Agenda item

The Executive Councillor for Finance and Resources, Councillor B Mickelburgh to present for approval –

 

v  The 2023/24 Budget and Medium-Term Financial Strategy (MTFS) for the period 2024/25 to 2027/28

v  The Fees and Charges Schedule for 2023/24

v  The Treasury Management Strategy, the Capital Strategy and the Investment Strategy including the annual prudential indicators for 2023/24

v  The Annual Minimum Revenue Provision (MRP) Statement 2023/24

v  The formal resolution to determine the Council tax for 2023/24.

 

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 2023/24.

 

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

 

(The reports were considered by the Cabinet at their meeting on 7th February 2023 and it was agreed that they should be recommended to Council for approval).

 

(The Leader of the Opposition will have a right of reply).

 

  15 Minutes Presentation

  45 Minutes Debate & Questions

In conjunction with a report by the Director of Finance and Resources and a PowerPoint presentation (copies of which are appended in the Minute Book), Councillor B Mickelburgh, Executive Councillor for Finance and Resources presented to Members the 2023/24 Revenue Budget, the Medium Term Financial Strategy (MTFS) for the period 2024/25 to 2027/28, the Fees and Charges schedule for 2023/24, the Treasury Management Strategy, the Capital Strategy, the Investment Strategy, the Annual Minimum Revenue Provision (MRP) Statement for 2023/24 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 2023/24 for various parts of Huntingdonshire District.

 

By way of introduction, Councillor Mickelburgh proceeded to set out the guiding principles which had been used to put together the Budget for 2023/24, highlighting the current economic situation, referring to comments from the Overview and Scrutiny Panel in relation to fees and charges that would be reviewed through 2023/24 and explaining that the proposed Council Tax increase of 3.31% was the lowest since 2014. He further appraised Members with the difference between the budget and MTFS, explaining that the latter proved the Council was financially viable over the five-year period. Members noted that the budget proposed for 2023/24 was a balanced budget, without the requirement for use of reserves or cuts to front line services. This was largely attributable to the recruitment of an excellent Section 151 Officer and receipt of the Revenue Support Grant being higher than expected, further New Homes Bonus payments and retention of more money than expected through National Non-Domestic Rates. Furthermore, the higher inflation had led to higher interest rates which on average would generate an additional £950k.

 

Members’ attention was drawn to the impact on the MTFS, specifically the impact of inflation resulting in higher prices and ensuring sustainability in the budget with sufficient income without the reliance on Government grants. In the year ahead, Councillor Mickelburgh explained that there would be a Commercial Investment review and opportunities for service transformation projects, but also the requirement to react to Government changes such as the requirement to make weekly food waste collections that would have a direct impact on service delivery.

 

Councillor Mickelburgh moved the recommendations which were duly seconded by the Executive Leader Councillor S J Conboy who reserved his right to speak. In so doing, reminded Members that the budget and MTFS, through the previously agreed budget principles, proposed to continue to deliver front line services to residents, businesses and communities. With demand for services increasing, the pressures on the budget remained and welcomed the proposals for service transformation and using technology to delivery services more efficiently. She further appraised Members with the proposal to work more in partnership with key agencies to help those in crisis earlier and quicker. Attention was further drawn to the ambitious agenda with delivering the Place Strategy, Local Plan refresh and Climate Strategy but was confident that the proposed budget sought to underpin the Council’s strategic objectives and priorities, whilst still protecting front line services.

