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Agenda item

2023/24 Revenue Budget, Capital Programme, and Medium Term Financial Strategy

Purpose

The purpose of this report is to present the budget for 2023/24.

 

Recommendations

Council are requested to approve:

(a) the Medium-Term Financial Strategy set out in Annex B

(b) the Savings and Transformation items for inclusion in the budget, set out in Annex C

(c) the Council Tax Requirement of £6,310,795 for this Council

(d) the Council Tax level for Cotswold District Council purposes of £148.93 for a Band D property in 2023/24 (an increase of £5)

(e) the Capital Programme, set out in Annex D

(f) the Annual Capital Strategy 2023/24, as set out in Annex E

(g) the Annual Treasury Management Strategy and Non-Treasury Management Investment Strategy 2023/24, as set out in Annex F

(h) the Strategy for the Flexible use of Capital Receipts, as set out in Annex H

(i) the balances and reserves forecast for 2023/24 to 2026/27 as set out in Section 5 of the report

Minutes:

The purpose of this report is to present the budget for 2023/24.

 

The Deputy Leader and Cabinet Member for Finance introduced the Revenue Budget, Capital programme and Medium Term Financial Strategy and provided history, context and detailed summary of fourth and final Budget from the Liberal Democrat Administration

The Budget had been built in the aftermath of a pandemic and against a backdrop of reducing Government funding (down £2m over 10 years), increased fuel, energy and cost of living costs, instigated by the war in Ukraine, and high inflation, high interest rates, and political and public financial uncertainty following the 23 September 2022 mini-budget. Despite these challenges, the Administration’s priorities to Tackle Climate Change, Deliver Social Rented Housing and Strengthen the Local Economy would be delivered through a financial approach that aimed to deliver more efficient services, improve standards, increase income to replace lost funding, and bring in money from external funding sources.

 

Council noted that although the Budget would require the use of Council financial reserves (£860,000), other plans to reduce Council expenditure (by £1.1m) and increase income and revenue (by £415,000) would reduce the amount of financial reserves required to balance the budget.

 

Council noted that both the Council, and its partners Publica and Ubico, would be expected to deliver the reduction in the Council’s expenditure

 

Council noted that funds that had been released through the sale of the Council’s Housing stock in 1997 had been used by previous administrations on a number of projects from building the Cirencester Leisure Centre to replacing the recycling collection fleet. Those funds had now come to an end and would not be available for future projects.

 

Council noted that the Recovery Investment Strategy had been rescinded when escalating interest rates and tighter Government (investment) regulation meant it was no longer viable.

 

Council noted over £860,000 had been raised by reviewing fees and charges that had been previously frozen or increased below cost and £184,000 Local Government Pension Costs had been saved for each of the last three years.

 

Council noted over £4.25m of external funding had been brought to the Cotswolds 

 

Council noted the creation of a new Cabinet Transformation Working Group to oversee the Councils finances and produce proposals for consideration as part of the 2024/25 budget and deliver savings in 2023/24

 

Council noted that a Financial Resilience Reserve of £3.3 million pounds would be created to fund the £860,000 revenue reserves required to balance the 2023/24 budget and support services while they transform their provision to meet the funds available.

 

Council noted that the public had been consulted on proposals to increase Council Tax increases and parking charges

 

Council noted that discretionary charges would increasingly be set at a level that would enable them to be funded by those that used them. Green Waste Collection charges had been increased so that the service would be funded by those that used it,

 

Council noted that the funding for the replacement recycling vehicles would be required on a rolling basis as and when current vehicles were decommissioned at the end of their working life.

 

Council noted that the number of new homes reported in the Budget did not take into account demolitions.  Had this been the case the reported figures would have been less.

 

Council noted that the Budget recommended that Member allowances were frozen for 2023/24, although increases for the current year 2022/23 (that had already been set and approved) would still be paid.

 

Council noted that details of the proposed budget had been considered by Audit Committee, Overview and Scrutiny Committee and recommended by Cabinet.

 

The Chair invited the Deputy Leader of the Conservative Group to comment on the Budget

 

The Deputy Leader of the Conservative Group stated that the Conservative Group would not be proposing any amendments to the Budget

 

The Deputy Chair of the Conservative Group, Councillor Sue Jepson commented that Council was being asked to approve a budget that was not fit for purpose, from an Administration that keeps on putting the Council and its taxpayers into debt, borrowing for unnecessary vanity projects and cutting out democracy. The (Liberal Democrat) Administration had taken over a debt free, well run Council, and although (the Conservative Group) would not be making any budget proposals on the presented Budget, they would be making a budget proposal after 4 May 2023. Councillor Jepson stated that her side of the Chamber would be voting against the Budget in the papers before them. 

 

Councillor Cunningham stated he believed the main reason for the Council was to help residents and he could not see anything in the proposed Budget that would do this and, in the middle of a Cost of Living Crisis, the proposed increase of Council Taxes, Green Waste Collections, Taxi Licenses, Street Food Vending Licenses, and Public Toilets would cause additional hardship.

 

 

The Deputy Leader of the Council, and Cabinet Member for Finance Mike Evemy proposed, and the Cabinet member for Climate Change and Forward Planning seconded that the Budget and recommendation (a) to (i) should be AGREED.

 

RESOLVED: Council AGREED:

(a) the Medium-Term Financial Strategy set out in Annex B

(b) the Savings and Transformation items for inclusion in the budget, set out in Annex C

(c) the Council Tax Requirement of £6,310,795 for this Council

(d) the Council Tax level for Cotswold District Council purposes of £148.93 for a Band D property in 2023/24 (an increase of £5)

(e) the Capital Programme, set out in Annex D

(F) the Annual Capital Strategy 2023/24, as set out in Annex E

(g) the Annual Treasury Management Strategy and Non-Treasury Management Investment Strategy 2023/24, as set out in Annex F

(h) the Strategy for the Flexible use of Capital Receipts, as set out in Annex H

(i) the balances and reserves forecast for 2023/24 to 2026/27 as set out in Section 3 of the report.

 

Recorded Vote

 

For

Against

Abstain

Claire Bloomer

Stephen Andrews

Ray Brassington

David Cunningham

 

Rachel Coxcoon

Stephen Hirst

 

Tony Dale

Sue Jepson

 

Andrew Doherty

Richard Keeling

 

Mike Evemy

Richard Morgan

 

Jenny Forde

Richard Norris

 

Joe Harris

Tom Stowe

 

Mark Harris

Steve Trotter

 

Roly Hughes

 

 

Nikki Ind

 

 

Andrew Maclean

 

 

Nick Maunder

 

 

Dilys Neill

 

 

Nigel Robbins

 

 

Gary Selwyn

 

 

Lisa Spivey

 

 

Clive Webster

 

 

18

9

0

 

Supporting documents:

 

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