BUDGET 2021-22 AND MEDIUM TERM FINANCIAL PLAN
This presentation will outline the Council’s strategy to the 2021-22 Budget within the context of the Corporate Plan. The presentation will provide details of the approach to setting the budget for the next financial year and the broad impact this will have on the delivery of services.
Minutes:
BUDGET 2021-22 AND MEDIUM TERM FINANCIAL PLAN
The presentation outlined the Council’s strategy to the 2021-22 Budget within the context of the Corporate Plan. The presentation provided details of the approach to setting the budget for the next financial year and the broad impact this would have on the delivery of services.
Councillors Nick Oliver, Cabinet Member for Corporate Services and Richard Wearmouth, Cabinet Member for Business & Tourism were in attendance to provide a power point presentation which outlined the Council’s strategy to the 2021-22 Budget within the context of the Corporate Plan. A copy of the presentation would be filed with the signed minutes and be uploaded to the Council’s website.
Councillor Oliver presented the following information:
Budget 2021-22 Approach
• Maintain high quality services most important to residents and businesses.
Continue to support the most vulnerable in communities whilst giving communities more control.
• Leading economic recovery following Covid with an investment in a green recovery.
• Meet budget challenges through a programme of continuous innovation and improvement.
Councillor Oliver wished to place on record his thanks to officers across all services who had responded in an amazing way to provide an excellent service to residents in these unprecedented times. In Northumberland 10% of people had now been vaccinated and it was hoped the economy would re-open in the Spring. These had been very difficult times for many people and the Council must be geared up and ready for recovery.
State of the Area
• Public Health - the most up to date Covid figures were provided and it was hoped that the peak had been reached in Northumberland, however, there was no room for complacency, and it was important that everyone continued to follow the current Government guidelines to protect themselves and others. The North East was performing particularly well in the roll out of vaccinations.
• Economy – Rural and coastal areas had been hit harder by the impact of COVID having a strong tourism and hospitality sector. There had been an increase of 62% in unemployment figures since March 2020 and a rise in the claiming of benefits. This particularly affected young people working in the
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sector and grants had been unprecedented. It was hoped the sectors would make a quick recovery following the lifting of restrictions. Vacancy levels across the County were provided and these were 3% less than in 2019. It was hoped vacancies would rise and fall again as jobs were filled going forward.
• Council Services - Throughout COVID the Council had maintained services most important to residents. Officers had reacted quickly and successfully and had adapted to news ways of working, embracing digital solutions, and continuing to improve services. Within 4 weeks, 4,000 people had been given access to remote working. Some changes would remain, and some would be for the short term and others permanent.
Budget 2021-22: Financial Context
• Next year savings target circa £8.3 million.
• Improving frontline services.
• Increasing demand for services.
• COVID-19 pandemic.
• Ambitious capital programme.
• Still investing in infrastructure and services whilst delivering savings.
Details were provided of the funding analysis from 2014 – 2024 along with the overall funding arrangements. Details of a one-year spending review, which were better than expected, had been received in December and figures were being reworked to reflect that. There had been a lot support from the Government for the costs of COVID including replacing lost Council Tax and extra costs in delivering Adult Services. In line with the cap for core Council Tax it was proposed there would be a rise of 1.99% with 1.75% in the first year and 1.25% in the second year. The cap on Adult Social Care was 3%. Details were also provided on the savings to be made by each directorate with a summary of savings by year and changes in spending by service (gross). Movement in debt and details of the capital programme for 2021-2024 were highlighted and it was acknowledged that slippage had been more dramatic because of COVID.
Budget 2021-22: Summary
• The budget position, whilst challenging, was under control.
• Through managing debt better and driving efficiency the savings gap had been reduced.
• The organisation continued to improve frontline services and was determined to make the most of Government support.
• Increased costs and growing pressures in demand remained, particularly in adult and children’s services.
• Tough decisions were still to be made but the Administration was committed to protecting the most vulnerable.
• Ambitious for the future with targeted £748 million capital investment programme.
• Investment from North of Tyne Devolution Deal to make a difference to people’s lives.
• Borderlands Growth Deal could act as a catalyst for further investment.
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Determination to shine a light on all that was great about Northumberland as a place to work, live, visit and do business.
Budget 2021-22: Next Steps
• The budget consultation had started on 10 December and had been very well publicised. There had been in excess of 450 responses which was unprecedented.
• Views from the Overview and Scrutiny Committees and Local Area Councils would be invited and the final version would be considered by Full Council in February.
Councillor Wearmouth presented details of the investment programme going forward.
• Investing in Growth – details of Northumberland’s strengths were highlighted.
Home to leading global industries. This included reference to natural capital and green businesses in the Port of Blyth where there was an opportunity for offshore wind and the recent announcement by Britshvolt about manufacturing electric car batteries. Internationally recognised tourist sector.
• Investing in the transition to a future economy - opportunities in South East Northumberland to lead the green revolution and ensure that residents would benefit from the jobs created. Significant projects in offshore.
• Investing in our places, culture and tourism – the introduction of passenger rail services between Ashington and Newcastle were close to being secured and funding was being sought to transform the corridor throughout that route; A town deal for Blyth was underway and would hopefully be secured for Ashington and Bedlington (whether specific or as part of the Borderlands Growth Deal). There was an Ambitious Capital Development Programme and as part of Borderland Investment, potential for mini town deals, was already being discussed for Newbiggin, Haltwhistle and Rothbury.
• Investing in transport and digital connectivity - improvements to address gaps in infrastructure for internet and broadband connectivity; Plans for the Northumberland Line to be completed by 2023; dualling of the A1 and strategic road improvements.
• Investing in people, jobs, skills and livelihoods – project in Blyth for Energy Learning Hub; maximise training and opportunities for local residents in SE Northumberland, part of which was ensuring the influence of the Kickstart programme; ensuring the Education Challenge Fund would come to the North East as proposed in the Devolution deal.
• Investing in a rural green recovery - significant aims in terms of Low Carbon Heat Networks, eg, heat recovery from mine water; discussions with the Great Northumberland Forest, funding for renewable energy to carry out feasibility studies to assist with that process; infrastructure for electric vehicle charging and investing in green homes.
In response to questions/concerns raised by members, the following information was provided: Ch.’s Initials……… Cramlington, Bedlington and Seaton Valley Local Area Council – 20 January 2021 5
• The net impact of Covid – there was no precise figure but was around £10 million short this year. It was expected to deliver forecast outturn of an underspend and deliver a budget either on target or below target.
• Not all money had been assigned to projects. There was a degree of flexibility for opportunities and deliverability.
• Natural Capital included projects such as Bedlington/Blyth Estuary and forestry projects around Kielder and the coastline.
• The financial benefits of being carbon negative - Northumberland by far had a huge component of carbon absorption and a geography of peatland and wetland which had a monetary value.
• In respect of investment of green homes, this would affect more of the housing stock and developers would be encouraged to build to those standards.
• The gross budget was increasing by £23 million to drive greater efficiency. Northumberland faced inflation and demographic pressures and was investing in heavy investments which would drive further efficiencies.
• In respect of the number of employees in business, the information had come from officers in preparation of the presentation. There were a lot of jobs outside the county with a lot of people commuting. The Local Plan contained a lot of employment land with a rapid build out of land in Bedlingtonshire, which would help alleviate problems such as Moor Farm Roundabout. In terms of information relating to green homes, written feedback could be provided.
• In relation to S106 agreements, money was still available and well as other sources.
The Chair thanked Councillors Oliver and Wearmouth for their presentations and for answering the questions put forward.
RESOLVED that the information be noted.