To consider Report CFO/010/21 of the Director of Finance, concerning the setting of a medium term capital and revenue financial plan that allocates resources in line with the Authority’s strategic aims and ensures that the Authority delivers an efficient and effective, value for money service aligned to its budget principles. This will enable the Authority to determine a budget for 2021/2022 whilst setting a precept level which is in line with statutory requirements.

 

Members considered Report CFO/010/21 of the Director of Finance, concerning the presentation of information in order to allow Members to set a medium term capital and revenue financial plan that allocates resources in line with the Authority’s strategic aims and ensures that the Authority delivers an efficient and effective, value for money service aligned to its budget principles. This will enable the Authority to determine a budget for 2021/2022 whilst setting a precept level which is in line with statutory requirements.

 

At the start of this item, the Chair of the Authority confirmed that during the consideration of this item, he would formally move the Labour Group Budget Resolution, which has been circulated to all Members, in line with the requirements within the Authority’s Constitution.

 

Members were informed that the budget and financial plan report provides all of the necessary financial information for Members to approve a financial strategy that sets a balanced 2021/22 revenue budget based on a 1.99% precept increase.

 

Members attention was drawn to Section C on pages 254 to 259 of the report, which considers the proposed 5-year capital programme and associated prudential borrowing requirement.

Members were advised that as per the table on the top of page 256, the total capital programme provides for investment of £51.8m of which £27.9m is being funded by prudential borrowing.

 

They were informed that this includes the current planned spend in the existing 5-year capital programme, plus new schemes totalling £26.2m of which £20.8m relates to the net increase to cover the spend on a new TDA, above that assumed for a refurbishment scheme, and £4.3m of the increase relates to the addition of the new 5^th year -  2025/26.

 

Members were advised that Paragraph 62 on pages 256 to 258 provides a summary of the areas of planned capital spend. 

 

They were informed that Section D, pages 260 to 262, considers how the Minimum Revenue Provision,which is the sum that will be set aside each year to repay debt associated with capital expenditure funded through borrowing, will be calculated. They were advised that the recommendation is to adopt a similar strategy to the current MRP determination and use the asset life method for all unsupported borrowing. 

 

It was highlighted that the Authority is required to consider the impact of the proposed capital investment over a number of prudential indicators, and that Section E, pages 263 to 265, provides that information. In addition, Members were informed that a key indicator is that debt is only incurred to meet capital expenditure and therefore net borrowing does not, except in the short term, exceed the total Capital Financing Requirement. It was confirmed to Members that he current and planned borrowing meets this this requirement.

 

Members were advised that the Authority is required to prepare a Treasury Management Strategy, and section F, pages 267 to 276set out the proposed strategy.

They were informed that the proposed investment strategy is consistent with the current strategy and recommends continuing with the institutional limits and minimum credit ratings outlined on page 270.

They were also advised that the proposed Authorised Limit for gross borrowing of £45m will ensure that total gross debtdoes not exceed the Capital Financing Requirement and that borrowing is only incurred to cover capital investment. 

 

They were informed that all costs associated with the proposed five capital programme and prudential borrowing have been built into the proposed medium term financial plan and therefore the proposed 5-year Capital Programme and associated funding, as outlined in Appendix B, is deemed to be prudent, sustainable and affordable.

 

Section G of the report, which considers the current MTFP assumptions and any required changes, was then highlighted to Members.

 

They were informed that Paragraphs 97 to 112 on pages 278 to 284 outline the revised assumptions, costs, and funding that were considered at the Budget Strategy day in January, and the impact these changes have on the MTFP.  They were advised that this includes a pay freeze assumption for 2021/22 in light of the Government’s announcement about a public pay freeze in 2021/22, then 2.5% p.a. thereafter.

 

Members were advised that the table on page 285 summarises the impact of the changes and the proposed new MTFP.