 

In response and on behalf of the Conservative Group, the Leader of the Principal Opposition Group, Councillor J A Gray thanked Councillor Mickelburgh for his presentation and explanation of the rationale. He echoed the sentiments of Councillor Mickelburgh in supporting the comments on the excellent performance of the Section 151 Officer, Karen Sutton, as well as credit to her Team supporting her. He further referred to the considerable continuity of the budget as a complement in its approach to reserves, Commercial Investment need for review and welcomed contributed to this throughout the process. Councillor Gray outlined their support for the increase in Council Tax and acknowledged that the external funding from the Government had benefitted Huntingdonshire and also enterprise with a growing District. In referring to the goal of self-sufficiency, rather than waiting for the announcement from Government, Councillor Gray alluded to risks with the position changing in the future with a potential change in Government at the next election and the rise in net spending from £17m for many years to £24.1m. He questioned how the net budget would be driven down to a level of £21m, that was highlighted through comments raised at the Overview and Scrutiny Panel, with the budget allowed for salary increases for staff at a reduced rate compared to previous years that could mean a reduced salary increase to staff salaries or a reduction of staff, the latter of which would not seem sustainable with such an ambitious agenda.

 

Members noted their objection to the proposed green bin tax and suggested that there needed to be further debate through the Overview and Scrutiny process and the figure proposed for charging for a second green bin which would result in unintended consequences. Finally, in referring to the proposed new Corporate Plan, Councillor Gray highlighted that such plans would mean activity and new things resulting in expenditure and difficulty for Councillor Mickelburgh in controlling the Place and Green agenda, whilst balancing all the other priorities. He further commended that the sound principles that had been developed through the Conservative administration had not been discarded or discredited and supported the sound budget, whilst reiterated his concerns with the MTFS, specifically the unnecessary green bin tax and had doubts about the deliverability of a reduction of net spending.

 

Councillor A Jennings echoed the sentiments of his Leader in the excellent work of the Section 151 Officer and her Team in putting together a comprehensive pack in line with the budget principles and thanked Officers involved and the Executive Councillor in allowing him to be briefed on the budget before consideration by the Overview and Scrutiny Panel. Much of the content was supported, with almost £5m of extra funding available from Government for this year and the next, the budget principles were easier met with such additional funding. Concern was expressed again for the MTFS and fall in net expenditure and assumptions that could not be supported, including the compost tax that was announced in the media before Members had an opportunity to scrutinise the principle and increase in fees and charges in Operations by year four to £4.5m that was questioned as to where the additional income was to be secured from as it was felt that this could not all be attributable to the green bin tax. Concerns were also expressed in the future salary costs as highlighted by Councillor Gray being insufficient, in particular in Leisure and Health and reliance’s on rent income in year three onwards that could be untested assumptions.

 

Councillor Jennings referred to the inappropriate use of Officer time in presenting an alternative budget at this point in the electoral cycle and as the recommendations included approval of the MTFS and the levying of additional taxes on residents, he reported that it could not be supported.

 

Councillor S Wakeford referred to questions raised with the former Executive Councillor, Councillor Gray, in the previous year questioning why he was not more worried about the deficit in the MTFS and suggested evasiveness of the answer, he too had concerns regarding additional charges for residents and if suggested that if he was in their position this year, they may well have been proposing something similar. In referring concerns raised regarding the lack of oversight of the proposals for the green bin tax through Overview and Scrutiny, Councillor Wakeford explained that the detail would be presented in the normal way through the cycle of meetings. In concluding, he outlined his support for the proposed balanced budget and thanked the Section 151 Officer and Executive Councillor.

 

Councillor T D Sanderson congratulated Councillor Mickelburgh and the Section 151 Officer for the excellent work in delivering the balanced budget. In so doing, attention was drawn to the effect of the cost of living increases, rising inflation and poverty as a result that would explain why the expenditure had increased. He further referred to suggested savings that were presented in the previous budget by Councillor Gray and welcomed further contributions by the Conservatives on this who had worked hard on this at Overview and Scrutiny to ensure that this budget would be delivered and praised all Members for their contributions.

 

Councillor R J West reminded Members of the Section 151 Officer’s conclusion that the Council had taken proactive action to address the budgetary concerns whilst ensuring that the planned continuation of work to find efficiencies that the Council has a sound financial base upon which it can further develop its aim of financial self-sufficiency and hoped that the Administration did not lose that opportunity.

 

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

 

RESOLVED

 

a)  that the proposed overall Budget 2023/24 and Medium-Term Financial Strategy (MTFS) 2024/25 to 2027/28 (Appendix 1) to include the Revenue Budgets at Section 2, the Capital Programme at Section 3 and the 2023/24 Fees and Charges at Section 7, Annex A be approved;

 

b)  that an increase of 3.31% Council Tax for 2023/24 be approved, i.e., the Band D Charge will increase to £155.86;

 

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 Chairman of Corporate Governance Committee and Section 151 Officer on the 6 December 2022 (and subsequent publication as a key decision);

The tax base (T) which is the amount anticipated from a District Council Tax of £1 is £65,795.

 

d)  that the following amounts calculated by the Council for 2023/24 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 -  £83,509,858

 

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 - £64,785,038

 

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 - £18,724,820

 

iv.  the Council Tax requirement for 2023/24 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 tax base) - £284.59

 

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 - £8,469,932

 

vi.  the Basic Amount of Council Tax for 2023/24 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 2023/24 - £155.86

 

vii.  the basic amounts of Council Tax for 2023/24 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 2023/24 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 Office of the Police and Crime Commissioner, 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 2023/24 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 2023/24 is not excessive. The basic amount at b(vi) above is not excessive as defined by the Government.

 

Tax Base 2023/24

 

Abbots Ripton	139
Abbotsley	268
Alconbury	545
Alconbury Weston	296
Alwalton	123
Barham & Woolley	30
Bluntisham	773
Brampton	2528
Brington & Molesworth	189
Broughton	101
Buckden (incorporating Diddington)	1337
Buckworth	53
Bury	782
Bythorn & Keyston	156
Catworth	166
Chesterton	66
Colne	392
Conington	75
Covington	47
Denton & Caldecote	30
Earith	604
Easton	84
Ellington	241
Elton	298
Farcet	536
Fenstanton	1343
Folksworth & Washingley	355
Glatton	133
Godmanchester	3144
Grafham	234
Great & Little Gidding	126
Great Gransden	506
Great Paxton	375
Great Staughton	344
Haddon	22
Hail Weston	244
Hamerton & Steeple Gidding	56
Hemingford Abbots	330
Hemingford Grey	1299
Hilton	451
Holme	257
Holywell-cum-Needingworth	1075
Houghton & Wyton	809
Huntingdon	7732
Kimbolton & Stonely	605
Kings Ripton	84
Leighton Bromswold	81
Little Paxton	1611
Morborne	13
Offord Cluny & Offord D’Arcy	549
Old Weston	107
Oldhurst	104
Perry	263
Pidley-cum-Fenton	197
Ramsey	3161
Sawtry	2046
Sibson-cum-Stibbington	237
Somersham	1410
Southoe & Midloe	158
Spaldwick	257
St Ives	6059
St Neots	11404
Stilton	797
Stow Longa	73
The Stukeleys	1266
Tilbrook	129
Toseland	38
Upton & Coppingford	94
Upwood & The Raveleys	450
Warboys	1608
Waresley-cum-Tetworth	145
Water Newton	39
Winwick	56
Wistow	228
Woodhurst	158
Woodwalton	82
Wyton-on-the-Hill	442
Yaxley	2997
Yelling	153
Total	65,795

 

 

h)  that the 2023/24 Treasury Management, Capital and Investment Strategies, MRP Statement and Flexible Use of Capital Receipts Strategy be approved (Appendix 2).

 

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

 

For the Motion – Banks, Blackwell, Burke, Conboy, Davenport-Ray, Dew, Ferguson, Gleadow, Harvey, Hassall, Howell, Hunt, Jordan, Kadewere M, Kerr, McAdam, B Mickelburgh, D Mickelburgh, Mokbul, Pickering, Pitt, Sanderson, Shaw, Slade, I Taylor, S Taylor, Terry, Tevlin, Wakeford, Wells

 

Against the Motion – Alban, Beuttell, Brereton, Bywater, Cawley, Clarke, Corney, Costello, Criswell, Gardener, Gray, Gulson, Jennings, Keane, Lowe, Neish, Welton, West

 

Abstentions - None