Agenda item

Stephen Fitzgerald, Interim Head of Corporate Resources introduced the report to set out the Corporate Plan and budget for 23/24. He highlighted that it was uncertain if the two-year settlement proposed by Michael Gove MP would go ahead as Simon Clarke MP was now the Secretary of State for Levelling Up Housing and Communities.  He confirmed a favourable position with a small budget gap for 2023/24 which may change due to economic factors and when Government policy is known; this gap will gradually increase in future years.  The forecast of the financial position of the Council is better than some other local authorities.  He noted the recommendation to increase Council Tax by the maximum permitted without a referendum and proposed a review of the current reserves to see if they are still relevant or if they could be aggregated.

The Leader thanked the Interim Head of Corporate Resources for his report.

The Cabinet Member for Leisure and Parking supported the increase in Council Tax which was less than the rate of inflation and the usage of the Leisure Centres had  increased to 77% of the pre pandemic level.

The Cabinet Member for Community noted that the Council must keep budgets under regular review. He also supported the increase in Council Tax and noted that the Council must ensure services are delivered as efficiently as possible. He also supported a review of the reserves and requested details on the impact of the £5 increase in Council Tax on the budgeting process.  The Interim Head of Corporate Resources advised he will provide a Council Tax reckoner to show the effect of each additional £1 up to £5, it will give an indication of what the extra Council Tax will buy.  He stated that the Council’s element of the overall Council Tax is small when compared to the total precepts of the other authorities.

The Leader highlighted paragraph 39 of the report which stated that for every £1 Council Tax uncollected the Council loses £64,116 a year. 

The Deputy Leader  noted the pressures on the budget, an increase was necessary to  ensure the Council continues to provide the same level of services and the forecast budget gap was not an uncommon trend; it has been seen in the past. He expressed concern for the level of confidence of this year’s budget. The Interim Head of Corporate Resources advised the leisure contract was under regular review by the Management Team, if required a further report will be brought to Cabinet. The best projections are made and if required the plan will be adjusted before setting the budget in February.

The Cabinet Member for Economic Growth and Net Zero highlighted that along with inflationary pressure increases the increase would impact the most vulnerable residents but noted the Council does much to support the most vulnerable, as much as possible.

The Cabinet Member for Housing and Customer Service advised that additional information on the Council Tax increase and impact on the budget would be useful. The Council will have to make future difficult choices, must balance the budget, and have responsible governance.

The Cabinet Member for Community stated the £5 increase will not impact some residents but to others it will be much greater who may need continued support.

The Leader reiterated that the Council Tax Support Scheme will continue to support residents who are vulnerable or on lower incomes. The financial outlook is challenging and will change during the year; the Council must continue to be prudent with public money and deliver and improve services in the community. The Council has a good track record in challenging times, and it would be responsible approve the recommendations within the report.

The Leader noted that no Member wished to speak further and moved to vote on the recommendations which were agreed unanimously.

RESOLVED

Cabinet resolved to:

(i)           Endorse the guidelines set out within this report and use these principles in preparing the 2023/24 Corporate Plan andBudget

(ii)           Note the need to increase Council tax levels by the maximum permissible level, without needing areferendum

(iii)         Instruct officers to undertake a detailed review of reserves and revenuebalances