Agenda item

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 care reforms;

11.Noted the forecast position on reserves;

12.Approved the flexible use of Capital receipts strategy 2023/24 as set out in Appendix 2;

13.Approved the Treasury Management Strategy as set out in Appendix 2;

14.Approved the recommendations to Council as set out relating to the Dedicated Schools Grant and setting the schools budget;

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

16.Approved the commencement of consultation in respect of options set out in paragraph 101 of this report; and

17.Recommended that Council approve and adopt the budget for 2023/24.

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, setting the budget is a statutory responsibility.