FOR GENERAL
RELEASE
1
PURPOSE OF REPORT AND POLICY CONTEXT
1.1
This report provides an update on the council’s General Fund
resource position including changes in assumptions arising from the
provisional Local Government Financial Settlement issued on the 17
December following the government’s November Spending Review
announcement.
1.2
It also provides updates on estimated cost and demand pressures
based on latest trend data and projections as well as using latest
information on anticipated pay and price inflation. The draft
savings proposals provided to the 3 December Policy & Resources
Committee were incomplete due to the impact of the pandemic on the
budget timetable. These have now been completed and a full set of
draft savings proposals for 2021/22 is included in the report.
These are accompanied by draft Equality Impact Assessments where
required.
1.3
This report accompanies separate reports that update the resource
forecasts for the council’s two tax bases, Council Tax and
Business Rates. The forecast tax revenues, including the assumption
of a 4.99% Council Tax increase (including a 3% Adult Social Care
Precept), have been built into the overall resource position
together with the estimated impact of the recommendations for the
2021/22 Council Tax Reduction Scheme, which is also on this
agenda.
1.4
This year has clearly been unprecedented and has resulted in very
large additional costs and income losses for the council for which
the government have provided local authorities with significant
support and compensation. For this council there remain many
challenges and unknowns going forward and the key areas of risk are
therefore identified and discussed in the report. Many of these
risk areas are expected to result in significant one-off funding
requirements in 2021/22 and this is a key area of budget
consideration.
1.5
Final budget proposals will come to the February Policy &
Resources Committee and Budget Council as normal.
2
RECOMMENDATIONS:
That the Policy & Resources Committee:
2.1
Notes the updated forecasts and latest resource information set out
in the report.
2.3
Notes that subsequent decisions, updated financial data and
information from central government regarding the final
Local Government Financial Settlement (LGFS) may impact further on
the development of budget proposals for 2021/22.
3
RESOURCES AND PLANNING ASSUMPTIONS 2021/22
Provisional Local Government Financial Settlement (LGFS)
3.1
The provisional Local Government Finance Settlement for 2021/22 was
announced on 17 December 2020 and reflected the headline funding
announcements included in November’s one-year Spending
Review. This announcement included:
·
Confirmation of an allowable 3% Adult Social Care precept which
would provide an additional £4.450m if agreed;
·
Confirmation that the threshold at which an
increase in Council Tax requires a local referendum will be 5%
including a 3% Adult Social Care (ASC) precept. Any proposal to
increase council tax by 5% or more would therefore need to be
accompanied by an agreed substitute budget, which would need to be
implemented if the increase were voted down by the electorate.
·
Additional Adult Social Care grant funding of £0.944m. This
is lower than the £1.5m assumed in the December budget report
as there was a significant change to the distribution method used
for allocating the £300m nationally. This type of funding has
previously been allocated based on a Relative Needs Formula (RNF)
but on this occasion, the government have taken into account the
revenue raising ability of each council from the ASC precept and as
a result the council’s allocation is substantially lower than
predicted;
·
A new grant to support lower tier councils of £0.624m (which
this council benefits from as unitary authorities are effectively
combined upper and lower tier authorities);
·
An allocation of £8.023m from the £1.55bn additional
Covid-19 pressure funding nationally for 2021/22. It is important
to note that this funding must be regarded as one-off funding for
2021/22 for the purposes of medium term financial planning;
·
Confirmation of funding provision for 75% of irrecoverable losses
of Council Tax and Business Rate Retention income (i.e. the
Collection Fund deficits) in 2020/21. For Council Tax this relates
to the reductions in revenue arising from increased Council Tax
Reduction claimants and delays in new property completions but it
has now been clarified by government that it will not include cover
for irrecoverable (bad) Council Tax or Retained Business Rate
debts. This is because the government’s assumption is that
councils will continue to pursue and ultimately recover outstanding
debts. This clarification significantly changes the assumed
Collection Fund deficit position and places the onus on local
authorities to minimise bad debts as far as possible to reduce
their financial losses;
·
A new one off Local Council Tax Support grant of £2.968m to
cover the impact in 2021/22 of the increased costs of Council Tax
Reduction and other help to economically vulnerable households.
