Agenda item

Peter Stuart, Head of Corporate Resources introduced the report.  He highlighted that the format of the report was no different as it sets out the task  for next year, 2023/24 and the following years but that there were many factors that will affect the Council’s ability to set a balanced budget.  He indicated that central government would not provide the same level of Covid financial assistance next year.  

There was no evidence but a reset for NNDR and the fair funding review were thought unlikely for 2022/23 and it is expected they will be delayed by one year.   Reduced levels of is still forecast for 2022/23 and 2023/24.  

However green waste is a strong market and a popular service, and a continuing increase in income is expected.  The income streams from car parking, development management and Places Leisure are uncertain.  There will be an imbalance once the level of pay awards are finalised, meaning that revenue and costs diverge in 2023/24 when any reset of NNDR takes place.  NNDR revenue raised from areas of high growth like Mid Sussex will be redistributed to other lower growth areas.

He noted that the New Homes Bonus Scheme may continue for another year along with a legacy payment.  The pension fund contributions for Mid Sussex are uncertain and can be spread over 20 years but Places Leisure may have to spread any pension deficit over a shorter period.  The increase costs of social care and National Insurance rates for employers will affect the council as contractors may pass the increased cost on.

He highlighted appendices 1 and 2 which show the level of support from general reserve required to balance the budget.  Appendix 2 includes figures for damping.  He confirmed work was needed on the medium-term financial plan to prepare for 2023/24 onwards.

The Leader noted the challenges ahead to put the council in a strong financial position whilst still delivering services to the community and confirmed other councils have the same issues.

The Cabinet Member for Community highlighted that Council Tax makes up only 35%  of the Council’s income. The council should continue to deliver their statutory responsibilities but maintain a degree of flexibility to make changes quickly  when necessary.

The Cabinet Member for Economic Growth noted the prudent history of the council and queried whether the council would have to provide a free garden waste collection service.

The Head of Corporate Resources noted the good income of £1.6m annually from garden waste which he hoped would continue unless there were changes to central government policies.

In response to queries from the Deputy Leader and Cabinet Member for Customer Service the Head of Corporate Resources advised the Government can only change NNDR and other grants and contributions, Mid Sussex did not receive Revenue Support Grant.  Mid Sussex were fortunate to have a good level of reserves, and the Government sometimes provide details of settlement figures very late in the year.  Councils that have no reserves can obtain capitalisation directions from the Government and sell assets to support their revenue budget.

As there were no further questions the Leader took the Members to the recommendations which were agreed unanimously.

RESOLVED

That Cabinet:

(i)      endorsed the guidelines set out within this report and use these   principles in preparing the 2022/23 Corporate Plan and Budget;

(ii)     in the light of the severe financial challenges, noted the need to increase Council tax levels by the maximum permissible level, without needing a referendum.