Agenda item

Budget and Council Tax 2022/23 and Medium Term Financial Strategy

Report from the Strategic Director of Finance and Customer Services.

Recommendations:

That Cabinet recommend to Council

1. Approval of the Budget and Financial Strategy for 2022/23 as set out in the report and appendices, including the proposed budget adjustments and investments, a basic Council Tax increase of 1.5% and an Adult Social Care precept of 3%.

2. Approval of the proposed Local Council Tax Support Top Up scheme, that will provide additional support to low income households most vulnerable to rising household costs, as described in section 2.5.11-14.

3. Approval of the updated Medium Term Financial Strategy (MTFS) to 2025/26.

4. Approval of the Reserves Strategy as set out in Section 2.8 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2021/22.

5. To note and accept the comments and advice of the Strategic Director of Finance and Customer Services (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provides (Section 2.12).

6. To note the feedback from the public and partners following the public consultation on the Council’s budget for 2022/23 which took place from 22 December 2021 to 23 January 2022, attached as Appendix 9).

7. Approval of the proposed increases in Adult Social Care provider contracts and Personal Assistants as set out in Section 2.4.

8. Approval of the revenue investment proposals set out in Section 2.7 and Appendix 2.

9. Approval of the Council Fees and Charges schedules for 2022/23 attached as Appendix 7.

10. Application of the Business Rates Reliefs as set out in Section 2.9, in line with Government guidance.

11. Approval of the proposed Capital Strategy and Capital Programme as presented in Section 2.10 and Appendices 3A to 3F.

12. Approval of the Treasury Management matters for 2022/23 as set out in Appendix 4 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy.

13. Approval of the Flexible use of Capital Receipts Strategy 2022/23 (Appendix 5).

14. Approval to transfer any 2021/22 revenue outturn underspend into the Council’s reserves, to be held within the Budget and Financial Strategy Reserve.

15. Approval to transfer any remaining Covid funding balances into the Council’s reserves to meet Covid related pressures and costs in 2022/23.

16. Approval that any changes resulting from the Final Local Government Finance Settlement 2022/23 be reflected in the Budget and Council Tax Report to Council on 2nd March.

17. Approval that the Capital Programme Budget continues to be managed in line with the following key principles:

(i) Any underspends on the existing approved Capital Programme in respect of 2021/22 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2021/22 report to Cabinet.

(ii) In line with Financial and Procurement Procedure Rules 7.7 to 7.1 and 8.12, any successful grant applications in respect of capital projects will be added to the Council’s approved Capital Programme on an ongoing basis.

(iii) Capitalisation opportunities and capital receipts flexibilities will be maximised, with capital receipts earmarked to minimise revenue costs.

Minutes:

Consideration was given to the report on the Council’s proposed Budget and Council Tax for 2022/23, based on the Council’s Provisional Local Government Finance Settlement for 2022/23, budget consultation and the consideration of Directorate budget proposals through the Council’s formal Budget process alongside a review of the financial planning assumptions within the Medium Term Financial Strategy (MTFS).

In setting the proposed 2022/23 Budget, Cabinet was asked to recommend to Council an increase of 1.5% in the Council’s basic Council Tax plus an increase of 3% for the Adult Social Care precept. The proposed revenue budget for 2022/23 was £259.6m with the proposed capital expenditure being £244.7m.

The Budget also proposed a Local Council Tax Support Top-up Scheme to operate across 2022/23 and 2023/24 to provide further support to low income working age households in the Borough.

Cabinet Members explained that the budget had been agreed in order to balance the needs of the residents and the funding of services with the need for financial stability. The Council’s finances were still being impacted by the previous reductions caused by austerity, the increase in demand for Adult Social Care and more recently inflation. It was reported that this was a positive budget despite previous funding cuts and it would allow for investments in areas such as road safety, SEND provision and climate change.

It was confirmed that the Provisional Local Government Finance Settlement had now been finalised and the details would be updated for the report to Council.

The report had been considered by the Overview and Scrutiny Management Board as part of the pre-decision scrutiny process. The Board were supportive of the recommendations, with one Member voting against.

Resolved:-

That Cabinet recommend to Council:

3. Approval of the updated Medium Term Financial Strategy (MTFS) to 2025/26.

4. Approval of the Reserves Strategy as set out in Section 2.8 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2021/22.

6. To note the feedback from the public and partners following the public consultation on the Council’s budget for 2022/23 which took place from 22nd December, 2021, to 23rd January, 2022, attached as Appendix 9.

7. Approval of the proposed increases in Adult Social Care provider contracts and for Personal Assistants as set out in Section 2.4.