This grant now takes on even greater significance for councils as
it may ultimately be needed to cover bad debts not now covered by
the 75% Collection Fund deficit protection;
·
Confirmation that the Troubled Families and additional Adult Social
Care grants awarded in 2020/21 will be continued at the same
level;
·
A small inflationary increase of £0.036m to the Revenue
Support Grant from £6.630m to £6.666m; and
·
A marginal increase to the New Homes Bonus of £0.018m.
3.2
The government announced additional Homelessness and Rough sleeping
funding of £151m nationally for 2021/22 in the Spending
Review however the council is still awaiting details of this
allocation. The distribution method for this is unknown at present
but is predicted to provide a minimum of £1m based on
previous distributions.
3.3
The final Local Government Finance Settlement is expected to be
announced at the end of January/early February 2021.
Updated Investments
& Service Pressures
3.1
As noted in the December Policy & Resources Committee report,
further work was needed to fully understand all of the underlying
and emerging cost pressures, particularly across areas such as
local services managed by the Economy, Environment & Culture
(EEC) directorate and also in relation to the considerably enhanced
homelessness and rough sleeping provision currently in operation.
All cost and demand pressures will continue to be kept under review
up until the production of the final budget report for February
Policy & Resources Committee and Budget Council which will be
based on cost and activity trends up to and including December 2020
(Month 9).
3.2
The table below shows a summary of the latest estimates of cost and
demand pressures, including one-off pressures related to the impact
of the pandemic.
|
Table 1:
Recurrent and One-Off Priority Investments and Cost
Pressure Funding
|
Assumed Recurrent Pressure
Funding
|
Latest Recurrent Pressures
Identified
|
Latest Short Term Covid Pressures
(one-off)
|
|
|
£m
|
£m
|
£m
|
|
Health & Adult
Social Care
|
12.700
|
12.700
|
-
|
|
Families, Children
& Learning *
|
5.000
|
5.643
|
0.400
|
|
Housing,
Neighbourhoods & Communities
|
-
|
1.250
|
2.150
|
|
Environment Economy
& Culture
|
-
|
0.936
|
3.450
|
|
Strategy Governance
& Law
|
0.500
|
0.240
|
0.371
|
|
Finance &
Resources
|
-
|
0.306
|
0.250
|
|
All Other
Services
|
0.500
|
-
|
-
|
|
Corporate
priorities
|
1.000
|
1.200
|
0.230
|
|
Allowance for
ongoing PPE costs
|
0.500
|
-
|
0.500
|
|
CTR Discretionary
Fund/Welfare Reform
|
|
|
0.390
|
|
Financing
Costs
|
0.500
|
-
|
-
|
|
Total Investments & Pressures
|
20.700
|
22.275
|
7.741
|
|
|
|
|
|
|
December P&R
*
|
|
23.529
|
7.190
|
|
Change since
December
|
|
-1.254
|
0.551
|
*
Note, the current and comparative December figures exclude
£1m relating to Troubled Families originally shown as a
pressure but for which continued funding has now been
confirmed.
3.3
The table indicates that the level of recurrent and one-off
investment needed to meet cost and demand pressures in high
priority services remains high but has remained relatively stable
since the December report with some improvement to the recurrent
estimates.
Corporate Plan
Investments
3.4
Including the additional cost of the Council Tax Reduction (CTR)
scheme proposals now reflected in the tax base calculation (approx.
£0.350m), a net additional investment of £0.250m is
proposed to address Corporate Plan priorities compared to the
December draft proposals. These are still subject to finalisation
but at this stage the proposed investments are as follows:
|
Table 3:
Proposed Corporate
Plan Investments
|
Annual
Cost
£m
|
One-off Cost
£m
|
|
Priority expansion of the Housing first scheme
to support a further 10 people
|
0.100
|
|
|
Creation of a ‘revolving door
fund’ for community wealth building via an on-lending pilot.
