Agenda item

2023 / 24 Budget papers

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

 

The Cabinet is asked to:

 

a.          Approve the Medium-Term Financial Strategy and the assumptions regarding resources and spending requirements.

b.          Note 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.

c.           Approve the net revenue budget of £210.813m for 2023/24.

d.          Approve 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.

e.          Approve, 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.

f.            Approve the recurrent changes to expenditure of £16.852m in 2023/24.

g.          Approve the non-recurrent changes to expenditure of £3.618m in 2023/24.

h.          Approve the proposed savings and additional income of £22.545m for the 2023/24 financial year.

i.            Approve the use of reserves of £4.802m in 2023/24.

j.            Approve the transfer of £1.912m into reserves with regards to the funding of social care reforms.

k.           Note the forecast position on reserves.

l.            Approve the flexible use of Capital receipts strategy 2023/24 as set out in Appendix 2.

m.         Approve the Treasury Management Strategy as set out in Appendix 2

n.          Approve the recommendations to Council as set out relating to the Dedicated Schools Grant and setting the schools budget.

o.          Note the Departmental cash limits as set out at Appendix 5.

p.          Approve the commencement of consultation in respect of options set out in paragraph 101 of this report.

q.          Recommend that Council approve and adopt the budget for 2023/24.

 

Committee/Date

Subject

Recommendation

 

1.

Cabinet

15 February 2023

 

Locality Board Formalisation

See below:

Council is asked to confirm approval of 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.

A

Cabinet

15 February 2023

 

HOUSING REVENUE ACCOUNT

See below:

 

Council is asked to approve:

 

HRA Budget

 

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 3rd April 2023.  

2.4      For 2023/24 shared ownership rents be voluntarily limited to an increase of 7% with effect from 3rd 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      Approvean increase in Service andAmenity Chargesby 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.

 

B

Cabinet

15 February 2023

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

As below:

Recommend that Council approves and adopt the budget for 2023/24, and:

 

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

2. Approve 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. Approve the net revenue budget of £210.813m for 2023/24.

4.Approve 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.Approve, 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.Approve the recurrent changes to expenditure of £16.852m in 2023/24.

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

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

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

10.Approve the transfer of £1.912m into reserves with regards to the funding of social care reforms.

11.Note the forecast position on reserves.

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

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

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

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

16.Approve the commencement of consultation in respect of options set out in paragraph 101 of this report.

 

 

Minutes:

Meeting of Cabinet 15th 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 15th 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 3rd April 2023.  

2.4      For 2023/24 shared ownership rents be voluntarily limited to an increase of 7% with effect from 3rd 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 Chamber when this vote was taken.

 

Meeting of Cabinet 15th 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 2023/24.

 

(i)          It was moved by Councillor Gold and seconded by Councillor O’Brien that the recommendations contained in Minute CA.126 of the Cabinet meeting held on 15th February 2023 be approves and adopt the budget for 2023/24, and:

 

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

2.  Approve 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.  Approve the net revenue budget of £210.813m for 2023/24.

4.  Approve 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.  Approve, 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.  Approve the recurrent changes to expenditure of £16.852m in 2023/24.

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

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

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

10.  Approve the transfer of £1.912m into reserves with regards to the funding of social care reforms.

11.  Note the forecast position on reserves.

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

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

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

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

16.  Approve the commencement of consultation in respect of options set out in paragraph 101 of this report.

 

Subject to the following alterations:

 

Labour Group Budget Amendment 2023/24

Proposal

Cost

 

Supporting the borough through the cost-of-living crisis

New Council Tax Support Fund

£100,000

Community Grants

£100,000

Freeze Bury Market Rents for an extra year

£87,000

Extend Elected Member’s Discretionary Budgets for 1 year

£51,000

Children in Care and Care Leavers Support Fund

£50,000

Veterans and Cadets Support Fund

£20,000

 

£408,000

Supporting Bury’s Culture

Cultural Programme 2023/24

£20,000

Celebrating the Coronation and Commemorating Queen Elizabeth II

£14,000

 

£34,000

Manifesto Pledges

Dealing with the backlog on tree maintenance

£125,000

 

£125,000

 

Councillor Donnelley left the meeting for consideration of this item, following declaration of a pecuniary and prejudicial interest in the matter being discussed.

 

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

 

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

 

Conservative Group Budget Amendment 2023/24

 

Proposal

Cost

 

Proposed Savings

 

Increase vacancy factor from 2.5% to 3%

£414k

Revised provision of pay award (using basis of offer to firefighters)

£422k

Free school meals (to be replaced by the funding received from Governments Household Support Fund)

£567K

 

£1.403m

Proposed Changes

 

Continuation of Caddy liners

£110k

Options appraisal for review of Refuse Collections round

£75k

Township Fund (100k per township)

£600k

Knife Crime and Anti Social behaviour Initiatives

£215k

Fly tipping

£150k

Councillor Community Award Scheme

£51k

Reserves

£200k

 

 

 

The Conservative Group would want to have the option for 2024/25 to have a support scheme available to refund a council tax increase.

 

On being put the result of the vote was as follows:

 

For the Amendment:- S Arif; Bernstein, Brown, Dean, Gartside, Harris, Hussain, N Jones, Lancaster, McBriar, Rydeheard, Vernon, voting for;

 

 

A Arif, Bayley, Boles, Boroda, Birchmore, Berry, Booth, Cummins, Duncalfe,  Farooq, FitzGerald, Frith, Gold, Green, Hayes, McGill, Morris, Moss, Marsden, Mason, O’Brien, Peel, Pilkington, A Quinn, D Quinn, Rafiq, Rizvi, L Smith, M Smith, Tariq, Thorpe, Tegolo, Walmsley, Whitby, Y Wright, Walsh voting against

 

 

Abstaining from the Vote:- The Worshipful the Mayor.

 

The Mayor declared the amendment lost.

 

The substantive motion (as set out in i) was put to the vote which was as follows:-

 

For the Motion:- Councillors: A Arif, Bayley, Boles, Boroda, Birchmore, Berry, Booth, Cummins, Duncalfe,  Farooq, FitzGerald, Frith, Gold, Green, Hayes, McGill, Morris, Moss, Marsden, Mason, O’Brien, Peel, Pilkington, A Quinn, D Quinn, Rafiq, Rizvi, L Smith, M Smith, Tariq, Thorpe, Tegolo, Walmsley, Whitby, Y Wright, Walsh voting against

 

 

Against the Motion:- Councillors: S Arif; Bernstein, Brown, Dean, Gartside, Harris, Hussain, N Jones, Lancaster, McBriar, Rydeheard, Vernon.

 

Abstaining from the Motion:- The Worshipful the Mayor

 

The Mayor declared the substantive Motion carried.

 

 

Supporting documents: