Agenda item

Report of the County Treasurer (CT/21/01), providing an update on the Local Government Provisional settlement received in December and any impact on service spending targets.


The Report will follow.


(Councillors Biederman, Connett, Dewhirst, Greenslade and Hannaford attended remotely in accordance with Standing Order 25(2) and the Local Authorities and Police and Crime Panels (Coronavirus) (Flexibility of Local Authority and Police and Crime Panel Meetings) (England and Wales) Regulations 2020 and spoke to this item).


The Cabinet considered the Report of the County Treasurer (CT/21/1) giving an update on the target budget following the Provisional Local Government Finance Settlement. The Report had been circulated prior to the meeting in accordance with regulation 7(4) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.


Cabinet noted that at the December meeting of Cabinet, Revenue Spending Targets for 2021/22 had been set that represented an overall increase of £28.4 millions or 5.2% (noting that the Provisional Local Government Finance Settlement had not yet been announced).


The Secretary of State for the Ministry for Housing, Communities and Local Government (on 17th December 2020) had made a statement to Parliament on the Provisional Settlement for 2021/22.


The 2021/22 Local Government Finance Settlement was for one year only and based on the Spending Round 2020 (SR20). The main aspects of this were;


·         that the council tax referendum limit was 2% for local authorities with social care authorities allowed a 3% social care precept;

·         the business rates multiplier had been frozen for 2021/22 resulting in the three elements of the Business Rates Retention system (Baseline Need, NNDR Baseline and Tariff/Top Up amounts) remaining at 2020/21 levels;

·         the Revenue Support Grant had increased by 0.55%;

·         there had been an increase to the Social Care Support Grant of £300 millions nationally and no change to the Improved Better Care Fund Grant;

·         Rural Services Delivery Grant – there had been an increase of £4 millions nationally, from £81 millions in 2020/21, to £85 millions in 2021/22; with the methodology for distribution remaining unchanged from 2020/21;

·         COVID-19 Funding – in the SR20, £2.2 billions of funding had been announced to support local government in 2021/22, alongside support for local tax income and the spreading of deficits.


Whist there were a number of Government Grants yet to be announced the Provisional Settlement for the County Council was as follows:




Revenue Support Grant


Business Rates Central Government Top Up


New Homes Bonus


Rural Services Delivery Grant


Social Care Support Grant SR20


Social Care Support Grant SR19


Improved Better Care Fund


Covid-19 Funding


Council Tax Support Grant



Notwithstanding the targets set by Cabinet in December (Revenue Spending Targets of just over £571 millions), much had happened, including a new variant of the Coronavirus and another national lockdown which had led to a review of those Targets.


The proposed changes were:


·         reducing the planned savings by £3.7 millions across Adult Care and Health, Children’s Services and Highways, Infrastructure and Waste;

·         an additional Investment of £302,000 in Legal Services to support Children’s Services and Risk Management to support the whole organisation; and

·         an additional £3.3 millions to fund the cost of the 2.2% increase in the National Living Wage.


In summary, the proposed Budget Targets had increased by just under £7.3 millions to nearly £578.5 millions, an increase of 6.6% on the 2020/21 Budget.


The table below set out the revised Budget Targets for 2021/22.




The matter having been debated and the other relevant factors considered it was MOVED by Councillor Hart, SECONDED by Councillor McInnes, and




(a) that the Provisional Settlement, as set out in paragraph 2, be noted; and


(b) that the increased Revenue Spending Targets for 2021/22, as set out in paragraph 3.5 of the Report be approved.

Supporting documents: