Agenda item

The Business Support Team Leader presented a report setting out the Committee’s base budget position for 2023/2024 and estimates for 2024/2025 to 2027/2028, incorporating the Medium Term Financial Planning Principles, those being, to focus on achieving outcomes; to drive a robust and sustainable financial position; to support growth and service delivery, utilising the Council’s resources; and to ensure financial decision making was based on robust risk assessed business cases that clearly matched the Council’s ambitions.

The report summarised the process used for the preparation of the budget which had included meetings with Budget Managers; a robust fees and charges review; regular challenge of service budgets and pressures; regular meetings with Committee Chairs and Vice-Chairs; consideration of the implications of the draft Capital Programme 2023/2024 to 2027/2028; consultation with Parish/Town Councils, residents and business ratepayers; a review of earmarked reserves and the strategies of the Council.

In the current climate, the emphasis was on keeping pressures to a minimum. The net movement from the 2022/23 base budget for this Committee was an increase of £1.423m, excluding the use of earmarked reserves. The significant movements were summarised as follows.

Pressures on service expenditure budgets included inflation of £329,000. Approved changes to the establishment had resulted in an increase in budget of £635,000 for this Committee. However, within this movement there had been a reallocation of Director and Assistant Director salary budgets of £338,000 into the Corporate Policy and Resources Committee.

These budgets had previously been allocated across services within both this Committee and the Prosperous Communities Committee. However, from 2023/2024 they would be held in one place within the Corporate Policy and Resources Committee to simplify monitoring during the year. Actual costs would be allocated across the services within each Director/Assistant Director’s responsibility at the year end to show the total cost of providing that service.

There would be a corresponding reduction in the Prosperous Communities Committee’s service budgets, but this change would not impact on the overall budget position across both Committees.

The salary budgets included the incremental impact of the average 6% pay award for 22/23, and an estimated 2% increase for 23/24. Based on recent information regarding pay award negotiations, there was a risk that the 2% increase might not be sufficient for 2023/24, and a contingency budget of £200,000 had been set aside to allow for an increase of up to 4%.

The external audit contract had increased by £69,000, as advised by the Public Sector Audit Appointments following their procurement exercise for audit services from 2023/24.

The cost of the insurance contracts had increased by £24,000 following a new contract tender exercise, effective for 3 years from 31^st May 2022, with an option to extend for a further 2 years.

The Net Housing Benefits Subsidy had reduced by £68,000 and there was a reduction in Housing Benefits administration grant of £11,000.

There was an income gain in investment property rental income of £88,000 to reflect contractual rent increases across the current portfolio.

There was an ongoing saving of £23,000 on the grounds maintenance contract for this Committee (£78,000 across both committees).

Revenue contingency budgets had been increased for 2023/24. The business planning budget by £114,000, increasing the total budget to £200,000; and the commercial contingency budget had been increased by £27,000 up to £200,000. This budget mitigated several commercial risks, including investment properties and demand led service generated income.

Members commented that the layout/format of the report was an improvement over previous reports and aided better understanding of the information. Members were also pleased to note the increase in income from the commercial property portfolio. Members received a brief commentary on the reasons why the external audit fees had increased.

Having been proposed and seconded, the Chairman took the vote and it was

RESOLVED that

a)    the Corporate Policy and Resources Committee budget for 2023/2024 be accepted and Council RECOMMENDED to approve its inclusion within the overall Council budget for 2023/2024.

b)    the Prosperous Communities Committee budget for 2023/2024 be accepted and Council RECOMMENDED to approve its inclusion within the overall Council budget for 2023/2024.

c)    any minor changes that might be necessary be delegated to the Chief Finance Officer after consultation with the Chairman of this Committee.

d)    Council be RECOMMENDED to include the 2023/2024 estimates for both this Committee and the Prosperous Communities Committee in the Medium Term Financial Plan 2023/2024 to 2027/2028 (as might be amended by any decisions taken at this meeting).