Agenda item
Finance and Budget Working Group - Update
Minutes:
The Chairman introduced the Finance and Budget Working Group update and in doing so noted that the last meeting of the Group took place on 12th January 2024. It was reported that the Medium Term Financial Plan Tranche 1 paper following consultation was considered by Members. The Working Group was updated on the main implications of the Local Government Provisional Finance Settlement which were that all councils were again being allowed to increase Council Tax by up to 3 per cent, that planning application fees would increase by 35 per cent for large applications and 25 per cent for small applications from 1 April 2024. It was also noted that it was predicted that the finance settlement would provide around a 4.9 per cent rise in core spending power for Bromsgrove compared to previous year’s settlement. During discussion, it was noted that there was a pooling arrangement for business rates with other Worcestershire authorities.
The Chairman noted that a discussion concerning Ward Councillor Funds took place at the 12th January Finance and Budget Working Group meeting and it was agreed by the Group that a proposal be put forward for discussion to Overview and Scrutiny Board regarding a fund of £62,000 per year to be established for Councillor Ward Budgets from 2024-25 financial year for a period of three years. The briefing paper containing a draft Bromsgrove Ward Councillor Fund pilot scheme was included in supplementary papers for this meeting, and paper copies were tabled for Members’ consideration.
It was explained by the Chairman that the proposed terms of reference for the scheme were copied from the criteria used by the County Council. Following the update, Members debated the Ward Councillor Fund scheme proposal.
Some Members expressed concern about the possible introduction of this fund, citing the fact that the County Council divisional ward funds were not being spent to their full capacity. It was suggested that the arrangement that existed at the Council via the New Homes Bonus (NHB) Community Grants Panel would be a more appropriate solution. Through the Grants Panel, members of the public were able to apply for funding for community projects directly and applications were examined by Members who sat on the Panel. It was noted that the proposal for ward budgets as tabled would provide funds directly to elected members to spend.
It was responded by other Members that as detailed in the draft Ward Councillor Fund pilot scheme, there would be stringent oversight of the funding requests by ward members and a clear audit trail would be kept and requests closely monitored. Any funding request under the scheme would need to be made in writing by the Member and would need to be approved before funds could be released. The funding requests would also need to clearly evidence what the funding provided would be spent on. Spending would be open to scrutiny by the public via the Council’s website.
Some Members expressed further points of concern about the scheme and commented that this was not the right time for introducing ward budgets, given the Council was struggling to balance the budget. Also, some Members commented that they would like to consult with their respective groups before making a decision on this. A point was raised by some Members that with County Council divisional funds of £10,000 per year set aside for County Councillors to spend, a further £2,000 per year for Bromsgrove District Council elected Members to spend within their wards (which were also part of County Council area divisions) seemed to constitute a double taxation of sorts.
It was countered by other Members that there were many meaningful things on which the ward funds could be spent on which would enhance the lives of local communities. Examples of helping local clubs with purchasing items of sports equipment or setting up an afterschool youth club were given. It was noted that a small amount of funding provided to the right project could have a transformative impact. Some Members countered that the impact of £2,000 would likely be rather modest.
During the detailed debate, a recommendation was put forward that the Ward Budgets proposal as detailed in the briefing note submitted be put forward to Cabinet to consider as part of the 2024/5 Medium Term Financial Plan (MTFP) Tranche 2.
It was suggested by a Member that the Overview and Scrutiny Board first consider looking in detail at the operation and trends with respect to the County Council divisional ward funds scheme before debating the Bromsgrove’s Ward Councillor Fund pilot scheme proposal.
The recommendation put forward by the Chairman in respect of Ward Budgets proposal was seconded and on being put to the vote it was carried.
RECOMMENDED that the Cabinet consider, as part of the 2024/5 Medium Term Financial Plan (MTFP) Tranche 2, approval of the Ward Budgets proposal contained in the briefing paper now submitted, as tabled at the meeting of Overview and Scrutiny on 16th January 2024.
Supporting documents:
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