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Agenda item

Budget 2022/23

Purpose

 

 The purpose of this report is to consider the following:

(1) The revenue budget proposals for 2022/23;

(2) The Council’s Capital Programme for 2022/23 to 2030/31;

(3) The level of Council Tax for 2022/23

 

This report also fulfils the requirements of the Local Government Act 2003 relating to the Council’s Treasury Management function and implementation of the Prudential Code Capital Finance System arrangements. Cabinet will recommend the Council’s Medium Term Financial Strategy, Capital Programme, Capital Strategy, Investment Strategy and Treasury Management Strategy to Council for approval.

 

The report also includes the Chief Finance Officer’s report on the robustness of estimates and the adequacy of the Council’s reserves.

 

Recommendation

 

a) Cabinet recommends the following to Council for approval:

 

(i) The updated Medium Term Financial Strategy in Annex A

(ii) General Fund revenue budgets as summarised in Annex B

(iii) The Capital Programme for 2021/22 to 2030/31 set out in Annex E

(iv) Fees and Charges for 2022/23 as set out in Annex D

(v) The Council’s Pay Policy Statement as set out in Annex F

(vi) The Council’s Capital Strategy 2022/23 as set out in Annex G

(vii) The Council’s Investment Strategy 2022/23 as set out in Annex H

(viii) The Council’s Treasury Management Strategy 2022/23 as set out in Annex I

(ix) The level of District Council Tax for 2022/23 for a Band D property of £114.38.

 

b) That the estimate of Business Rates income for 2022/23, as set out in the excerpt from the government return NNDR1, in Annex L, and the Parish Precepts and Tax Levels set out in Annex M be noted.

 

 

Minutes:

Members received a report from the Section 151 Officer which asked them to consider the revenue budget proposals for 2022/23, the Councils Capital Programme for 2022/23 to 2030/31, and the level of Council Tax for 2022/23.

 

The report fulfilled the requirements of the Local Government Act 2003 relating to the Council’s Treasury Management function, and implementation of the Prudential Code Capital Finance System arrangements. Cabinet would recommend the Council’s Medium Term Financial Strategy, Capital Programme, Capital Strategy, Investment Strategy and Treasury Management Strategy to Council for approval. The report also included the Chief Finance Officer’s report on the robustness of estimates and the adequacy of the Council’s reserves.

 

The report advised that the draft base budget had been considered by Cabinet on 19 January and Council on 26 January 2022.  This report updated Members on the proposed changes to any expenditure budgets and funding streams and outlined the feedback received from public consultation.  In addition, the Council’s suite of financial documents for 2022/23 were also included.

 

The report highlighted the main points including a number of late updates and notifications from Central Government.  Whilst the revenue budget remained mainly unchanged, there were increased income expectations, an amendment to funding calculated as part of the NNDR I submission and adjustments to Minimum Revenue Provision (MRP) and interest on borrowing.  The budget changes were detailed on page 14 of the document pack.

 

The report concluded with a summary advising that overall the Council was in a strong position this year but funding cuts were expected to pose challenges from next year onwards. The healthy reserves cushion the Council from the immediate impact of that, while plans were in place to mitigate it by generating further income to reduce the reliance on government funding streams beyond our control. All of this was discussed in detail in the Strategy papers and CFOs report attached at Annex K to the report.

 

Councillor Coul introduced the report and reminded Members that this budget had been discussed at length at Cabinet and Scrutiny.  Councillor Coul reiterated that the Council was in a strong position overall with healthy reserves to help mitigate future funding cuts.  She therefore proposed the recommendations as laid out and this was seconded by Councillor Mead.  In seconding the proposal, the Leader expressed her thanks to all of the officers involved in collating the report which had not been an easy task with a lot of late information and additions from government.

 

Councillor Postan addressed the meeting and reminded Members of the work that the Finance Team had undertaken in processing over £100 million in grants to local communities, whilst also administering the budget process.

 

Councillor MacRae added his support and applauded the work of the Finance Team, who had worked hard to present this budget, under difficult circumstances.

 

In response to a query from Councillor Cooper, the Chief Accountant provided clarification on the Business Rates pool, administered by Cherwell District Council and explained that the budget did not contain details of any potential gain.  She advised that the amount was difficult to predict but could be in the region of £300k to £600k.  Miss Dyer assured the meeting that an estimate would be forthcoming in March with a view to the final results being received towards the end of May.

 

Councillor Graham queried how the figure relating to interest on long term loans had been reached in paragraph 2.6 of the report.  Mrs Griffiths advised that the Medium Term Financial Strategy was a forecast, it had been agreed in the Capital Investment Strategy that the Council would make £10 million investment, with the assumption that £10 million would be borrowed to achieve this.

 

Councillor Coul reminded the meeting that the Capital Investment Strategy had been agreed and would be reviewed in due course but any potential future investments would undergo full scrutiny and could include the provision of solar energy amongst other opportunities.

 

Having read the report and having heard from the Members present, Cabinet

 

Resolved that

 

a)    The following be recommended to Council for approval:

 

(i) The updated Medium Term Financial Strategy in Annex A;

(ii) General Fund revenue budgets as summarised in Annex B;

(iii) The Capital Programme for 2021/22 to 2030/31 set out in Annex E;

(iv) Fees and Charges for 2022/23 as set out in Annex D;

(v) The Council’s Pay Policy Statement as set out in Annex F;

(vi) The Council’s Capital Strategy 2022/23 as set out in Annex G;

(vii) The Council’s Investment Strategy 2022/23 as set out in Annex H;

(viii) The Council’s Treasury Management Strategy 2022/23 as set out in Annex I;

(ix) The level of District Council Tax for 2022/23 for a Band D property of £114.38; and

 

b)    the estimate of Business Rates income for 2022/23, as set out in the excerpt from the government return NNDR1, in Annex L, and the Parish Precepts and Tax Levels set out in Annex M be noted.

 

Supporting documents:

 

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