Issue - meetings

Report of the Director of Finance

The Forum received a report of the Director of Finance which set out the draft Revenue Budget 2020/21 and Medium Term Financial Strategy (MTFS) 2020/21 to 2022/23, as reported to Cabinet at its meeting held on 9 January 2020.  The Forum was informed that the budget and MTFS would return to Cabinet, which would submit its recommendation to full Council in February 2020 for final approval.  The Director explained that this was the formal consultation process on the budget with the ECF, whose comments (if any) would be submitted to the February 2020 meeting of the Cabinet by inclusion of this minute as an appendix to the Budget Report.

The Forum welcomed the report and acknowledged the comprehensive discussions held with the trade unions in preparation of the budget.

Resolved to RECOMMEND: (to Cabinet)

That the report be noted and recommended to February 2020 Cabinet meeting for final approval and recommendation to Council.

Report of the Corporate Director People

The Board received a report which detailed Harrow Council’s Draft Revenue Budget 2020/21 to 2022/23, as reported to the Council’s Cabinet on 6 December 2019.  It was noted that the budget and MTFS would return to Cabinet in February 2020 for final approval and recommendation to Council.

An officer introduced the report and drew particular attention to the key points relevant to the Health and Wellbeing Board including the continued financial challenges to the health and social care sector with future funding pressures identified by modelling reflected in table 2 of the report.  The pressures were linked to future funding announcements and the MTFS currently did not assume any additional support over and above that received for 2020/21.  In particular the commissioning activity could not be implemented until there was some surety of additional funding.  The 2020/21 Adults budget assumed that funding for the Protection of Social Care through the Better Care Fund would remain at the agreed 2019/20 level of £6.112m.

In response to questions it was noted that:

·                     the transformation above £2m for transport was to identify how it could be undertaken differently in order to fund within the envelope;

·                     the first two lines for Social Care was the previously agreed GMT which was built in but not the bottom line (page 187);

·                     the matrix built in the shift in funding and the effect of existing cases.

The CCG Managing Director stated that the budget would be monitored at every Board meeting and that it would be helpful to have discussions on a plan around BCF which recognised the limited funding and ring fence that could be taken into account at the February or March A&E Delivery Board subject to it being decided whether this was the most suitable forum.  The Director of Strategy and Deputy CEO, NWH NHS Trust, suggested the formation of a smaller group regarding conversations around assumptions and initiatives. Harrow Council welcomed the opportunity to share the conversation.  It was advised that the A&E Delivery Board included Ealing and Brent in addition to Harrow.  The Chair referred to the benefit of collaboration on some targets in order to mitigate sudden spikes and expressed interest in the outcome of the talks. It was agreed that it would be helpful to set up a BCF Board in Harrow as good governance around these issues.  The Director for Adult Services would take this forward with colleagues from the Acute Trust and the CCG.

RESOLVED:  That the report be noted.

Report of the Director of Finance

RESOLVED:  That

(1)          the draft budget for 2020/21 and the Medium Term Financial Strategy (MTFS) 2020/21 to 2022/23 be approved for general consultation as set out in Appendices 1C and 2 to the report so that Cabinet may later consider the budget in light of the consultation responses and the equality impact assessments before it was referred to Council in February 2020;

(2)          the balanced budget position for 2020/21 and the budget gaps of £15.328m and £8.924m for 2021/22 and 2022/23 respectively based on the scenario of a total Council Tax increase of 3.99% in 2020/21 only (table 2 of the report refers) be noted;

(3)          the proposal to increase core Council Tax by 1.99% in 2020/21 (Table 2 and paragraph 1.22 of the report) be noted;

(4)          the proposal to increase Council Tax by 2.0% in 2020/21 in respect of the Adult Social Care Precept (Table 2 and paragraph 1.22 of the report) be noted;

(5)          there were no proposed structured changes to the schools funding formula for 2020/21, as set out in Appendix 3 and paragraphs 1.49 to 1.53 of the report, be noted;

(6)          the draft Public Health budget for 2020/21, as set out in Appendix 4 to the report, be approved; 

(7)          the assumed funding for the protection of social care 2020/21 through the BCF, as set out in paragraphs 1.57 to 1.60 of the report, be noted;

(8)          the Director of Finance be authorised, following consultation with the Portfolio Holder for Finance and Resources, to agree Harrow’s 2020/21 contribution to the London Borough’s Grant Scheme (paragraph 1.63 refers);

(9)          it be noted that the London 75% Business Rate Retention Pilot would not continue in 2020/21 but the London Borough’s Leaders Committee had agreed to continue to informally post business rates across all London authorities in 2020/21, as set out in paragraph 1.9 of the report;

(10)       the Director of Finance be authorised, following consultation with the Leader of the Council, Portfolio Holder for Finance and Resources and the Monitoring Officer, to respond on behalf of the authority with regard to any recommendations from the informal business rates pool from 2020/21.

Reason for Decision:  To ensure that the Council published a draft budget for 2020/21 and a draft 3 Year MTFS to 2022/23.

Alternative Options Considered and Rejected:  As set out in the report.

Conflict of Interest relating to the matter declared by Cabinet Member/Dispensation Granted:  None.