Issue - meetings

Budget reports from the Cabinet Member for Finance and Communities are attached:

·         The Council’s Budget 2023/24 and the Medium Term Financial Strategy 2023/24 - 2026/27 (Appendix 4B attached separately below)

·         The Dedicated Schools Grant and setting the Schools Budget 2023- 24

·         Capital Strategy and Capital programme 2023/24

·         Flexible use of Capital Receipts Strategy 2023/24

·         Treasury Management Strategy and Prudential Indicators 2023/24

To receive and consider the recommendations to the Council contained in the following minutes of the Cabinet:

Meeting of Cabinet 15^th February 2023 – Formalisation of the Locality Board

It was moved by Councillor Tariq and seconded by Councillor O’Brien and on being put with all Members voting for and the Mayor abstaining Council agreed:

To Approve the following key documents that will form part of the GM ICB approvals process :-

·         Locality Board terms of reference.

·         Bury Integrated Care Partnership Agreement.

·         Section 75 agreement – principles included within covering report.

1.            Council is asked to recognise the requirement to commit to the 2022/23 finance schedules as part of the GM ICB approvals process and is asked to confirm that this final decision to be approve be delegated to the Executive Director of Finance.

2.            Council is asked to note the ongoing commitment of partners to work across neighbourhoods in order to continue to deliver our Locality Plan.

3.            Council is asked to note that the principles included within the section 75 report included here will form the basis of the detailed updates to the full section 75 working document and the financial schedules in particular.

4.            Council is asked to note the commitment to further strengthen the section 75 legal documentation with a further iteration of this document proposed within next 3-6 months.

5.            Council is asked to note the contents of the updated Locality Plan that underpins all the work happening across the borough.

Meeting of Cabinet 15^th February 2023 – Housing Revenue Account

It was moved by Councillor Tariq and seconded by Councillor O’Brien and on being put with all Members voting for and the Mayor abstaining Council agreed to:

2.1  Approvethe 2023/24 budgetfor theHousing Revenue Account.

2.2    Approve a 3% reduction forthe ManagementFee toSix Town Housingfor 2023/24. 

Rent Setting

2.3     For 2023/24 individual social and affordable rents be set at the Governments rent cap of 7% with effect from 3^rd April 2023.  

2.4      For 2023/24 shared ownership rents be voluntarily limited to an increase of 7% with effect from 3^rd April 2023.

2.5     Approve an increase in Garage rents by (Consumer Price Inflation as at September 2022) CPI 10.1%

2.6      Approve an increase in Sheltered Management and Support Charges by CPI 10.1%

2.7      Approve an increase in Service and AmenityCharges by CPI 10.1%

2.8      Approve an increase in Support and Heating charges by CPI 10.1%

2.9      Approve an increase in Furnished Tenancy charges by CPI 10.1%

2.10   Note that where a social rent property is re-let to a new or transferring tenant the rent level be increased to the target rent for that property.

2.11    Note that for 2023/24 and onwards, where an affordable rent property is re-let to a new or transferring tenant the rent level be set by reference to 80% of the market rent (including service charges where applicable) for a similar property at the time of letting or the formula rent for the property, whichever is the greater.

Please note Councillor Bayley was not in the  ...  view the full minutes text for item 7

Report of the Cabinet Member for Finance and Communities is attached.

Councillor Richard Gold, Cabinet Member for Finance and Communities, presented the report which formed part of a suite of documents relating to the Council’s budget setting process for 2023/24. It established the Housing Revenue Account budget for 2023/24 and proposed the rent levels for Council Housing for Dwelling and Garage rents, Sheltered Support, Management, Service and Heating charges and Furnished Tenancy charges. The report also established the Management Fee paid to Six Town Housing for 2023/24

Decision:

Cabinet approved and commended the following to Council:

HRA Budget

1.    Approve the 2023/24 budget for the Housing Revenue Account; and

2.    Approve a 3% reduction for the Management Fee to Six Town Housing for 2023/24.

Rent Setting

3.    For 2023/24 individual social and affordable rents be set at the Governments rent cap of 7% with effect from 3rd April 2023;

