Agenda item

Medium Term Financial Strategy and Budget 2022/23

Meeting of Cabinet, Monday, 7th February, 2022 6.00 pm (Item 92.)

Purpose

The purpose of this report is to present the budget for 2022/23.

Recommendation(s)

That Cabinet

a) considers:

(i) the Budget proposals 2022/23,

(ii) the Medium Term Financial Strategy,

(iii) the Pay Policy Statement,

(iv) the Capital Strategy

(v) the Investment Strategy

(vi) the Treasury Management Strategy;

(vii) the opportunity to issue a £1 million Community Municipal Investment, with approve of the final terms being delegated to the Deputy Chief Executive in consultation with the Deputy Leader and Cabinet Member for Finance; and

b) Subject to any amendments it wishes to make, recommends the above set of documents to Council.

c) Recommends the Local Council Tax Support Scheme as detailed at 2.61 to 2.63 for 2022/23 to Council.

d) Subject to the Council approval of recommendation (c), Council delegates authority to the Deputy Chief Executive to approve the Local Council Tax Support Scheme annual uprating of allowances and non-dependant deductions in line with national regulations.

Minutes:

The Deputy Leader of the Council and Cabinet Member for Finance introduced the report and addressed the Cabinet.

Cabinet noted that a Council decision on the 2022-23 budget would take place at the 16 February 2022 Full Council meeting.

Cabinet had considered the draft budget proposals in October 2021 with Members noting that a six week consultation on the proposed budget had also taken place.

Cabinet noted that both the Audit and Overview and Scrutiny Committees had also considered the draft budget. The Deputy Leader of the Council and Cabinet Member for Finance had attended both of these meetings.

Cabinet further noted that the budget proposals were outlined in detail within the appended report, but a significant factor which had shaped the budget included the Government Funding Settlement (which was provisional at this stage). The provisional figure reflected a funding cut of approximately £228,000. Once the exact figure was confirmed by the Government, the budget would be updated in readiness for consideration at Full Council on 16 February.

Cabinet noted that the Council Tax Base (the number of properties which would be issued with a Council Tax bill for 2022-23) was smaller than in this current year. The adoption of the revised Council Tax exemption rules would result in the Council collecting a higher amount of Council Tax during the 2022-23 municipal year. Cabinet noted the approximate revenue which would be collected during 2022-23.

Cabinet further noted the potential impact of interest rate rises during the coming year and also in future years.

Cabinet noted the financial impact of recycling collection, inflation within the Publica contract, the procurement of insurance and the procurement of renewable energy sources for the Council.

Cabinet further noted the savings which would be achieved via the reduction in contributions to the Gloucestershire Pension Fund.

Cabinet noted that approximately £800,000 of savings had been identified within the draft budget.

Cabinet noted that the Council was currently debt-free, although there was an expectation that some borrowing would be undertaken in the latter part of the financial year of around £500,000. The repayment of this loan had been included in the 2022-23 budget proposals.

Cabinet further noted that the future funding model for District Councils remained uncertain and so it was difficult to undertake detailed future financial planning. The Council’s future financial planning was currently based on an assumption that significant cuts in relation to Government funding were likely.

Cabinet noted the proposed municipal community investment scheme which would be utilised to support the Council’s investment in the clean and green space. Importantly, this would also deliver investment returns to community investors.

Cabinet noted that the leased coach park arrangements in relation to a facility at Bourton-on-the-Water had not been renewed when the term expired in October 2021 as there was no benefit to the Council or the residents of the District.

Cabinet noted that in relation to an inflation provision of 2.5%, this had resulted in a potential additional cost to the Council of £332,000.

Cabinet further noted that in relation to funding levels provided by Government, it was hoped that funding agreements covering a minimum of two years could be provided to the Council so that appropriate planning and budget setting could take place in the coming years.

The Chair thanked the Deputy Leader of the Council and the Deputy Chief Executive (and associated Officers) for all of the work which had been undertaken to produce a balanced, draft budget for consideration by Council.

Cabinet noted the difficulties faced by the Council in terms of financial planning due to the way in which the funding levels from Government were communicated.

Cabinet acknowledged the importance of Councils being afforded the ability to take decisions on how revenues could be increased as Government funding decreased.

Councillor Mike Evemy proposed that the Cabinet agreed to the recommendations as outlined in the report.

This was seconded by Councillor Joe Harris

RESOLVED that: