Agenda item

REPORT OF THE SERVICE DIRECTOR – RESOURCES

For Cabinet to recommend a budget for 2023/24 to Full Council for their consideration and approval.

RECOMMENDED TO COUNCIL: That Council

(1)  Notes the position on the Collection fund and how it will be funded.

(2)  Notes the position relating to the General Fund balance and that due to the risk identified a minimum balance of £2.5million was recommended.

(3)  Notes the net revenue savings that are likely to be required in future years, combined with the Chief Finance Officer’s commentary on the reliability of estimates and the resilience index.

(4)  Approves the revenue savings and investments as detailed in Appendix B.

(5)  Approves a net expenditure budget of £18.123m, as detailed in Appendix C.

(6)  Approves a Council Tax increase of 2.99%, which was in line with the provisions in the Medium term Financial Strategy.

(7)  Approves that the revenue investment for leisure centre condition surveys (as detailed in Appendix B, reference R13) was brought forward so that it can be spent in 2022/23.

(8)  Approves an additional revenue investment (for 2023/24 only) to create a Community Wealth Fund of £100k to support the local community in delivering projects that have wider community benefits.

REASON FOR REFERRALS:

(1)  To ensure that all relevant factors are considered in arriving at a budget and Council Tax level for 2023/24 as set out in the Council Plan.

Audio Recording – 54 minutes 44 seconds

Ian Couper, Service Director – Resources, presented the referral from the Finance, Audit and Risk Committee. He commented that the Committee was interested in the general funding, balance calculations and various budget risks that were outlined in the report. He summarised that the Finance, Audit and Risk Committee were happy to pass this referral on to Cabinet for consideration.

Councillor Ian Albert, the Executive Member for Finance and IT, presented the report entitled ‘Revenue Budget 2023/24’ and advised:

·         The report covered various elements of setting the budget for 2023/24.

·         Overall, the Government settlement was better than forecast but was less than inflation, which would have an impact on the Council and its residents.

·         Paragraph 8.24 advised that the medium and short term positions were better than forecast, so less reserves would be used.

·         Based on current forecasts, the Council could afford to be slower with the delivery of savings so that they could hopefully be delivered when the Cost-of-Living crisis had subsided, but overall needed to deliver annual savings of £2.5million in future.

·         Paragraph 8.27 detailed uncertainties that may affect saving levels and timings.

·         Paragraph 8.22 advised that it was sensible to set aside a central budget for the ongoing impacts of COVID, which would need to be reviewed.

·         The report advised a Council Tax increase of 2.99%, which would maintain services in the medium term.

·         The Capital Programme would be reviewed as there was significant revenue impacts arising from the forecasted capital spends.

·         Overall, the Revenue Budget for 2023-2024 was prudent and affordable.

·         The Executive Member proposed an additional recommendation which would create a Community Wealth Fund for one year, totalling £100k.

The Chair commented that she was pleased the additional recommendation had made it to Cabinet, as it would support communities across the district.

Councillor Steve Jarvis commented on the amendment of the Capital Programme that would reduce the proposal to expand the Mausoleum. He asked the Service Director: Resources about how the Mausoleum reserve would be distributed elsewhere.

Councillor Jarvis also commented that following a successful 2-week extension of the opening times of the Outdoor Pool in Letchworth this summer at low costs, there was chance to extend it by 4 weeks this upcoming summer.

In response to Councillor Jarvis, Ian Couper advised:

·         He was made aware of the Mausoleum item after the two reports were written.

·         The Mausoleum item had three knock-on impacts: reduce the savings in future years, remove the capital line in relation to the building of the new Mausoleum and release the Mausoleum specific reserve back into the General Fund reserve.

Councillor Albert and Councillor Dennis-Harburg seconded and after a vote, it was:

RECOMMENDED TO COUNCIL: That Council

(1)  Notes the position on the Collection fund and how it will be funded.

(2)  Notes the position relating to the General Fund balance and that due to the risk identified a minimum balance of £2.5million was recommended.

(3)  Notes the net revenue savings that are likely to be required in future years, combined with the Chief Finance Officer’s commentary on the reliability of estimates and the resilience index.

(4)  Approves the revenue savings and investments as detailed in Appendix B.

(5)  Approves a net expenditure budget of £18.123m, as detailed in Appendix C.

(6)  Approves a Council Tax increase of 2.99%, which was in line with the provisions in the Medium term Financial Strategy.

(7)  Approves that the revenue investment for leisure centre condition surveys (as detailed in Appendix B, reference R13) was brought forward so that it can be spent in 2022/23.

(8)  Approves an additional revenue investment (for 2023/24 only) to create a Community Wealth Fund of £100k to support the local community in delivering projects that have wider community benefits.

REASON FOR REFERRALS:

(1)  To ensure that all relevant factors are considered in arriving at a budget and Council Tax level for 2023/24 as set out in the Council Plan.