Agenda item

The Executive Councillor for Strategic Finance, Councillor J A Gray to present for approval –

 

v  The 2022/23 Budget and the Medium Term Financial Strategy (MTFS) for 2023/24 to 2026/27

v  The Fees and Charges Schedule for 2022/23

v  The Treasury Management Strategy, the Capital Strategy and the Investment Strategy including the annual prudential indicators for 2022/23;

v  The Annual Minimum Revenue Provision (MRP) Statement 2022/23;

v  The formal resolution to determine the Council Tax for 2022/23.

 

In accordance with Section 30 (2) of the Local Government Act 1992, the Council will be required to approve resolutions as to the levels of Council Tax in 2021/22.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Council will be asked to resolve that a recorded vote be taken on the conclusion of the debate on this item.

 

(The reports were considered by the Cabinet at their meeting on 10th February 2022 and it was agreed that they should be recommended to Council for approval).

 

(Leaders of Opposition Groups will have a right of reply).

 

(Notes: 30 Minutes Presentation

  30 Minutes for Questions)

In conjunction with a report by the Chief Financial Officer and a PowerPoint presentation (copies of which are appended in the Minute Book), Councillor J A Gray, Executive Councillor for Strategic Finance presented to Members the 2022/23 Revenue Budget, the Medium Term Financial Strategy (MTFS) for the period 2023/24 to 2026/27, the Fees and Charges schedule for 2022/23, the Treasury Management Strategy, the Capital Strategy, the Investment Strategy, the Annual Minimum Revenue Provision (MRP) Statement for 2022/23 and other associated matters for the Council’s consideration and approval.

 

In accordance with Section 30 (2) of the Local Government Finance Act 1992, the Council also considered proposals for levels of Council Tax in 2022/23 for various parts of Huntingdonshire District.

 

By way of introduction and with the assistance of a power-point presentation (a copy of which is appended in the Minute Book), Councillor Gray proceeded to set out the guiding principles which had been used to put together the Budget for 2022/23. He drew attention to the challenging and complicated budget setting process on this occasion and extended his gratitude to the Managing Director and her staff in support of this process, as well as his Cabinet colleagues. He also referred to the impact of COVID and the ongoing macro-economic conditions that had contributed to the creation of a financial environment which was hard to predict.

 

Members were advised that the Budget had been built to protect frontline services and invest in areas that were important to residents and their priorities. In noting that the Council had benefited from the one-year settlement from government for 2022/23, this presented continued uncertainty and difficulty in forecasting the MTFS.

 

Councillor Gray highlighted the Council Tax requirement for 2022/23 and the Administration’s intention to keep any Council Tax rises low but affordable which had resulted in an average increase of 1.8% per annum over the past 4 years. It was proposed that in 2022/23 Band D should be set at £150.86. He further explained that the Section 151 Officer had confirmed the robustness of the Budget and that the proposed 2022/23 Budget should not give Members any significant concerns with regards to the Council’s financial position.

 

Members’ attention was drawn to the statement of reserves, with £2.175M being maintained in the General Fund, the General Reserve that would be used up over the course of 2022/23 and the Commercial Investment Reserve which would be utilised to balance the Budget. In referring to the plan for the MTFS, Councillor Gray explained that he had confidence in the levers at the Council’s disposal and their ability to influence the cost of services, funding from grants and tax and income from traded services. Members also noted the assumptions that had been made to meet the challenges which included, keeping the minimum General Fund reserve, 2% annual pay rise, continued growth of the National Living Wage and the requirement for the Council to remain dynamic and innovative.

 

Councillor Gray explained that officers would be held to account over their service budgets and income, highlighted the detailed Capital Programme over the MTFS, the Treasury Management activity, the proposals for the levels of Council Tax to protect frontline services, applicable fees and charges for 2022/23 and the robustness of the 2022/23 Budget and MTFS.

 

In concluding, Councillor Gray referred to the achievement of delivering yet another surplus Budget without service reductions and which was based upon realistic forecasts with funding committed to resident’s values and investing in future priorities. These included the ongoing commitment to town centre developments, taking the Environment Strategy forward, developing the leisure centres and the ongoing economic development recovery post-pandemic. He explained that the MTFS was the priority and continued service delivery for the residents of the District.

 

Councillor Gray moved the recommendations which were duly seconded by the Executive Leader Councillor R Fuller who reserved his right to speak.

 

In response and on behalf of the HDC Independent Group, the Leader of the Principal Opposition Group, Councillor T D Sanderson thanked Councillor Gray for his presentation, together with the efforts of Executive Councillors and the Officers involved in this process. In concurring with the difficulty of the budget setting process and the macro-economic situation, he was pleased that the Council was still committed to helping its communities with money for Disabled Facilities Grants, Active Lifestyles, tackling homelessness and partnership working.

 

Councillor Sanderson then went on to question whether the Revenue Support Grant payment would be made over the course of the MTFS, whether One Leisure would be achieving the predicted income surplus, with a request for a breakdown by leisure centre and the rationale for the Council tax increase as well as the remaining COVID budget available.

 

On behalf of the Liberal Democrat Group, Councillor S Conboy took the opportunity to respond to the Budget and to thank officers and Councillor Gray for the work undertaken, as well as the clear presentation to Members. In doing so, she expressed some concern regarding the Budget and MTFS, specifically relating to the proposed use of reserves. She also suggested that the Administration’s failure to increase Council Tax over the course of the previous years, in accordance with their Manifesto commitments had led to the current scenario. It was noted that the pandemic was not something anyone could have planned for and the impact of COVID on income and expenditure would continue to have its effect. In referring to the proposal to increase Council Tax coming at the worst possible time for the public, with the rising costs in food and heating bills not in line with wage increases, Councillor Mrs Conboy explained that this was leading to difficult choices concerning eating or heating.

 

On behalf of the Labour Group, Councillor S Wakeford thanked Councillor Gray for his hard work and congratulated the Council and staff in handling the extreme challenges that they had faced over the past two years. Looking ahead, it was suggested that extreme resilience was required in managing the Budget that would be in deficit going forward and the spending of reserves to break even. Councillor Wakeford referred to the breaking of the Manifesto pledge on the increase in Council Tax, however he recognised that the impact of COVID 19 on the Council’s Budget could not have been foreseen. He also suggested that had the Council Tax base been increased year on year, there would have been less requirement for the drilling down on reserves in the current proposals.

 

In line with the budget decision in 2021/22, Councillor Wakeford referred to the challenging times and the difficulties in proposing an alternative Budget again this year. Whilst he agreed with the proposal to increase the Council tax for 2022/23, he suggested that this had identified a number of questions that would need to be asked going forward.

 

In commending the preparation of the Council’s budget, Councillor R J West referred to the achievement of the administration in setting a balanced Budget for 2022/23 which had been confirmed by the Council’s Responsible Financial Officer as robust. He further drew attention to opposition resistance to the Commercial Investment Strategy that had been a success and credited the Executive Leader and Cabinet Members in creating a wealth for the Council. He commended the performance of the Executive Leader, as well as the expertise of Councillor Gray and the Managing Director and Senior Leadership Team.

 

Councillor A Roberts highlighted the successes of the administration in keeping services running, reserves at healthy levels and levels of Council Tax low. This had been reflected in resident’s feedback in the protection of key services, such as green bin collections, that had been suspended by many authorities during the pandemic, the programme of town centre enhancements, parks and open spaces initiatives, whilst remaining one of the lowest charging authorities of Council Tax in the country.

 

In commending the Budget, Councillor D B Dew referred to the successes of the Administration in the budget setting process, including the avoidance of moving the leisure centres into trust status and the benefits achieved from the Council’s Commercial Investment Strategy. He expressed his appreciation to all the Officers involved.

 

Councillor B M Pitt referred to his attendance at his first Budget setting meeting for the Council and commended the presentation of the figures. He drew comparisons to budget allocations proposed at neighbouring South Cambridgeshire District Council on climate change and queried whether the Commercial Investment fund could be used for the greater good of future environmental initiatives.

 

In complimenting officers on the work undertaken on the 2022/23 Budget, Councillor M F Shellens suggested that the Council Tax increase of 5% was at the limit of what was permitted by government. Although he accepted the difficulties that rising inflation, fuel costs and COVID related costs had incurred. He went on to express concern regarding the impact of car parking income.

