Issue - meetings

The Council has a statutory duty to set the level of council tax for the forthcoming financial year by 11 March.  Under the Budget and Policy Framework Rules of the Constitution, the Cabinet is responsible for formulating initial draft proposals in respect of the Budget.  The role of this Committee is to assist both the Cabinet and the Council in the preparation of the Budget for 2022/23 within the context of the Medium Term Financial Strategy and the Council’s priorities. 

Due to its size Annex 1 – Draft Revenue Estimates Booklet – has been attached as a supplement to the main agenda.

The report of the Director of Finance and Transformation referred to the responsibility of the Cabinet under the Constitution for formulating initial draft proposals in respect of the Budget.  Reference was made to the role of the Committee in assisting the Cabinet and the Council in preparation of the Budget for 2022/23 within the context of the Medium Term Financial Strategy (MTFS) and the Council’s priorities.

Details were given of the provisional Local Government Finance Settlement and the position regarding New Homes Bonus funding.  It was reported that the latter funding stream remained a subject of discussion, but it would not continue in its current form.  It was likely that the scheme would either be withdrawn and not replaced or replaced, but where the funding stream and sum awarded was much reduced.

Members were advised that for the year 2022/23, a referendum would be triggered where council tax was increased by 2%, or more than 2% and more than £5. For the purposes of preparing the budget papers and updating the MTFS an increase of £5 in 2022/23 had been assumed and each year thereafter.  In addition, it was proposed, that the ‘annual capital allowance’ currently set at £250,000 continued to be set at that level.

The report indicated the factors to be taken into account when updating the MTFS and referred to the Savings and Transformation Strategy (STS) which provided a structure and focus for addressing the significant financial challenge facing the Council.  Progress was reported on savings achieved and it was noted that the MTFS would continue to be updated as more information became available and the targets and timescales within the STS would be revisited and realigned with the latest projected funding gap.  The latest projected ‘outstanding’ funding gap was £2,350,000 including the initiative already built into the MTFS, the scaling back of office accommodation in the sum of £200,000.

Finally, reference was made to the recommendations of the Finance, Innovation and Property Advisory Board of 12 January that the Revenue Estimates contained in the Booklet (Annex 1) be endorsed and that Cabinet give serious consideration to bringing forth a detailed plan to address the funding gap.

RECOMMENDED:  That

(1)             the draft Revenue Estimates contained in the Booklet (Annex 1) be endorsed and commended to the Cabinet for its meeting on 10 February 2022, subject to noting the additional recommendation arising from the Finance, Innovation and Property Advisory Board of 12 January 2022 that Cabinet gives serious consideration to bringing forth a detailed plan to address the funding gap;

(2)             Cabinet be invited to work with the Management Team to identify areas where significant savings could be made in order to meet the required annual savings; and

(3)             the Savings and Transformation Strategy be updated to reflect the latest projected ‘outstanding’ funding gap as part of the budget setting process.

*Referred to Cabinet