Agenda item

To scrutinise the Detailed Revenue Budget for 2021/22 prior to it being considered by Cabinet on 24 February 2021.

The Chief Accountant introduced the report and drew the Committees attention to the key aspects and explained that the details of how officers had arrived at the figures stated was set out in section three. The Chief Accountant informed members that the Chief Financial Officer is satisfied that the Council have complied with the CIPFA code and legislation as set stated in section eight.

The portfolio holder for Finance, Councillor Buttar, was invited to address the Committee. Councillor Buttar informed the Committee the Council had listened to members views and tried to incorporate them.

In response to members questions the Deputy Chief Executive informed the Committee that a detailed breakdown of the figures by portfolio holder would be going to Council along with appendices containing additional information including the comparison of Council Tax with Surrey County Council and the Police and Crime Commissioner and a year on year breakdown.

Members expressed the view that it was not clear what would be covered by the 1 million set aside for issues relating to COVID and expressed concern at the increase in domestic violence and financial hardship and sought assurance that there would be provision for supporting these areas.

The Deputy Chief Executive informed members that the family support team had expanded and it was anticipated that other frontline staff would encounter some issues but this was being addressed. Members were advised that the grants panel had considered the range of issues generated by COVID and that these issues would be addressed in a report to Cabinet that would be published on 16 February. The Deputy Chief Executive confirmed that the report did include the details of a grant towards the Citizens Advice Bureau and that the Council did make contributions to Surrey domestic violence support.

The Deputy Leader and portfolio holder for Community Wellbeing and Housing, Councillor Attewell, was invited to comment and confirmed that there were concerns that Housing Associations would take action against those in rent arrears when they were able to do so and that a COVID recovery report  was being worked on.

In response to further questions the Deputy Chief Executive explained that the residents may be eligible for Council Tax support if their income is negatively impacted which would result in additional financial and staffing pressures. He advised that the government had provided some funding but any additional costs would need to be covered by the COVID contingency fund.  

Members queried the funds set aside for litigation and if the risk had been legally assessed. The Deputy Chief Executive informed the Committee that the risk had not been legally assessed but that was a prudent precaution to ensure funds were available if the issue could not be resolved.

In response to members questions the Chief Accountant explained that it was generally accepted that unused contingencies could go back into the general fund and Councillors would be asked to agree any proposed spend.

Members asked the Deputy Chief Executive if he could explain the large increase in staffing levels and noted that the starting point for the increase in 2016 was at the end of a year on year slicing of staffing numbers and as a result the Council  were experiencing issues with service delivery.

Members expressed concern that by freezing the Council Tax base for one year the Council would not catch up in future years as increases would always be from a lower base. The Deputy Chief Executive explained that had the Council imposed the maximum increase it would have equated to approximately an additional £200k towards the budget in the short term.

Members expressed the view that the saving for individual residents would be minimal and could have been better spent.

Members discussed the Councils provision for Green projects and climate change and agreed that they felt there was inadequate provision and that the Council’s aspirations in this area were not sufficient.

The Committee resolved to recommend to Cabinet:

Recommendation 1: The Committee were concerned over the adequacy of the monies set aside for green issues and climate change which undermines climate change as a priority and ask Cabinet to review this.

Recommendation 2: The Committee expressed concern about the financial benefit to residents of freezing the Council Tax base against the benefit of using the additional income for projects that would benefit the wider community.

Recommendation 3: That next year the Service Committees will have sight of the budget earlier in the process to enable them to be fully involved in the shaping of the final budget before it is presented to Council for approval.