Agenda item

FINANCIAL PLAN 2021/26

Meeting of Cabinet, Wednesday, 9th February, 2022 10.00 am (Item CAB104)

Decision:

RECOMMENDED: 1) It is recommended that Council note the revision to the Forecast for 2021/2022 as set out in the report.

2) Council is recommended to approve the Policy on Earmarked Reserves and General Fund Balance and the maximum balances set for the reserves as noted in the report and at Appendix 7 in the report.

3) It is recommended that Council :

i) Approves the budget of £21,550,170 for 2022/2023 and notes the projections for 2023/2024, 2024/2025 and 2025/2026.

ii) Approves the level of Special Expenses for the Town/Parish Councils as detailed in the report.

iii) Approves the Fees and Charges for 2022/2023 detailed in Appendix 4 of the report.

iv) Approves a Band D council tax of £139.37 for 2022/2023

4) It is recommended that Council approves a minimum requirement of the General Fund balance for 2022/23 of £1,128,410.

Reason for decision

To set a budget for the coming financial year.

Minutes:

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The S 151 Officer, Assistant Director - Resources presented the Financial Plan to Cabinet. It was noted that she had held briefings for Opposition political groups and held a Joint Panels meeting to scrutinise the budget.

In summary the figures shown in the Financial Plan for 2021/2026 included a £4.50 per annum per Band D dwelling increase in council tax for each year of the plan. The overall £5 increase permitted under the Council Tax Referendum Principles included the £4.50 per annum per Band D dwelling increase in council tax to cover the Borough expenditure and an increase of £0.50 per annum to cover the expenditure for special expenses.

The Financial Plan 2021/2026 did show that the Council could present a funded budget for three years but there was a budget gap in excess of £2m to address in 2025/2026. The current general fund balances would be required to support the budget in the event that income levels were not achieved and/or delayed, whilst further cost reductions are made.

The report explained that there remained significant uncertainty and risk from 2023/2024. As well as the impact from the pandemic on the council’s finances, the council still awaited confirmation of the outcome of the Funding and Business Rates reforms proposed by Government.

Under standing order 34 Councillor Morley sought assurance that the elements contained in the budget were being “sweated”. He drew attention to the potential risks in income and expenditure with minimal flexibility in the budget. He thanked the S151 Officer for her assistance with the papers.

Under standing order 34 Councillor Kemp suggested that Cabinet consider the setting up and investing in a renewable energy company to help residents with price rises and meet the gap in budget.

Under standing order 34 Councillor Joyce thanked the S151 Officer for her assistance. He made reference to the changes in Government funding to pay for the IDB levies whereby the Council now had to fund what had previously been funded by the Government. He mentioned the lack of Council Tax increases in earlier years which had impacted on the budget available now. He also made reference to employee costs and the fact that a number of staff in the planning department had left, suggesting an amendment may be brought forward to increase those costs as those staff were the budget earners.

Under standing order 34 Councillor Moriarty suggested that as he had not received answers to the list of questions he had raised that the Cabinet adjourn the meeting re-consider the content of the budget and reconvene as he considered it hadn’t been scrutinised.

Under standing order 34 Councillor Ryves commented on the level of reserves held by the authority. He also commented on the high level of reserves held by IDBs and drew attention to the fact that only a small number of District Councils had IDBs within their areas, so causing the large payments having to be made to them. He thanked the S151 Officer for explaining the budget to him.

Councillor Dark acknowledged the situation with the payments to IDBs which was a large chunk of the total amount collected for the Borough.

In response to Councillor Moriarty’s point regarding questions, the S151 Officer confirmed that the answers to the list of questions received on Monday was currently being worked on and should be with him by the end of the day.

Councillor Dickinson acknowledged that the issue with the IDB levies which only affected some District Councils was of major concern as it was a large proportion of the overall budget. Whilst acknowledging the important work of the IDBs, Councillor Dickinson expressed an intention to progress this matter of concern, including drafting a letter to gain MPs and other interested parties support.

Councillor Middleton drew attention to the fact that reserves had been well planned for and created for specific projects, and for times such as the coming years. He acknowledged that levelling up was needed in relation to the IDB funding. He confirmed that Cabinet members had been working closely with officers on the budget over the preceding months.

Councillor Kunes reminded Members that with the RSG at £0 now, it was not possible to plan to include Government funding until the figures were known.

Councillor Blunt clarified the Planning funding situation with CIL being separate, and responded strongly to the points raised on the staffing levels in the planning departments which was being addressed wherever possible, but reminded members that there was a process each application had to go through with no shortcuts.

Under standing order 34 Councillor Parish asked if planning was being put into a position to be run by an agency, Councillor Blunt categorically denied this and commented that some of the work was having to be outsourced until staff could be employed.

Councillor Lawrence acknowledged how hard officers had worked during the pandemic and drew attention to the numbers of people helped over that period. He congratulated the Assistant Director and her team on the budget.

Councillor Dickinson drew attention to the fact that the General Fund balances had been raised to the level they were in order to provide the funding required over the coming years, with the final year bringing the level down to 5%.

She drew attention to the fact that the £3m to invest was in order to invest in new initiatives which would generate income to sustain the budget in future years. She drew attention to the suggestion to set up a Council run energy company and reminded members of the serious financial position these had left some authorities when they had failed. She considered there was too much evidence to demonstrate it was an idea fraught with risk and was not prudent.

Councillor Dickinson also drew attention to the fact that some of the reserves were held for things such as CIL and the collection reserve which was not the Council’s to spend.

In response to Councillor Moriarty’s suggestion that the meeting be adjourned, Councillor Dark drew attention to the detailed presentation given to the Joint Panels by the Assistant Director. Cabinet members had given the content of the budget much consideration, and were presenting a fully funded budget for 3 years, with the 4th being a concern as it was not possible to rely on Government funding. He reminded members that the place to debate the budget was in the Council Chamber and thanked the Assistant Director for the work put into preparing the budget and the briefings given..