Agenda item

Report of the Portfolio Holder for Finance.

Council’s approval was sought for the proposed budget for 2022/23 for the General Fund, Housing Revenue Account and Capital Programme as part of the Council’s Medium Term Financial Plan covering the years 2022/23 to 2025/26.

The detailed report also provided an overview of the Council’s financial position in order to inform the decision making process.

In particular financial projections were provided for:

·         2021/22 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 2022.

·         2022/23 Original Budget – this was the proposed budget for the next financial year, on which the Council Tax would be based, and would commence from 1^st April 2022.

·         2022/23 Original Budget, this included proposed increases to rents and fees and charges for the next financial year for the Housing Revenue Account.

·         2023/24 to 2025/26 Financial Plan – In accordance with good practice the Council agreed its annual budgets within the context of a Medium Term Financial Plan (MTFP).  This included financial projections in respect of the next three financial years.

The report and appendices had been considered by Audit and Corporate Overview Scrutiny Committee at its meeting on 20^th January 2022, and by the Executive at its meeting on 31^st January 2022. 

Councillor Peter Roberts queried why rents and heating charges were being raised for tenants when the Housing Revenue Account showed a £2.2m surplus, and there was a current cost of living crisis with food, fuel and energy, inflation and national insurance all rising.

The Portfolio Holder for Finance advised the meeting that in September 2021 CPI was at 3.1% and the Council had an obligation to increase its costs by the CPI figure plus 1%.  The Council had no control over energy companies increasing their costs.

The Section 151 Officer added that rents and heating charges needed to be increased to ensure the Council’s 30 year Housing Business Plan continued to be sustainable.  If the Council did not pass its costs on, the £2.2m would soon be depleted.  She added that the 2% proposed in the report for 2022/23 was an estimated figure.

Councillor Roberts proposed an amendment to the recommendation in the report that a freeze be put on the 4.1% increases on rent and heat. 

Moved by Councillor Peter Roberts and seconded by Councillor Ross Walker.

That a freeze be put on the 4.1% increases on rent and heat. 

On being put to the vote, the motion was lost.

Councillor Ross Walker queried that the revised budget 2021/22 showed Dragonfly Joint Venture shares at £519k and Dragonfly Joint Venture Loan at £1.7m and a total of £2.2m, however, in the original forecast programme it was down to zero.

The Section 151 Officer advised that a £2.2m loan had been approved for Dragonfly in 2021/22 but the facility had not yet been drawn down thus no figures were shown for 2022/23.

The Chair reminded Members that a recorded vote would be taken on this budget setting motion as per the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014.

Moved by Councillor Clive Moesby and seconded by Councillor Tom Munro

For the Motion (28);

Councillors Rita Turner, Derek Adams, Rose Bowler, Jane Bryson, Tracey Cannon, Anne Clarke, Nick Clarke, Tricia Clough, Jim Clifton, Paul Cooper, David Dixon, Maxine Dixon, Mary Dooley, David Downes, Stan Fox, Steve Fritchley, Donna Hales, Ray Heffer, Andrew Joesbury, Chris Kane, Tom Kirkham, Duncan McGregor, Clive Moesby, Graham Parkin, Liz Smyth, Janet Tait and Deborah Watson.

Against the Motion (3);

Councillors Allan Bailey, Peter Roberts and Ross Walker

Abstentions (0)

RESOLVED that (1) in the view of the Chief Financial Officer, the estimates included in the Medium Term Financial Plan 2022/23 to 2025/26, are robust and that the level of financial reserves whilst at minimum levels are adequate, be accepted,

(2) officers report back to Executive and to the Audit and Corporate Overview Scrutiny Committee on a quarterly basis regarding the overall position in respect of the Council’s budgets.  These reports to include updates on achieving savings and efficiencies for 2022/23 and future years.

GENERAL FUND;

(3) a Council Tax increase of £5.00 is levied in respect of a notional Band D property (2.68%).

(4) the Medium Term Financial Plan in respect of the General Fund as set out in Appendix 1 of this report be approved as the Revised Budget 2021/22, as the Original Budget in respect of 2022/23, and the financial projection in respect of 2023/24 to 2025/26.

(5) any further under spend in respect of 2021/22 is transferred to the Council’s General Fund Reserves.

(6) on the basis that income from Planning Fees may exceed £0.500m in 2021/22, the Head of Paid Service in consultation with the Leader, be granted delegated powers to authorise such additional resources as are necessary to effectively manage the resultant increase in workload.

HOUSING REVENUE ACCOUNT;

(7) Council sets its rent levels in line with government policy, increasing rent levels by CPI (3.1%) plus 1% to apply from 1^st April 2022.

(8) the increases in respect of other charges as outlined in Appendix 3 Table 1 be implemented with effect from, 1^st April 2022.

(9) the Medium Term Financial Plan in respect of the Housing Revenue Account as set out in Appendix 3 of this report be approved as the Revised Budget in respect of 2021/22, as the Original Budget in respect of 2022/23, and the financial projection in respect of 2023/24 to 2025/26.

(10) under spends in respect of 2021/22 to 2025/26 are transferred to the HRA Revenue Reserve.

CAPITAL PROGRAMME;

(11) the Capital Programme as set out in Appendix 4 be approved as the Revised Budget in respect of 2021/22, and as the Approved Programme for 2022/23 to 2025/26.

(12) the Assistant Director of Property Services and Housing Repairs be granted delegated powers in consultation with the Portfolio Member and the Asset Management group to approve the utilisation of the £260,000 of AMP Refurbishment Work allocation, with such approvals to be reported back to Executive through the Quarterly Budget Monitoring Report.

(Section 151 Officer)