Agenda item

Members considered a report which presented the Executive Business Plan and Medium Term Financial Plan for 2023/24 to 2027/28. This included the financial strategy and Medium Term Financial analysis.  These documents were central to the Council’s financial planning and played a key role in the budget setting process to ensure that resources were aligned to the Council’s Corporate Plan priorities through to the setting of the Revenue Budget.

The report set out the revised financial plans within the Financial Analysis for changes in Government Funding, the economic environment, local engagement and the priorities for the Council. The plan reflected the revisions to previous estimates and covered the period 2023/24 to 2027/28. The Medium Term Financial Plan Analysis included the draft budget for 2023/24 for scrutiny and consideration prior to recommending to Council.

It was reported that a balanced budget for 2023/24 was being proposed without the requirement to support it with funds from General Fund balances. The provisional local government finance settlement had been delivered in December which had announced a further year’s New Homes Bonus in 2023/24 which would be put into the growth reserve and also a new Funding Guarantee grant which had not been expected. The reset of Business Rates and a wider review of local government funding were not now expected until 2025/26 which gave the Council breathing space to look at savings which were likely to be required from 2025/26 onwards. The magnitude of these savings was unknown but local government funding was likely to be reduced in the medium to longer term. Since publishing the report, the final local government finance settlement had been announced with only minor changes and these would be reflected in the final report to Council in March.

The referendum limit for Council tax had been increased for district councils for 2023/24 and 2024/25 from up to 2% or £5 whichever was the higher, to up to 3% or £5 whichever was the higher. The MTFP was predicated on a rise of 2.99% for 2023/24 and 2024/25 before reverting back to 1.99% thereafter. For 2023/24 this equated to a rise of £6.80p for a band D property.

The 2023/24 Draft Budget totalled £16.671m and was fully funded and represented a balanced budget. Contributions to Earmarked Reserves totalled £2.367m and use of Earmarked Reserves totalled £1.696m, with reserves projected to be £15.080m at the end of 2023/24. The movement on the General Fund Balance was forecast as a reduction of £0.587m and was anticipated to be £3.513m at the end of 2023/24. Included within the reserves section of the MTFP was a recommendation to set up a new ‘Invest to Save’ reserve which it was envisaged would provide initial investment in projects which would deliver savings in the medium to longer term and, subject to Committee approval, it was intended to transfer £500,000 be into this new reserve from General Fund balances.

The Capital Programme totalled £31.240m over the Medium Term Financial Plan period and was fully funded.

Also included in the MTFP was a risk register and the pay policy and human resources statements.

Whilst the Corporate Plan set out the Council's strategic priorities, the Executive Business Plan outlined how the Council proposed to deliver these priorities, taking into account the national, regional and local policy framework in which the Council operate.

The Executive Business Plan was a rolling three-year programme of key deliverables identified through the Council's annual business planning process. These key deliverables were set out under the three Corporate Plan themes of our people, our place and our Council, as well as an additional stream of deliverables which were aligned to the Council's environment, sustainability and climate change strategy.

Members commented on a number of issues and were advised that Chief Officer/Senior Management salaries were benchmarked. An explanation of the proposed Invest to Save Reserve was given.

Members felt that the recommendations should make it clear exactly what the proposed Council Tax increase was. It was confirmed that this would be included in the report to Full Council, however it was possible to include that information in any decisions made by the Committee. It was subsequently moved and seconded that an additional recommendation be included for consideration, that being:

“Council be recommendedto approve an increase in Council tax for 2023/24 of 2.99%, giving a Band D equivalent Council tax of £234.54, compared to £227.74 last year.”

On taking the vote, it was

RESOLVED that an additional recommendation be considered, as written above.

With Members content with the recommendations as printed, and with the inclusion of the additional one, and having been moved and seconded, the Chairman took the vote and it was

RESOLVED that

a)    Council be RECOMMENDED to approve the Executive Business Plan and Medium Term Financial Plan for 2023/2024.

b)    The review of reserves and the proposed use and contributions to both General Fund Balances and Earmarked Reserves as detailed in section 2.8 of the report be approved.

c)    Council be RECOMMENDED to approve a balanced Revenue Budget for 2023/2024 as set out in Appendix A to the report.

d)    Council be RECOMMENDED to approve the Capital Programme for 2023/2024 as set out in Appendix 4 of the report.

e)    The statement of the Chief Financial Officer on the robustness of the estimates and adequacy of the reserves be accepted.

f)     Council be RECOMMENDED to approve the Pay Policy Statement as set out in Appendix 6 to the report.

g)    Council be RECOMMENDED to create a new Earmarked Reserve for Invest to Save projects.

h)    Any housekeeping or changes required due to the final financial settlement and any approvals referred to elsewhere on the agenda for this meeting in relation to the Executive Business Plan and the Medium Term Financial Plan be delegated to the Director of Corporate Resources (Section 151 Officer), after consultation with the Chairman of this Committee, prior to final consideration by Council on 6 March 2023.

i)     Council be RECOMMENDED to approve an increase in Council tax for 2023/24 of 2.99%, giving a Band D equivalent Council tax of £234.54, compared to £227.74 last year.