Set up costs.
|
|
0.020
|
|
Creation of a Climate Assembly Action Fund
|
0.100
|
|
|
Hydrogen feasibility study
|
|
0.030
|
|
Expansion of the Sustainable Carbon Reduction
Initiative Fund (SCRIF) financing budget to lever in borrowing for
carbon reduction schemes
|
0.200
|
|
|
Expansion of the warmer homes initiative
(including district heating plans) through an additional financing
budget to lever in more investment
|
0.200
|
|
|
Addition of a Rewilding Officer post to
enhance biodiversity
|
0.040
|
|
|
Investment in an Environmental Education
Strategy for the City
|
|
0.150
|
|
Enforcement Officer post for Energy
Performance Certificate (EPC) non-compliance
|
0.045
|
|
|
Investment in ‘pocket parks’
|
0.030
|
|
|
Low traffic Neighbourhood pilot
|
0.020
|
|
|
Feasibility study for a seafront sustainable
transport corridor
|
|
0.030
|
|
Investment in improving school streets
|
0.100
|
|
|
Investment in the Brighton Youth Centre
project
|
0.150
|
|
|
Additional provision for support to victims of
domestic violence
|
0.050
|
|
|
Investment to provide a focused Race Education
Strategy and delivery
|
0.100
|
|
|
Creation of a new Disability Officer post
|
0.045
|
|
|
Clean ups/Graffiti Removal & Crime
Reduction Initiatives
|
0.020
|
|
|
TOTAL CORPORATE PLAN
INVESTMENTS
|
1.200
|
0.230
|
Council Tax and Business Rates
3.5
The council’s tax bases have been reviewed and the details of
the projected tax bases and associated taxation revenues are
included in the separate tax base reports on this committee
agenda.
3.6
The net effect of the tax base review is an improvement in
resources of £0.209m for 2021/22 compared with projections
made earlier in the year. However, this includes an assumed one-off
negative impact of the pandemic of £1.120m which can be
covered by the Local Council Tax Support grant in 2021/22 before
the position is assumed to recover in 2022/23. Taking this into
account, the underlying tax base will therefore improve by
£1.329m compared with earlier forecasts.
3.7
The tax base calculation must now also incorporate proposed changes
to the Council Tax Reduction (CTR) Scheme reported elsewhere on
this agenda. The additional cost of proposed changes in 2021/22 is
approximately £0.350m and this will now be reflected in the
tax base calculation rather than being shown as a Corporate Plan
investment as previously.
3.8
The projected 2020/21 Collection Fund deficit has also been
reviewed as part of this process and currently stands at
£4.127m after accounting for 75% government funding support.
However, the government have also allowed any remaining deficit to
be spread over 3 years and therefore the one-off amount to be
managed in 2021/22 is £1.376m.
Latest Budget Gap
(Shortfall) 2021/22
3.9
Following the Spending Review announcement, in the December draft
budget report officers estimated that the latest budget shortfall
for 2021/22 would be in the range £14.839m to £13.039m
subject to further reviews of cost and demand pressures and
confirmation of the impact of the Spending Review via the
provisional LGFS. In the event, the provisional LGFS was
£0.145m better than the most optimistic forecast and,
together with an improved tax base projection and using latest cost
and demand estimates, the budget shortfall is currently projected
to be £10.405m as shown below.
|
Table 2:
Budget Gap Latest
|
December position
£m
|
Latest position
£m
|
|
Budget Gap (‘Moderate View’
Scenario)
|
17.300
|
17.300
|
|
Change in priority
investments and service pressures
|
2.829
|
1.575
|
|
Lower cost of a
restricted pay award
|
-2.190
|
-2.429
|
|
Increase in ASC
funding (from assumed £4m)
|
-0.400
|
-0.450
|
|
New ASC
grant
|
-1.500
|
-0.944
|
|
New ‘lower
tier’ grant
|
0.000
|
-0.624
|
|
Increased Covid-19
grant funding (from assumed £6m)
|
-0.200
|
-2.023
|
|
Homelessness/Rough
Sleeping funding
|
-1.000
|
-1.000
|
|
Other minor
changes
|
|
-0.021
|
|
Tax base changes
including CTR Scheme proposals
|
|
+0.141
|
|
Use of Local Council
Tax Support grant
|
|
-1.120
|
|
Revised Budget Gap (January)
|
14.839
|
10.405
|
Addressing the Budget Gap
3.10
To address the original budget gap officers worked on an assumption
of a £17.3m savings requirement. The budget gap improved to
between £14.839m and £13.039m following the Spending
Review. In pursuit of this revised range, draft savings proposals
of £10.588m have been identified and were shared on a
confidential basis with the Cross-Party Budget Review Groups in
mid-December. These are now provided at Appendix 1.
