Agenda item

The Leader moved the item, noting that Members had received an updated report which corrects Council Tax figures for the year ahead. He noted that Members last met in person a year ago to debate the Corporate Plan and had asked about scenario planning in the face of the impending pandemic. The Leader’s reply at the time noted the Council’s ability to be agile in its response and this year has proven this to be the case.

 

He noted that over the last year, the Council has worked to an unprecedented scale in establishing new services such as the business grants programme and support for vulnerable and shielding residents, as well as continuing existing services with rising demand. It has also had to respond to an ever-changing landscape as Leisure Centres and the local economy closed and reopened as multiple lockdowns were imposed.  He acknowledged the cost of the pandemic both to the country and the Council and noted that the current year will result in over £2m deficit which will need to be funded from reserves, even after the support received from Government has been utilised.

 

The Leader confirmed that a balanced budget is presented, but only as a result of windfall income from business rates retention and the Council’s finances are not on a sustainable footing over the medium term and the Council’s reserves will reach a perilous position within the next four years. Regrettably therefore, a 2.9% increase to the District Council’s share of Council Tax is necessary next year but the Council Tax Support Scheme means that those residents on the lowest incomes are supported with the cost of this bill.

 

The Leader drew Members attention to the clear priorities contained in the Corporate Plan which include supporting the economic recovery, with work being done alongside Mimms Davis M.P. and the Department of Work and Pensions at Haywards Heath College, and the rollout of the Council’s infrastructure programme including the Northern Arc and gigabit speed full fibre. Other key priorities include ensuring that the Council has an environmentally friendly recovery by developing a Sustainable Economy Strategy, continuing to help vulnerable people in the communities and the critical task of beginning to rebuild the Council’s finances after the impact of the pandemic

 

The Deputy Leader seconded the item reiterating the need to build towards the future even if it is uncertain.

 

Several Members congratulated Officers on the work involved to present a balanced budget in difficult circumstances.

 

A Member queried what plans are in place to respond to the call on reserves over years 2-5 of the budget, particularly regarding the proposed Science and Technology Park and ways to bring manufacturing back into the District. The Leader acknowledged that it was hard to know at this stage the true effect of the deficit, but he expected improvements to be evident once the Government restrictions begin to lift. The Council will continue to provide services as efficiently as possible and seek to diversify its income base as quickly and sustainably as possible. He noted that the District is well located with a talented and skilled population and the key is to encourage and develop this potential.

 

A Member noted that some areas had to take a back seat over the past year but looked forward to the progression of the sustainability agenda.  A query was raised on whether the Council would apply for a Cultural Recovery Grant for Clair Hall or any other venue in the District, following the Government’s recent announcement in the Budget. The Leader acknowledged that full details of the fund have not yet been publicised, but the Council would consider it carefully and make a bid if it is appropriate and the criteria are met.

 

Councillor Hicks proposed an amendment to the recommendations drawing Member’s attention to potential disparities within Council Tax which he stated were unfair. This was seconded by Councillor Jackson who highlighted that the aim was to have fairness in the scheme with those that can afford to pay more doing so. The proposed amendment is detailed below:

 

‘To add a further recommendation 3.1.2 that at a time when many of our residents are facing static or falling incomes it is particularly important that we are able to demonstrate fairness in how the burden of paying for local services is shared.  That the Council recognises that council tax is out of date, and often arbitrary and regressive, the burden of which unfairly falls on Mid Sussex households with limited incomes.  Consequently, increases in council tax, together with other authorities’ precepts, will fall disproportionally on those least able to pay.

 

The Council notes that any change to the current council tax bands and charging structure needs to be sanctioned by Parliament.

 

The Council therefore agrees that:

The Leader of the Council to write to the Secretary of State for Housing, Communities and Local Government requesting that the current council tax bands and charging structures in England be reviewed, as a matter of urgency, so they better reflect people's ability to pay the tax.’

 

The Leader noted that any reform of Council Tax could mean that Mid Sussex residents would pay more, and that policy amendment is for Government and not for the Council. He reiterated that the Council Tax Support Scheme does insulate people on the lowest level by providing an uplift of £150 for those least able to pay.

 

A Member noted that the Council Tax Band system could not be reformed without looking at the Social Care budget too. It was also noted that this proposed amendment was not raised at the recent Scrutiny Committee where a full debate of the Corporate Plan and Budget took place.

 

A Member expressed concern that over the last 4 years the Council’s budget has increased along with the budget of the PCC (Police & Crime Commissioner) and County Council which resulted in unstainable Council Tax pressure on certain residents within the District. A Member also noted that Council Tax reform is not related to political difference, noting that there is a group of Conservative MPs within the Government’s Property Reform Group committed to reforming property duties.

 

The Chairman took Members to a vote on the amendment which was lost with 16 in favour and 28 against.

 

The Chairman then took Members to a vote on the recommendations contained in the report. A recorded vote was taken, and the recommendations approved with 46 in favour and 2 abstentions.

 

	For	Against	Abstain		For	Against	Abstain
Allen,  G.	ü			Henwood,  J.	ü
Ash-Edwards,  J.	ü			Hicks,  S.	ü
Bates,  R.	ü			Hillier,  S.	ü
Belsey,  J.	ü			Hussain, T	ü
Belsey,  M.	ü			Jackson,  R.	ü
Bennett,  A.	ü			Knight,  J.	ü
Bennett,  L.	ü			Laband,  C.	ü
Brown,  P.			ü	Lea, Anthea	ü
Cartwright,  R.	ü			Llewellyn-Burke, J.	ü
Chapman,  P.	ü			MacNaughton,  A.	ü
Clarke,  R.	ü			Marsh, G	ü
Coe-Gunnell White,  E.	ü			Mockford, J	ü
Coote,  P.	ü			Peacock, A	ü
Cornish,  M.	ü			Phillips,  C.	ü
Cromie, R	ü			Pulfer, M.	ü
Dabell,  J.	ü			Salisbury, R	ü
Dempsey, B	ü			Smith,  S.	ü
de Mierre,  R.	ü			Sparasci, A.	ü
Eggleston,  R.	ü			Stockwell, L	ü
Ellis,  S.	ü			Sweatman,  D.	ü
Eves, A			ü	Trumble,  C.	ü
Gibbs,  L.	ü			Webb, R	ü
Gibson,  I.	ü			Webster,  N.	ü
Hatton,  S.	ü			Whittaker,  R.	ü

 

 

RESOLVED

Council agrees:

3.1          Corporate Plan and Budget 2021/22

 

3.1.1      That the Corporate Plan and Budget for 2021/22 set out in this report be approved;

 

3.2    Mid Sussex District Council Budget 2021/22

 

3.2.1    Revenue Spending and MSDC council tax levels for 2021/22:

(a)        That Revenue Spending summarised below (see Section 2 for details) is approved:

 

(b)        That with respect to pensions, the employer’s contribution rate should be 21.4% for 2021/22

 

(c)        That the Mid Sussex District Council element of the Council Tax be increased by 2.9% to £175.41, with no requirement to hold a local referendum in accordance with the Act.

 

3.2.2    Capital Programme 2021/22 (see Section 3 for details):

(a)        That the Capital Programme for 2021/22 (as set out in Section 3) is approved.

 

3.2.3    Usable Reserves and other balances

(a)        That the estimates for cash balances (see Section 4 for details) are noted.

 

3.2.4    Financial Strategy & Medium-Term Financial Plan:

(a)        That the summary Medium Term Financial Plan to 2024/25 (see Section 5 for details) is noted.

 

3.2.5    Collection Fund:

(a)           That the estimated surplus on the Collection Fund for Council Tax totalling £1,288,000 for the year ended 31 March 2021, of which the Mid Sussex District Council share is £167,430 (see Section 6 for details) is noted.

(b)           That the estimated deficit on the Collection Fund for Business Rates totalling £20,503,000 for the year ended 31 March 2021, of which the Mid Sussex District Council share is £8,632,556 (see Section 6 for details) is noted.

 

3.3       Council Taxes for The Mid Sussex Area:

 

3.3.1    It be noted that at its meeting held on 9^th December 2020 the Council calculated the following amounts for the year 2021/22:

(a)        62,223.8 being the amount calculated, in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 2012, as its council tax base for the year; and

 

(b)        for dwellings in those parts of its area to which a Parish precept relates as set out in Table 3 Section 7 of this report.

 

3.3.2    £10,914,679 being the amount calculated as the Council Tax Requirement for the Council’s own purposes for 2021/22 (excluding Parish Precepts).

3.3.3    That the following amounts be calculated by the Council for the year 2021/22 in accordance with Section 31 to 36 of the Local Government Finance Act 1992 (as amended by The Localism Act 2011):

 

(a)        £68,037,040 being the aggregate of the 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;

 

(b)        £52,452,000 being the aggregate of the amounts, which the Council estimates for the items set out in Section 31A(3) of the Act;

 

(c)        £15,585,040 being the amount by which the aggregate at 3.3.3(a) above exceeds the aggregate at 3.3.3(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its Council Tax requirement for the year;

 

(d)        £250.47 being the amount at 3.3.3(c) above, all divided by the amount at 3.3.1(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);

 

(e)        £4,670,361 being the aggregate amount of all special items (Parish Precepts) referred to in Section 34(1) of the Act (see Section 7 for details);

 

(f)         £175.41 being the amount at 3.3.3(d) above less the result given by dividing the amount at 3.3.3(e) above by the amount at 3.3.1(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;

 

            (g)        Part of the Council’s area

 

 

                                 being the amounts given by multiplying the amounts at as set out in Table 3 Section 7 of this report 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 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.

 

3.3.4           That it be noted that for the year 2021/22, West Sussex County Council have stated the following amounts in precept issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwelling shown below:

 

Valuation band	£	Valuation band	£
band  A	1,007.04	band  E	1,846.24
band  B	1,174.88	band  F	2,181.92
band  C	1,342.72	band  G	2,517.60
band  D	1,510.56	band  H	3,021.12

 

3.3.5           That it be noted that for the year 2021/22 the Sussex Police and Crime Commissioner have stated the following amounts in precept issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, as amended by the Police Reform and Social Responsibility Act 2011, for each of the categories of dwellings shown below:

 

Valuation band	£	Valuation band	£
band  A	143.27	band  E	262.67
band  B	167.15	band  F	310.43
band  C	191.03	band  G	358.18
band  D	214.91	band  H	429.82

 

3.3.6           That, having calculated the aggregate in each case of the amounts as at 3.3.3(g), 3.3.4 and 3.3.5 above, the Council in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2021/22 for each of the categories of dwellings shown below: