COUNCIL – 24TH FEBRUARY 2020

Supplementary Report of the Cabinet

Part A

ITEM 6.1 2020/21 GENERAL FUND AND HOUSING REVENUE ACCOUNT REVENUE BUDGETS AND SPECIAL EXPENSES – SUPPLEMENTARY REPORT

Purpose of the Supplementary Report

To enable the Council to adopt a General Fund Revenue Budget, a Housing Revenue Account (HRA) Budget and a Council Tax levy for 2020/21 in line with legislative requirements.

Policy Context

The budget is essential to all policies of the Council and the setting of a Council Tax levy is a legal requirement of the Council. The rents should be within specified parameters set by the Ministry of Housing, Communities and Local Government (MHCLG).

Recommendations

1. That the expenses incurred by the Council in performing in a function performed elsewhere in its area by a parish council or the chairman of a parish meeting be treated as special expenses for the purposes of Section 35 of the Local Government Finance Act 1992, to the extent provided in minute 72(C)1 of Council February 2008.

2. That:

a. the Original Budget for 2020/21 be £17,771,035; b. the base Council Tax be set at £126.52 at Band D; and c. the Loughborough Special Rate be set at £76.46.

3. That the amounts below be approved as the Council Tax Base for 2020/21:

(a) for the whole Council area as 57,607.2 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the "Act")]; and

(b) for dwellings in those parts of its area to which a Parish precept relates:

Part of the Council's area:

Council Tax Base Parish/Town Council 2020/21 Anstey 2,530.9 143.0 17.4 Barrow-upon-Soar 2,468.8 42.7 Birstall 4,542.6 Burton-on-the-Wolds 516.7 Cossington 217.3 Cotes 23.9 941.5 Hamilton Lea 254.9 897.4 148.0 2,956.9 542.8 14.5 1,199.0 Quorndon 2,474.2 Ratcliffe-on-the-Wreake 91.4 486.1 2,195.6 275.5 4,718.8 2,749.6 136.4 Stonebow Village 4.2 161.7 4,361.4 255.5 & 944.8 2,813.8 63.1 Walton-on-the-Wolds 130.8 86.3 Woodhouse 977.8 600.9 Loughborough 16,621.0

Charnwood Borough Council 57,607.2 being the amounts calculated by the Council, in accordance with Regulation 6 of the Local Authorities (Calculation of Council Tax Base) () Regulations 2012, as the amounts of its Council Tax Base for the year for dwellings in those parts of its area to which one or more special items relate.

4. That the following amounts be calculated for the year in accordance with Sections 31 to 36 of the Act:

a) the Council Tax requirement for the Council’s own purposes for 2020/21(excluding Parish precepts) is £8,559,305;

b) £62,403,993 being the g r o s s amounts which the Council estimates for the items set out in Section 31A (2) of the Act taking into account all precepts issued to it by Parish Councils;

c) £50,023,395 being the gross amounts which the Council estimates for the items set out in Section 31A (3) of the Act;

d) £12,380,598 being the amount by which the aggregate at 4(b) above exceeds the aggregate at 4(c) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act);

e) £214.91 being the amount at 4(d) above (Item R), all divided by Item T (3(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts);

f) £5,092,135 being the aggregate amount of Loughborough special items and Parish precepts referred to in Section 34(1) of the Act;

g) £126.52 being the amount at 4(d) above less the result given by dividing the amount at 4(f) above by Item T (3(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates;

h) Part of the Council’s Area:

