Issue - meetings

The Committee heard from the Business Support Team Leader regarding the Prosperous Communities Committee Draft Budget 2023/2024 and estimates to 2027/2028. It was explained that, after taking a robust approach to the estimations within the budget for the Committee, the total cost of services for 2023/2024 would be £5.131m (£5.023m 2022/2023). This had resulted in base budget increases in expenditure of £0.451m, and additional income of £0.343m, resulting in a net base budget increase of £0.108m.

Members heard that there were £0.364m of expenditure budgets which were funded from Earmarked Reserves to support one off project resources in 2023/2024 (£0.463m in 2022/2023). This was a decrease of £0.1m from 2022/2023 to 2023/2024. Services within this Committee had also contributed to Earmarked Reserves £0.104m in 2023/2024 for asset replacement programmes (£0.169m in 2022/2023). This was a reduction of £0.065m from 2022/2023 to 2023/2024. Excluding the use of earmarked reserves, there was an increase of £0.143m on the base budgets for the Committee, with the Officer highlighted that further details of which were contained within the report at section 2. The proposed budgets within the report contributed towards an overall balanced position for 2023/2024, with a small surplus being returned to the General Fund.

The Business Support Team Leader explained that salary budgets for 2022/2023 were set based on an estimated 2% pay award, however, the final pay award was based on a monetary value against each scale point for NJC Local Government staff, which equated to an average increase of 6%. The salary costs included in the report were based on an estimated 2% increase each year from 2023/2024. Ongoing pay award negotiations indicated there was a risk that the 2023/2024 pay award might be higher than the 2% applied. To mitigate this risk, a contingency budget had been set aside. The proposed Council budget for 2023/2024 also included a 2% Vacancy Factor of £0.226m, which had been applied to salary budgets for posts which were on the organisational establishment (basic pay, superannuation and national insurance).

Members thanked the Business Support Team Leader for her succinct summary. With regard to the anticipated salary costs, it was enquired as to how the potential percentage increase had been reached, with Members highlighting concerns that a pay award may be significantly higher than that anticipated. It was explained that a benchmarking exercise had been undertaken across Lincolnshire, as well as other national conversations, and it was anticipated that the pay award for 2022/23 had been a larger percentage increase than what would be agreed for 2023/24. Members were assured that, should there be any further details received in advance of the Full Council budget meeting, this would be reflected in the report to Council.

In response to a question regarding the financial details of the leisure contract, it was explained that the income line was recorded as £207k, with the net impact being £161k. It was highlighted that the figures were the contractually agreed numbers, to which there had been no amendments,  ...  view the full minutes text for item 54