Agenda item

Finance, Qualis Client & Economic Development – (C-041-2021-22) -  final draft Budget report.

1)         The Cabinet considered the final revenue and capital budget proposals for 2022/23 as presented in the report, together with the comments received from the Stronger Council Select Committee and made amendments that they considered necessary; and

2)         The Cabinet recommend to Council:

a.         The budget for 2022/23 and the updated Medium-Term Financial Plan; and

b.         The level of Council Tax increase for 2022/23.

The Finance, Qualis Client and Economic Development Portfolio Holder, Councillor Philip, introduced the report. This report contained the final budget proposals for 2022/23 for consideration by the Cabinet. He noted that we had a balanced budget and had factored in the £5 uplift for a Band D property and were the lowest Council Tax authority in Essex. We were doing this without cutting any essential services. We had also taken this through Scrutiny and had put in details this year at an earlier stage so that people could see more details earlier in the process.

The General Fund draft budget comprises Net Expenditure of £15.631 million and had been funded without recourse to Government Support for Covid-19 (budget of £1.263 million in 2021/22) or any contributions from the General Reserve (budget of £1.350 million in 2021/22). The Local Government Financial Settlement 2022/23 contained additional funding of a one-off nature, which potentially allows a contribution of £337,000 to the General Fund Reserve, which would partially alleviate emerging pressure on the Balance Sheet.

The HRA draft budget for 2022/23 anticipated a deficit of £3.537 million, which was to be partially offset by an estimated surplus of £2.319 million in 2021/22 (projected as at 31st December 2021); it should be noted that the ‘surplus followed by a deficit’ profile is a one-off position as the HRA adjusts to the long-term strategy within the emerging HRA Business Plan.

Councillor Philip went on to thank the officers and his fellow Cabinet members for the changes worked in from the start of the process.

Mr A Small highlighted the government grant situation and the changes they wished to make to the distribution of money to councils in the future; announcements of details of which had now been pushed back again. It was now likely that the government would introduce this for 2023/24. They would probably use this to promote their levelling up agenda and there was a significant risk that the South East may do quite badly out of this as the government redistributes money across the country. The government when distributing their grants in December made it very clear that this was a one off and that local authorities should not rely on this in the future.

The Leader commented that it was amazing that we came up with a balanced budget and thanked the officers for drawing up this budget in such difficult times. We had been promised a three-year settlement but only had a one-year settlement and the coming challenges were what would happen in levelling up and where we would be in the government grant for next year. We also still had to find year on year savings to ensure that we were financially sustainable as a council. We need to do this by efficiencies and change, but that challenge gets bigger all the time. We must always maintain our front line services and would need Qualis to do well for the benefit of our residents. We will also be looking for in-year savings, we can’t just wait for the next budget.

Decision:

1)         The Cabinet considered the final revenue and capital budget proposals for 2022/23 as presented in the report, together with the comments received from the Stronger Council Select Committee and made amendments that they considered necessary; and

2)         The Cabinet recommend to Council:

a.         The budget for 2022/23 and the updated Medium-Term Financial Plan; and

b.         The level of Council Tax increase for 2022/23.

Reasons for Proposed Decision:

To enable Cabinet to recommend a final budget for 2022/23 to the Council on 24th February 2022.

Other Options for Action:

N/A.