 

With regard to the comments made by Members, the Executive Leader, Councillor R Fuller, expressed his disappointment at some of the comments of the opposition particularly as an alternative budget had not been forthcoming and there had been little clarity on what the opposition groups would do differently. In referring to the comparison with South Cambridgeshire, Councillor Fuller reminded Members that they had not had their accounts signed off for the past four years and had increased their Council Tax year on year. He further disputed the suggestion that the Administration were breaking their Manifesto commitment on a Council Tax increase as the proposal was for next year’s Budget which was outside of the Manifesto pledge. Councillor Fuller also drew attention to the sound financial position of the Council and in doing so explained that the reserves that had been presented did not represent the full picture of those which were available, with a further £34M and £75M in commercial assets. He reiterated that the proposed Budget was intended to protect all the Council’s services, as well as delivering better service provision. It was also predicted that there would be over a £1M surplus at the end of this financial year. In concluding his remarks, the Executive Leader expressed his gratitude to the Managing Director, Officers and Councillor Gray.

 

In his concluding the discussion, Councillor Gray thanked those Members who had contributed to the debate and welcomed their continued engagement in the use of the Budget going forward. Councillor Gray also took the opportunity to respond to a number of the comments which had been made by individual members. In doing so, Members were advised that he suspected that the position at South Cambridgeshire regarding investments related to capital borrowing and also corrected the suggestion which had been made that the Council Tax increase was in fact 3.4% as opposed to 5%. Whilst acknowledging that car parking would remain an issue for the year ahead, Councillor Gray expressed his disappointment with some of the comments made on behalf of the Liberal Democrat Group given that the Council had successfully delivered two surplus budgets with outputs that had been exceeded. Finally, he thanked Members for their contributions, despite disagreement in some cases with regard to the direction and reiterated that he believed in the vision for the future of the Council that delivered what was best for its residents. 

 

It having been previously moved and seconded, upon being put to the vote it was

 

RESOLVED

 

a)  that the proposed overall Budget 2022/23 and Medium Term Financial Strategy (MTFS) 2023/24 to 2026/27 (Appendix 1) to include the Revenue Budgets at Section 2, the Capital Programme at Section 3 and the 2022/23 Fees and Charges at Section 7, Annex A be approved;

 

b)  that an increase of 3.43% Council Tax for 2022/23 be approved, i.e. the Band D Charge will increase to £150.86;

 

c)  that the Council note the Council Tax Base for the whole Council area and individual Towns and Parishes (para 6.2) as approved by the Chairman of Corporate Governance Committee and Section 151 Officer on the  December 2021 (and subsequently publication as a key decision).

The tax base (T) which is the amount anticipated from a District Council Tax of £1 is £64,501;

 

d)  that the following amounts calculated by the Council for 2022/23 in accordance with the requirements of the Local Government Finance Act 1992 as amended by the Localism Act 2011 (the Act), the Local Government Finance Act 2012 and associated regulations :-

 

i.  the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) (a) to (f) of the Act Gross revenue expenditure including benefits, Town/Parish Precepts -  £71,838, 629

 

ii.  the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) (a) to (d) of the Act

Revenue income including reimbursement of benefits, specific and general grants, use of reserves and any transfers from the collection fund -  £54,564,732

 

iii.  the amount by which the aggregate at (i) above exceeds the aggregate at (ii) above in accordance with Section 31A (4) of the Act

This is the “Council Tax Requirement” including Parish / Town Precepts (item i minus item ii). It is the cash sum to be funded from District, Town and Parish Council Taxes - £17,273,897

 

iv.  the Council Tax requirement for 2022/23 divided by the tax base (T) in accordance with Section 31B (1) of the Act

District plus average Town/Parish precepts (item iii divided by District taxbase) - £267.81

 

v.  the aggregate of all “Special items” referred to in Section 34 (1) of the Act.

The total value of Parish/Town precepts included in i and iii above - £7,542,822

 

vi.  the Basic Amount of Council Tax for 2022/23 being item iv less item v divided by the tax base (T) in accordance with Section 34(2) of the Act.

The District Council’s Band D Tax for 2022/23 - £150.86.

 

vii.  the basic amounts of Council Tax for 2022/23 for those parts of the District to which one or more special items (Parish/Town precepts) relate in accordance with Section 34 (3) of the Act are shown  by adding the Huntingdonshire District Council amount to the appropriate Parish Council amount in column “band D” set out in Table 1 attached.

 

viii.the amounts to be taken into account for 2022/23 in respect of categories of dwellings listed in particular valuation bands in accordance with Section 36 (1) of the Act are shown by adding the Huntingdonshire District Council amount to the Parish Council amount for each of the valuation bands in the columns “bands A to H” set out in Table 1 attached.

 

e)  That the amounts of the precept issued to the Council by Cambridgeshire County Council, Cambridgeshire Police Authority, Cambridgeshire and Peterborough Fire Authority and for each Parish Council for each of the categories of dwellings listed in different valuation bands in accordance with Section 40 of the Act shown in para 6.3 attached be noted.

 

f)  That having regard to the calculations above, the Council, in accordance with Section 30 (2) of the Act, hereby sets the figures shown in para 6.4 as the amounts of Council Tax for 2022/23 for each of the categories of dwelling shown. This is the total Council Tax to be collected, incorporating the requirements of all of the relevant bodies, for each town or parish area.

 

g)  The Council notes that, in accordance with Section 52ZB of the Local Government Finance Act 1992, the basic amount of Council Tax for 2022/23 is not excessive. The basic amount at b(vi) above is not excessive as defined by the Government.

 

Tax Base 2022/23

 

Abbots Ripton    141

Abbotsley    262

Alconbury    561

Alconbury Weston    297

Alwalton    123

Barham & Woolley    30

Bluntisham    771

Brampton  2477

Brington & Molesworth    188

Broughton    99

Buckden (incorporating Diddington)  1277

Buckworth    53

Bury    715

Bythorn & Keyston    157

Catworth    163

Chesterton    65

Colne    379

Conington    78

Covington    47

Denton & Caldecote    30

Earith    607

Easton    82

Ellington    237

Elton    295

Farcet    540

Fenstanton  1331

Folksworth & Washingley    354

Glatton    136

Godmanchester  2951

Grafham    235

Great & Little Gidding    125

Great Gransden    494

Great Paxton    373

Great Staughton    333

Haddon    23

Hail Weston    245

Hamerton & Steeple Gidding    54

Hemingford Abbots    334

Hemingford Grey  1298

Hilton    455

Holme   250

Holywell-cum-Needingworth  1024

Houghton & Wyton    799

Huntingdon  7653

Kimbolton & Stonely    601

Kings Ripton    84

Leighton Bromswold    78

Little Paxton  1562

Morborne    12

Offord Cluny & Offord D’Arcy    542

Old Weston    104

Oldhurst    98

Perry    264

Pidley-cum-Fenton    191

Ramsey  3095

Sawtry  1966

Sibson-cum-Stibbington    234

Somersham  1402

Southoe & Midloe    156

Spaldwick    255

St Ives  6034

St Neots   11208

Stilton    772

Stow Longa    73

The Stukeleys  1069

Tilbrook    128

Toseland    38

Upton & Coppingford    91

Upwood & The Raveleys    445

Warboys  1596

Waresley-cum-Tetworth    146

Water Newton    40

Winwick    53

Wistow    230

Woodhurst    155

Woodwalton    83

Wyton-on-the-Hill    441

Yaxley  2961

Yelling    153

Total  64,501

 

h)  that the future savings targets of £0.4m of Net Expenditure by 2025/26 be approved (Appendix 2); and

 

i)  that the 2021/22 Treasury Management, Capital and Investment Strategies, MRP Statement and Flexible Use of Capital Receipts Strategy be approved (Appendix 3).

 

In accordance with the Local Authorities (Standing Order) (England) (Amendment) Regulations 2014 the following Members voted for, against or abstained from the Motion -

 

For the Motion – Alban, Banks, Beuttell, Bull, Butler, Bywater, Chapman, Clarke, Cooper-Marsh, Corney, Dew, Dickinson, D’Souza, Fuller, Gardener, Gaskin, Gray, Gulson, Haines, M Kadeware, P Kadeware,  Keane, McGuire, Mead, Neish, Palmer, Prentice, Roberts, Sanderson, C Smith, Terry, Tuplin, Tysoe, Wakeford and West.

 

Against the Motion – Grice.

 

Abstentions – Conboy, Humphrey, Pitt, Shellens and Wilson.