District Band Parish, etc D Charge Anstey 241.96 Barkby and Barkby Thorpe 190.22 Barrow-upon-Soar 213.82 Beeby 126.52 Birstall 221.68 Burton-on-the-Wolds / Cotes / Prestwold 180.56 Cossington 193.25 East Goscote 188.87 Hamilton Lea 126.52 Hathern 178.00 Hoton 204.56 Mountsorrel 298.64 Newtown Linford 221.4 Queniborough 175.47 Quorndon 238.21 Ratcliffe-on-the-Wreake 159.34 Rearsby 169.55 Rothley 189.37 Seagrave 195.43 Shepshed 192.21 Sileby 205.63 South Croxton 212.67 Stonebow Village 126.52 Swithland 154.35 Syston 244.56 Thrussington 173.49 Thurcaston & Cropston 168.15 Thurmaston 267.74 Ulverscroft 126.52 Walton-on-the-Wolds 160.92 Wanlip 161.28 Woodhouse 209.87 Wymeswold 188.95 Loughborough Special Expense Area 202.98

being the amounts given by adding to the amount at 4(g) above the amounts of the special item or items relating to dwellings in those parts of the Council’s area mentioned above divided in each case by the amount at 3(b) above, calculated by the Council, in accordance with section 34(3) of the Act, as the basic amounts of its Council Tax for year for dwellings in those parts of its area to which one or more special items relate

i) Part of the Council's area

Parish Valuation Bands A B C D E F G H £ £ £ £ £ £ £ £ Anstey 161.307 188.194 215.072 241.96 295.726 349.501 403.267 483.92 Barkby and Barkby Thorpe 126.817 147.944 169.082 190.22 232.496 274.761 317.037 380.44

Barrow-upon-Soar 142.547 166.304 190.062 213.82 261.336 308.851 356.367 427.64

Beeby 84.3467 98.4044 112.462 126.52 154.636 182.751 210.867 253.04 Birstall 147.787 172.414 197.052 221.68 270.946 320.201 369.467 443.36 Burton-on-the-Wolds / Cotes / Prestwold 120.377 140.434 160.502 180.56 220.686 260.811 300.937 361.12 Cossington 128.837 150.304 171.782 193.25 236.196 279.141 322.087 386.5

East Goscote 125.917 146.894 167.882 188.87 230.846 272.811 314.787 377.74

Hamilton Lea 84.3467 98.4044 112.462 126.52 154.636 182.751 210.867 253.04

Hathern 118.667 138.444 158.222 178.00 217.556 257.111 296.667 356 Hoton 136.377 159.104 181.832 204.56 250.016 295.471 340.937 409.12

Mountsorrel 199.097 232.274 265.462 298.64 365.006 431.371 497.737 597.28

Newtown Linford 147.597 172.204 196.802 221.4 270.596 319.801 368.997 442.8

Queniborough 116.977 136.474 155.972 175.47 214.466 253.461 292.447 350.94

Quorndon 158.807 185.274 211.742 238.21 291.146 344.081 397.017 476.42 Ratcliffe-on-the-Wreake 106.227 123.934 141.632 159.34 194.746 230.161 265.567 318.68

Rearsby 113.037 131.874 150.712 169.55 207.226 244.901 282.587 339.1

Rothley 126.247 147.284 168.332 189.37 231.456 273.531 315.617 378.74

Seagrave 130.287 152.004 173.712 195.43 238.856 282.291 325.717 390.86 Shepshed 128.137 149.494 170.852 192.21 234.926 277.641 320.347 384.42

Sileby 137.087 159.934 182.782 205.63 251.326 297.021 342.717 411.26

South Croxton 141.777 165.414 189.042 212.67 259.926 307.191 354.447 425.34

Stonebow Village 84.3467 98.4044 112.462 126.52 154.636 182.751 210.867 253.04

Swithland 102.897 120.054 137.202 154.35 188.646 222.951 257.247 308.7 Syston 163.037 190.214 217.382 244.56 298.906 353.251 407.597 489.12

Thrussington 115.657 134.934 154.212 173.49 212.046 250.601 289.147 346.98

Thurcaston & Cropston 112.097 130.784 149.462 168.15 205.516 242.881 280.247 336.3

Thurmaston 178.497 208.244 237.992 267.74 327.236 386.731 446.237 535.48 Ulverscroft 84.3467 98.4044 112.462 126.52 154.636 182.751 210.867 253.04

Walton-on-the-Wolds 107.277 125.164 143.042 160.92 196.676 232.441 268.197 321.84

Wanlip 107.517 125.444 143.362 161.28 197.116 232.961 268.797 322.56

Woodhouse 139.917 163.234 186.552 209.87 256.506 303.141 349.787 419.74

Wymeswold 125.967 146.964 167.952 188.95 230.936 272.931 314.917 377.9 Loughborough Special Expense Area 135.317 157.874 180.422 202.98 248.086 293.191 338.297 405.96

being the amounts given by multiplying the amounts at 4(h) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in the valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

5. That it be noted that the County Council, the Police and Crime Commissioner for (‘PCCL’) and the Combined Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

REQUIREMENTS (TO 2 DECIMAL PLACES) BAND BAND BAND BAND BAND BAND BAND BAND A B C D E F G H LEICS COUNTY COUNCIL and adult 895.82 1045.12 1194.43 1343.73 1642.34 1940.94 2239.55 2687.46 social care COMBINED FIRE 45.31 52.86 60.41 67.96 83.06 98.16 113.27 135.92 AUTHORITY POLICE & CRIME 155.49 181.40 207.32 233.23 285.06 336.89 388.72 466.46 COMMISSIONER CHARNWOOD 84.35 98.40 112.46 126.52 154.64 182.75 210.87 253.04 BOROUGH TOTAL 1180.96 1377.79 1574.61 1771.44 2165.09 2558.75 2952.40 3542.88

The split between the County Council precept and the additional Adult Social Care precept is shown in the table below.

REQUIREMENTS (TO 2 DECIMAL PLACES) BAND BAND BAND BAND BAND BAND BAND BAND A B C D E F G H LEICS COUNTY 817.37 953.60 1089.83 1226.06 1498.52 1770.98 2043.43 2452.12 COUNCIL 2020 ADULT SOCIAL 78.45 91.52 104.60 117.67 143.82 169.97 196.12 235.34 CARE COMBINED 895.82 1045.12 1194.43 1343.73 1642.34 1940.94 2239.55 2687.46 CHARGE

6. That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the table overleaf as the amounts of Council Tax for 2020/21 for each part of its area and for each of the categories of dwellings:

BAND A BAND B BAND C BAND D BAND E BAND F BAND G BAND H 6/9 7/9 8/9 1 11/9 13/9 15/9 18/9

ANSTEY 1257.93 1467.57 1677.23 1886.88 2306.19 2725.49 3144.81 3773.76

BARKBY / BARKBY THORPE 1223.44 1427.32 1631.24 1835.14 2242.96 2650.75 3058.58 3670.28

BARROW-UPON-SOAR 1239.17 1445.68 1652.22 1858.74 2271.80 2684.84 3097.91 3717.48

BEEBY 1180.97 1377.78 1574.62 1771.44 2165.10 2558.74 2952.41 3542.88

BIRSTALL 1244.41 1451.79 1659.21 1866.60 2281.41 2696.19 3111.01 3733.20 BURTON-ON-THE-WOLDS, COTES 1217.00 1419.81 1622.66 1825.48 2231.15 2636.80 3042.48 3650.96 & PRESTWOLD COSSINGTON 1225.46 1429.68 1633.94 1838.17 2246.66 2655.13 3063.63 3676.34