 

They were informed that the overall impact on the 2021/2022 financial position is to go from a £0.760m deficit in the current MTFP to a balanced or neutral position. They were also advised that the updated MTFP also sees the 2022/2023 position go from a £1.211m deficit to a forecast balanced position.

 

Due to the level of uncertainty over 2023/2024 and future years’ forecasts, particularly around pay and Government Funding, Members were informed that they are asked to simply note any financial challenge in these years at this point in time.

 

Section H, pages 287 to 291, was then highlighted, whichreviews the current General Revenue and Committed Reserves position and their proposed use.  Members were advised that the table on page 291, outlines the anticipated reserve drawdown over the MTFP period. Members were advised that the Authority is recommended to maintain a general fund reserve at the current level of £3m which equates to 5% of the net operating expenditure budget and approve the Committed Reserves.

 

Members attention was then drawn to Section I, pages 292 to 293, which identifies that £30.594m needs to be raised from the Council Tax Precept in 2021/2022 to balance the revenue budget. Members were advised that that would require an increase in the current Council Tax Band D precept of 1.99% or £1.60 raising the figure from £80.40 to £82.00.

 

The Chair of the Authority confirmed that a very detailed, technical resolution had been circulated to all Members. He thanked all staff and recognised their valuable contribution to keeping Merseyside safe, during very unusual circumstances.

The Chair of the Authority placed his thanks on record to all Members and officers, for their continued support; and thanked the Director of Finance and his team for all of the budget documentation.

Reference was made to the Budget Strategy Day process, which provides stakeholders with an opportunity to make their views and opinions known, which are taken into account when setting the budget.

 

The Chair of the Authority expressed his disappointment at the Government for wanting to enforce a blanket freeze on public sector pay, which he did not feel was proportionate. However, it was noted that a pay freeze had been factored into the budget, based on advice from the NJC and the LGA, which avoids the Authority having to make cuts in other areas.

 

The Chair of the Authority re-iterated the point that fire authorities do not receive a capital grant, like other public services and local authorities do; and are therefore required to put away small amounts of revenue each year, to create a capital fund, in order to refresh the likes of fire stations, and appliances; and now the new TDA site. He commented that MFRA are therefore likely to see criticism from Ministers about the level of reserves, as we increase the capital reserve to fund the new build. He re-iterated that capital can only be spent once; and therefore cannot be used to pay wages.

However, the Chair of the Authority confirmed that the Home Office are a strategic partner, with whom MFRA have a good relationship.

 

The Chair of the Authority then formally moved the Labour Group Budget Resolution.

 

The Budget Resolution was seconded by Vice-Chair – Cllr Kenny.

 

Cllr Kenny commented that he was very happy to second the resolution, which overall he considered to be an excellent budget, despite the difficult circumstances that we are all in.

He commented that Merseyside have more demands placed on its fire service than in other parts of the country, purely due to the high levels of deprivation; and felt that the Government needs to reconsider its continuous cuts; and the Authority needs to increase its lobbying of Government on that point.

He stated that over the past 10 years of austerity, MFRA have suffered massive cuts, compared to other parts of the UK; and during that time, there has been a 50% reduction in real terms, in our Government Grant support. He commented that despite that, MFRA have been able to increase its number of firefighters from 620 to 642, over the past 12 months; and increase the number of appliances available from 26 to 30, which is down to the creative leadership shown by the Chief Fire Officer and staff.

Cllr Kenny echoed the concerns around the imposed pay freeze for staff, which he felt was not the right way to treat staff who put themselves on the frontline, day in day out, to serve our communities.

He commented that he is extremely proud of the work undertaken by all staff, who need to be provided with the necessary support from Government, to enable them to continue to deal with local and national threats.

 

On behalf of the Liberal Democrat Group, Cllr Makinson also thanked officers and all staff generally, for the way they have served the people of Merseyside over this very difficult year.

He commented that nobody likes to raise council tax, particularly at a time when there is an increasing number of residents facing pay freezes, or indeed have lost their employment. However, guaranteeing the safety of Merseyside, needs to be the Authority’s first priority, therefore, on that basis, the Liberal Democrat Group would be supporting the Budget Resolution.

