Agenda item

REPORT OF THE SERVICE DIRECTOR - RESOURCES

To consider the Draft Budget 2022/23

RESOLVED:

(1)  That Cabinet noted the latest funding forecasts for 2022/23 and the significant uncertainty around inflation and Central Government funding, and that these estimates provided could be subject to significant change.

(2)  That Cabinet noted the comments made at the budget workshops, and comment on the inclusion of the revenue savings and investments in the budget to be brought back for consideration in January, for referral on to Council in February.

(3)  That Cabinet noted the comments made at the budget workshops, and comment on the inclusion of the capital investments in the Investment Strategy to be brought back for consideration in January, for referral on to Council in February.

REASON FOR DECISION: To ensure that all relevant factors are considered in arriving at a proposed budget, Investment Strategy and Council Tax level for 2022/23, to be considered by Full Council on 10 February 2022.

The Executive Member for Finance and IT, Councillor Ian Albert, presented the Draft Budget 2022/23 report and the Local Government Settlement which had been provided as an addendum.

Councillor Albert advised that the short-term position was slightly better than expected and mid to long-term was still uncertain, but there was expected to be a new funding formula due for 2023/24 onwards.

The Service Director – Resources noted:

·         The addendum highlighted the main funding streams for the Council and what had come from the Local Government Settlement announcement last week.

·         Lower Tier Services grant will be been received again.

·         It had been assumed that funding would be given to recompense costs of coming out of the National Insurance/Social Care Levy scheme. This is being provided by the Services Grant.

·         The New Homes Bonus has been honoured for another year – ending September 2021 – and this is additional to expected.

·         No additional funding to cover Covid-19 costs this year and any additional costs will have to be met from existing Council budgets.

·         Requested that Members were prudent about only including essential spending, in line with the objectives in the Council Plan. 

·         There will be some transitional protection when a new funding formula is introduced, which should mitigate some funding reductions and help to reduce the impact as it is introduced over a longer period.

Councillor Ian Albert advised:

·         Points 8.1-8.6 have been superseded by the addendum.

·         Points 8.7 and 8.8 highlighted the impact that the higher level of inflation was having on the ability to deliver savings and efficiencies in the future.

·         No formal comments had been received from Finance, Audit and Risk Committee regarding the budget and Members had voted it be recommended to Cabinet.

·         There was general support for the 80p rise in the garden waste charge.

·         A question was raised at Finance, Audit and Risk Committee regarding a possible Council Tax freeze and the cost of this to the Council. It will be proposed in the budget that Council Tax should increase by approximately 10p per week, as a freeze would cost £250k per annum on an ongoing basis and this was not deemed affordable.

·         There were investments going into key services, such as food standards, environmental health and conservation and it was not simply a case of making efficiencies, but improving services offered across the district.

·         There was some scope for funding for small, ad-hoc investments in 2022/23, but these would need to be explored as they became apparent.

The following Member asked a question:

·         Councillor Judi Billing

In response to the question the Service Director – Resources advised that Healthy Hub scheme funding from County Council would need to be confirmed as soon as possible and ideally prior to the next Cabinet meeting at which the budget would be discussed. As the funds were proposed for 2023/24, this could be included in next year’s budget if required.

Councillor Steve Jarvis noted that the budget had delivered some real benefits, especially regarding environmental policies, and in the face of the lack of clarity from government. He also commented that the Hertfordshire Police and Crime Commissioner had announced a 4.7% rise in Council Tax.

Councillor Ian Albert proposed and Councillor Steve Jarvis seconded and, following a vote, it was:

RESOLVED:

(1)  That Cabinet noted the latest funding forecasts for 2022/23 and the significant uncertainty around inflation and Central Government funding, and that these estimates provided could be subject to significant change.

(2)  That Cabinet noted the comments made at the budget workshops, and comment on the inclusion of the revenue savings and investments in the budget to be brought back for consideration in January, for referral on to Council in February.

(3)  That Cabinet noted the comments made at the budget workshops, and comment on the inclusion of the capital investments in the Investment Strategy to be brought back for consideration in January, for referral on to Council in February.

REASON FOR DECISION: To ensure that all relevant factors are considered in arriving at a proposed budget, Investment Strategy and Council Tax level for 2022/23, to be considered by Full Council on 10 February 2022.