Decision details

The Council considered the Revenue Budget and Capital Budget papers as contained within the budgeting pack, considered such other appropriate resolutions in relation to these papers and fixed the Council Tax for the year to 31 March 2022 which had been referred without recommendation by the Policy and Resources Committee held on 18 February 2021.

 

The Council resolved in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 to exclude the press and public to allow consideration of Appendix 9 to item 2(d) and Appendix 4 to item 3(a) of the Budgeting Pack 2021/22 on the grounds that they were likely to involve the disclosure of exempt information as defined in Paragraphs 6; and 8 & 9 respectively of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973.

 

Motion

 

In relation to Appendix 4 to item 3(a) of the Budgeting Pack 2021/22 -

 

Argyll & Bute Council notes with concern the contents of the report and agrees to pause this project until such time as officers have consulted / negotiated with current funding partners on the implications of cancelling this project so that any additional costs that the Council may face with regards to having to repay funding in part or full can be identified.

 

A further report should be brought to a future meeting of the Council with an update provided by officers on the consultation / negotiations with current funding partners so that the Council can then take an informed decision of this project. 

 

Moved Councillor George Freeman, seconded Councillor Dougie Philand.

 

Amendment

 

That the Council considers this matter as part of the Budgeting Pack 2021/22.

 

Moved Councillor Gary Mulvaney, seconded Councillor Robin Currie.

 

As the meeting was being held on a virtual basis the vote required to be taken by calling the Roll and Members voted as follows –

 

Motion                                                Amendment  

Councillor George Freeman               Councillor Jim Anderson

Councillor Dougie Philand                  Councillor John Armour

                                                            Councillor Gordon Blair

                                                            Councillor Rory Colville

                                                            Councillor Robin Currie

                                                            Councillor Mary Jean Devon

                                                            Councillor Lorna Douglas

                                                            Councillor Jim Findlay

                                                            Councillor Audrey Forrest

                                                            Councillor Bobby Good

                                                            Councillor Kieron Green

                                                            Councillor Graham Hardie

                                                            Councillor Anne Horn

                                                            Councillor David Kinniburgh

                                                            Councillor Jim Lynch

                                                            Councillor Donnie MacMillan

                                                            Councillor Roddy McCuish

                                                            Councillor Julie McKenzie

                                                            Councillor Yvonne McNeilly

                                                            Councillor Jean Moffat

                                                            Councillor Barbara Morgan

                                                            Councillor Aileen Morton

                                                            Councillor Gary Mulvaney

                                                            Councillor Iain Shonny Paterson

                                                            Councillor Alastair Redman

                                                            Councillor Alan Reid

                                                            Councillor Elaine Robertson

                                                            Councillor Sandy Taylor

                                                            Councillor Richard Trail

                                                            Councillor Andrew Vennard

 

Decision

 

The Amendment was carried by 30 votes to 2 and the Council resolved accordingly.

 

The Press and Public were invited to re-join the meeting.

 

Councillor George Freeman left the meeting at this point.

 

Motion

 

Argyll and Bute Council:

1) Acknowledges and welcomes the contributions from our communities to the Council’s budget planning consultation, noting that after taking into account feedback from the public, a number of savings proposals under consideration were not pursued. 

2) Approves all service plans, subject to updating the budget figures in line with the budget agreed for 2021-22.

3) Approves the revenue estimates for 2021-22 and that consequently the local tax requirement estimated at £52.859m is funded from Council Tax. Approve the following rates and charges for the year, 2021-22:

a) Council Tax to be paid in respect of a chargeable dwelling in Band “D” of £1,367.73 representing a 0.00% increase. 

b) Council Tax to be paid in respect of a chargeable dwelling in each of the other valuation bands in accordance with Section 74(1) of the Local Government Finance Act 1992 as amended.

c) Business Rates as determined by Scottish Ministers.

4) Approves the revenue budget for 2021-22 as set out in the Revenue Budget Overview Report and subject to the decisions outlined below and set out in the Administration’s Budget Model provided at Appendix 1. 

5) Approves a base allocation to the Health and Social Care Partnership of £62.211m for 2021-22. Approve indicative base allocations for 2022-23 and 2023-24 to be £62.211m. The level of future years funding is subject to the level of Scottish Government funding and the Council’s overall financial position in future years.

6) With reference to the HSCP request for a deferral of £1m of the £1.2m that is due to be paid in 2021-22, agrees this in principle, subject to the proviso that the amount to be deferred be reduced by the amount of any HSCP underspend in 2020-21.

7) Approves the 10% reduction to the Live Argyll Management Fee, resulting in a management fee in 2021-22 of £3.418m.  

8)

a) Rejects the following policy savings options totalling £135,000:

·         R&I 02 – flower bed planting- £30,000

·         R&I 13 – grass cutting service specification - £100,000

·         R&I 14 – fuel and utility sales - £5,000

b) Accepts all other policy savings options proposals (set out in Appendix 6 of the Revenue Budget Overview report) totalling £557,500. 

c) Endorses the management/operational savings outlined in Appendix 5 of the Revenue Budget Overview report. 

9) Agrees a total of £6.784m investments in Argyll and Bute’s future, as set out in the Administration Budget Model in Appendix 1:

 

10) Agrees total funding of £90,000 for Strategic Events and Festivals for 2022/23, in order that the application process can commence during 2021/22, and to be augmented by any underspend remaining from the current financial year.

11) Approves that the surplus on the revenue budget is used to contribute towards the funding gap identified within the current capital plan.

12) Approves that the Council exercises the principal repayment holiday flexibility to make £5.4m available to be directed towards Covid revenue and capital costs but that the use of this flexibility be replaced by the credit arrangements financial flexibility if the Scottish Government give permission for the repayment arrangements to be made on an annuity basis. If this is the case a report will be brought back to the full Council for determination.

13) Notes that the Council expects to receive £4.609m from the £259m non-recurring funding set aside by the Scottish Government for Covid-related expenditure. Notes that the Council also expects to receive £4.923m from the £275m non-recurring funding announced on 16^th February and to be paid in 2020/21 and approves that this funding is earmarked at the end of 2020/21 to be fully used as part of the 2021/22 budget decisions. Further notes that the distribution of both funding streams has still to be confirmed.

14) Approves expenditure in relation to Covid, in addition to the investments outlined at 9), above, as follows:

a) Estimated Revenue Cost Pressures amounting to £5.101m as outlined in Appendix 8 to the Revenue Budget Overview Report

b) Capital Contract Cost Pressures amounting to £2.0m as outlined in the capital plan summary report.

c) Provision for Covid cost pressures beyond 2021-22 amounting to £2.5m.

d) Provision of £2.5m for capital contract increases as a result of Covid.

15) Approves the following in relation to fees and charges with effect from 1^st April 2021 unless otherwise noted:

a) Approve the proposals for the fees and charges inflationary increase of 3% and approve the charges that are over and above inflation. Note that this would generate additional income of £0.334m in total.

b) Approve the changes proposed to the Social Work fees and charges.

c) Approve all other charges as noted within the Fees and Charges Schedule and the revised Private Landlord Registration fees as noted within the Supplementary Pack.

16) Agrees to the recommendations set out within paragraph 2.2 of appendix 9 to the revenue budget overview report (page 161 to 162 of the Budget Pack) and noted below:

a) Approve a six-month extension to KRL’s contract at a value of £114,000 with the recycling service in Kintyre being brought back in-house on 1^st October 2021;

b) Approve an increase to the base budget in 2021/22 of £73,837 and approve one-off costs of up to £208,000 in respect of the purchase of blue wheelie bins and TUPE costs.

c) Approve an increase to the recurring base budget from 2022/23 of £75,837.

17) Notes the financial risks analysis.

18) Approves the contingency level for the General Fund balance at a level of 2% of net expenditure, equivalent to £5.032m and note the report on reserves and balances.

19) Notes that through the EQSEIA process, we have paid due regard to our duties under the Equality Act 2010, our associated Fairer Scotland Duty and the Islands Act. Notes that some of the savings proposals have an impact in some of areas, but this has been given due regard. There are no impacts identified through the EQSEIA process that show actual or potential unlawful discrimination.

20) Approves the capital plan as set out in Appendix 3 of the Capital Plan Summary Report and updated to reflect the provisions made in the Administration Budget Model at Appendix 1, and approves that the gap of £1.077m is funded from additional borrowing, with repayments commencing in 2022/23

21) Agrees to the recommendations set out within paragraphs 2.1 to 2.2, including sub-paragraphs, of appendix 4 to the capital plan summary report, to provide funding to support completion of outstanding works in relation to Rothesay Pavilion.

22) Approves the Corporate Asset Management Strategy.

23) Notes the Corporate Asset Management Plan and the Asset Group Summaries.

Appendix 1

Revenue Model

	21/22 £000	22/23 £000	23/24 £000	24/25 £000	25/26 £000
Budget Surplus/(Gap) as per Budget Pack	3,080	(1,838)	(6,928)	(11,589)	(16,607)
Policy Options Rejected:
R&I02 Stop provision of plant beds	(30)	(30)	(30)	(30)	(30)
R&I13 Reduce specification of grass cutting	(100)	(100)	(100)	(100)	(100)
R&I14 Fuel and Utility Sales	(5)	(5)	(5)	(5)	(5)
AITC – funding for 1 Year from General Fund Balance	30	30	30	0	0
Additional Loans Fund to Pay for Additional Borrowing to fund Capital Plan		(70)	(70)	(70)	(70)
Transfer to Capital Plan	(2,975)	0	0	0	0
Revised Budget Surplus/(Gap)	0	(2,013)	(7,103)	(11,794)	(16,812)

 

Use of COVID Funding       

	£000	£000
COVID Expenditure:
2021-22 Identified Cost Pressures	(5,101)
2021-22 Identified Capital Cost Pressures	(2,000)
Provision for COVID Cost Pressures beyond 2021-22	(2,500)
Provision for Capital Contract increases as a result of COVID	(2,500)
Staycation	(800)
Tackling Digital Exclusion Top-Up Fund	(250)
Welfare Rights Support	(172)
Education to Support Young People	(600)
CHARTS	(67)
AITC	(30)
Festive Parking	(20)
Recovery, Regeneration and Renewal Fund	(892)
		14,932
COVID Funding:
Estimated Share of £259m funding announced on 25 January 2021	4,609
Estimated Share of £275 funding announced on 16 February 2021	4,923
Loans Fund Principal Repayment Holiday	5,400
		14,932
COVID Funding Surplus/(Gap)		0

Capital Plan Model

	£000	£000
Gap on Capital Plan prior to red risk and cost pressures		(6,262)
Red Risks	(72)
Significant Strategic Change Fund cost pressures	(1,162)
		(1,234)
Revised Gap on Capital Plan after red risks and cost pressures		(7,496)
Additional Expenditure:
Investment in Climate Change Measures	(600)
Investment in Roads	(2,613)
Investment in Active Travel	(500)
		(3,713)
Additional Funding:
Transfer from remaining balance in Significant Change Fund Earmarking	2,157
Transfer from COVID funding	2,000
Transfer from Unallocated General Fund	3,000
Transferred from Revenue Surplus in 2021-22	2,975
Funded via Additional Borrowing	1,077
		11,209
Revised Capital Plan Surplus/(Gap)		0

 

Unallocated General Fund Balance

	£000	£000
Estimated Unallocated General Fund Balance as per Budget Pack as at 31 March 2021		3,669
Adjustment to ensure contingency amount remains at 2%	(2)
Implementation of Gaelic Language Plan	(30)
Rural Growth Deal Programme Office	(210)
Transfer to Capital Plan	(3,000)
		(3,242)
Estimated Revised Unallocated General Fund Balance as at 31 March 2021 (prior to Social Work advanced repayment)		427
HSCP Advance Repayment anticipated in 2020-21		1,000
Estimated Revised Unallocated General Fund Balance as at 31 March 2021 (after Social Work advanced repayment)		1,427

 

Moved Councillor Robin Currie, seconded Councillor Gary Mulvaney.

 

Amendment

 

The Council …

 

1. Notes the findings of the Council’s Budget Planning consultation, having regard to the valued contribution of the citizens and organisations who took the time to share their views with the Council. 

 

2. Approves all service plans, subject to updating of the budget figures in line with the budget agreed for 2021-22.

 

3. Notes that through the EQSEIA process, we have paid due regard to our duties under the Equality Act 2010, our associated Fairer Scotland Duty and the Islands Act. Note that some of the savings proposals have an impact in some of areas, but this has been given due regard. There are no impacts identified through the EQSEIA process that show actual or potential unlawful discrimination.

 

4. Approves the revenue estimates for 2021-22 and that consequently the local tax requirement estimated at £52.859m is funded from Council Tax.

 

5. Approves the following rates and charges for the year, 2021-22:

 

i.          Council Tax to be paid in respect of a chargeable dwelling in Band “D” of  £1,367.73 representing a 0.00% increase

ii.         Council Tax to be paid in respect of a chargeable dwelling in each of the other valuation bands in accordance with Section 74(1) of the Local Government Finance Act 1992 as amended.

iii.       Business Rates as determined by Scottish Ministers.  

Revenue Expenditure

 

6. Adopts as a base budget the revenue budget for 2021-22 as set out in the revenue budget overview report, subject to the following changes:

 

7. Approves the policy savings options as outlined in Appendix 6 of the revenue budget overview report, subject to the following amendments:

 

Policy Savings		£000
R&I 02	Stop floral bed planting	30
R&I 13	Reduce grass cutting	100
ED 05	Review and reduce Clerical Support entitlement	76
Rejected Savings Options		206

 

8. Awards a 2 year contract to KRL, as an alternative to bringing the service in-house, at a cost of £228,000 in 2021-22 and £220,000 in 2022-23, at a saving of £210.5k in 2021-22 and £15k in 2022-23 to those figures outlined within the budget pack.

 

9. Approves a base allocation to the Health and Social Care Partnership of £62.211m for 2021-22. Approve indicative allocations base for 2022-23 and 2023-24 to be £62.211m. The level of future years funding is subject to the level of Scottish Government funding and the Council’s overall financial position in future years.

 

10. Within reference to the HSCP request for a deferral of £1m of the £1.2m that is due to be paid in 2021-22, agrees this in principle, subject to the proviso that the amount to be deferred be reduced by the amount of any HSCP underspend in 2020-21.

 

11. Approves the 10% reduction to the Live Argyll Management Fee, resulting in a management fee in 2021-22 of £3.418m.

 

12. Approves funding of £0.030m per annum for AITC for a three year period (2021-22 to 2023-24) to support core costs.

 

13. Approves that the surplus on the revenue budget is used to contribute towards the funding gap identified within the current capital plan.

 

14. Approves that the Council exercises the principal repayment holiday flexibility to make £5.4m available to be directed towards COVID revenue and capital costs but that the use of this flexibility be replaced by the credit arrangements financial flexibility if the Scottish Government give permission for the repayment arrangements to be made on an annuity basis. If this is the case a report will be brought back to the next available Council meeting.

 

15. Notes that the Council expect to receive £4.609m from the £259m non-recurring funding set aside by Scottish Government for COVID related expenditure. Note that the Council also expect to receive £4.923m from the £275m non-recurring funding announced on 16 February and to be paid in 2020-21 and approve that this funding is earmarked at the end of 2020-21 to be fully used as part of the 2021-22 budget decisions. Further note that the distribution on both funding streams has still to be confirmed.

 

16. Approves expenditure in relation to COVID as follows:

 

i.              Estimated revenue cost pressures amounting to £5.101m as outlined in Appendix 8 to the revenue budget overview report

ii.             Capital contract cost pressures amounting to £2.0m as outlined in the capital plan summary report.

iii.            Provision for COVID cost pressures beyond 2021-22 amounting to £2.5m.

iv.           Provision of £2.5m for capital contract increases as a result of COVID.

v.            Creation of a 2 year COVID Resilience Development Programme of £1.368m which makes provision for the recruitment of additional Council staff resources, funding support for communities and local advice agencies as described below, subject to reports from Officers to Committee as necessary:

	21-21	22-23
Local Business Support	50	50	Additional staff for Business Gateway
Business Development	56	56	Additional staff for Economic Development
Town Centre Improvement	100	100	Additional funding for town centre improvements
Strategic Events and Festivals	100	100	Additional funding for events and festivals
Procurement	56	56	Additional staff for Procurement team
Supporting Communities Fund	100	100	Additional funding for community groups
Welfare Benefits	38	38	Additional staff for A&BC Welfare Rights
Debt, Money, Energy Advice	80	80	Funding in support of local advice agencies
Pupil Counselling Services	104	104	Additional staff for Pupil Counselling (Primary)
Total	684	684
	1368

 

  These individual expenditure commitments being subject to review in the event of the receipt of Scottish Government monies targeted for the same purposes.

 

vi.        Agree the development of a network of basic servicing points across Argyll and Bute at an indicated cost of £120k, subject to a report from Officers which has regard to the findings of the Council’s Motorhome Consultation, potential locations and sites for these service points and the use of Council facilities which might be adapted for these purposes.

 

vii.             Agree to the funding request from CHARTS for support funding of £66.7k in 2021-22.

 

viii.            Agrees the creation of a Recovery and Renewal Fund of £2.644m, with officers to bring forward proposals to Council together with business cases, as appropriate.

 

17. Approve the following in relation to fees and charges with effect from 1 April 2021 unless otherwise noted:

i.              Approve the proposals for the fees and charges inflationary increase of 3% and approve the charges that are over and above inflation. Note that this would generate additional income of £0.334m in total.

ii.             Approve the changes proposed to the Social Work fees and charges. Approve all other charges as noted within the Fees and Charges Schedule and the revised private landlord registration fees as noted within the supplementary pack

 

18. Note the financial risks analysis.

 

19. Approve the contingency level for the General Fund balance at a level of 2% of net expenditure, equivalent to £5.030m and note the report on reserves and balances.