EAST GOSCOTE 1222.54 1426.27 1630.04 1833.79 2241.31 2648.80 3056.33 3667.58

HAMILTON LEA 1180.97 1377.78 1574.62 1771.44 2165.10 2558.74 2952.41 3542.88

HATHERN 1215.29 1417.82 1620.38 1822.92 2228.02 2633.10 3038.21 3645.84

HOTON 1233.00 1438.48 1643.99 1849.48 2260.48 2671.46 3082.48 3698.96

MOUNTSORREL 1295.72 1511.65 1727.62 1943.56 2375.47 2807.36 3239.28 3887.12

NEWTOWN LINFORD 1244.22 1451.58 1658.96 1866.32 2281.06 2695.79 3110.54 3732.64

QUENIBOROUGH 1213.60 1415.85 1618.13 1820.39 2224.93 2629.45 3033.99 3640.78

QUORNDON 1255.43 1464.65 1673.90 1883.13 2301.61 2720.07 3138.56 3766.26

RATCLIFFE-ON-THE-WREAKE 1202.85 1403.31 1603.79 1804.26 2205.21 2606.15 3007.11 3608.52

REARSBY 1209.66 1411.25 1612.87 1814.47 2217.69 2620.89 3024.13 3628.94

ROTHLEY 1222.87 1426.66 1630.49 1834.29 2241.92 2649.52 3057.16 3668.58

SEAGRAVE 1226.91 1431.38 1635.87 1840.35 2249.32 2658.28 3067.26 3680.70

SHEPSHED 1224.76 1428.87 1633.01 1837.13 2245.39 2653.63 3061.89 3674.26

SILEBY 1233.71 1439.31 1644.94 1850.55 2261.79 2673.01 3084.26 3701.10

SOUTH CROXTON 1238.40 1444.79 1651.20 1857.59 2270.39 2683.18 3095.99 3715.18

STONEBOW VILLAGE 1180.97 1377.78 1574.62 1771.44 2165.10 2558.74 2952.41 3542.88

SWITHLAND 1199.52 1399.43 1599.36 1799.27 2199.11 2598.94 2998.79 3598.54

SYSTON 1259.66 1469.59 1679.54 1889.48 2309.37 2729.24 3149.14 3778.96

THRUSSINGTON 1212.28 1414.31 1616.37 1818.41 2222.51 2626.59 3030.69 3636.82

THURCASTON & CROPSTON 1208.72 1410.16 1611.62 1813.07 2215.98 2618.87 3021.79 3626.14

THURMASTON 1275.12 1487.62 1700.15 1912.66 2337.70 2762.72 3187.78 3825.32

ULVERSCROFT 1180.97 1377.78 1574.62 1771.44 2165.10 2558.74 2952.41 3542.88

WALTON-ON-THE-WOLDS 1203.90 1404.54 1605.20 1805.84 2207.14 2608.43 3009.74 3611.68

WANLIP 1204.14 1404.82 1605.52 1806.20 2207.58 2608.95 3010.34 3612.40

WOODHOUSE 1236.54 1442.61 1648.71 1854.79 2266.97 2679.13 3091.33 3709.58

WYMESWOLD 1222.59 1426.34 1630.11 1833.87 2241.40 2648.92 3056.46 3667.74 LOUGHBOROUGH (SPECIAL 1231.94 1437.25 1642.58 1847.90 2258.55 2669.18 3079.84 3695.80 EXPENSES)

7. That the original HRA Budget for 2020/21 as outlined in Appendix 5 of the General Fund and HRA Revenue budget report of the Cabinet be approved.

8. That the HRA weekly rents be amended in line with the Ministry of Housing, Communities and Local Government (MHCLG) guidance.

9. to amend the non-HRA dwelling properties in line with the Ministry of Housing, Communities and Local Government (MHCLG) guidance;

10. That the HRA service charges be approved in accordance with the MHCLG guidance.

11. That shop rents retain their current rents in accordance with the assessment by the Valuation Office.

12. to approve that garage rents, retain their current rents in accordance with an assessment by the Valuation Office

13. That the Leasehold Management and Administration charge increases to £116.11 per annum.

14. That the Lifeline weekly charge is increased in line with MHCLG guidance.

15. That it be determined that the basic amount of Council Tax for 2020/21 is not excessive according to the principles set out by the Secretary of State.

16. That the NNDR tax base for 2020/21 will be £46,297,449.

17. That the following Loughborough Special Levy items be extended to include £5K for The Remembrance Day Parade:

Reasons

1. To set the definition of the Loughborough Special Expenses in accordance with Section 35 of the Local Government Finance Act 1992.

2. To ensure that the necessary finance would be available to carry out services in 2020/21 and to set the Council Tax and Loughborough Special Expenses in accordance with legal and statutory requirements.

3. To set the Council’s 2020/21 Council Tax Base in accordance with the regulations made under Section 31B of the Local Government Finance Act 1992.

4-6. To set a Council Tax in accordance with legal and statutory requirements.

7. To ensure sufficient funding for the Housing Revenue Account in 2020/21.

8. To comply with social housing rents guidance for 2020/21.

9. To reflect the greater flexibility for rental options for non-HRA dwellings.

10. To ensure the correct alignment of costs and service charges for tenants in accordance with best practice.

11. So that shop rents remain affordable and are charged in line with the assessment by the Valuation Office.

12. To increase the rent generated for this asset.

13. So that there is sufficient recovery of the costs associated with operating the leasehold flat and shop services.

14. That there is sufficient recovery of the costs associated with operating the Lifeline service.

15. To comply with the requirements of section 52ZB of the Local Government Finance Act 1992.

16. To set the Council’s NNDR tax base in accordance with statutory requirements.

17. To enable an item to be added to the Loughborough Special Rate in order to provide essential Health & Safety cover for Remembrance Day Parade.

Policy Justification

The budgets are essential to all policies of the Council and the setting of a Council Tax levy is a legal requirement of the Council and the rents should be within guidance issued by CLG. Similarly the Council Tax Base is required to be set by statute.

Implementation Timetable

The new budgets, rents, service charges, etc. will become effective on or after 1st April 2020.

Report Implications

Financial Implications

Without the agreement of budgets, rents, service charges, etc. the Council would be acting illegally and would not be able to function for any length of time.

Risk Management

There are no direct risks in approving the recommendations of this report and the inherent risk elements of the budgets, etc. are covered by the main budget report to the Cabinet on 13th February 2020.

Key Decision: Yes

Background Papers: None

Officers to Contact: Lesley Tansey Head of Finance and Property Services 01509 634828 [email protected]

Simon Jackson Strategic Director of Corporate Services 01509 634699 [email protected]

Part B

Background

1. A report of the Head of Finance and Property Services setting out the proposed General Fund and HRA Revenue Budgets for 2020/21 has been circulated as part of the Council agenda for 24th February 2020. The budgets set out in that report represent the financial spending plans for all services of the Council and it is a legal requirement to set a balanced budget each financial year.

2. Appendix 1 shows a General Fund budget figure of £17,771,035.

3. Appendix 2 is a final version of all the precepts.

4. Council is requested to consider the full Council Tax Resolution, set out in the recommendations and reasons above, in order to set a Council Tax levy and General Fund revenue budget and Housing Revenue Account budget for 2020/21.

Appendices

Appendix 1 - Final version of Appendix 1 of the General Fund and HRA Revenue Budgets report submitted to Cabinet on 13th February 2020.

Appendix 2 - Final version of Appendix 2 Council Tax Analysis report submitted to Cabinet on 13th February 2020.

Appendix 1

Original Draft Final Variance Actual Budget Budget Budget Draft Vs 2018/19 General Fund Budget Summary 2019/20 2020/21 2020/21 Final £000 £000 £000 £000 £000

17,844 General Fund Service Expenditure 18,496 18,389 18,382 (7) 0 One Off Directorates Savings Target (300) 0 0 0 0 Net Ongoing Service (Savings) & Pressures (341) 575 575 0 0 Net One Off Service Pressures 283 81 81 0 17,844 Net Service Expenditure 18,138 19,045 19,038 (7) 752 Revenue Contributions to Capital 0 0 0 0 29 Council Tax Support Grants to Parishes 0 0 0 0 356 Interest Paid 240 240 240 0 (447) Less: Interest on Balances (390) (500) (500) 0 18,534 Total Borough Expenditure 17,988 18,785 18,778 (7) 214 Contribution (from)/to Reinvestment Reserve 0 (36) (36) 0 48 Contribution(from)/to Working Balance (798) (1,075) (1,069) 6 (234) Contribution (from)/to Collection Fund (173) 100 143 43 (451) Contribution(from)/ to Capital Plan Reserve 0 0 0 0 (51) Contribution (from)/to Other Reserves (63) (45) (45) 0 (13) Contribution (from)/to Growth Support Fund 0 0 0 0 18,047 Precept Requirement 16,954 17,729 17,771 42 745 Revenue Support Grant 0 0 0 0 4,957 NNDR 5,290 4,947 4,947 0 6,502 Council Tax Receipts 6,893 7,294 7,288 (6) 1,194 Loughborough Special Levy 1,213 1,259 1,271 12 3,620 New Homes Bonus 3,731 4,129 4,122 (7) 1,263 General Government Grants 0 0 0 0 (234) Collection Fund Surplus/(Deficit) (173) 100 143 43 18,047 Precept Income 16,954 17,729 17,771 42 £p Council Tax for Band D £p £p £p 117.09 Base Borough Council Tax 122.09 127.09 126.52 74.97 Loughborough Special Levy 74.97 76.46 76.46

£000 REVENUE BALANCES £000 £000 £000 Actual Original Draft Final 2018/19 2019/20 2020/21 2020/21 7,057 Working Balance at 1 April 4,990 5,900 5,900 28 Transfer from/(to) General Fund (971) (975) (926) (214) Transfer from/(to) Reinvestment Reserve 0 (122) (170) 6,871 Balance at 31 March 4,019 4,803 4,804 595 Reinvestment Reserve Balance at 1 April 608 414 366 214 Transfers from/(to) Fund one off Item 0 (36) (36) 0 Transfers from/(to) General Fund 0 122 170 809 Balance at 31 March 608 500 500 2,644 Capital Plan Reserve Balance at 1 April 1,711 1,288 1,288 (451) Funding of Capital Expenditure (618) 0 0 2,193 Balance at 31 March 1,093 1,288 1,288 114 Growth Support Fund Balance at 1 April 0 5 5 (13) Funding of Capital Expenditure 0 0 0 101 Balance at 31 March 0 5 5 813 Other Revenue Reserve Balances at 1 April 805 700 700 (50) Transfers from/(to) Fund one off Item (63) (45) (45) 763 Balance at 31 March 742 655 655 10,737 TOTAL BALANCES 6,462 7,251 7,252

AAppendix 2 COUNCIL TAX ANALYSIS 2020/21 2019/20 2020/21 % 56,462.4 TAX BASE (at CBC collection rate) 57,607.2 Change Per Band D

16,183.5 LOUGHBOROUGH TAX BASE 16,621.0 2.03 £ £ p £ £ p %

16,954,156 300.27 TOTAL BUDGET REQUIREMENT 17,771,035 308.49 2.74 (1,213,277) (21.49) Less: Loughborough Special Levy (1,270,842) (22.06) 2.66 15,740,879 278.79 16,500,193 286.43 2.74 Less: (3,730,729) (66.07) New Homes Bonus (4,121,865) (71.55) 8.29 (5,290,366) (93.70) NNDR (4,947,000) (85.87) (8.35) 6,719,784 119.01 7,431,328 129.00 8.39

173,710 3.08 Collection Fund (Surplus)/Deficit (142,865) (2.48) (180.61)

6,893,494 122.09 BASIC BOROUGH PRECEPT 7,288,463 126.52 3.63

Other Precepts 3,677,802 65.14 Parishes 3,821,293 66.33 1.83 72,959,643 1,292.18 Leicestershire County Council 77,408,639 1,343.73 3.99 3,762,654 66.64 Combined Fire Authority 3,914,985 67.96 1.98 12,604,113 223.23 Police & Crime Commissioner for Leics 13,435,739 233.23 4.48 93,004,212 1,647.19 98,580,656 1,711.25 3.89

1,213,277 74.97 SPECIAL LEVY (LOUGHBOROUGH) 1,270,842 76.46 1.99

101,110,983 1,790.77 TOTAL REQUIREMENT 107,139,961 1,859.84 3.86

99,897,706 1,769.28 AVERAGE PARISH PRECEPT 105,869,119 1,837.77 3.87

97,433,181 1,779.11 LOUGHBOROUGH PRECEPT 103,318,668 1,847.90 3.87