3.11
As noted in Table 2 above, the provisional Local Government
Financial Settlement has improved some resources while recurrent
cost/service pressures have also improved by £1.254m, mainly
due to improved capital financing cost projections (£0.5m)
and the removal of the provision for the anticipated transfer of
Land Charges to Land Registry (£0.5m) which has not been
notified by government. Taking into account the latest budget gap
of £10.405m identified in Table 2, the proposed savings of
£10.588m would therefore leave resources of £0.183m
available, which could be held for investment or held to provide a
risk provision. This is a relatively small sum and is likely to
change further, particularly in relation to ongoing reviews of
service pressures, finalisation of the budget proposals for the
February Policy & Resources Committee, and any changes arising
from the final Local Government Financial Settlement.
3.12
A key area of risk in the forecast concerns Homelessness due to
both the numbers continuing to require support but also due to the
increasing cost of Temporary Accommodation leases. The longer the
current lockdown continues, or any further lockdown, and the closer
this runs up to or into next financial year, the higher the risks,
as this will impact on the service’s efforts to resolve
issues and help people to ‘move on’ to sustainable
settings well into next financial year. The new Rough Sleeping
funding is also expected to be one-off and should therefore ideally
be set against one-off homelessness costs (see later). In lieu of
this, at this stage it is advisable to set aside available
resources against this risk as a Homelessness Risk Provision. This
can either be used to address additional costs/risks or, if these
do not arise, can be used to offset one-off homelessness costs (see
Table 4 below) rather than using reserves.
3.13
Table 3 below summarises the current position assuming a
£0.183m Homelessness Risk Provision is set aside.
|
Table 3:
Addressing the Budget Gap
|
December position
£m
|
Latest position
£m
|
|
Revised Budget Gap (January)
|
14.839
|
10.405
|
|
Draft Savings
proposals
|
-6.369
|
-10.588
|
|
Remaining Budget Gap/Surplus
|
8.470
|
-0.183
|
|
Homelessness Risk
Provision
|
|
0.183
|
|
Balance
|
|
0
|
3.14
The table above indicates that at this stage a balanced recurrent
budget is possible for 2021/22. However, a key point to remember is
that both the £8.023m Covid-19 grant and £1.000m Rough
Sleeping grant for 2021/22 are likely to be one-off funding only.
By funding recurrent budget with these grants, this will
potentially create a large additional budget gap in 2022/23 unless
these funding sources are replaced with alternative provision in
the 2022 Comprehensive Spending Review. All figures and assumptions
are still subject to further changes as noted above.
Reserves Position and One-off Funding
Latest Position in 2019/20
3.15
Targeted Budget Management (TBM) is the council’s system of
budget monitoring and the TBM Month 7 (October) report elsewhere on the agendapresented to this committee in December
showed shows a projected overspend of
£0.030m on the General Fund, which includes a projected
overspend of £0.313m on the council’s share of NHS
controlled s75 partnership services. The overall overspend shows a
substantial improvement of £7.823m since Month 5 as presented
to the Committee in October and brings the position close to
balance. This has resulted from a combination of effective cost
control measures including negotiated supplier reliefs, application
of the furlough scheme where applicable, and effective deployment
and vacancy management together with significant improvements in
income forecasts due to the busy summer, improved recovery of
benefits for emergency accommodation tenants, increased funding
from the NHS, and very substantial government grant support.
3.16
The working balance will be recommended to continue at a minimum of
£9.0m to meet general risks applicable to a unitary
authority.
3.17
Table 4 identifies the potential resources and liabilities that
will need to be taken into account in setting the 2021/22 budget.
At this stage, this assumes that spending in 2020/21 will be in
line with the TBM Month 7 (October) report, however, this will be
updated for the February budget report which will incorporate a
forecast up to the end of December 2020 (Month 9).
3.18
The table shows an estimated shortfall in one-off resources of
£9.147m. This is a significant call on one-off resources,
although this has improved slightly since the December report
(£10.174m). This position is expected to change further and
will be updated for the February budget report. The main factors
expected to affect the position are:
·
A further update to the TBM in-year forecast position which will be
updated for month 9 (December);
·
A comprehensive review of reserves and provisions which is
undertaken annually as part of the budget process. This is
necessarily undertaken toward the end of the budget process to
ensure the latest information is available;
·
Updated estimates of short term Covid-19 pressures expected in
2021/22.
|
Table 4: One-off resources, liabilities and potential
allocations (as at Month 7/October)
|
£m
|
£m
|
|
Unallocated general reserves
|
|
0
|
|
|
|
|
|
Revenue Budget position 2020/21 (TBM):
|
|
|
|
-
Forecast outturn overspend (as at TBM
Month 7/October)
|
|
0.030
|
|
|
|
|
|
In-Year Collection Fund Position:
|
|
|
|
Estimated 2020/21 Council Tax collection fund deficit
(brought forward and in year collection)
|
2.659
|
|
|
Estimated 2020/21 Council Tax collection fund deficit
(reduction in Debit due to Covid)
|
2.351
|
|
|
75% SR2020 provision for collection fund
debts
|
-1.763
|
|
|
Estimated 202/21 Business Rates Retention collection
fund deficit
|
3.520
|
|
|
75% SR2020 provision for collection fund
debts
|
-2.640
|
|
|
Sub-total: Projected In-year Collection Funds deficit
position
|
|
4.127
|
|
Less (2 years) allowed deferral of deficit over 3
years
|
|
-2.751
|
|
|
|
|
|
Projected One-off Resources shortfall at start of
2021/22
|
|
1.406
|
|
|
|
|
|
One-off Allocations in 2021/22 (from Table
1):
|
|
|
|
Latest Short Term Covid-19 and other one-off service
pressures
|
7.121
|
|
|
One-off investment in Corporate Plan
priorities
|
0.230
|
|
|
Allocation to the Council Tax Reduction Discretionary
Fund
|
0.190
|
|
|
Allocation to the Welfare Reform Support
Fund
|
0.200
|
|
|
Total One-off Allocations in
2021/22
|
|
7.741
|
|
Current One-off Resources shortfall
|
|
9.147
|
3.19
The table above clearly indicates a very substantial call on
one-off resources. As indicated above, there are a number of
factors likely to cause a change to these figures while further
work is also needed to fully understand Covid-19 one-off pressures
and consider options for mitigating some of these costs. If
sufficient one-off resources cannot be identified to meet the
one-off resource shortfall, the council may need to consider the
use of earmarked reserves to manage the position, with subsequent
repayment of reserves in future years.
Staffing Implications (General Fund Services)
3.20
An estimate of the posts to be deleted in relation to the draft
budget proposals has been made and indicates that approximately 37
full time equivalent (fte) posts are expected to be deleted from
the council’s staffing structure. Many of these posts are
already being held vacant in lieu of savings proposals but some may
initially result in staff being potentially placed at risk of
redundancy. This is difficult to estimate with certainty but
approximately 11 fte staff have been identified as potentially at
risk at this early stage of the process. This information has been
shared with the council’s recognised trades unions and the
staff affected in advance of the release of the Policy &
Resources report.
3.21
As in previous years, actual numbers will be dependent on the
detailed options proposed and on the results of formal consultation
with staff and unions. As previously experienced, it is likely that
some of these will be resolved through turnover, or through
redeployment to other vacancies across the council, thereby further
minimising the risk of redundancies.
3.22
As always, if the forthcoming proposals do potentially place any
staff at risk of redundancy the council will support them by:
·
Providing appropriate support to staff throughout the change
process to enable them to maximise any opportunities available;
·
Controlling recruitment and ensuring there is a clear business case
for any recruitment activity;
·
Managing redeployment at a corporate level and maximising the
opportunities for movement across the organisation;
·
Managing the use of temporary or agency resources via regular
reports to Directorate Management Teams (DMT’s);
·
Offering voluntary severance where appropriate to staff affected by
budget proposals on a case by case basis.
