Agenda item

Budget reports from the Leader of the Council and Cabinet Member for Finance and Growth are attached:

·         The Council’s Budget 2022/23 and the Medium Term Financial Strategy2022/23- 2025/26  (Appendix 4 attached)

·         The Dedicated Schools Grant and setting the Schools Budget 2022/23

·         Capital Strategy and Capital programme 2022/23

·         Flexible use of Capital Receipts Strategy 2022/23

·         Treasury Management Strategy and Prudential Indicators 2022/23 

Councillor Eamonn O’Brien, the Leader of the Council and Cabinet Member for Finance and Growth, presented the suite of budget papers with comprised:

·         The Council’s Budget 2022/23 and the Medium Term Financial Strategy 2022/23 - 2025/26

·         The Dedicated Schools Grant and setting the Schools Budget 2022-23

·         Capital Strategy and Capital programme 2022/23

·         Flexible use of Capital Receipts Strategy 2022/23

·         Treasury Management Strategy and Prudential Indicators 2022/23

The Leader advised that Overview and Scrutiny Committee had made two recommendations:

1.    That the Overview and Scrutiny Committee put forward to Cabinet that a Reserves Strategy be reviewed to look at setting out guidance for the use of the reserves within Services; and

2.    That the Overview and Scrutiny Committee put forward to Cabinet that the impact of budget saving OPS 007 regarding food waste caddy liners is closely monitored and Cabinet Member Portfolio meetings and if recycling rates drop due to the changes a review takes place on the budget saving proposal.

Both these recommendations were noted and would be taken forwards.

The Leader reported that the Council still faced a number of challenges which would continue in future years. A £3m smoothing fund was proposed in light of these future pressures, as was a 1.94% increase in Council Tax. He advised this was the lowest in Greater Manchester but would still be difficult for residents, however an increase in Council Tax was included in Government funding assumptions and as such this increase was necessary to balance budgets.

The suite of documents set out all proposed cuts and efficiency savings, as well as ambitious capital targets including historic investment in Bury’s towns and highways. The papers also set out flexible use of capital receipts, and the welcome increase in schools’ budgets. In response to Members’ questions, it was noted that despite filling posts as soon as possible, in an organisation of this size there would always be some vacancies at any given point which was represented in the vacancy factor. With regards to trading services, a more commercial relationship was being pursued with schools, seeing them as customers to encourage uptake. The Chief Executive advised that the effects of Covid might increase this, but the savings identified were mostly from IT efficiencies which he was confident could be achieved.

Decision:

Cabinet:

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

2.    Noted the Council Tax base of the equivalent of 55,611 band D equivalent dwellings on which the Council Tax funding has been calculated;

3.    Approved the net revenue budget of £177.483m for 2022/23;

4.    Approved the increase in Council Tax of 1.94% and the inclusion of a 1% social care levy;

5.    Approved the recurrent changes to expenditure or reductions in income of £17.191m in 2022/23;

6.    Approved the budget reductions and additional income of £5.892m for the 2022/23 financial year;

7.    Approved the use of reserves of £14.355m in 2022/23;

8.    Approved the transfer of £0.683m into reserves with regards to the funding of social care reforms;

9.    Delegated authority to the Executive Director of Finance and the Chief Executive to agree the use of the social care reserve and the Children and Young Peoples Reserve established in 2021/22 in consultation with the Cabinet Member for Finance;

10.Approved the transfer of £2.996m into a smoothing reserve;

11.Approved the transfer of £1.388m into a Business Rates Risk;

12.Noted the forecast position on reserves as set out in section 6 of this report;

13.Noted the Departmental cash limits as set out at Appendix 5;

14.Noted the significant financial risks for funding, income and demand pressures in future years and for the continued impact of Covid-19 on the strategy; and

15.Recommends Council to approve and adopt the budget for 2022/23.

Reasons for the decision:

To progress the Council’s 2019/20 budget setting process to achieve an approved and balanced budget.

Other options considered and rejected:

None, setting the budget is a statutory responsibility.