Agenda item

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on the write the report and which do not contain exempt information)

Contact Officer, telephone number and email: Lucy Hume, 01263 516246, lucy.hume@north-norfolk.gov.uk

Cllr E Seward – Portfolio Holder for Finance and Assets introduced the report and informed Members that whilst deficits were forecasted in future years, the Council continued to fund services and deliver a balanced budget. He added that whilst the Council remained prudent, it was uncertainty around future levels of financial support from Central Government that were the key cause of forecasted deficits. Cllr E Seward stated that it was important to ensure that the Council was operating as efficiently as possible, whilst still being able to meet its corporate objectives. He added that there had been plans to commence efficiency savings proposals in the 2020/21 financial  year, but Covid-19 had limited the resources available to undertake these exercises. It was reported that work would soon begin on a zero base budgeting exercise, alongside a request for departments to consider the impact of a 10% reduction in service budgets, a review of fees and charges, and the creation of an asset repair fund.

Questions and Discussion

   i.          The Chairman sought clarification that the approach to the Council’s finances was a mix of prudence and patience, to wait and see what level of financial support would be offered by Central Government. Cllr E Seward replied that there was an element of waiting for the outcome of spending reviews, though there were also plans to implement several savings proposals in the summer. He added that some proposals would remain as back up options, if the financial situation further deteriorated. The Chairman asked for an indication of the urgency that the savings proposals identified in Appendix E would be treated. Cllr E Seward replied that these proposals would be considered in due course alongside those already mentioned, and added that some were more viable than others. He added that he was open to providing updates on the progress of delivering these proposals as and when available. The Chairman noted that some of the proposals would take considerable time to deliver, and asked whether this had been taken into account. Cllr E Seward replied that planning work would begin in March, with proposals ready for implementation in autumn.

  ii.          Cllr A Varley thanked officers for the report and asked why the MTFS had returned to the Committee as a separate report. The Chairman replied that the MTFS had always been a separate report on the Committee’s Work Programme, and that this was the standard approach to review details of the strategy.

iii.          Cllr L Withington stated that the MTFS showed prudence and the planned consideration of options, and asked whether an update on the proposals could be provided in June.

iv.          Cllr W Fredericks reiterated her comments from the previous meeting, that the Council should continue to lobby Central Government and local MPs for greater clarity on future levels of financial support.

 v.          Cllr G Mancini-Boyle referred to the spending required to maintain Comer Pier, and asked whether there was a long-term strategy or any fresh ideas. He then referred to gate fees for the District’s recycling, and asked whether the substantial price increases had been factored into the budget. Cllr E Seward replied with regards to the Pier, that whilst it required significant funding that had been continually reviewed by different administrations, he was open to ideas for new funding arrangements. He added that the Pier remained crucially important to the tourism industry of North Norfolk. The CTA added that the Pier provided a direct income via a management fee, but was also a significant draw for tourism in North Norfolk. On recycling gate fees, the CTA stated that future costs had been given general consideration, but would be looked at in more detail when preparing the 2022-23 budget. Cllr G Mancini-Boyle suggested that it could be helpful to consider alternate options for funding the Pier’s maintenance, and suggested holding a public consultation on the matter. In response to a question from Cllr W Fredericks on the listed status of the Pier, it was stated that the Council did have a responsibility to maintain the structure, as owner.

vi.          Cllr H Blathwayt stated that in his experience, the more commercial a Pier became, the less attractive it would be to visitors, and noted that he would be happy to provide input for consideration if required.

vii.          Cllr P Heinrich asked whether establishing a charity trust to fund the Pier maintenance could make it eligible for lottery funding. The CE replied that this could be considered, and noted that the Council had received lottery funding in the past.

viii.          Cllr A Brown referred to the financial outlook of the MTFS, and referred to an announcement of a 4.5% increase in core spending for Local Government, which he suggested was mostly the result of Council Tax increases. He added that over five years, financial support for local government had been reduced by approximately 30%, and asked whether this was sustainable. The CTA stated that should those cuts continue, then it would not be sustainable for any Council, and representations to this effect had been made in relation to the financial settlement.

ix.          Cllr L Withington proposed that an update be provided on the savings proposals as part of the budget monitoring process later in the year. Cllr A Varley seconded the proposal.

RESOLVED

1. To recommend to Full Council that the Medium Term Financial Strategy is approved.

2. To request that an update on the progress of savings proposals be included in the Outturn Report.