These measures will remain in
place as consultation with trade unions, staff and other
stakeholders is undertaken. Where necessary, a targeted voluntary
approach to releasing staff in areas undergoing change will be
managed to support service redesigns whilst ensuring that the
organisation retains the skills that will be needed for the
future.
4
ANALYSIS & CONSIDERATION OF ANY ALTERNATIVE OPTIONS
4.1
The budget process allows all parties to engage in the examination
of budget proposals and to put forward viable alternative budget
and council tax proposals to Budget Council on 25 February 2021.
Budget Council has the opportunity to debate the proposals put
forward by this committee at the same time as any viable
alternative proposals.
4.2
Any alternative proposal will need prior assessment by the Section
151 Chief Financial Officer and will not normally be allowed where
an estimate is not considered to be robust for one of the following
reasons:
i)
The risk of not achieving the saving is assessed to be high;
ii)
There is insufficient evidence or information to assess the
potential saving;
iii)
The alternative proposal is adding to or bringing forward an
existing saving without further information as to how this can be
achieved;
iv)
The alternative proposal requires one-off investment or loan
financing that cannot be supported;
v) The
alternative proposal is beyond the powers and duties of the local
authority.
Budget Timetable
5.1
The remaining timetable for the final budget proposals is given in
the table below. This timetable does not include detailed plans for
ongoing consultation with stakeholders as this will be determined
in conjunction with those involved.
Table 5: Budget
Timetable
|
Date
|
Event
|
Notes
|
|
21 Jan 2021
|
P&R
|
Budget Update and Draft Budget Proposals
report;
Council Tax Reduction Scheme 2021/22
report;
Council Tax Base report;
Business Rates tax base report.
|
|
28 Jan 2021
|
Council
|
Council Tax Reduction Scheme 2021/22 (from
P&R).
|
|
1 Feb 2021
|
CFO/Unions
|
Sharing overall final budget package
|
|
11 Feb 2021
|
P&R
|
General Fund and HRA Revenue & Capital
Budget reports;
TBM mMonth 9 report.
|
|
25 Feb 2021
|
Budget Council
|
General Fund and HRA Revenue & Capital
Budget reports.
|
5.2
General information and advice about the council’s budget
will continue to be provided through the council’s web site
which provides information and graphics on how money is spent on
services, where the money comes from and a summary of the financial
challenges ahead.
5.3
The council will also widely publicise its online social media
inviting residents and stakeholders to give us their views and
ideas on Twitter via #BHBudget. Key proposals from the budget plan
will be publicised, along with information about council services,
and questions and comments invited from residents immediately
following their publication over the period leading to the February
Policy & Resources Committee meeting. A summary of response
threads can be provided to all political groups.
Other consultation
and engagement processes are as follows:
5.4
Information will be shared with Strategic Partners and community
groups as normal. Local Strategic Partners remain acutely aware of
the potential cumulative impact of funding pressures across public
sector agencies on the city. The City Management Board, attended by
all Local Strategic Partnership representatives, will therefore
ensure that information is shared across the sector to assess and
mitigate adverse cumulative impacts wherever possible and develop
joint actions where appropriate. Engagement with statutory partners
will continue on an ongoing basis to further share and understand
the potential cumulative impact of budget proposals across the city
as they take shape.
5.5
In particular, the council will be engaging fully with the Brighton
& Hove Clinical Commissioning Group (CCG) with the intention of
aligning the budget processes of the two organisations as far as
practicably possible. As with the council, the local CCG is likely
to remain under severe financial pressure due to continually
increasing demands.
5.6
There are ongoing briefings and discussions with the Economic
Partnership that cover potential funding sources and bids, city
regeneration, economic growth, employment and apprenticeship
strategies. Statutory consultation with Business Ratepayers will
also be undertaken as normal.
5.7
For staff, updates will be provided via the council’s
intranet and formal consultation with Staff and Unions will be
undertaken as normal including Departmental Consultative Group
(DCG) meetings during January followed by appropriate consultation
with directly affected staff. It is recognised that the budget
process is delayed by approximately one month due to the pandemic
and this will need to be accommodated in consultation time-lines to
ensure appropriate and meaningful consultation with staff and
unions.
