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Decision details
 

Decision details

Parish Grants 2020/21

Decision Maker: Strategy and Resources Committee

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

The Committee considered a report by the Head of Resources (circulated previously) regarding Parish Grants 2020/21.

 

The Head of Resources highlighted the following:

 

·         Parish grants have historically been paid to Parish and Town Councils and annually cost the North Devon Council revenue budget £69,597.

·         The Medium Term Financial Strategy 2019-2023 approved in February 2019 sought to remove the grants from 2020/21 onwards as part of measures to bridge the future year’s budget gaps that had been identified.

·         Having previously contacted other Councils in the Devon area, North Devon Council are the only one that still retained payment of a grant to Parish and Town Councils.

·         Parish and Town Councils do have the ability to raise funding (without any referendum thresholds) through their individual annual precepts.

·         The report was to gain approval in advance of formulating the detailed 2020/21 revenue budget for the removal of Parish grants in order that Parish and Town Councils can be notified prior to setting their individual budgets and precept levels.

·         For the last two financial year’s 2018/19 and 2019/20; proposals have been put forward by the Executive committee when formulating the budget to reduce and fully remove the grant funding paid to Parish and Town Councils.

·         The original proposal outlined by the Leader at the Parish Forum held 10th July 2017 was to reduce the grant by 50% for 2018/19 and fully remove the grant for 2019/20 onwards.

·         Parish and Town Councils were informed of the planned reductions at an early opportunity and notified by letter in advance of setting their individual budgets in order that they could plan accordingly for the impact.

·         Many of the Parish and Town Councils had allowed for the reduction when setting their precepts for the 2018/19 year; as they have to approve their budget levels prior to North Devon Council approving their budget and setting the Council Tax level for the forthcoming year.

·         Appendix A detailed the Parish Grants awarded during 2019/20.

·         If the Parish Grant scheme was not removed for 2020/21 then this will would increase the forecast budget gaps to £0.481m in 2020/21 to £0.746m in 2022/23 and therefore additional savings would need to be identified to bridge the future funding gaps.

·         An additional recommendation was made that “Subject to 2.1 being approved that Members as part of formulating the Revenue budget, approve an annual contribution of £20,000 for the next 3 years to an earmarked reserve in order that smaller Parishes can apply for funding for specific projects, with a strong emphasis on sustainability and countering climate change; with delegated authority given to the Head of Resources in consultation with Group Leaders and Lead Members for both the Environment and Climate Change, to approve such funding requests and appropriation of spend from the reserve”.  The budget would be considered as part of the annual budget setting process.

·         A further report would be brought to the Committee detailing the scheme and application process.  The scheme would include a definition for parish councils that would be eligible.

·         The overall Council Tax bill included the proportion of the bill that related to Parish Councils.

 

In response to a question, the Chief Executive advised that a review of Parish Councils would be undertaken following the Parliamentary Election.

 

RESOLVED:

 

(a)

That it be approved in principle to remove the Parish grants as part of formulating the Revenue budget for 2020/21 year and in line with the approved Medium Term Financial Strategy;

 

(b)

That subject to 2.1 being approved, that Parish and Town Councils be notified of the proposed change immediately in order that they can plan for and set their annual budget and precept levels;

 

(c)

Subject to 2.1 being approved that Members as part of formulating the Revenue budget, approve an annual contribution of £20,000 for the next 3 years to an earmarked reserve in order that smaller Parishes can apply for funding for specific projects, with a strong emphasis on sustainability and countering climate change; with delegated authority given to the Head of Resources in consultation with Group Leaders and Lead Members for both the Environment and Climate Change, to approve such funding requests and appropriation of spend from the reserve.

 

Report author: Jon Triggs

Publication date: 14/11/2019

Date of decision: 04/11/2019

Decided at meeting: 04/11/2019 - Strategy and Resources Committee

Accompanying Documents: