Agenda item

RESOLVED:

1. That the 2021/22 Draft Budget and Medium-Term Financial Strategy to 2025/26, including progress to date in setting out spending pressures and efficiencies, as set out in Annex 1 be noted.

2. That the provisional budget gap of £18.3m for 2021/22 and the next steps required to close the gap be noted.

3. That the proposed Capital Programme for 2021/22 to 2025/26 of £1.7bn be noted.

Reason for Decision:

In January 2021, Cabinet will be asked to recommend a Final Budget for 2021/22 to full Council for approval in February. The draft budget sets out proposals to direct available resources to support the achievement of the Council’s corporate priorities in the refreshed Organisation Strategy, giving Cabinet the opportunity to comment on the proposals and next steps.

The draft budget also provides an update on the continuing transformational changes that are required to ensure that the Council can continue prioritising outcomes for residents, while managing growing demand for services while ensuring future financial resilience and sustainability.

[The decisions on this item can be called in by the Performance & Resources Select Committee]

The report was introduced by the Cabinet Member for Resources whom explained that the Council had a statutory duty to set a balanced budget in advance of each financial year. The Final Budget for 2021/22 would be approved by Cabinet in January 2021 and full Council in February 2021. The Cabinet Member was of the view that the draft budget was realistic and deliverable and would continue to stabilise the county’s financial position. The budget would be adjusted when the final settlement is announced by the government. Good progress had been made over the last few months in reducing the original budget gap from £67m to the current provisional budget with a gap of £18.3m. Work to close the gap will remain until the budget is presented to full Council in February 2021. The Cabinet Member ran through the highlights within the report and stated that the report not only contains the detailed service budgets and their respective pressures, but also the refreshed organisation strategy which now addresses the changing strategic context in which the Council finds itself operating due to the impacts of the covid-19 pandemic. The paper also outlines a summary of the refresh transformation programme. The Cabinet Member explained that the budget had been set on three main principles and gave details of each. The Cabinet Member was of the view that the County’s finances were in significantly better position than they were two years ago. Details of the draft budget were covered in more detail by the Cabinet Member including revenue and capital budgets, business rates, national and local funding contexts and service budget envelopes.

The Deputy Cabinet Member for Resources supported the draft budget and stated that this was a positive step towards delivering a balanced budget built on a stable financial position which would not have been possible without great leadership from the Cabinet Member for Resources and Section 151 officer and his finance team.  The creation of the Your Fund Surrey was a good example of the councils stable and robust financial position. The Leader recognised the stable financial position the council had achieved which allowed the county to invest in the future with a number of capital programmes. The Leader stated that he hoped that the government could give longer term security in term of what funding would look like longer term rather than one year spending reviews. The budget would go through the scrutiny process later in the year. The Leader paid special thanks to the Cabinet Member for Resources, Deputy Cabinet Member for Resources and finance officers.

RESOLVED:

1. That the 2021/22 Draft Budget and Medium-Term Financial Strategy to 2025/26, including progress to date in setting out spending pressures and efficiencies, as set out in Annex 1 be noted.

2. That the provisional budget gap of £18.3m for 2021/22 and the next steps required to close the gap be noted.

3. That the proposed Capital Programme for 2021/22 to 2025/26 of £1.7bn be noted.

Reason for Decision:

In January 2021, Cabinet will be asked to recommend a Final Budget for 2021/22 to full Council for approval in February. The draft budget sets out proposals to direct available resources to support the achievement of the Council’s corporate priorities in the refreshed Organisation Strategy, giving Cabinet the opportunity to comment on the proposals and next steps.

The draft budget also provides an update on the continuing transformational changes that are required to ensure that the Council can continue prioritising outcomes for residents, while managing growing demand for services while ensuring future financial resilience and sustainability.

[The decisions on this item can be called in by the Performance & Resources Select Committee]