Agenda item

To set out for Cabinet consideration and recommendation to Council the proposed 2022/23 budget and council tax.

The budget as presented has been drafted based on;

·     Delivering a Council Tax freeze via a 0% council tax increase in 2022/23 for the basic annual threshold.

·     Collecting the full 4% Adult Social Care (ASC) precept in 2022/23.

There are several key assumptions underpinning this budget report.

·     Government will extend, as they have previously indicated, the flexible use of capital receipts regulations to 31 March 2025.

·     These regulations, when issued, will remain broadly unchanged in allowing the councils transformation expenditure to be legitimately financed from capital receipts.

Cabinet and Council will, sometime after this meeting, approve a proposal to generate a £54m capital receipt from a bold non-traditional approach. If Council do not agree the proposal, then the budget will need to be amended as necessary.

The Leader of the Council presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book.

Cabinet was advised that the report set out for Cabinet consideration and recommendation to Council the proposed 2022/23 budget and council tax, and that the budget as presented has been drafted based on;

·     Delivering a Council Tax freeze via a 0% council tax increase in 2022/23 for the basic annual threshold.

·     Collecting the full 4% Adult Social Care (ASC) precept in 2022/23.

In relation to this Cabinet was informed that there are several key assumptions underpinning this budget report.

·     Government will extend, as they have previously indicated, the flexible use of capital receipts regulations to 31 March 2025.

·     These regulations, when issued, will remain broadly unchanged in allowing the councils transformation expenditure to be legitimately financed from capital receipts.

·     Cabinet and Council will, sometime after this meeting, approve a proposal to generate a £54m capital receipt from a bold non-traditional approach. If Council do not agree the proposal, then the budget will need to be amended as necessary.

The Chairman of the Overview and Scrutiny Board addressed the Cabinet advising that at their recent meeting the Board had vigorously debated the report and that the Board had proposed the following recommendation in respect of this item:

The Overview and Scrutiny Board recommended to Cabinet that the administration develops a Plan B in the event the government cancels or amends the Flexible Use of Capital Receipts regulations leaving a hole up to £54 million in the 2022/23 budget.

The Leader addressed the Cabinet in relation to the recommendation advising that the report sets out that if there were to be an issue in terms of the flexible use of capital receipts that other options would need to be considered, and that significant work had gone into this.

Councillor Cox addressed the Cabinet stressing that the budget appeared to be high on risk, high on debt and high on overspending.

Councillor Dedman addressed the Cabinet in relation to beach huts, highlighting the lack of consultation with the beach hut associations and questioning why they had not been informed or consulted in relation to references within the report to beach huts.

The Deputy Leader advised that the beach hut associations would be consulted.

Councillor Howell addressed the Cabinet with regards to the KPMG report, requesting that Councillors have sight of the report and questioning whether the council should be launching on proposals on the basis of a draft report.

Cabinet members spoke in support of the report.

In summing up the Leader of the Council addressed the points made by councillors not on the Cabinet who had raised questions in relation to the report.

RECOMMENDED that Council: -

1)            undertake a recorded vote in relation to the following items as required by the Local Authorities (Standing Orders) (England) (Amendments) Regulations 2014 which came into force on the 25 February 2014;

(a)           A net budget of £272.043m, resulting in a total council tax requirement of £228.964m, is set for 2022/23 based on the draft local government settlement figures published by government in December 2021. This is based upon:

                                     i.        a council tax freeze for 2022/23 in respect of the basic annual threshold and the collection of the social care precept of 4%.

This net increase can be compared to the 5.99% maximum permitted increase for 2022/23 and recognises that the government continue to promote council tax increases via the social care precept as a funding mechanism for social care;

                                   ii.        the key assumptions and provisions made in the budget as proposed and set out in paragraph 40 to 55;

                                 iii.        the allocations to service areas in the budget as proposed and as set out in Appendix 2a;

                                 iv.        the capital investment programme (CIP) as set out in paragraphs 109 to 131and Appendix 4;

                                   v.        the use and level of all reserves to be held by the council further to the advice of the chief finance officer as set out in paragraphs 132 to 158 and Appendix 3 to this report;

                                 vi.        treasury management strategy (TMS) and prudential indicators as set out in paragraphs 159to 170 and Appendix 5;

                                vii.        the chief officers’ pay policy statement for consideration and approval by the council in accordance with the provisions of the Localism Act 2011 as set out in paragraphs 172 to 173 and Appendix 7;

(b)           approve the flexible use of capital receipts efficiency statement as set out in paragraphs 56 to 86 including the extension of the transformation programme to £67m and the reprofiling of the associated costs and savings;

(c)           approve the requirement to enhance the reporting of the transformation savings to Cabinet.

(d)           approve the establishment of a £20m Green Futures Fund to support key infrastructure developments as set out in paragraph 114; and

(e)           that the chief finance officer provides council with a schedule setting out the rate of council tax for each category of dwelling further to councillors consideration of the decision required in respect of (a) above and after taking account of the precepts to be levied by the local police and fire authorities, neighbourhood, town and parish councils, and chartered trustees once these have been determined prior to the Council meeting on the 22 February 2022.

Voting: Unanimous

Portfolio Holder: Leader of the Council