Issue - meetings

[Report of the Director of Finance. To be introduced by Cabinet Member for Finance and Strategic Regeneration]

The report sets out details of proposed budget for 2021/22 and MTFS to 2025/26, including savings, growth and capital proposals. The report will also set out details of provisional funding for 2021/22 and if available the remainder of the planning period and highlight areas of risk. The report recommends that the budget proposals be released for public consultation and Scrutiny consideration.

The Cabinet Member for Finance and Strategic Regeneration introduced the report, setting out the details of the draft Budget for 2021/22 and Medium-Term Financial Strategy (MTFS) 2021/26, including budget reductions, growth and capital proposals. This included details of estimated funding for 2021/22 and the remainder of the planning period and highlighted areas of risk. The report recommended that budget proposals were released for public consultation and Scrutiny consideration.

The Cabinet Member outlined that the report addressed the impact that the Covid-19 pandemic had had on the financial planning process over the year and the steps that the Council had taken to respond to this challenge. It also incorporated the Council’s present best estimate of the implications of the Spending Review 2020 (SR20). The implications of expected further details from Government  were yet to be received, including the Local Government Funding Settlement,  which would  be taken into consideration before the Final Budget for 2021/22 and Medium Term Financial Strategy (MTFS) 2021/26 were considered by Cabinet – to include its response to the consultation - and Full Council for ratification in February 2021.

The Cabinet Member expressed that this was a progressive budget in a time of hardship where the Council needed to support the most vulnerable people in the community. COVID-19 19 had an impact on the Council finances, for this financial year, of £40m. However, the past and present sound management of finances provided confidence to provide this support despite the lack of clarity from Government about whether they would fulfil meeting the full cost of COVID-19 on Council budgets.

The budget savings set out in the report focused on delivering efficiencies, service redesign which was broader than departmental boundaries, involving and increasing income instead of service level costs. The Council would be reviewing all projects risks and savings programme whilst considering the budget issues that arise through demographic growth.

The Councils’ reserves would be utilised to bridge the budget gap for 2020/21 of £5.4m. It was important to note that COVID-19 and likely recession would have a continuing impact on finances and the Council would continue to call on the government to fund local authorities so that they can continue to serve communities.

The Cabinet Member continued to outline how the budget would continue to support the most vulnerable and set out:

• The investment in welfare assistance, the community voluntary sector, youth services, employment support, and university bursary scheme.

• Capital projects investment for improving school buildings, roads, pavements, empty properties, and Civic Centre.

• Continuing previous schemes such as the Council Tax reduction scheme, 1.99% Council tax precept for Adult Social Care.

• The Housing Revenue Plan supporting delivery of new Council homes at Council rents.

• Creating opportunities for young people and a cleaner and greener Haringey.

The Leader commended the budget and highlighted that the Council had managed its finances prudently and efficiently to allow this progressive budget to be put forward.

The Cabinet Member for Adults and Health commented, with regards to the support for Adults services, and commended  ...  view the full minutes text for item 385