Decision details

Cabinet received a report setting out the draft revenue budget for the financial year 2023/24.  The decision had been taken to prepare a one-year budget due to the extremely high levels of volatility in the economic environment and the uncertainties surrounding future Local Government funding.  The report also detailed a capital programme over 4 years as many schemes span across multiple financial years. The Council currently had borrowing headroom of £100m.  Where schemes were brought forward with a financially viable business case these schemes could be added to the Capital Programmes subject to Cabinet approval.

Local Government funding remained very uncertain in the medium term due to proposed changes to the Local Government funding regime, potential reviews of Business Rates and Council Tax, and the implementation of key Government policies regarding Adult Social Care reform and the ‘Levelling Up’ agenda.  The Autumn Statement had laid out the Government’s funding totals and priorities for the period 2023/24 to 2027/28. Actual allocations to individual authorities had been confirmed through the Provisional Local Government Settlement on 19 December and only provide certainty for 2023/24. These are broadly in line with the draft budget and any implications would be considered in the new year / final budget.

Changes to the revenue budget were largely focussed on changes in costs as a result of the significant increase in inflation, service demand and income (both service and corporate), and the recognition of the ongoing risks relating to global economic conditions and the wider Local Government funding regime.

The draft budget proposed was built on the proposed Council Tax base and assumes a 2.99% increase in basic Council Tax and a 2% increase for the Adult Social Care Precept, giving a total increase of 4.99%. This was the maximum allowable without triggering a local referendum and is still significantly below the rate of inflation at 11.1% at the end of October.

The Council Tax Resolution report would be presented as a separate report as part of the final budget in February 2023 and would contain the final information from the other precepting authorities leading to the total Council Tax for the area, which full Council was required to approve. The Cabinet report did not include special expenses. Discussions were ongoing to agree special expenses budgets for 2023/24, and these would also be presented alongside the final budget.  The level of precept charged in Special Expenses areas formed part of the Council tax referendum threshold calculation, so final Council Tax levels could not be finalised until this matter was agreed.

The Leader suggested an amendment to Appendix 2 (Transport Portfolio Capital Programme section) to include in 2026/27:-

• £4.425m on Plane and Patch
• £2.15m on Footway Structural Repairs.

In total, this provided an additional £6.575m on roads and pavements in 2026/27.  This was agreed by Cabinet Members, as there was a political commitment to continue to improve roads in the County. On a vote being taken it was agreed unanimously and

RECOMMENDED to Full Council :-

(1)               That the outcome of the budget consultation (Appendix 4) be noted.

(2)               That the current risks associated with the draft budget proposals be noted.

(3)               That the draft revenue budget and capital programme for 2023/24 (Appendices 1-3) be approved, subject to an amendment to Appendix 2 ( Transport Portfolio Capital Programme) to include in 2026/27: £4.425m on Plane and Patch and £2.15m on Footway Structural Repairs (page 93 of the agenda) which will provide an additional £6.575m on roads and pavements in 2026/27 to be funded either from Corporate resources or the Government’s pothole funding (if announced).

(4)               That the proposal to seek delegation from Council to Cabinet for up to £100m of new capital schemes to be added to the capital programme, through Prudential Borrowing, and where robust financial business cases have been made, be supported.

(5)               That the Schedule of Fees and Charges for 2023/24 be agreed.

(6)               That it be noted that a supplementary report, the formal Council Tax Resolution, will accompany the final budget submitted to full Council.