Agenda item
BUDGET AND MEDIUM TERM FINANCIAL STATEMENT
( A report by Samantha Knowles, Assistant Director Finance)
Portfolio Holder: Councillor Jonathan Noble, Finance
Minutes:
DECISION
Recommendation to Full Council that:
1. The Revenue Estimates for the General Fund for 2022/23 (Appendix A) be approved. 2. That the Council Tax for a Band A property in 2022/23 be set at £135.24 (£3.30 per annum increase on 2021/22 levels) and Band D £202.86 for 2022/23 (a £4.95 per annum increase on 2021/22 levels). 3. The Boston Town Area Committee (BTAC) special expenses for a Band A property be set at £50.91 (previously £50.23 in 2021/22) and Band D £76.36 for 2022/23, (previously £75.34 in 2021/22) 4. The Medium Term Financial Strategy (at Appendices A,1 and 2) be approved. 5. That the Capital Programme (Appendix A) be approved. 6. The Fees and Charges for 2022/23 (at Appendix 4) be approved. 7. The use of Reserves detailed at Appendix 5 be approved. 8. That the Treasury Management Statement and Strategy, including the Minimum Revenue Provision policy and Investment Strategy be approved. (Appendix 6). 9. That the South and East Lincolnshire Council’s Annual Delivery Plan 2022/23 (Appendix 7) be approved. 10. That delegated authority be given to the Deputy Chief Executive Corporate Development (S151) to use the Covid budget pressures smoothing reserve during the 2022/23 financial year, to smooth any fluctuations in income the Council may still be experiencing as a result of the consequences of the COVID-19 pandemic. 11. That delegated authority be given to the Deputy Chief Executive Corporate Development (S151), in consultation with the Portfolio Holder for Finance, to make any necessary amendments to the budget prior to Council due to late notifications.
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Portfolio Holders and Officer
JN / CM
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REASON FOR DECISION
Councillor Jonathan Noble, Portfolio Holder for Finance, introduced a report by the Deputy Chief Executive (Corporate Development) and S151 Officer, setting out the Council’s proposed Revenue and Capital Budgets for 2022/23 and onwards, the Medium Term Financial Strategy (MTFS) to 2026/27 and associated financial documentation for approval, including the Treasury Management Strategy and the setting of fees and charges.
The report stated that the draft Local Government Settlement announced on 16 December 2021 had been finalised and provided additional detail of continuing and additional one off support to councils, including confirmation of allocations of Revenue Support Grant, Rural Services Delivery Grant and New Homes Bonus (NHB).
An additional one year allocation of New homes Bonus would be received for 2022/23 due to delays in implementing a replacement scheme, however this was likely to be for one year only with no further legacy payments expected in future years. Some NHB (£414,000) was supporting the base in 2022/23 and plans would need to be taken forward to address the situation for future years, depending on what future schemes emerged.
A Fair Funding Review had been expected to set new baseline funding allocations for all local authorities, to simplify the existing system and to provide an up to date assessment of authorities relative needs and resources. Early consultation had been undertaken by the Department for Levelling Up, Housing and Communities, but there was insufficient information todate for informed estimates to be made. It was likely that any changes would be transitioned to mitigate the immediate impact on authorities (positive or negative). The proposed budget assumed no financial changes from the review and when details became available Members would be updated.
As part of its response to Government in response to the settlement, the Council had made further representations regarding the Drainage Board Levy. In particular its impact on the Councils ability to make use of the Council Tax that it raised through housing number increases and annual Council Tax rises to support services, rather than offset the annual levy charge increase.
The key elements of the final 2022/23 Budget and MTFS were summarised in the report and set out in detail in the appendices attached to the report.
Key assumptions made within the current 5 year MTFS included:-
The budget showed an efficiency target requirement for 2022/23 of £282,000. Future years figures were highly volatile due to the level of uncertainty around future funding arrangements. During the development of the budget numerous savings and income generating opportunities had and were being explored in order to address the savings requirement. Many of the opportunities would be related to the South and East Lincolnshire Councils Partnership through partnership working and maximising the opportunities these arrangements presented.
The General Fund Specific Reserves were budgeted to reduce by £5.167m (net) in 2022/23, predominantly to fund the NNDR deficit through carried forward s31 grant. The figure could change as a result of the outturn for 2021/22.
The five year General Fund Capital Programme focused on the core principles of capital investment and included provision for investment and growth linked to the Council’s strategic objectives. Final decisions on the individual projects would be subject to approval and detailed business cases. The main schemes included in the 2022/23 General Fund Programme related to Towns Fund Projects, capitalised enhancements and disabled facilities grants.
The Treasury Management Strategy had been presented to the Audit and Governance Committee on 7 February 2022, and updated to reflect the final budget accompanying the report.
The proposed budget had been subject to a public consultation process, and consideration by the Audit and Governance Committee and the Corporate and Community Committee.
Copies of the Consultation Report were circulated and Members expressed disappointment at the low number of responses received, 16 in total. It was commented that this represented a failure in the methods being utilised for consultation and for future years alternative channels should be considered e.g. radio or engaging with schools, to raise awareness and engage with the public, promotion through Local Democracy Week etc.
Of the 16 responses received 86% were opposed to any increase in the Council Tax levels, which raised questions on the weight placed on the consultation as part of the budget setting process as an increase was being proposed. There was a need to increase the public understanding of where the council tax was spent and the public bodies which received part of the funding from each bill issued.
The Portfolio Holder responded that the consultation was a legal requirement of the budget setting process. As only 16 responses had been received this was not reflective of the public view as a whole. However, information was being included in the council tax bills to show how little of the total amount the Council actually received and what it was spent on. It was hoped this would increase public appreciation that the Borough Council only received 48p in every £10 of council tax.
In summing up Cabinet thanked the s151 Officer and the Finance Team for all their hard work in preparing a prudent, cautious and balanced budget in challenging times and commended the proposed budget and MTFS to Council for approval.
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OTHER OPTIONS OR ALTERNATIVES CONSIDERED
None. |
RECORD OF ANY CONFLICT OF INTEREST
None. |
RECORD OF ANY DISPENSATION GRANTED
None. |
Supporting documents:
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Budget and Medium Term Financial Statement, item 50.
PDF 213 KB
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Appendix A - Cabinet Budget Setting Report 2022.23, item 50.
PDF 416 KB
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Appendix 1 - Summary by Portfolio 2022-23, item 50.
PDF 11 KB
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Appendix 2 - Summary by Service Area 2022-23, item 50.
PDF 13 KB
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Appendix 3 - Corporate Charging Policy 2022-23, item 50.
PDF 82 KB
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Appendix 4 - Fees Charges 2022-23, item 50.
PDF 121 KB
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Appendix 5 Earmarked Reserves, item 50.
PDF 11 KB
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Appendix 6 Treasury Management Strategy MRP Policy and Annual Investment Plan 2022-23, item 50.
PDF 783 KB
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Appendix 7 - Annual Delivery Plan 22.23 - Cabinet February 2022, item 50.
PDF 685 KB