 

20. Approve the capital plan as set out in Appendix 3 of the capital plan summary report and amended by this proposals and outline in the appendix, and approve that the gap of £254.5k is funded from the Unallocated General Fund. 

 

21. Agree to the recommendations set out within paragraphs 2.1 to 2.2 including sub-paragraphs of appendix 4 to the capital plan summary report.

 

22. Approve the Corporate Asset Management Strategy.

 

23. Note the Corporate Asset Management Plan and the Asset Group Summaries.

 

Appendix

Revenue

	£000	£000
Revenue Budget Overview 2021-22 Surplus		3,080
Adjust to reflect rejected savings:
R&I02 Stop floral bed planting	(30)
R&I13 Reduce grass cutting	(100)
ED05 Review and reduce Clerical Support entitlement	(76)
		(206)
Agree KRL Contract – saving on budget pack figures		210.5
Adjusted Revenue Budget Surplus		3,084.5
Transfer to Capital Plan		(3,084.5)
Final Adjusted Revenue Budget Surplus		0

 

COVID Focus

	£000	£000
COVID Expenditure:
2021-22 Identified Cost Pressures	(5,101)
2021-22 Identified Capital Cost Pressures	(2,000)
Provision for COVID Cost Pressures beyond 2021-22	(2,500)
Provision for Capital Contract increases as a result of COVID	(2,500)
Motorhome etc. Infrastructure	(120)
CHARTS	(66.7)
2021-23 COVID Resilience Development Programme	(1,368)
Recovery and Renewal Fund	(2,644.3)
		16,300
COVID Funding:
Estimated Share of £259m funding announced on 25 January 2021	4,609
Estimated Share of £275 funding announced on 16 February 2021	4,923
Loans Fund Principal Repayment Holiday	5,400
Transfer from Unallocated General Fund	1,368
		16,300
COVID Funding Surplus/(Gap)		0

 

Capital Plan 2021-24

	£000	£000
Gap on Capital Plan prior to red risks and cost pressures as per budget pack		(6,262)
Red Risks Identified	(72)
Significant Strategic Change Projects cost pressure	(1,162)
		(1,234)
Revised Gap on Capital Plan after red risks and cost pressures as per budget pack		(7,496)
Additional Funding:
2021-22 Capital Cost Pressure funded from COVID	2,000
Significant Strategic Change Fund from Reserves	2,157
Transfer from Revenue Budget Surplus	3,084.5
Transfer from Unallocated General Fund	254.5
		7,496
Revised Capital Plan Surplus/(Gap)		0

 

Reserves and Balances

	£000	£000
Unallocated General Fund Balance as per budget pack		3,669
Transfer to COVID Focus for 2021-23 COVID Resilience Development Programme	(1,368)
Transfer to Capital Programme to fund the remaining gap	(254.5)
		(1,622.5)
Revised Unallocated General Fund Balance		2,046.5

 

Moved Councillor Sandy Taylor, seconded Councillor Lorna Douglas.

 

The Provost requested the Section 95 Officer to confirm that the Motion and Amendment before the Council, containing budget proposals were competent and balanced.  The Section 95 Officer confirmed this was the case.

 

As the meeting was being held on a virtual basis the vote required to be taken by calling the Roll and Members voted as follows –

 

Motion                                                            Amendment

Councillor Jim Anderson                                Councillor John Armour

Councillor Rory Colville                                  Councillor Gordon Blair

Councillor Robin Currie                                  Councillor Lorna Douglas

Councillor Mary Jean Devon                          Councillor Jim Findlay

Councillor Bobby Good                                  Councillor Audrey Forrest

Councillor Kieron Green                                 Councillor Anne Horn

Councillor Graham Archibald Hardie             Councillor Jim Lynch

Councillor David Kinniburgh                           Councillor Julie McKenzie

Councillor Donnie MacMillan                          Councillor Jean Moffat

Councillor Roddy McCuish                             Councillor Iain Shonny Paterson

Councillor Sir Jamie McGrigor                       Councillor Dougie Philand

Councillor Yvonne McNeilly                           Councillor Sandy Taylor

Councillor Barbara Morgan                            Councillor Richard Trail

Councillor Aileen Morton

Councillor Gary Mulvaney

Councillor Alastair Redman

Councillor Alan Reid

Councillor Elaine Robertson

Councillor Andrew Vennard

 

Decision

 

The Motion was carried by 19 votes to 13 and the Council resolved accordingly.

 

(Reference:  Budgeting Pack 2021/22 dated 18 February 2021 and Supplementary Packs 1, 2 and 3; submitted)