NHDC agrees budget for 2020/2021

PR Date: Friday, 7 February 2020 - 3:30pm

At a meeting of North Hertfordshire District Council’s (NHDC) Full Council on 6 February, Councillors agreed the budget for 2020/2021.

The budget took into account that negative revenue support grant (RSG) will not be applied again in 2020/21.  This will provide NHDC with over £1m additional budget compared to what was forecast and planned for, but it is expected to only be for one more year.

The Council receives funding from what is known as New Homes Bonus. This funding has been cut a number of times and we know that it will drop to zero by 2023/24. Delays to announcements from Central Government on future funding makes planning beyond March 2021 very uncertain.

Additional funding was made available for the following areas, which are aligned to what was set out in the Council plan:

• Retention of weekly waste collection for multi-occupancy properties
• Increased staffing support for work on climate change, community engagement and scrutiny
• Funding for town centre strategy work
• Review to incorporate climate change proposals in formal planning policy
• Continuing electric vehicle strategy work
• Planned introduction of concessionary charges for garden waste collection
• Continued support to Citizens Advice North Herts and North Herts Centre for Voluntary Services
• Creation of a central grants pot to make applications that cover more than one area easier to apply for

Alongside this, new efficiencies and spend reductions totalling £642k were identified. However, overall the proposals equated to a net investment in the district and an increase in ongoing spend. In light of potential further reductions in future funding, the Council is committed to a full budget review next year to prioritise what it spends its money on. This will include a public consultation to identify what our residents value.

Cllr Ian Albert, NHDC’s Executive Member for Finance and IT said: “The Council has an ambitious programme of work in the coming year to deliver against the priorities we identified in the new Council Plan.

“Our Council’s funding continues to be heavily restricted by the policies and allocations from the government so it’s welcome that we have a bit more money in 2020/21 to fund priorities like our response to the climate emergency. We are though, faced with potential further budget cuts in 2021/2022 from a new local authority funding formula so it’s very difficult for the Council to plan properly too far ahead until we know what our funding will be in future years.

“We have a plan to balance the budget. We know that we need to focus on value for money and prioritising what needs doing first. We hope that we can achieve even more by working together cross-party as Councillors and also by consulting with our residents and communities.”

NHDC’s Council tax rates (including the amounts for other bodies such as Hertfordshire County Council and the Police and Crime Commissioner) for 2020/21 will be formally agreed at the Council Tax Setting Committee on 27 February.