Agenda item

To consider a report from the Treasurer, which presents the 2021/22 forward budget to the Hampshire and Isle of Wight Fire and Rescue Shadow Authority (HIWFRSA) for approval.

The Authority considered a report from the Treasurer (item 11 in the minute book), which presented the 2021/22 forward budget to the Hampshire and Isle of Wight Fire and Rescue Shadow Authority (HIWFRSA) for approval.

It was highlighted that an addendum had been circulated and published that covered updates since the report had been produced, as well as a new set of recommendations for the Authority to consider following the updates.

Pages 67-68 of the pack were discussed, which included the £2mil proposed deficit and a £500,000 contingency due to the level of uncertainly regarding the ongoing impacts of Covid. Following updates, the deficit was amended to £778,000 in the addendum.

It was confirmed that the Council Tax increases on page 64 would affect the Isle of Wight more due to aligning with Hampshire, but it was accepted that budgets would be changeable within the first year of the Combined Fire Authority being fully established.

The capital programme had been presented differently to assist with clarity, and included two capital schemes for approval to ensure it was fully up-to-date.

RESOLVED

The HIWFRSA approved:

a) The use of the Grant Equalisation Reserve to balance the budget for 2021/22.

b). The Revenue Budget, as set out in Annex 2 to the Addendum.

c). The Capital Programme and funding as set out in Annex 3 to the Addendum including the addition of £100,000 to purchase new co-responding vehicles.

d). Funding of up to £2m from the Capital Payments Reserve for the redevelopment of Redbridge Fire Station, to replace prudential borrowing which would be swapped to fund other capital schemes.

e). The Reserves Strategy as set out in Annex 4 to the Addendum.

f). The Treasury Management Strategy as set out in Appendix E to the main agenda item, including the Annual Investment Strategy for 2021/22, (and the remainder of 2020/21).

g). Delegated authority to the Chief Finance Officer to manage the Fire and Rescue Authority’s investments and borrowing according to the Treasury Management Strategy Statement as appropriate.

h). Delegated authority to the Chief Financial Officer to make any final minor changes to the budget using compensating adjustments to the level of the draw from reserves, in order to balance the overall budget.

i). The Capital and Investment Strategy as set out in Appendix F to the main agenda item for 2021/22 (and the remainder of 2020/21).

j). The Section 25 Report as set out in Appendix G to the main agenda item which should be taken into account by the Shadow Authority in agreeing the budget and council tax (noting the reduced deficit and reduced draw required from the Grant Equalisation Reserve).

k). The council tax requirement for the Authority for the year beginning 1st April 2021 of £49,158,022. 

l). That the new Combined Fire Authority’s tax be increased by 1.99% above the Alternative Notional Amount set for 2020/21 (£69.06) for the year beginning 1st April 2021 and for the properties in each band, as set out below: 

Band A:  £46.95
Band B:  £54.78
Band C:  £62.60 
Band D:  £70.43      
Band E: £86.08
Band F: £101.73
Band G: £117.38
Band H: £140.86

23. That the precepts set out below, totalling £49,158,022 are issued on the billing authorities in Hampshire & Isle of Wight, requiring the payment in such instalments and on such dates set by them and previously notified to the Authority, in proportion to the tax base of each billing authority’s area as determined by them.

Basingstoke and Deane Borough Council  £4,692,554
East Hampshire District Council    £3,620,600
Eastleigh Borough Council     £3,364,749
Fareham Borough Council     £3,085,151
Gosport Borough Council     £1,882,087
Hart District Council      £2,891,518
Havant Borough Council     £2,919,184
Isle of Wight      £3,752,482
New Forest District Council     £5,038,471
Portsmouth City Council     £3,978,443
Rushmoor Borough Council     £2,275,529
Southampton City Council     £4,534,917
Test Valley Borough Council     £3,543,756
Winchester City Council     £3,578,581

Total          £49,158,022