. 

Councillor Louise Miles advised that Council Tax would be increased by 1.99% and adult social care by 3%. She went on to outline the rationale for increasing these taxes.

Councillor Louise Miles thanked residents, partners and the youth Council for their support and contributions towards budget consultations.

Councillor Louise Miles advised that the budget set last year was affected and distorted by the impact of Covid-19. She acknowledged the funding received by central government as a result of the pandemic and provided a breakdown of the funding received and noted it was difficult to confirm the exact costs associated with Covid-19.

Councillor Louise Miles proposed the recommendations and the Leader of the Council, Councillor Ian Brookfield seconded the recommendations.

Councillor Wendy Thompson moved the following amendment to the budget:

1)   Change to Council Tax Rate

A reduction from 4.99% to 3.99% in the council tax increase; funded from the Budget Strategy Reserve at a cost of £1.069 million.

          At Page15 of this report:

At “Council Tax formal resolutions for 2021-2022” make the below changes:

At 2, delete: “£112,251,000” and insert: “£111,182,000.

At 3. (b) delete: “£530,476,000” and insert: “£531,536,000.

At 3. (c) delete: “£112,251,000” and insert: “£111,182,000”.

At 3. (d) delete “£1,765.49” and insert: “£1,748.68”.

At 3. (f) delete: “£1,765.49” and insert “£1,748.68”.

          At Page 16 of this report:

At 4. Insert: “To note that West Midlands Mayor has not issued a precept 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.” after “To note that West Midlands Police and Fire Authorities 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.”

Delete the table at 4. and insert the below: