Issue - meetings

To receive a report providing the Cabinet with detail of the Final Budget and Medium-Term Financial Strategy prior to its consideration by the Council.

Executive Councillor: B Mickelburgh.

The Cabinet has recommended to Council the approval of the overall Final Budget 2023/24 and Medium Term Financial Strategy 2024/25 to 2027/28 as outlined in Appendix 1 of the report submitted which includes the Revenue Budget at Section 2 and the Capital Programme at Section 3.

With the aid of a report prepared by the Director of Finance and Corporate Resources (a copy of which is appended in the Minute Book) the Cabinet were provided with detail of the Final Budget 2023/24 and Medium Term Financial Strategy (2024/25 to 2027/28) which included details of the Capital Programme.

In introducing the report, the Director of Finance and Corporate Resources reported that the budget of £24.3m for 2023/24 would seek to maintain a breakeven position with net expenditure of £24.1m and a Medium Term Financial Strategy budget requirement of £21.5m by 2027/28. Cabinet Members were acquainted with detail around how the budget for 2023/24 would be achieved which was attributed to the need to not set a baseline for National Non-Domestic Rates, improved income levels from the Government which included the New Homes Bonus and net internal funding expected to be around £6.5m. It was however report that in terms of expenditure, an increase of £9.7m was expected in 2023/24 owing to factors such as inflation, temporary accommodation costs and rising energy costs.

Moving on to the Medium Term Financial Strategy, the Director of Finance and Corporate Resources reported upon the uncertainties which existed and advised that the projections made were based on the best accounting assumptions. Future funding challenges related to an expected reduction in the New Homes Bonus, implications of Fair Funding, re-baselining of business rates reducing National Non Domestic Rates income and the ongoing issues pertaining to the localisation of Business Rates.

The Executive Councillor for Planning provided a detailed account of the comments which had been raised by the Overview and Scrutiny Panel (Performance & Growth) where it was reported that a healthy debate had taken place. Arising from which, a question was raised by the Executive Councillor for Jobs, Economy and Housing querying the comments which had been made by the Panel regarding expected staff salaries and the maintenance of current staffing levels, to which the Executive Councillor for Finance and Resources responded that whilst a 2% assumption had been made in the Medium Term Financial Strategy, this would not constrain the Council and to be mindful that the medium term future was difficult to predict at the present time.

Having commended Officers, Service Managers and staff for their efforts in producing a budget that would breakeven in 2023/24, particularly when comparing Huntingdonshire’s position to that of other authorities, and for their efforts with the Medium Term Financial Strategy and Capital Programme, it was

RESOLVED

that the Council be recommended to approve the overall Final Budget 2023/24 and Medium Term Financial Strategy 2024/25 to 2027/28 (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).

The Final 2023/24 Budget and Medium Term Financial Strategy (2024/25 to 2027/28) including Capital Programme is to be presented to the Panel.

By means of a report by the Director of Finance and Corporate Resources (a copy of which was appended in the Minute Book) the Final 2023/24 Budget and Medium-term Financial Strategy (2024/25 to 2027/28) including Capital Programme was presented to the Panel.

Councillor Harvey expressed praise for the report and thanked those involved in producing the budget for an excellent piece of work, a sentiment which was shared by the Panel.

Following a question from Councillor Harvey, the Panel heard that a planned temporary increase for Planning staff was included in the 2023/24 budget as an investment to help get the service back on track. It was further advised that once the service position was improved it would be in a position to generate some income for the Council through fees and charges.

Councillor Cawley asked for some clarification on this as the Fees and Charges document showed a planned decrease in Planning income, the Panel heard that there were recognised issues with recruitment and retention within Planning which were improving, but the forecasts were intended to not overestimate the potential income.

Following a question from Councillor Wells on the Community and Health line in Table 4b being significantly lower in 2023/24 than currently and also lower than subsequent years, the Panel were advised that the Officer would investigate the detail and report back to the Panel following the meeting.

Councillor Harvey asked for clarification on the damping adjustment in Table 2 and the Panel heard that this was linked to the re-baselining of the NNDR funding, the damping adjustments smooth the impact of this.

After a question from Councillor Pickering, the Panel heard that the agreed Council Principles underpinned and influenced the thinking and method when developing and setting the budget.

Councillor Gray commented that the purpose of the Panel was to scrutinise the report and to give Cabinet comments and thoughts to reflect upon rather than have a debate on the budget. He;

·  reflected on unprecedented increase in government funding from the previous year which was good news for residents, whilst also allowing Council some flexibility on how that money be spent.

·  further expressed caution over the ambition to drive net expenditure down, observing that whilst inflation is predicted to fall it has not yet happened, in particular whether the expected salaries in Table 7 were realistic whilst maintaining the current staffing levels.

·  did not dispute the removal of the Huntingdon redevelopment project from the Capital budget but did enquire how realistic it remained to deliver the anticipated projects within the budgeted staffing costs.

·  challenged that the Fees and Charges in Appendix 2 did not match the rhetoric of keeping up with inflation or in line with neighbouring Councils, it was observed that this could be an area to develop.

Councillor Conboy thanked the Panel for their positive and constructive comments and commented that the opportunity to work with the shadow portfolio holder Councillor Jennings was a positive step forward.

Following the discussion, it was thereupon

RESOLVED

that  ...  view the full minutes text for item 64