5.8
Similarly, where appropriate or required by statute, specific
consultation will be undertaken with residents and other people
directly affected by proposed changes to service delivery.
6
CONCLUSION
6
7
8
9
6.1
The council is under a statutory duty to set its budget and council
tax before 11 March each year. Notwithstanding the delays caused by
the pandemic, this report sets out the latest budget assumptions,
process and timetable to meet the statutory duty.
7
FINANCIAL & OTHER IMPLICATIONS:
Financial
Implications:
5
6
7
8
9
10
7.1
These are contained within the main body of the report.
Finance Officer Consulted: James
Hengeveld
Date: 11/01/201
Legal Implications:
7.2
Policy & Resources Committee has delegated power to formulate
the council’s revenue budget proposals and Capital Strategy
and to recommend their adoption by full Council as part of the
overall budget setting process.
7.3
Any decisions taken as part of the
budget setting process are subject to compliance with relevant
legal requirements where appropriate before
implementation.
The draft budget plans and savings proposals contained in this
report are for noting and are subject to change, and do not commit
the council to implement any specific savings proposals. When
specific decisions on budget reductions are necessary, focussed
consultations and the full equality implications of doing one thing
rather than another will need to be considered in appropriate
detail.
Lawyer Consulted: Elizabeth
Culbert
Date: 11/01/21
Equalities Implications:
7.4
In Brighton & Hove City Council a budget Equality Impact
Assessment (EIA) process has been used to identify the potential
disproportionate impacts of proposals on groups/individuals covered
by legislation (the ‘protected characteristics’ in the
Equality Act 2010) and actions to mitigate these negative impacts
or promote positive impacts. This is a key part of meeting the
requirements of the Act and demonstrating that the council is doing
so.
7.5
In law, the potential impacts identified, and how far proposed
actions mitigate them, must be given due regard by decision-makers
when making budget and resource decisions. However, as noted under
legal implications above, in setting the budget members are making
resourcing decisions which remain subject to compliance with all
necessary legal and statutory consultation requirements.
7.6
All proposals with a potential equalities impact in 2021/22 will
have an EIA completed and provided to all Members for the Budget
Council. Draft EIAs are provided in this report at Appendix 2 which
are cross-referenced with savings proposals in Appendix 1. Staffing
EIAs will also be completed alongside the formal consultation
process on proposed staffing changes and feedback will be provided
in the February report.
7.7
Comments and feedback on the draft EIAs are invited from all
stakeholders and will be used by officers to revise the first
drafts of EIAs into final versions which will be available to
members and scrutiny as they consider the budget proposals at
Budget Policy & Resources and Budget Council. They will also be
published on the council website.
Sustainability Implications:
7.8
One of the key principles for developing budget proposals, aligned
with the Corporate Plan, is whether or not proposals and
investments can contribute to the 10 year carbon reduction target
to become carbon neutral by 2030. This plays out through everything
from reviewing the council’s Administrative Buildings
occupancy and facilitating more remote working for staff, to
increasing the number of electric vehicles in its fleet, through to
working with the Climate Assembly to identify further opportunities
and actions. The capital and revenue budget proposals for 2021/22
cannot address all of the Corporate Plan objectives immediately but
do aim to provide for many initiatives to be supported and
researched to inform future budget rounds.
Any Other
Significant Implications:
Risk and
Opportunity Management Implications:
7.10
The level of financial risk provisions will need to be reviewed for
2021/22 in the light of the Month 9 budget monitoring position
(TBM), the outcome of the Local Government Financial Settlement,
the delivery risks inherent in savings proposals, the projected
ongoing impact of the pandemic, and available resources.
7.11
The budget report to February Policy & Resources Committee will
include the Chief Finance Officer’s formal assessment of the
robustness of estimates in the budget and the adequacy of reserves
and provisions, including an assessment of the need for any
additional risk provisions.
SUPPORTING DOCUMENTATION
Appendices:
1.
Draft Budget Proposals 2021/22
2.
Draft Equality Impact Assessments 2021/22
Documents in Members’ Rooms
1. None
Background Documents
1.
Budget files held within Finance