Agenda item

Report from the Strategic Director for Finance and Customer Services.

Recommendations:

That Cabinet recommend to Council

1.    Approval of the Budget and Financial Strategy for 2023/24 as set out in the report and appendices, including a basic Council Tax increase of 2% and an Adult Social Care precept of 2%.

2.    Approval of the proposed extension to the Local Council Tax Support Top Up scheme, that will provide up to £117.60 of additional support to low income households most vulnerable to rising household costs, through reduced Council Tax bills as described in section 2.5.11-14.

3.    Approval of the updated Medium Term Financial Strategy (MTFS) to 2025/26, as described within section 2.6.

4.    Approval of the Reserves Strategy as set out in Section 2.9 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2022/23.

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 2.14).

6.    To note the feedback from the public and partners following the public consultation on the Council’s budget for 2023/24 which took place from 19 December 2022 to 22 January 2023, attached as Appendix 10.

7.    Approval of the proposed increases in Adult Social Care provider contracts and for 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 for 2023/24 attached as Appendix 7.

10.Approval of the revenue savings proposals set out in Section 2.8 and Appendix 4.

11.Application of the Business Rates Reliefs as set out in Section 2.10, in line with Government guidance. 

12.Approval of the proposed Capital Strategy and Capital Programme as presented in Section 2.12 and Appendices 3A to 3F.

13.Approval of the Treasury Management matters for 2023/24 as set out in Appendix 9 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy. 

14.Approval of the Flexible use of Capital Receipts Strategy 2023/24 (Appendix 5).

15.Approval that the projected 2022/23 revenue outturn overspend will be funded from the Council’s corporate reserves as indicated within section 2.9.

16.Approval that any changes resulting from the Final Local Government Finance Settlement 2023/24 be reflected in the Budget and Council Tax Report to Council on 1 March.  

17.It is recommended to continue with the principles and measures adopted since April 2020 to make faster payments to suppliers on receipt of goods, works and services following a fully reconciled invoice as described in section 2.11.

18.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 2022/23 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2022/23 report to Cabinet.

(ii)    In line with Financial and Procurement Procedure Rules 7.7 to 7.11 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.

Consideration was given to the report submitted which proposed the Council’s Budget and Council Tax for 2023/24, based on the Council’s Provisional Local Government Finance Settlement for 2023/24, budget consultation and the consideration of Directorate budget proposals through the Council’s Budget process alongside a review of the financial planning assumptions within the Medium-Term Financial Strategy (MTFS).

The following 3 priorities were taken into account when considering the budget proposals:

·         Protecting front line services as much as possible.

·         Mitigating the cost-of-living pressures as much as possible, in particular for those on low incomes.

·         Maintaining a sustainable position.  The proposals were expected to balance the budget for the next 2 years as well as providing an uplift for Adult Social Care.

The Cabinet Member for Adult Social Care and Health welcomed the additional funding for Adult Social Care.  The key issues in Adult Social Care nationally were regarding the demand and expectations, however in Rotherham it was regarding the retention and provision of staff in care homes, in particular the levels of remuneration they received.

The Cabinet Member for Social Inclusion welcomed he investment in the Waterloo Kiln restoration.  The Kiln was significant, and it was important to get the work completed as quickly as possible.  The project had been matched funded by Historic England.

The Deputy Leader and Cabinet Member for Neighbourhood Working thanked and praised staff within Neighbourhoods and Democratic Services for identifying savings within the budget, in particular the proposal to close the Town Hall on Fridays.  She clarified the Town Hall could still be used for special events on Fridays, such as for Annual Council, if needed.  She noted the services of the Strategic Director of Finance and Customer Services and her team along with her fellow Cabinet Members for their assistance with the proposals. 

The Cabinet Member for Corporate Services, Community Safety and Finance noted that the Council tried its best to support the most vulnerable of its residents where there was increased demand and he felt the proposed budget contributed to that support.

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-decision scrutiny process. The Board fully supported the recommendations.

The Strategic Director of Finance and Customer Services explained that the Council was still awaiting information from Government regarding the Public Health grant.  Assumptions on its content had been made, however, there was the potential for change depending on the outcome.

Resolved: That Cabinet recommended to Council

1.    Approval of the Budget and Financial Strategy for 2023/24 as set out in the report and appendices, including a basic Council Tax increase of 2% and an Adult Social Care precept of 2%.

2.    Approval of the proposed extension to the Local Council Tax Support Top Up scheme, that will provide up to £117.60 of additional support to low-income households most vulnerable to rising household costs, through reduced Council Tax bills as described in section 2.5.11-14.

3.    Approval of the updated Medium Term Financial Strategy (MTFS) to 2025/26, as described within section 2.6.

4.    Approval of the Reserves Strategy as set out in Section 2.9 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2022/23.

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 2.14).

6.    To note the feedback from the public and partners following the public consultation on the Council’s budget for 2023/24 which took place from 19th December, 2022, to 22nd January, 2023, attached as Appendix 10.

7.    Approval of the proposed increases in Adult Social Care provider contracts and for 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 for 2023/24 attached as Appendix 7.

10. Approval of the revenue savings proposals set out in Section 2.8 and Appendix 4.

11. Application of the Business Rates Reliefs as set out in Section 2.10, in line with Government guidance. 

12. Approval of the proposed Capital Strategy and Capital Programme as presented in Section 2.12 and Appendices 3A to 3F.

13. Approval of the Treasury Management matters for 2023/24 as set out in Appendix 9 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy. 

14. Approval of the Flexible use of Capital Receipts Strategy 2023/24 (Appendix 5).

15. Approval that the projected 2022/23 revenue outturn overspend will be funded from the Council’s corporate reserves as indicated within section 2.9.

16. Approval that any changes resulting from the Final Local Government Finance Settlement 2023/24 be reflected in the Budget and Council Tax Report to Council on 1st March, 2023.  

17. It is recommended to continue with the principles and measures adopted since April 2020 to make faster payments to suppliers on receipt of goods, works and services following a fully reconciled invoice as described in section 2.11.

18. 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 2022/23 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2022/23 report to Cabinet.

(ii)    In line with Financial and Procurement Procedure Rules 7.7 to 7.11 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.