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 (report of the Deputy Chief Executive (Corporate Development) (S151) enclosed).

(Please note that in accordance with The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote will be taken on Budget recommendations).

(Members are reminded that if they are two months or more in arrears, they must disclose the fact and not vote on any item to set tax or any decision which may affect its calculation).

Consideration was given to the report of the Deputy Chief Executive, Corporate Development (S151) which requested 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.

The Portfolio Holder for Finance, Commercialisation and Partnerships introduced the report and outlined the main details of the Budget:

·         Despite the numerous issues that had arisen from the Covid-19 pandemic, the Council had managed very well, and with the help of various Government grants, it had been able to manage its budget well, and a good standard of services had been maintained.  The Portfolio Holder thanked all members and officers who had worked hard to achieve this;

·         The Portfolio Holder gave special thanks to all the Council’s frontline staff who had not been able to work from home during the pandemic, and who had maintained services for residents;

·         The Portfolio Holder particularly thanked the Deputy Chief Executive (Corporate Development) (S151), and the Leader, who had provided tremendous vision and leadership through the difficult period of the Covid pandemic;

·         The Authority had fallen behind on a number of investment projects and initiatives planned for 20/21 and 21/22 however, the challenges raised by the pandemic had had to take priority;

·         The serious effects of Covid appeared to be fading away for the new 22/23 financial year, and it was hoped that this would give the Authority the opportunity to accelerate its programme of planned investments into communities, and to catch up on the delays caused by the pandemic;

·         The programme planned to spend around £16million this year and into next year in the district;

·         £1 million would be spent on assets including the South Holland Centre, Ayscoughfee, the Bus Station, Spalding Cemetery, Moulton Park, public toilets, car parks and the Castle Leisure Centre;

·         £3.1 million would be spent on commercialisation, to purchase and develop commercial land, the new waste depot centre, and other property;

·         £1.5million would be spent on economic development by building more small commercial units for rental, and to continue the Grants for Growth Scheme to help small businesses to grow;

·         £2.3 million would be spent on private sector housing including disabled facilities and to provide more homes for market rental;

·         £3.4 million would be spent on the Council’s Decent Homes Improvement Programme, covering around 3,800 Council homes;

·         £3.7 million would be spent on affordable housing across the district, for rental and shared ownership;

·         £0.5 million would be spent on expanding the existing garden waste collection scheme (purchase of vehicles and bins, and providing new grounds maintenance machinery);

·         Approximately £0.5 million would be spent on ICT, to help increase customer self-service and to create efficiencies through all Council services;

·         The spending programme would mainly be financed through reserves, grants and cash balances;

·         In addition to the capital spend, there would be a continuation of the Town Improvement Schemes, and Pride Teams would continue to keep footpaths and community areas tidy;

·         There would be a continued expansion of the Enterprise Zone in Holbeach;

·         All current base-line services would be maintained for 22/23

·         Based on all the input from a rigorous Budget challenge, the 22/23 General Fund Budget was balanced with an identified efficiency target of £397,000 to be achieved by 31 March 2023;

·         The District Council Tax equated to only around 10% of the overall Council Tax bill.  Half of this figure went to Internal Drainage Boards;

·         There were major service pressures in 22/23 - IDB levies which were increasing by £156,000; general staff pay and pensions and new National Insurance rates at £533,000; £51,000 spend in utility costs; and additional financial support for Environmental Services.

·         More savings and efficiencies were expected as a result of the new partnership with Boston Council and East Lindsey District Council;

·         The HRA provided management and trade operatives to look after the Council’s housing stock, and this had continued during the Covid pandemic;

·         A surplus of £1.9 million was forecast which would be retained for future capital spend on existing assets and new Council homes;

·         It was the Council’s policy to maintain Decent Homes standards and remain the landlord of choice;

·         Councillor Lawton was thanked with regard to her work on the HRA and Housing Portfolio;

·         With regard to reserves, at 31 March 2023 the General Fund forecast was set to be £8.48million, and the HRA reserves was forecast to be £21.4 million;

·         The Portfolio Holder concluded that it was important to get back to some sort of normality, following the Covid pandemic.  However, the situation in the Ukraine could affect the Authority and individuals going forward.

The following points were raised:

·         It was noted that it was encouraging to see that PSPS had reduced their contract costs due to transformation plans.  The amount of £162,000 was not an insignificant amount, and the continued support for PSPS was proving fruitful.

·         The Independent Group thanked officers at all levels of the Council, the Portfolio Holder for Finance, Commercialisation and Partnerships and members generally for their work in producing a successful budget.  The Independent Group had provided plenty of input during the budget setting process where there had been several opportunities for challenge. Members asked:  a) Would charges be reviewed at some point in the year; and b) Following assurances at the last Council meeting, would the Authority be reviewing provision of leisure facilities.

DECISION:

That Council approves:

a)    The Revenue Estimates for the General Fund, Housing Revenue Account and Spalding Special Expenses for 2022/23 (Appendices A and C);

b)    The use of Reserves detailed at Appendix D;

c)    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);

d)    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);

e)    The Medium Term Financial Strategy (at Appendix B;

f)     The Capital Strategy and Capital Programme (Appendices E and F);

g)    The Fees and Charges for 2022/23 (at Appendix G);

h)    The Treasury Management Statement and Strategy, including the Minimum Revenue Provision policy and Investment Strategy (Appendices H and I); and

i)      The South and East Lincolnshire Council’s Annual Delivery Plan 2022/23 (Appendix J).

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 a recorded vote was taken on the recommendations (Annual Budget Report 2022/23, Medium Term Financial Strategy, Capital Programme and Capital Strategy, Treasury Management Strategy, Annual Delivery Plan and approval of Council Tax). The vote was as follows: