Coronavirus: New guidance

Meet outside rather than inside where possible. Keep 2 metres apart from people that you don’t live with. Minimise travel in and out of affected areas. Get tested twice a week and isolate if positive

Coronavirus: New guidance

5. How the Council’s budget has changed compared to 2020/21

The following table shows how the net revenue expenditure budget and financing for 2021/22 has changed from the previous year (2020/21). 

 

£000

£000

£000

Base budget 2020/21

 

 

234,133

Adjustments to the Base Budget

 

 

 

 - Adjustment for one-off funding and revision to grants

(1,145)

 

 

 - Add back Flexible use of Capital Receipts 2020/21 - one-off    financing source

3,750

 

 

Total Adjustments to the 2020/21 Budget to establish the Base Budget For 2021/22

 

2,605

 

Flexible use of capital receipts to support the 2021/22 Budget

 

(2,000)

 

Expenditure Pressures

 

 

 

 - Pay and Price Inflation

2,533

 

 

 - Adult Social Care Pressures including Passporting of the Adult Social Care Precept

3,344

 

 

 - Children's Social Care

1,500

 

 

 - Educational Services

421

 

 

 - Covid Legacy

7,737

 

 

 - Loss of Treasury Management Income

6,850

 

 

 - Unachieved Budget Reductions - Impact of Covid

2,089

 

 

 - Investment Fund

2,250

 

 

 - Domestic Abuse Safe Accommodation - new initiative

578

 

 

 - Other Service Pressures

1,550

 

 

 - Revised Parish Precept

9

 

 

Total Expenditure Pressures

 

28,861

 

Revision to Levy Charges

 

(627)

 

Approved Recurrent Budget Reductions by Portfolio

 

 

 

 - Community Health and Adult Social Care

(2,729)

 

 

 - Communities and Reform

(499)

 

 

 - Children's Services

(911)

 

 

 - Chief Executive

(134)

 

 

 - People and Place

(3,225)

 

 

 - Commissioning

(490)

 

 

 - Cross Cutting

(805)

 

 

Total Approved Budget Reductions

 

(8,793)

 

Increase in the Net Expenditure Budget

 

20,046

20,046

Net Expenditure Budget For 2021/22

 

 

254,179

 

   

 

Total Financing for the 2020/21 Budget

 

 

234,133

Changes to Financing for 2021/22

 

 

 

 - Increase in Government Grants

12,687

 

 

 - Increase in Council Tax Revenue

2,095

 

 

 - Increase in Retained Business Rates Revenue

195

 

 

 - Collection Fund Adjustment

(1,753)

 

 

 - Increase in the Use of Reserves

6,822

 

 

Total Changes to Financing for 2021/22

 

20,046

20,046

Total Funding for the 2021/22 Budget

 

 

254,179

To maintain services in 2021/22, the Council has added £28.861m to its net budget requirement as a result of a range of expenditure pressures including the legacy issues from the Covid-19 pandemic, increased demand for Adult’s and Children’s Social Care and pay and price inflation.

These expenditure pressures alongside adjustments to the 2020/21 budget of £2.605m, a £0.627m reduction in levy charges, the flexible use of capital receipts at a value of £2.000m and recurrent budget reductions of £8.793m, have increased the net expenditure budget for 2021/22 by £20.046m resulting in a total net expenditure budget for 2021/22 of £254.179m.

The £20.046m increase in net expenditure budget for 2021/22 is financed by an equivalent increase in resources. Government Grants available for general purposes have increased by £12.687m whilst an increase in the level of Council Tax (slightly offset by a reduction in the Council Tax Tax Base) has increased revenue by £2.095m. A net increase in Business Rates revenue has generated an additional £0.195m. The use of reserves has increased by £6.822m and this, alongside a £1.753m negative adjustment relating to the Collection Fund has increased the total financing by £20.046m, producing a balanced budget for 2021/22.

The Budget Council meeting of 4 March 2021 approved a series of measures to address the budget reduction requirement of £27.623m* and deliver a balanced budget for 2021/22. These were:

  • Recurrent portfolio budget reductions of £8.793m and a one-off budget reduction of £0.127m (total of £8.920m);
  • the utilisation of £2.000m of Capital Receipts to finance the delivery of service transformation aimed at generating future efficiencies;
  • the use of Reserves at a value of £16.830m, including, as referenced above, the use of a reserve as a one-off budget reduction of £0.127m.

In accordance with standard practice the budget will be monitored during 2021/22 to ensure any financial issues are identified and addressed.

*This figure disregards a technical adjustment of £25.456m in relation to Business Rate reliefs introduced by Central Government after the 2020/21 budget was set.