High Peak Borough Council will be setting its budget for 2020/21 in February next year. This includes updating the Medium Term Financial Plan to reflect the aims arising out of the new Corporate Plan adopted by the Council in October 2019.
Key issues in the Medium Term Financial Plan are set out below:
- In 2014/15 local income streams such as Council Tax accounted for only 52% of the Council's income; by 2020/21 this is expected to have risen to 94% with only 6% coming from the Government.
- New Homes Bonus - is Government funding, awarded on the basis of the annual increase in housing numbers. At the height of the scheme, the Council received £773,000, but payments have reduced significantly since then. The current MTFP anticipates receipts of £2.7million over the next 4 years. This income may be put at risk in the forthcoming Government spending review when the New Homes Bonus scheme is expected to be refocussed.
- A Council Tax increase of 2% pa is included in the Plan, in line with Government consultation on the Council Tax referendum principles.
- In 2019/20 the Council participated in the Derbyshire Business Rates pool which involved it retaining 50% of Business Rates raised locally. The MTFP assumes the continuation of these arrangements. However, the Government plans to introduce a national 75% retention scheme in the future, which may have financial consequences for the Council.
- The Council will need to encourage and enable sustainable economic and housing growth in order to optimise future income from business rates, council tax and New Homes Bonus.
- The Council is reviewing its existing fees and charges with the aim of meeting the income generation targets arising out of the Efficiency Programme.
- The £2.1million efficiency programme adopted by the Council in February 2017 will enter its fourth year in 2020/21. Its focus will be on savings arising out of: asset management; income generation; and the further implementation of the Alliance Environment Services delivery model for Waste, Streets and Horticultural services. The aim is to continue to make savings whilst maintaining priority services.
- The Council maintains a stock of approximately 4,000 housing properties. Following a 4 year period of statutory rent reductions, the Council is intending to raise rents by 2.7 % in 2020/21 this equates to CPI+1%. An action plan has been developed in response to the issues identified in the recent Housing Business Plan review. These issues, which include meeting the Decent Homes Standard; addressing the impacts of welfare reform; undertaking estate regeneration; and developing new stock; will be built into the 30 year Business Plan and MTFP as the costs emerge.
Please send your comments on the MTFP to:- policy@highpeak.gov.uk
