Report of the County Treasurer (CT/20/19) on the Council’s Budget and Cabinet Service Budgets for 2020/2021, will follow.
The Cabinet will accordingly also consider the outcome of the Budget Consultation Meetings (CSO/20/04) and the Scrutiny Budget Recommendations (CSO/20/05).
(Councillors Biederman, Dewhirst, Greenslade and Hannaford attended in accordance with Standing Order 25(2) and spoke to this item).
The Cabinet considered and had regard to:
(i) the Report of the Chief Executive (CSO/20/04) summarising the outcomes of and comments/observations made at consultation meetings with representatives of Devon’s Business Community, Trades Unions, representatives of Older People and the Voluntary Sector;
(ii) the discussions of the Council’s Scrutiny Committees held on 20th, 23rd and 28th January 2020, the recommendations being summarised and attached to the agenda (CSO/20/05);
(iii) a revised 2020/21 Budget Impact Assessment, which had been circulated to all Members of the Council prior to the meeting and available at https://www.devon.gov.uk/impact/budget-2020-2021/ undertaken as part of the budget’s preparation;
(iv) the Report of the County Treasurer (CT/20/19) (also circulated prior to the meeting in line with Regulation 7(4) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012)) on the Revenue Budget for 2020/21, Medium Term Financial Strategy to 2023/24 and Capital Strategy 2020/21 to 2024/25, including an assessment of the adequacy of reserves, a range of prudential indicators concerning the financial implications of the capital programme and an assessment that identified risks associated with the budget strategy, together with how the risks would be managed. The budget book contained details of the County Council’s revenue and capital budgets together with associated financial and operational information.
The Cabinet noted the role of the Corporate Infrastructure and Regulatory Services Scrutiny Committee on 28th January 2020 (Minute *171) in reviewing and endorsing the Report of the County Treasurer (CT/20/18) on the Treasury Management and Investment Strategy for 2020/21, prepared in accordance with the revised Treasury Management Policy Statement and revised CIPFA Code of Practice for Treasury Management. The Treasury Management and Investment Strategy set out the minimum revenue provision (MRP) policy, capital expenditure funding, prudential indicators, the current treasury position, debt and investments; prospects for interest rates; the borrowing strategy; and the investment strategy.
The Committee had commended the Treasury Management Strategy 2020/21 to the Cabinet.
The Cabinet noted that the Council’s financial plans had been drawn up with reference to the County Council’s major policies and objectives, the County Council’s performance framework, demographic changes occurring within the County; and consultation with local residents, businesses and other stakeholders.
The final Local Government financial settlement for 2020/21 represented an increase on 2019/20 of 1.6%. The Final Settlement had been confirmed at £103.2 millions which was an increase of £1.7 millions on 2019/20. 2020/21 was expected to be the start of a new multi-year funding settlement that incorporated the outcome of a new Comprehensive Spending Review, Fairer Funding Review and Business Rate Changes - this had not happened and the settlement for 2020/21 was for one year only and there was no information on what the authority's funding would be for 2021/22 and beyond.
The authority was experiencing significant demand and cost pressures within Social Care services, but the most significant concern was within ... view the full minutes text for item 462