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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). 





Base budget 2020/21




Adjustments to the Base Budget




 - Adjustment for one-off funding and revision to grants




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




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




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




Expenditure Pressures




 - Pay and Price Inflation




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




 - Children's Social Care




 - Educational Services




 - Covid Legacy




 - Loss of Treasury Management Income




 - Unachieved Budget Reductions - Impact of Covid




 - Investment Fund




 - Domestic Abuse Safe Accommodation - new initiative




 - Other Service Pressures




 - Revised Parish Precept




Total Expenditure Pressures




Revision to Levy Charges




Approved Recurrent Budget Reductions by Portfolio




 - Community Health and Adult Social Care




 - Communities and Reform




 - Children's Services




 - Chief Executive




 - People and Place




 - Commissioning




 - Cross Cutting




Total Approved Budget Reductions




Increase in the Net Expenditure Budget




Net Expenditure Budget For 2021/22







Total Financing for the 2020/21 Budget




Changes to Financing for 2021/22




 - Increase in Government Grants




 - Increase in Council Tax Revenue




 - Increase in Retained Business Rates Revenue




 - Collection Fund Adjustment




 - Increase in the Use of Reserves




Total Changes to Financing for 2021/22




Total Funding for the 2021/22 Budget




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.