 

Cllr Makinson also commented that the Authority has actually been dealing with cuts since around 2005 and he was aware that as an Authority, they have been united across political parties, in lobbying Government for a fairer deal for Merseyside, regardless of which party is in Government – something which he hopes will continue.

 

Cllr Spurrell commented that it has been a difficult time for the fire service and that we are not where we would like to be in terms of funding allocated and the service we would want to provide. However, she commented that staff are doing an incredible job in difficult circumstances. She also commented that she was particularly disappointed with regards to the lack of pay rises for staff, particularly since everyone has acknowledged multiple times, how the fire service and other public services, have stepped up.

Cllr Spurrell also expressed her thanks to the Director of Finance and his team for the opportunity for scrutiny of the budget before today, so that the Authority can assure itself that they are happy with the budget.

She confirmed that on the whole, the Authority has a responsible, balanced budget, that looks very much at where we would want to be in the future, as well as managing the current situation.

 

Cllr Rennie commented that the budget resolution also has her full support. She commented that the Government may at present be of her colour, but that does not prevent her from criticising them over the years regarding their funding of FRA’s. She stated that she will continue to lobby Ministers of whatever colour; and commented that she would be participating in a virtual meeting with the Fire Minister in the coming week, where she would raise all of the issues highlighted.

The Chair of the Authority then formally moved the Budget Resolution, which was agreed unanimously.

 

 

Members Resolved that:

 

 

a)            the 2021/2022 service budget set out in the report, be

          noted.

 

b)            The Director of Finance’s recommendation on

          maintaining the current level of general fund balance at

          £3.000m, and maintaining the reserves as outlined in

          Paragraph 127 to 136 of this report, be endorsed.

c)    The current plan to increase the precept by just below 2% (1.99%) for 2021/2022, raising the Band D Council Tax from £80.40 to £82.00 and confirm the strategy for future precept rises (the plan assumes further increases of just under 2% in each year thereafter), be endorsed.

d)    The assumptions in developing a five-year financial plan outlined in the report and approve the 2021/2022 budget estimate of £59.250m, be endorsed.

 

e)    The 2021/2022 – 2025/2026 updated Medium Term Financial Plan (MTFP) outlined in the report and summarised in Appendix C, be approved.

f)     The capital strategy and investment strategy as summarised in Appendix B, be approved.

g)    The Minimum Revenue Provision (MRP) strategy for 2021/2022 as outlined in Paragraph 72 to 75 of this report, be approved.

h)    The prudential indicators relating to the proposed capital programme, outlined in paragraph 83 of this report, be endorsed.

i)     The Treasury Management Strategy outlined in Section F, be approved and the Treasury Management indicators set out in the section for:-

o     External Debt

o     Operational Boundary for Debt

o     Upper limits on fixed interest rate exposure

o     Upper limits on variable rate exposure

o     Limits on the maturity structure of debt

o     Limits on investments for more than 364 days

                     be agreed.

j)     The recommendations above, be noted as providing an approved framework within which officers undertake the day to day capital and treasury management activities.

 

k)    The proposed Budget Resolution 2021/2022, be approved as follows: 

 

Merseyside Fire and Rescue Authority Budget and Medium Term Financial Plan Resolution 2021/2022 – 2025/2026

 

1.    Over the last decade Merseyside Fire and Rescue Authority (the Authority) suffered one of the largest cuts in Government funding of any Fire and Rescue Service in the country. Over the period the Authority faced a 50% in real terms reduction in the grant support it receives from Government. Over the same period the Authority’s total revenue budget reduced by nearly £13m which represents an 18% cash or 40% real reduction.

 

2.    The Authority has a proven track record in managing its financial affairs well and made the tough choices to balance the budget. The Authority planned prudently to minimise the impact on frontline services and identified significant efficiency savings by reducing management, support services costs and other technical amendments unfortunately the Authority had no choice but to approve an unavoidable reduction in the operational front line. By 2020 the impact of these required cuts meant: -

 

·         The firefighter establishment was reduced from 1,000 Full Time Equivalents (FTE) to potentially 620 FTEs, 38% lower,

 

·         Support and technical staff reduced from 425 FTE to 291 FTE, a 32% reduction, (many of these staff carry out important front line preventative and response work with the Merseyside community),

 

·         The number of fire stations reduced from 26 full time stations to 22 on a variety of duty cover systems,

 

·         The number of appliances available reduced from 42 wholetime fire appliances immediately available and 1 retained (43 appliances in total) to 26.

 

3.    In 2019/2020 the Authority’s new Chair and Vice Chair together with a new Principal Officer team undertook a review of the Service with the aim to re-invest £1m back into Operational Response and Protection services. This bold plan was in response to emergent and foreseeable risk from fire and other emergencies, particularly the services ability to respond to large and/or protracted incidents, as well as the need to enhance protection functions in the light of the Grenfell Tower fire and other major incidents. The Authority consulted on the alternative proposals in its supplement to the 2017-2020 IRMP and received support from the public on its proposals.

 

4.    The Chief Fire Officer and Director of Finance identified a strategy to release debt servicing and pension deficit payment budgets to fund a £1m investment back into the Service as part of the 2020/21 budget. This investment resulted in: -

 

·         an increase in the firefighter numbers on Merseyside by an additional 22 posts, to 642 and,

·         an increase in fire engine availability from 26 to 30 (29 plus a Special Rescue Appliance),

·         the establishment of a new fire engineer post to work with partners ensuring the safety of residents in high-rise buildings, and

·         the reintroduction of the roll of Crew Manager.

 

5.    The Authority’s draft IRMP for 2021 – 2024 seeks to build on these foundations and now proposes further enhancements to the operational and protection capabilities of the Service. Increasing the number of fire engines, we can deploy from 29 (plus the Search & Rescue Appliance) to 31 (plus the Search & Rescue Appliance) by expanding our Hybrid duty system, whilst introducing Specialist teams to deal with all foreseeable risk; increasing investment in specialist appliances and other operational equipment. The plan also proposes to build a new £25m Training and Development Academy and Hybrid Station with rescue capability. The proposals will also see a temporary increase staff numbers in the Protection team as they respond to the Grenfell Tower recommendations’ and changes in legislation. This additional resource is being funded through one-off grants from Government and the Authority is seeking the support from Government to make this funding permanent to allow the increase Protection resources to be embedded within the Service.

 

6.    The Authority was and remains concerned that the reductions in services due to Government funding cuts since 2010/11 have gone too far. The permanent investment it has managed to put into the Service since 2020/21 only delivers some of the additional resources it believes are required. The Authority also calls upon the Government to make the temporary 2020/21 Protection Services grants, that allowed a short term investment in these services, permanent. 

 

7.    The Authority was and remains concerned that the reductions in services due to Government funding cuts since 2010/11 have gone too far. The permanent investment it has managed to put into the Service since 2020/21 only delivers some of the additional resources it believes are required. The Authority also calls upon the Government to make the temporary 2020/21 Protection Services grants, that allowed a short term investment in these services, permanent.

 

8.    The 2021/2022 Government Funding settlement meant the Authority will receive an increase of only 0.5% on its 2021/2022 settlement. Covid19 has impacted on the Authority’s Council Tax Base and Collection Fund position. It was anticipated that the 2021/22 Council Tax Base would increase by 1% but it has actually reduced by 1%. The Council Tax & Business Rates Collection Fund has a forecast deficit of £3.788m rather than the assumed neutral position. The Government has offered some one-off grants towards the impact of Covid19, but it is estimated that the overall net impact in 2021/22 of Covid19 will be £0.259m, and a cumulative net cost of +£4m over the MTFP period. Therefore, while in previous years increases in the Tax Base and small surpluses on the Collection Fund have to some degree compensated the Authority for lower than inflation Government grant increases, this is not the case in 2021/22.  

 

9.    This is our first Post Covid19 budget, it is of necessity transitional and future budgets will need to reflect the impact and changes to society from this time, we will lobby the Government and officials on the implications.

 

10.In order to minimise the impact of a lower than inflation rise in Government supporton the Fire and Rescue Service, the Authority proposes a council tax increase of just under 2%.

 

11.The effect of the budget on the council tax will be a Band D Council Tax of £82.00, which equates to an increase of £1.60 or 3p per week on the 2020/2021 figure. 

 

12.Most people in Merseyside will pay Band A Council Tax of £54.67, which equates to an increase of £1.07 or 2p per week on the 2020/2021 figure.

 

13.The Authority recognises that the Fire and Rescue Service is required to resource on the basis of risk not demand. But it also appreciates that Merseyside faces more demands than most other services due to the high levels of deprivation that its communities experience. We urge this Government to reflect on the impact the last 10 plus years of cuts are having on the Fire and Rescue Service and properly review all risks facing the country in the light of emerging risks (for example a heightened terrorist threat or responding to increased flooding events through climate change) and would hope that resources are allocated in a way that allow Merseyside to continue to respond effectively to local and national threats.

 

14.Future Government funding cuts may force the Authority to make further reductions in frontline services, therefore the Authority will continue to lobby the Government against the level of cuts in funding made since 2010/2011 and highlight the consequences that further cuts will have on the effective delivering of a vital emergency service.

 

15.The Authority has undertaken a process of lobbying more extensively than any other Authority in the Country and we believe this may have avoided further and deeper cuts and our views on future funding have been heard at the highest levels of Government.  The Authority has said it will not allow these unsafe levels of cuts to just roll over us, but we will use every political device we can to improve funding so as to maintain the highest levels of public and staff safety here on Merseyside. Our position as a service delivery lead partner with the Home Office (HO), puts us as a super authority, we will develop this relationship as positively as possible.

 

 

The Financial Plan

 

16.In order to balance the financial plan the Authority will adopt the following strategy

 

·         Prepare a five-year financial plan based on the final Local Government Finance Settlement figures announced on 4^th February 2021, that;

                                  i.    deals with the financial challenge arising from the known Government funding support up to 2021/2022, and

                                ii.    although the financial plan has projected Authority spend and Government funding up to 2025/2026, the 2022/2023 and future years’ estimates are based on assumptions that are unpredictable as future Government funding for the Fire and Rescue Service is subject to a number of Government reviews and the national economic performance. Therefore, the Authority has agreed to note any financial challenge from 2022/2023 at this point and will deal with any financial issues in future budget rounds.

·         To set council tax increases in line with its financial plan of just under 2% for 2021/2022 and just under 2% thereafter.

·         That assumes the 2021/22 annual pay review will reflect the Government’s public sector pay freeze direction for all of its staff, and thereafter increases for from 2022/2023 will be within the 2.5% limit set in the plan.

·         The Authority will continue if possible to identify additional efficiencies to re-invest in the front line.

·         The MTFP includes the proposal to build a new Training and Development Academy for £25m, and reflects the Service proposals included in the draft 2021 – 2024 IRMP.

·         The Authority will continue to focus its search for efficiencies on collaboration, management, support services costs and other technical reviews.

 

17.Noting that there is risk in the Authority’s current plan, in particular around the assumptions over future pay increases and Government funding.

 

18.The Authority recognises that the Chief Fire Officer needs to consider any recommendations on future national fire and rescue practices that come out of the Grenfell review and ongoing local challenges. It therefore recognises that the Chief Fire Officer will need to continue to manage operational crewing levels and appliance availability on a dynamic basis, using a variety of response systems where necessary under his delegated powers as the financial plan proceeds to delivery.

 

19.The Authority is fully committed to reducing its own costs as the organisation faces up to the Government cuts and what that means for local services. The Authority had already made reductions in its allowances of £24,000 and the Authority will again freeze all member allowances for the thirteenth consecutive year.

 

 

IRMP

 

20.The proposed 2021/2022 – 2025/2026 takes into account the proposals in the draft 2021 – 2024 Integrated Risk Management Plan (IRMP). The local community and stakeholders will be consulted with on the IRMP during 2021/2022. The IRMP may need to consider at the relevant time the consequences of future Government funding settlements, if applicable.

 

 

Council Tax

 

21.The Authority had already assumed a council tax increase at the maximum level allowed by the Government before a referendum was required. The Government has confirmed that the threshold for 2021/2022 is an increase of just under 2%.

 

22.Because of the scale of the financial challenge the Authority has agreed, with a heavy heart, to stick to this plan and increase council tax to the maximum allowed before a referendum is required. In 2021/2022 the Authority has approved an increase of just below 2% to minimise the impact on the services to Merseyside in the future.

 

23.The impact of the budget on the council tax will be a Band D Council Tax of £82.00 (which equates to an increase of 3p per week on the 2020/2021 figure. 

 

24.Most people in Merseyside will pay Band A Council Tax of £54.67, an increase 2p per week on the 2020/2021 figure.

 

Interoperability with Blue Light Partners

 

25.This Authority is fully committed to closer collaboration with our emergency service colleagues across the county. Many collaborative successes have been achieved so far including: -

 

(i)    The delivery of the Joint Command and Control Centre with Merseyside Police,

(ii)  Sharing 7 sites with North West Ambulance Service (NWAS) including NWAS Hazardous Area Response Team working alongside the Search and Rescue Team,

(iii)The creation of a Joint Police and Fire Station in Knowsley,

(iv)Extensive joint planning and exercising,

(v)  Support to Health partners throughout the period of the pandemic.

 

26.The Authority instructs the Chief Fire Officer to continue to build upon this success and in particular to actively seek out opportunities of working with NWAS and Merseyside Police around sharing buildings, and other assets, demand management and corporate service functions.

 

 

 

Working with other Partners

 

27.The Authority will continue to work in partnership with each District Council in order to explore opportunities in which will mutually benefit each Authority in dealing with these and future financial challenges.

 

28.The Authority will examine the impacts of the devolution agenda and how best we can understand and develop constructive dialogue with the Liverpool City Region Combined Authority.  

 

Reserves

 

29.The Authority has prudently planned to meet its financial challenges over the medium term. The plan the Authority proposes is based upon the key assumptions around changes to grant, pay, tax and pension costs.

 

30.The Authority recognises that there are substantial risks associated with these assumptions and that, particularly in light of the current economic climate; it is not unreasonable to expect a significant degree of financial uncertainty and risk which will vary across the life of the financial plan. The Authority will therefore set a medium term financial plan based upon these key assumptions recognising that it may need to vary that plan to cope with changes arising. To mitigate some of these risks specific reserves have been established such as Inflation (pay award risk) and Smoothing (McCloud compensation payments / future Government funding levels) reserves.

 

31.The Authority seeks to provide its firefighters and other staff with the right equipment, PPE, response vehicles, and training facilities to enable them to fulfil their role safely and at the best standard possible. As the Government does not make any capital funding available, the Authority has a strategy of building up the Capital Reserve to fund a significant proportion of this investment to maintain borrowing at an affordable and sustainable level. The proposed Budget and Financial Plan include the option to build a new Training & Development Academy at a cost of £25m, of which £15.5m will be funded from the Capital Reserve.

 

32.The Authority established a £2m recruitment reserve to fund the recruitment of new firefighters in advance of the expected firefighter retirements, as it expects significant numbers of the current workforce to retire over the next 5 or so years. This will ensure the Chief Fire Officer has sufficient competent firefighters. The Authority believes that a wholetime (with retained) professionally trained workforce is the most resilient and effective way of delivering a Fire and Rescue Service to its communities and is fully committed to maintaining this approach.

 

33.In light of the risks within the financial plan the Authority therefore agrees to maintain the reserves as set out in Appendix B to this resolution and maintain a general revenue reserve of £3.0m.

 

Capital Programme

 

34.The Authority approves the Capital Programme as set out in CFO/010/21 which includes a total investment of over £51.831m over 2021/2022 – 2025/2026 period. The programme for 2021/2022 shall be approved as £14.913m.

 

35.The Authority notes the prudential indicators that this programme produces and recognises that the proposed capital investment programme is prudent, sustainable and the borrowing affordable. This programme makes use of the freedoms available to the Authority under the prudential regime and proposes ‘prudential’ borrowing of £8.157m in 2021/2022 as part of a total borrowing of £27.885m across the life of the plan.

 

36.In the light of the capital programme and the prudential indicators, agree the Treasury Management Strategy and the indicators set out in that strategy for: -

(i)    External Debt

(ii)  Operational Boundary for Debt

(iii)Upper limits on fixed interest rate exposure

(iv)Upper limits on variable rate exposure

(v)  Limits on the maturity structure of debt

(vi)Limits on investments for more than 364 days

 

 

Basic calculations

 

37.Following consideration of the report of the Director of Finance (CFO/010/21) and having taken into account views expressed in consultations, and all other relevant matters, pursuant to the Local Government Finance Act 1992, as amended, (the “Act”), the Authority determines its budget requirement for the financial year 2021/2022 as follows.

 

38.Approves the capital expenditure programme for the financial year 2021/2022 for the total of £14.913m as set out in report CFO/010/21 and the five-year programme totalling investment of £51.831m, and in this respect notes the advice of the Director of Finance that the programme is prudent, sustainable and the borrowing affordable.

 

39.The Authority resolves as follows:

 

(a)     It be noted that on 25th February 2021, the Authority calculated the Council Tax Base 2021/2022 for the whole Authority area as 373,099.34 [Item T in the formula in Section 42B of the Local Government Finance Act 1992, as amended (the “Act”)].

 

(b)     That the following amounts be calculated for the year 2021/2022 in accordance with sections 40 to 47 of the Act:

 

The Authority calculates the aggregate of: (A)

 

 

 

 

The Authority must also calculate the aggregate of: (B)

 

 

If the aggregate calculated under A above exceeds that calculated under B above, the Authority must calculate the amount equal to the difference; and the amount so calculated is to be its council tax requirement for the year under S42A (4) (Item R in the formula in S42B of the Act).

 

The Authority calculates the basic amount of its council tax by dividing the aggregate amount of S42A (4) (item R) divided by the council tax base (item T) above. The council tax requirement for 2021/2022 is £30,594,145 and the council tax base is 373,099.34, which is equal to £82.00 precept for a Band D property. This calculation meets the requirements under S42B of the Act.

 

40.The Authority calculates the council tax sums pursuant to S47 of the Act as follows:

 

 

41.The Authority calculates the precept amounts payable by each constituent district council pursuant to S48 of the Act as follows:-

 

 

42.The Authority requests the Director of Finance to arrange for precepts to be issued to the constituent district councils pursuant to S40 of the Act before 1^stMarch 2021, such sums to be payable by 10 equal instalments on or before the following dates:

 

Wednesday	21st April 2021
Friday	28th May 2021
Tuesday	6th July 2021
Wednesday	11th August 2021
Friday	17th September 2021
Monday	25th October 2021
Tuesday	30th November 2021
Monday	10th January 2022
Tuesday	15th February 2022
Thursday	17th March 2022

 

43.The Authority notes that the Director of Finance has advised that the 2021/2022 budget is based upon robust estimates.

 

Appendix A – 2021/2022 Budget & Financial Plan to 2025/2026

 

 

Appendix B- Reserves