Agenda item

To consider the recommendations from Cabinet.

 

Note: The Corporate Plan and Medium-Term Financial Strategy documents for this item have been circulated as a separate document to all members of the Council. Members are asked to use this version of the documents when the item is considered at the meeting.

 

Cabinet, at its meeting on 2 February 2021 had considered a report presenting the Corporate Plan and the Medium-Term Financial Strategy for Cheshire East Council for 2021-25. The report set out how the Council would approach the financial challenges over the medium term and forecast a balanced budget for 2021/22.

 

Cabinet had recommended to Council the items in Appendix A to the report and these were proposed and seconded.

 

During the debate two amendments were proposed.

 

Amendment 1

 

To start the initiative for devolved ward budgets it is recommended that:

a)         the Council establish devolved ward member budgets of at least £4,200 per Ward Member for the financial year 2021/2022.

b)         the proposals to be funded from the current allocation of Capital Grant funding to the Area Highway Groups of £350,000.

c)         that the Committee System be asked to review achievements of the ward budgets scheme in 2021/22 with a view to widening the scheme in 2022/23 and beyond with a significant increase in the budget amount to be allocated to each Ward Member.

 

The amendment was moved and seconded.  The mover and seconder of the recommendations from Cabinet to Council agreed to accept the amendment subject to the addition of ‘highways’ so it read “...devolved highways ward budgets…”.  This was acceptable to the mover and seconder of the amendment and therefore the amendment became part of the substantive proposition.

 

Amendment 2

 

Propose that an additional £1m be added into the highways budget.   This should be used for a concerted gully emptying programme to protect our highways infrastructure and to reduce flooding across the borough.   This money should come from savings on travel and subsistence as we have saved over £1m so for this year! Any further saving in this year’s budget should be ringfenced for highways to reduce any risk. On next year’s budget any shortfall to be funded from unified communications p165 and waste extra tonnage p189.

 

The amendment was moved and seconded. 

 

The Section 151 officer advised that a balanced business case in relation to the amendment had not been submitted and that the funding within the amendment was not a surplus and that the underspend on travel was already reflected in the budget as it stood.  The amendment would lead to a unbalanced budget and the Section S151 Officer therefore advised Council not to adopt the amendment.  The Monitoring Officer confirmed that the amendment as put would leave the budget unbalanced and was something which could not be voted on as it would be an unlawful budget.

In the light of the advice received the mover and seconder withdraw their amendment.

 

Following debate on the substantive recommendations, these were put to the vote, and in accordance with legislation, a recorded vote was carried out with the following results:

 

FOR

Councillors Q Abel, S Akers Smith, J Barber, L Brathwaite, J Bratherton, S Brookfield, C Browne, C Bulman, P Butterill, S Carter, S Corcoran, L Crane, D Edwardes, B Evans, H Faddes, A Farrall, K Flavell, T Fox, M Goldsmith, S Handley, A Harewood, S Hogben, M Houston, M Hunter, D Jefferay, L Jeuda, I Macfarlane, N Mannion, D Marren, A Moran, R Moreton, B Murphy, J Nicholas, J Parry, S Pochin, B Puddicombe, J Rhodes, J Smith, L Smith, A Stott, R Vernon and M Warren.

 

AGAINST

Councillors M Addison, M Asquith, R Bailey, M Beanland, M Benson, D Brown, J Buckley, J Clowes, S Davies, T Dean, S Edgar, JP Findlow, A Gage, S Gardiner, L Gilbert, A Gregory, P Groves, G Hayes, S Holland, A Kolker, C Leach, A Martin, D Murphy, K Parkinson, P Redstone, L Roberts, J Saunders, M Sewart, M Simon, L Smetham, D Stockton, L Wardlaw, J Weatherill, P Williams, J Wray and N Wylie.

 

NOT VOTING

Councillor B Burkhill and R Fletcher.

 

The motion was declared carried with 42 votes for, 36 against and 2 not voting.

 

RESOVLED:

 

That Council approve:

 

1          The Corporate Plan 2021-2025 (Appendix B to the report).

 

2          The Revenue estimates for the 2021/22 budget and the medium-term Capital Programme estimates 2021-2025, as detailed in the Medium-Term Financial Strategy Report (MTFS) 2021-2025 (Appendix C to the report).

 

3          Band D Council Tax of £1,579.03 representing an increase of 4.99%. This is below the referendum limit (including 3% ringfenced for Adult Social Care) and arises from the provisional finance settlement (Appendix C, Section 2 to the report).

 

4          The 2021/22 non ring-fenced Specific Grants, and that any amendments to particular grants will be reported to Council if further information is received from Government Departments or other funding bodies (Appendix C, Annex 8 to the report).

 

5          The 2021/22 Capital Grants, and that any amendments to particular grants will be reported to Council if further information is received from Government Departments or other funding bodies (Appendix C, Annex 9 to the report).

 

6          The relevant Portfolio Holder to agree the use of additional Specific Grants received in conjunction with the Portfolio Holder Finance, ICT and

Communication as further updates to the 2021/22 funding position are received.

 

7          The Prudential Indicators for Capital Financing (Appendix C, Annex 11 to the report).

 

8          The Portfolio Holder for Children and Families to agree any necessary amendment to the 2021/22 Dedicated Schools Grant (DSG) of £245.3m and the associated policy proposals, in the light of further information received from DfE, pupil number changes, further academy transfers and the actual balance brought forward from 2020/21 (Appendix C, Annex 8 to the report).

 

9          The Capital Strategy (Appendix C, Annex 11 to the report).

 

10        The Treasury Management Strategy (Appendix C, Annex 12 to the report).

 

11        The Investment Strategy; including the financial limits for various classifications of investment, and the investment decision making process set out in the Strategy (Appendix C, Annex 13 to the report).

 

12        The Reserves Strategy (Appendix C, Annex 14 to the report), which includes proposed movements to and from reserves, and to note the opening balance within the Collection Fund Earmarked Reserve includes a temporary £30m balance for Extended Retail Relief, to be used in full in 2021/22.

 

13        The amendment to Key Decisions as defined in the Constitution and the financial limits to be included within the Council’s Finance Procedure Rules (Appendix C, Annex 15 to the report).

 

14        The amendment to establish devolved ward member highways budgets of at least £4,200 per Ward Member for the financial year 2021/2022, with the proposal to be funded from the current allocation of Capital Grant funding to the Area Highway Groups of £350,000 and that the Committee System review achievements of the ward budgets scheme in 2021/22 with a view to widening the scheme in 2022/23 and beyond with a significant increase in the budget amount to be allocated to each Ward Member.

 

 

 

And that Council recognises that Cabinet has noted:

 

15        The results of the Corporate Plan Consultation (Appendix B, Annex 1 to the report).

 

16        The Budget Engagement exercise undertaken by the Council, as set out in the attached Appendix C, Annex 2a to the report.

 

17        The results of the Budget Consultation (Appendix C, Annex 2b to the report).

 

18        The Report of the Council’s Section 151 Officer, contained within the MTFS Report, regarding the robustness of estimates and level of reserves held by the Council based on these budget proposals (Appendix C to the report - Report from the Section 151 Officer).