4.    For 2023/24 shared ownership rents be voluntarily limited to an increase of 7% with effect from 3rd April 2023;

5.    Approve an increase in Garage rents by (Consumer Price Inflation as at September 2022) CPI 10.1%;

6.    Approve an increase in Sheltered Management and Support Charges by CPI 10.1%;

7.    Approve an increase in Service and Amenity Charges by CPI 10.1%;

8.    Approve an increase in Support and Heating charges by CPI 10.1%;

9.    Approve an increase in Furnished Tenancy charges by CPI 10.1%;

10.Note that where a social rent property is re-let to a new or transferring tenant the rent level be increased to the target rent for that property; and

11.Note that for 2023/24 and onwards, where an affordable rent property is re-let to a new or transferring tenant the rent level be set by reference to 80% of the market rent (including service charges where applicable) for a similar property at the time of letting or the formula rent for the property, whichever is the greater.

Reasons for the decision:

To progress the Council’s budget setting process to achieve an approved and balanced budget.

Other options considered and rejected:

None.

Budget reports from the Cabinet Member for Finance and Communities are attached:

·         The Council’s Budget 2023/24 and the Medium Term Financial Strategy 2023/24 - 2026/27 (Appendix 4B attached separately below)

·         The Dedicated Schools Grant and setting the Schools Budget 2023- 24

·         Capital Strategy and Capital programme 2023/24

·         Flexible use of Capital Receipts Strategy 2023/24

·         Treasury Management Strategy and Prudential Indicators 2023/24

Councillor Richard Gold, Cabinet Member for Finance and Communities, presented the suite of budget papers with comprised:

·         The Council’s Budget 2023/24 and the Medium Term Financial Strategy 2023/24 - 2026/27

·         The Dedicated Schools Grant and setting the Schools Budget 2023- 24

·         Capital Strategy and Capital programme 2023/24

·         Flexible use of Capital Receipts Strategy 2023/24

·         Treasury Management Strategy and Prudential Indicators 2023/24

Councillor Gold advised that this budget was set against backdrop of economic crisis, war in Ukraine, increased energy costs, rising interest rates, rising inflation and also local context of children’s improvement journey and workforce shortages, particularly in terms of social workers, which have resulted in the use of expensive agency and managed teams. The funding settlement did result in a welcome increase in grants, but these were non-recurrent and have conditions against them. A raise in Council tax of 2.99% and a 2% adult social care precept was being proposed and had been assumed within these budget proposals.

Taking into account recurrent and non-recurrent spending pressures, the recurrent gap has increased to £31.395m. This has been closed in part by increased Council tax and business rates with the remainder being met by a phased savings approach and through use of £4.802m reserves. It was noted that whilst the Council was able to produce a balanced budget for 2023/24 and was financially resilient in the short term subject to the delivery of all of the savings proposals, reserves have been reduced significantly over the last few years and the Council needs to commence a programme of rebuilding these.

Members discussed the use of reserves, and in response to Members’ questions, it was noted that one of the four Primary Care Networks operated differently from the others and discussions were ongoing to meet the same commitment as outlined in the OCO - Staying Well appendix.

Decision:

Cabinet:

1.    Approved the Medium-Term Financial Strategy and the assumptions regarding resources and spending requirements;

2.    Noted the Council Tax base is the equivalent of 56,708 Band D dwellings, this is the basis on which the Council Tax funding has been calculated;

3.    Approved the net revenue budget of £210.813m for 2023/24;

4.    Approved an increase in Council Tax of 2.99% in terms of General Council Tax and a further 2% for the Adult Social Care Precept in each of the 2023/24 and 2024/25 financial years;

5.    Approved, subject to statutory regulations and legislation with regard to any guidance issued by the Secretary of State, to implement a 100% Council Tax premium on 2nd homes and to amend the timing of the premium on empty and unoccupied properties with effect from April 2024;

6.    Approved the recurrent changes to expenditure of £16.852m in 2023/24;

7.    Approved the non-recurrent changes to expenditure of £3.618m in 2023/24;

8.    Approved the proposed savings and additional income of £22.545m for the 2023/24 financial year;

9.    Approved the use of reserves of £4.802m in 2023/24;

10.Approved the transfer of £1.912m into reserves with regards to the funding of social  ...  view the full minutes text for item 126