Agenda item - 2022/23 Budget and Medium Term Financial Plan (including Capital Programme)

Agenda item

2022/23 Budget and Medium Term Financial Plan (including Capital Programme)

Minutes:

The Executive Director of Resources presented the 2022/23 Budget and the Medium Term Financial Plan (MTFP) 2022/23 to 2024/25 for Cabinet’s consideration.  The report detailed the proposed content for the Council’s budget in the 2022/23 financial year together with the authority’s plans for the full three-year period of the MTFP.  The format of the report had been updated to improve clarity.  The Finance and Budget Working Group and the Overview and Scrutiny Board had both pre-scrutinised the draft budget proposals but had not made any recommendations on the content of the budget or MTFP.

 

The 2022/23 budget was robust and balanced.  However, the balance had only been achieved using funding from the Council’s balances.  Officers were anticipating that, without action, the Council’s balances would fall below the minimum level considered acceptable by the Council’s Section 151 Officer by 2024/25.  Therefore, action would need to be taken to ensure that the Council’s budget remained sustainable moving forward.

 

The 2022/23 budget and the MTFP 2022/23 to 2024/25 had been developed in a challenging financial context for local government.  There was also unprecedented uncertainty about the future funding arrangements for Councils.

 

There were various factors impacting on the budget position.  This included:

 

·            Inflation, which was higher than in previous years.

·            Pay inflation, which was anticipated to be approximately 2 per cent per annum over the period of the plan.

·            Budget bids, which placed pressure on the budget.

·            Pressures arising from an anticipated reduction in income from car parking fees due to a decline in footfall during the Covid-19 pandemic.  The decision not to increase fees for car parking charges would also impact on income from this source.

·            The transfer of £382,000 from earmarked reserves to help balance the budget.

·            A proposed increase of £5 in Council Tax per year.

 

Following the presentation of the report, Members thanked Officers for their hard work in preparing the budget.  It was acknowledged that this had occurred at a time when there were significant challenges faced by the Financial Services team.

 

RECOMMENDED that Council approve

 

1)         the overall net general fund revenue budgets of:

         

2022/23:

£12.069m

2023/24:

£11.947m

2024/25:

£12.076m

       

2)         the unavoidable costs:

                    

2022/23:

£0.250m

2023/24:

£0.016m

2024/25:

£0.016m

 

3)         the Revenue Bids:

                                        

2022/23:

£0.148m

2023/24:

£0.107m

2024/25:

£0.086m

 

4)         the Identified Savings:

                              

2022/23:

£0.176m

2023/24:

£0.176m

2024/25:

£0.176m

 

5)         an increase of the Council Tax per Band D equivalent of £5 for 2022/23;

 

6)         the transfer from General Fund Balances of £0.411m for 2022/23;

 

7)         the planned reallocation of £0.382m from Earmarked reserves to General Fund Balances;

 

8)         the General Fund capital programme:

 

2022/23:

£2.410m

2023/24:

£1.390m

2024/25:

£1.946m

 

and that Council NOTE:

 

1)         the 2020/21 Capital Outturn; and

 

2)         the Chief Financial Officer’s (CFO) Opinion on Estimates and Reserve Levels.

 

 

Supporting documents: