Issue - meetings

Report and appendices attached.

Meeting of Cabinet 15^th February 2023 – Consolidated Budget

At the invitation of the Mayor, Councillor Gold, Cabinet Member for Finance and Communities, made a statement on the Budget for 2024/25.

(i)          It was moved by Councillor Gold and seconded by Councillor O’Brien that the recommendations contained in Minute CA.125 of the Cabinet meeting held on 14th February 2024 be approved and adopt the budget for 2023/24, and Council:

1. Approved the Medium-Term Financial Strategy for 2024/ 2025, 2026 / 2027 and the assumptions regarding resources and spending requirements.
2. Approved the Council Tax base for Bury Council for 2024/ 25 of 57,409 Band D equivalent dwellings, this is the basis on which the Council Tax funding has been calculated.
3. Approved the net revenue budget of £209.608m for 2024/2025.
4. Approved the Council tax requirement of £110.198m and the increase in Council Tax in 2024 – 25 of 2.99% in terms of General Council Tax and a further 2% for the Adult Social Care precept for 2024/2025.
5. Approved the budget assumptions £37.111m in 2024/25.
6. Approved the use of £15.131m of reserves from the budget smoothing reserve and £4.629m from the collection fund smoothing reserves.
7. Noted the forecast position on reserves (paragraph 22.2).
8. Noted the Chief Executive as Director of BMBC Townside Fields Limited will draw down annual dividends from the Company and annual dividends will be reflected in the MTFS.
9. Approved the recommendations set out in the Treasury Management Strategy (Appendix 2):
   • Approved the Treasury Management Strategy including the associated Prudential Indicators and Annual Investment Strategy.
   • Approved the Treasury Management Policy Statement.
   • Approved the Minimum Revenue Provision (MRP) Policy Statement.
10. Approved the Capital Strategy and the Programme for 2024/25 - 2026/27 (Appendix 3).
11. Approved the Dedicated Schools Grant budget for 2024/2025 at £228.326m and approve the allocations between the four funding blocks as set out in appendix 4 to this report:
    • The Schools and Academies 2024/25 funding unit values as recommended by Schools Forum and detailed at Annex 1 to appendix 4.
    • Approved the 2024/25 hourly rates for all early year's providers as follows:
      • £5.28 per hour, for 3- and 4-year-olds.
      • £7.52 per hour, for 2-year-olds; and.
      • £10.00 per hour, for under 2s
12. Noted the position on the Dedicated Schools Grant deficit and Project Safety Valve.
13. Agreed to the following amendments to the treatment of military compensation as set out in Appendix 7:
    • Exclude military compensation for Discretionary Council Tax Support calculations - These are short to mid-term additional credits made to those in receipt of Council Tax Support as a top up towards their Council Tax.
    • Exclude military compensation for Discretionary Housing Payments calculations - These are short to mid-term additional payments made to those in receipt of Housing Benefit or Universal Credit as a top up towards their rent.

(ii)         An amendment was moved by Councillor R Bernstein and seconded by Councillor McBriar that:

The suite of budget reports submitted to the Council should be approved, with the following amendments:

Proposed change in budget allocation:

£6.6 million Real Living Wage  ...  view the full minutes text for item 5

Report attached.

Meeting of Cabinet 14^th February 2023 – Housing Revenue Account

It was moved by Councillor Gold and seconded by Councillor Cummins and on being put with all Members voting for and the Mayor abstaining Council agreed to:

·       Approve the 2024/25budget forthe HousingRevenue Account   

·       Agree rents to be increased for 2024/25 by 7.7% which is the Government’s maximum allowable increase being September CPI (Consumer Price Index) 6.7% plus 1% with effect from 1^st April2024.

·       Shared ownership rents to beincreased by 7.7% in line with the provision which is set out within shared ownership agreements with effect from 1^st April 2024.

·       Approve an increase inGarage rents by CPI asat September 2023 CPI 6.7%.

·       Approve an increase inSheltered Management andSupport Charges by CPI 6.7%.

·       Approve an increasein Serviceand AmenityCharges byCPI 6.7%.

·       Approve an increasein Supportand Heating chargesby CPI6.7%.

·       Approve an increasein FurnishedTenancy chargesby CPI6.7%.

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

Councillor Richard Gold, Cabinet Member for Finance and Communities, presented the report which established the Housing Revenue Account budget for 2024/25. It proposed an increase in rent levels of 7.7% (which was the Government’s maximum allowable increase being September CPI (Consumer Price Index) 6.7% plus 1%) with effect from 1st April 2024, an increase in shared ownership rents by 7.7%, and an increase for other charges and rents by 6.7% (in line with CPI as at September 2023). It was noted that this report had been considered by Overview and Scrutiny Committee as well as Union meetings.

In response to questions it was noted that hardship funds were in place to support tenants on housing benefits and universal credit. These differed based on whether funds were paid to the tenant or the landlord, and the Council was working with tenants to help them according to their circumstances.

Decision:

Cabinet approved the following and commended it to the Council:

·         Approved the 2024/25 budget for the Housing Revenue Account

·         Agreed rents to be increased for 2024/25 by 7.7% which is the Government’s maximum allowable increase being September CPI (Consumer Price Index) 6.7% plus 1% with effect from 1st April 2024.

·         Agreed that shared ownership rents to be increased by 7.7% in line with the provision which is set out within shared ownership agreements with effect from 1st April 2024.

·         Approved an increase in Garage rents by CPI as at September 2023 CPI 6.7%.

·         Approved an increase in Sheltered Management and Support Charges by CPI 6.7%.

·         Approved an increase in Service and Amenity Charges by CPI 6.7%.

·         Approved an increase in Support and Heating charges by CPI 6.7%.

·         Approved an increase in Furnished Tenancy charges by CPI 6.7%.

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

Noted that, in accordance with the Rent Standard, 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.

Report and appendices of the Cabinet Member for Finance and Communities are attached.

Councillor Richard Gold, Cabinet Member for Finance and Communities, presented the Council’s 2024/25 budget proposals and the framework for the longer-term Medium Term Financial Strategy (MTFS) 2024/2027. The report also set out the process that will lead to the agreement of the budget and the setting of the 2024/25 Council Tax at Full Council on the 21 February 2024.

The full suite of documents presented also included:

•              Council Tax Setting

•              Capital strategy 2024/25 to 2026/27

•              Treasury Management Strategy 2024/25

•              The Dedicated Schools Grant and the schools’ budget 2024/25

It was noted that this had been considered by Overview and Scrutiny Committee as well as Union meetings.

An increase of 2.99% to Council Tax was being proposed along with a 2% adult social care precept, and the Medium Term Financial Plan reported a budget gap for 2025/26 of £10.627m and 2026/27 of £4.327m, bringing a cumulative three-year budget gap of £30.085m.

Councillor Gold advised that a recommendation regarding the treatment of military compensation was in response to the British Legion campaign, but also added discretionary housing support in addition to their proposals.

Members noted the challenging times and the changes made in Bury over the last 12 months, including the work of the Financial Improvement Panel and the associated financial improvement plan. It was noted that the Budget gap had reduced since December, from £17.243m to £15.131m (this took) account of approved savings of £5.368m). Work was underway to identify additional savings to deal with the further gap and, pending this, the gap will be funded through the use of reserves. Councillor Gold advised that c1.7m had also been announced from the government, which had not been in time to be included in these papers but would be reflected in Quarter 1 reports.

Members discussed the core spending power of the Council noting that although it was very slightly higher than the national average, Bury had been in the lowest 20% for funding and had received 17% increase in demand as well as £11m inflationary costs, which outstripped spending power. With regards to previous savings targets, 93% of these had been achieved and a plan to substantially reduce the remaining 7% would be received in Quarter 1. Officers advised that once previous savings targets had been delivered, work in Children’s Services would continue to address budget concerns before work on the Council’s balance sheet would begin to release assets where possible.

Decision:

Cabinet approved the recommendations and commended them to Council:

1.    Approved the Medium-Term Financial Strategy for 2024/ 2025, 2026 / 2027 and the assumptions regarding resources and spending requirements.

2.    Approved the Council Tax base for Bury Council for 2024/ 25 of 57,409 Band D equivalent dwellings, this is the basis on which the Council Tax funding has been calculated.

3.    Approved the net revenue budget of £209.608m for 2024/2025.

4.    Approved the Council tax requirement of £110.198m and the increase in Council Tax in 2024 – 25 of 2.99% in terms of General Council  ...  view the full minutes text for item 125