Agenda item

2023/24 Budget Update

Minutes:

The Director of Finance introduced the report, which provided an update on the 2023/24 budget position following the forecast position presented at the Policy and Resources Committee meeting on 5 October 2022 and at the subsequent Policy & Resources Committee budget workshop on 24 November 2022. Budget options were set out in this report, which had been developed in response to the previously outlined budget gap.

 

The Provisional Local Government Finance Settlement was published on 19 December 2022 and the information provided in the report outlined the government’s announcements on that day and afterwards. The Provisional Finance Settlement would become final at a date set by Government in late January or early February 2023.

 

The Settlement provided a level of additional resources to the Council and in addition the prospect of increasing Council Tax and the Adult Social care Precept by 4.99% for 2023/24; this was significantly below the headline rate of inflation in the UK economy at the present time. However, the additional resources which amounted to £6.3m were insufficient to bridge the Council’s budget shortfall which had been confirmed in the sum of £49m (gross) and £32.3m (net) following the completion of internal review and the impact of the Provisional Settlement but excluding the higher level of Council Tax increase that was now possible.

 

Further information was sought on the overall budget pressures the Council faced including the reported additional £7m of pressures. Additional comments were made in relation to the Business Rates 100% Retention Pilot and the level of funding spent on Corporate Services. Members noted that the overall budget was due to increase by 10% to £363m and it was queried whether further options would be presented to members. In response, the Chief Executive outlined that officers had worked to satisfy the Independent Assurance Panel by producing a balanced budget for members to consider, and that whilst members were free to propose alternative saving options, the statutory budget consultation would be undertaken based on the options currently presented.

 

It was moved by Councillor Pat Cleary, seconded by Councillor Jo Bird, that the officer recommendations be agreed, with the inclusion of an additional resolution –

 

‘The composition of the Policy & Resources budget working group should be Leaders and Deputy Leaders of each of the Political Groups represented on the Policy & Resources Committee, or in their absence their deputies, as appointed by their Group Leader.’

 

Following a discussion in which Councillor Cleary spoke to the additional resolution, the motion was put and agreed (unanimously).  It was therefore –

 

Resolved (unanimously) – That

 

1.  the outcome of the Provisional Local Government Financial Settlement for 2023/24 be noted, in advance of the Final Settlement which is expected in late January/early February 2023.

2.  the extent of the Council’s financial challenge and the need to make significant financial savings in order to maintain the Council as an ongoing concern be recognised, to avoid the issuance of a Section 114 notice and the potential ministerial intervention under Section 15 of the Local Government Act 1999 which would be likely to ensue.

3.  the savings, efficiencies and income proposals that are available to address the 2023/24 budget gap be noted.

4.  the latest position on consultation be noted and agreement be given to consult on the budget proposals for 2023/24, under section 65 of the Local Government Finance Act 1992.

5.  it be noted that the Section 151 Officer may need to make further adjustments to the forecast budget shortfall pending final decisions by Members in the period ahead.

6.  The composition of the Policy & Resources budget working group should be Leaders and Deputy Leaders of each of the Political Groups represented on the Policy & Resources Committee, or in their absence their deputies, as appointed by their Group Leader.

Supporting documents: