Agenda item

The Portfolio Holder for Resources presented a report on the Medium-Term Financial Plan (MTFP) for 2023/24 to 2027/28.  The report had been considered by Finance and Corporate Overview Scrutiny Committee on 23^rd January 2024 and Executive on 29^th January 2024.  The report set out budgets in respect of the General Fund, details of which were attached to the report at Appendices 1 and 2, Housing Revenue Account (HRA), details of which were attached to the report at Appendices 3 and 4 and the Capital Programme, details of which was attached to the report at Appendix 5.

In particular, financial projections were provided for:

·         2023/24 Current Budget Position – this was the current year budget, revised to take account of changes during the financial year that would end on 31^st March 2024.

·         2024/25 Original Budget – this was the proposed budget for the next financial year on which the Council Tax would be based and would commence on 1^st April 2024.

·         2024/25 Original Budget, including proposed increases to rents and fees and charges for the next financial year for the Housing Revenue Account.

·         2025/26 to 2027/28 Financial Plan – in accordance with good practice the Council agreed its annual budgets within the context of a Medium-Term Financial Plan.  This included financial projections in respect of the next three financial years.

Councillor Will Fletcher asked what impact the increase to the Funding Guarantee Grant would have for the Council.  The Director of Finance and Section 151 Officer stated that for 2024/25 it would be about £87,000 and for 2025/26 it would be about £100,000.

Councillor Carol Wood made a statement that in light of the robust position of the Council’s budget, she had hoped that the Council would not have proposed the full increase to Council Tax.  If the Council had proposed a slightly reduced increase of 2.54%, that would only have reduced income by roughly £20,500, and this would have been covered by the Funding Guarantee Grant.

Councillor Clive Moesby responded that there was generally an approach to increase Council Tax by the full amount because otherwise it was lost from the base budget, and it impacted on the current year but also on future years.  He added that the Government expected Council Tax to be increased by the maximum amount and future funding was based upon that.

Councillor Steve Fritchley made a statement that the Government had reduced the Revenue Support Grant to all Local Authorities year on year. 

Tom Kirkham asked a question in respect of the spend on the new Crematorium in Shirebrook.  The Director of Finance and Section 151 Officer explained that all spend for the project had come through Council and there had been two budgets, one to look into whether the project was viable and then one for construction, but these showed as one budget in the Capital Programme.  Councillor Steve Fritchley, Leader of the Council added that there was capital spend and there was also money for the cremator.

A recorded vote was taken in accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014.

For the motion – 30

(Councillors Bennett, A Clarke, R Clarke, Dooley, Fritchley, Gilbody, Hales, Haywood, Hinman, Jeffery, Kane, King, Kirkham, McGregor, Moesby, Munro, Peake, Powell, Raspin, Renshaw, Ritchie, Smith, Stevenson, Tait, Taylor, Turner, Wapplington, Watson, Wilson and Yates)

Against the motion – 2

(Councillors Fletcher and Wood)

Abstentions – 0

Moved by Councillor Clive Moesby and seconded by Councillor David Bennett

RESOLVED (1) that in the view of the Section 151 Officer, that the estimates in the Medium-Term Financial Plan 2023/24 to 2027/28 are robust and that the level of financial reserves whilst at minimum levels were adequate, be accepted.

(2) that officers report back to Executive and to the Finance and Corporate Overview Scrutiny Committee on a quarterly basis regarding the overall position in respect of the Council’s budgets.

GENERAL FUND

(3) a Council Tax increase of £5.89 be levied in respect of a notional Band D property (2.99%).

(4) the Medium-Term Financial Plan in respect of the General Fund, as set out in Appendix 1 of the report, be approved as the Revised Budget 2023/24, as the Original Budget in respect of 2024/25, and the financial projection in respect of 2025/26 to 2027/28.

(5) that any further spend in respect of 2023/24 be transferred to the Council’s General Fund Reserves.

(6) on the basis that income from Planning Fees may exceed £0.500m in 2023/24, the Head of Paid Service in consultation with the Leader of the Council be granted delegated powers to authorise such additional resources as are necessary to effectively manage the resultant increase in workload.

HOUSING REVENUE ACCOUNT

(7) that Council increases its rent levels by 7.7% to apply from 1^st April 2024.

(8) that the increases in respect of other charges as outlined in Appendix 4 Table 1 be implemented with effect from 1^st April 2024.

(9) the Medium-Term Financial Plan in respect of the Housing Revenue Account as set out in Appendix 3 and 4 of the report be approved as the Revised Budget in respect of 2023/24, as the Original Budget in respect of 2024/25, and the financial projection in respect of 2025/26 to 2027/28.

(10) that under spends in respect of 2023/24 to 2027/28 be transferred to the HRA Revenue Reserve.

CAPITAL PROGRAMME

(11) that the Capital Programme as set out in Appendix 5 be approved as the Revised Budget in respect of 2023/24, and as the Approved Progamme for 2024/25 to 2027/28.

(Director of Finance and Section 151 Officer)