Issue - meetings

To receive a report from the Chief Finance Officer providing detail of the Final Budget 2022/23 and Medium-Term Financial Strategy (2023/24 to 2026/27) including the Capital Programme.

Executive Councillor: J A Gray.

The Cabinet has recommended to Council the approval of the:

§  overall Final Budget 2022/23 and Medium Term Financial Strategy 2023/24 to 2026/27 (as outlined in Appendix 1 of the report now submitted, which includes the Revenue Budget at Section 2 and the Capital Programme at Section 3); and

§  “Plan on a Page” (as outlined in Appendix 2 of the report now submitted).

By means of a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) the Cabinet were provided with details of the Final Budget 2022/23 and the Medium Term Financial Strategy 2023/24 to 2026/27 which included the Capital Programme.

In conjunction with the Chief Finance Officer and the Executive Councillor for Strategic Finance, a presentation was delivered by the Managing Director summarising the budget proposals for 2022/23 and the Medium Term Financial Strategy. In doing so, it was reported that the budget setting process began facing a significant deficit of £3.9m but that owing to a number of factors such as the recasting of income figures and the more favourable December settlement together with the identification of further efficiencies and routine underspends,  a balanced budget was now being presented for consideration. The Managing Director then went on to explain how the budget had evolved between July 2021 to February 2022 and outlined the assumptions which had been made in relation to Council Tax, capital receipts, the general reserve, annual pay increases and inflation, the New Homes Bonus and the national living wage.

The Chief Finance Officer then went on to explain the challenges which lied ahead with regards to the Medium Term Financial Strategy up to 2026/27. The Cabinet noted that the proposed budget comprised three elements, namely the cost of services, funding from grants and tax and income from traded services. Having been acquainted with the options being explored to deliver a balanced budget, the Executive Councillor for Strategic Finance concluded the presentation by informing the Cabinet that a surplus budget had been achieved without introducing any service cuts based on realistic and tested forecasts.

Having expressed their appreciation to the Chief Finance Officer, Service Managers and staff for their efforts on producing a comprehensive budget and in noting the views of the Overview and Scrutiny Panel (Performance and Growth), it was

RESOLVED

that Council be recommended to approve:

a)  the overall Final Budget 2022/23 and Medium Term Financial Strategy 2023/24 to 2026/27 (as outlined in Appendix 1 of the report now submitted, which includes the Revenue Budget at Section 2 and the Capital Programme at Section 3); and

b)  the “Plan on a Page” (as outlined in Appendix 2 of the report now submitted).

The Panel is invited to comment upon the Final 2022/23 Budget and Medium-Term Financial Strategy 2023/24 to 2026/27. Report to follow.

By means of a report by the Chief Finance Officer (a copy of which is appended in the Minute Book), the Final 2022/23 Revenue Budget and Medium-Term Financial Strategy (2023/24 to 2026/27); including the Capital Programme was presented to the Panel.

Following a question from Councillor Chapman, it was confirmed to the Panel that the New Homes Bonus was as a result of an annual report being submitted rather than a trigger point to achieve.

Councillor Chapman additionally commented that detail in relation to projects would be helpful in enabling the Panel to make informed observations and discussions. Historically commercial sensitivity had been cited as a reason for less detailed information than desired. This point was noted.

The report was praised by Councillor Roberts, who felt that the emphasis was just right. He also observed that with a strong local economy and a plethora of new business creation within the district, would there be any scope to be more optimistic in the figures. The Panel heard that whilst motivation could be drawn from the inspirational local businesses and their creative ways of working, the budget had been set with realistic aims in mind.

Councillor Roberts additionally queried the consistency of the amends made to the pre application fees in Annex A. The finance team confirmed that this point would be investigated and reported back to the Panel at a later date.

The proposed increase in Council Tax was queried by Councillor Wakeford, who also questioned the rationale for not having done so in the previous financial year and further, how this had impacted upon the current finances. The Panel heard that the previous years Council Tax freeze was the right thing to do for the residents of Huntingdonshire and the importance of striking a balance between spend and funds raised was emphasised. Councillor Wakeford was satisfied that this increase had been included into the budget across the medium term period, however he questioned the stability for the remaining years of the medium term and particularly what position could be expected in the next financial year. The Panel were reassured that the facts had been presented to allow for informed debate and that the budget was as conservative and realistic as possible to allow for strong progress in the coming municipal year.

Councillor Dew observed that the New Homes Bonus had been utilised to good effect over past years, and that having expressed initial doubts over the Commercial Investment Strategy (CIS), this had been well implemented to the benefit of the Council. He queried whether there had been any indication on the future travel of funding and the Panel were informed that advice had been taken from Pixar to allow for the most accurate estimate in this matter.

In response to questions from Councillor Shellens and amiable debate with the Executive Councillor, it was confirmed that the underspend had had a positive impact on the reserves. The Panel also heard that since 2014, the New Homes Bonus had been used in  ...  view the full minutes text for item 53