Agenda item

The Director of Finance and Business Improvement introduced the report and referenced the urgent updates provided following the Local Government Finance Settlement’s release. The Council had been provided with additional funding relating to the collection of Business Rates and the Lower Tier Services Grant which had increased the projected surplus for 2022/23 from £8,000 to £76,000. It was recommended that the surplus be reserved to address increased expenditure relating to inflationary pressures.

It was proposed that £1 million of the New Homes Bonus be used for strategic policy and plan-making, with the remainder to be transferred to a housing investment fund in light of the Committee’s previous decision to support the Affordable Housing Programme. The significant amount of subsidy required across that programme’s period was noted.

The consideration of the Medium-Term Financial Strategy (MTFS) by the Council’s other Service Committees was briefly outlined, alongside the proposed increase in Council Tax up to the referendum limit.

In response to questions, the Director of Finance and Business Improvement explained the inflationary estimates used in producing the MTFS. The additional £800,000 allocated to the contingency fund would allow the Council to suitably offset any future inflationary pressures. 

The Committee expressed support for the MTFS as proposed.

RESOLVED: That as per the amended papers

1.  The outcomes of consideration of the budget proposals by the Service Committees, be noted;

2.  The Budget Growth and Savings proposals as set out in Appendix A to the report, be agreed;

3.  The first £1 million of 2022/23 New Homes Bonus be allocated for Strategic Policy and Plan Making, with the balance transferred to a Housing Investment Fund to be used to subsidise the Council’s Affordable Housing Programme;

4.  The Strategic Revenue Projection as set out in Appendix B to the report, be agreed;

5.  Council be recommended to agree a £5.40 increase in Band D Council Tax for 2022/23;

6.  Council be recommended to agree the Revised Estimates for 2021/22 and the Budget Estimates for 2022/23 as set out in Appendix C to the report;

7.  Council be recommended to agree the Capital Programme as set out in Appendix D to the report;

8.  Council be recommended to agree the Treasury Management Strategy, Investment Strategy and Capital Strategy as set out Appendix E to the report;

9.  The projected level of General Fund balances being in excess of the agreed minimum level of £4 million, as set out in Appendix F to the report, be noted;

10.The updated Medium-Term Financial Strategy as set out in Appendix G to the report, be agreed; and

11.The appropriate matters for decision to set a balanced budget for 2022/23 and the necessary level of Council Tax in accordance with the Local Government Finance Act 1992 and the Localism Act 2011 including the decisions made above, be recommended to Council.