Agenda item

The Executive Director of Resources presented the 2022/23 Budget and Medium Term Financial Plan (MTFP) 2022/23 to 2024/25. The report detailed the proposals for the budget in the 2022/23 financial year together with the Council’s plans for the full three-year period of the MTFP.  The content of the report had been changed when compared to previous years, to help provide clarity regarding the figures provided and the factors influencing the content of the budget.  The report had been scrutinised by the Budget Scrutiny Working Group, although no recommendations had been made.

The 2022/23 budget was robust and balanced.  However, Members were asked to note that a balanced position had only been achieved by using funding from balances.  This approach could not be applied in subsequent years and balances were expected to fall below minimum levels considered acceptable by the Section 151 Officer from 2023/24 onwards unless action was taken.

The budget was being set in a challenging financial context for local government.  There was also unprecedented uncertainty in terms of future funding arrangements for local Councils.

There were a number of factors that had influenced the content of the budget and MTFP.  This included:

·            Inflation, which was anticipated to remain at a higher level than in recent years.

·            Pay inflation, which was anticipated at 2 per cent per annum for the full three-year period of the MTFP.

·            Budget bids, which placed pressures on the budget.

·            Proposed savings.

·            Additional income opportunities.

·            A release of funding from earmarked reserves.

·            An increase in Council Tax for the Council, at £5 per annum.

·            A contribution from the Government of £100,000 in the Lower Tier Settlement.

RECOMMENDED that Council approve

1)         the overall net general fund revenue budgets of:

2)         the unavoidable costs:

3)         the Revenue Bids:

4)         the Identified Savings:

5)         an increase of the Council Tax per Band D equivalent of £5 for 2022/23;

6)         the transfer from General Fund Balances of £0.282m for 2022/23;

7)         the planned reallocation of £0.238m from Earmarked reserves to General Fund Balances;

8)         the General Fund capital programme of:

9)          the Housing Revenue Account Budget of:

10)       the Housing Revenue Account Capital Programme of:

11)      the 2020/21 Capital Outturn be noted; and

12)      the Chief Financial Officer’s (CFO) Opinion on Estimates and Reserve Levels be noted.