Agenda item

To approve: The General Fund and Housing Revenue Account Budget for 2022/23 including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury Management Strategy, MRP Policy and Annual Investment Strategy, Fees and Charges for 2022/23, the Annual Delivery Plan and approval of Council Tax for recommendation to Full Council (report of the Deputy Chief Executive Corporate Development (S151)enclosed).

Consideration was given to the report of the Deputy Chief Executive Corporate Development (S151) which sought approval of the General Fund and Housing Revenue Account Budget for 2022/23 including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury Management Strategy, MRP Policy and Annual Investment Strategy, Fees and Charges for 2022/23, the Annual Delivery Plan and approval of Council Tax for recommendation to Full Council.

 

Prior to presenting the report, the Portfolio Holder for Finance, Commercialisation and Partnerships advised that he had been made aware of a correction in the Fees and Charges schedule (detailed at page 94 of the agenda pack), which affected Market fees and the Purple Sack scheme.  The correct fees for these areas were as detailed below, and these corrections would be included in the revised appendix when the budget papers were considered by Council:

 

Market Fees – At Cabinet on 14 December 2021, the fees were changed to £7 for all markets except Long Sutton, which as £8.50;

Purple Sacks – The Council report of 19 January 2022 had stated that purple sacks were no longer able to be purchased and this therefore needed to be reflected in the fee schedule.

 

The Portfolio Holder presented the 2022/23 Budget, Medium Term Financial Plan and Capital Programme for recommendation to the Council at its meeting on 3 March 2022.

 

General Fund

 

The compilation of the Budget and Medium Term Financial Strategy was never easy and with this in mind, the Portfolio Holder wished to recognise the dedication and expertise of the Finance Team in delivering the report, together with the assistance of Service Area teams and Portfolio Holders in the context of the Budget Challenge process.

 

·         The provisions of the Government Settlement were known. Based on this knowledge, together with input from the Budget Challenge process, the 2022/23 Budget was balanced and retained current baseline service levels.

·         The requirement for efficiency savings of £397k had been identified.  This efficiency saving requirement was being linked to partnership delivery plans, which were included in the budget papers.

 

The budget was based on the assumption known at the time of writing the report including any impact Covid-19 would have on next years or future years’ budgets.

 

Since the draft budget was presented to Cabinet on 11 January 2022, officers have been working to finalise the estimates, including the savings proposals, and considering feedback from the budget consultation and scrutiny.  As a result of this this there had been some changes to the budget, which included:

 

·         Revision to Business Rates and Council Tax income projections

·         Revision to investment income and other income projections

 

There continued to be unprecedented uncertainty around business rates and the Fair Funding Review, and a prudent position had been taken on  estimates going forward.

After having taken all factors into consideration, the proposal was for a Council Tax increase of £4.95 (10p per week) for a Band D property.

 

HRA

 

The HRA was forecasting a surplus budget of £1.9m - surplus funds were retained for the HRA and used to fund future capital expenditure on the HRA assets.  The HRA was developing an asset management strategy to support the implementation of the Capital Programme.

 

The key assumptions for the HRA budget were:

 

·         Maintaining and repairing HRA stock (3,765 as at 1 April 2021)

·         Rent Increases – CPI + 1%

·         Increased operating cost due to labour market pressures

·         Investment to continuing being a “Landlord of Choice”

 

Capital

 

General Fund – Current forecast programme for 2022/23 was £8.8m, the main schemes being:

 

·         Assets and Property £1.0m

·         Commercialisation £3.1m

·         Economic Development £1.5m

·         Housing (including Welland Homes) £2.3m

 

HRA – Current forecast programme for 2022/23 was £8.4m, the main schemes being:

 

·         Decent Homes £3.4m

·         Affordable Housing £3.7m

 

Reserves

 

General Fund reserves were forecast to be £8.48m at 31 March 2023, after net transfers of £5.03m, which in the main were used to fund the Capital Programme.

 

HRA Reserves were forecast to be £21.4m at 31 March 2023, after net transfers of £0.5m.

 

The following issues were raised:

 

It was noted that the Annual Delivery Plan was appended to the report – would this need amending in line with any forthcoming/future Levelling-Up announcements?  It was advised that details on Levelling Up were not yet known, and would always change, but that the Plan would be updated as required.

 

The Leader commented that, following his update regarding Drainage Boards at the last Council meeting, Government ministers had understood the issues that had been raised.  However, there was to be no change in the current financial year and the opportunity to bid for monies this this year was no longer available.  He did state however that he was still optimistic for the future and reiterated that in his view, it was not fair that residents paid twice as much as others for issue not of the Council’s making.

 

DECISION:

 

That the Cabinet recommends to Full Council:

1.    That the Revenue Estimates for the General Fund, Housing Revenue Account and Spalding Special Expenses for 2022/23 (Appendices A and C) be approved.

2.    That the use of Reserves detailed at Appendix D be approved.

3.    That the Council Tax for a Band A property in 2022/23 be set at £126.42 (£3.30 per annum increase on 2021/22 levels) and Band D £189.63 for 2022/23 (a £4.95 per annum increase on 2021/22 levels).

4.    That the Spalding special expenses for a Band A property be set at £16.38 for 2022/23, (previously £16.12 in 2021/22) and Band D £24.57 for 2022/23, (previously £24.18 in 2021/22).

5.    That the Medium Term Financial Strategy (at Appendix B) be approved.

6.    That the Capital Strategy and Capital Programme (Appendices E and F) be approved.

7.    That the Fees and Charges for 2022/23 (at Appendix G) be approved.

8.    That the Treasury Management Statement and Strategy, including the Minimum Revenue Provision Policy and Investment Strategy be approved. (Appendices H and I)

9.    That the South and East Lincolnshire Council’s Annual Delivery Plan 2022/23 (Appendix J) be approved; and

10.  That delegated authority be given to the Deputy Chief Executive Corporate Development (S151), in consultation with the Portfolio Holder for Finance, Strategy and Partnerships, to make any necessary amendments to the budget prior to Council due to late notifications

 

(Other options considered:

·         No other options were put forward.

Reasons for decision:

·         To comply with the budgetary and policy framework).