Issue - meetings

The Director of Finance, Resources and Business Improvement introduced his report setting out budget proposals for services within the remit of the Committee.  It was noted that:

·  When the Committee last considered budget matters in November 2022, the Council had been faced with a budget gap of £2.5 million in 2023/24, mainly due to the impact of inflation on the Council’s costs, with a steadily increasing budget gap in subsequent years.

·  Since then, savings proposals totalling £1.1 million for 2023/24 had been developed across the Council and there had also been positive news arising out of Government announcements.

·  In the Chancellor’s Autumn Statement 2022 the Council Tax referendum limit was increased from 2% to 3% so if the Council agreed to a 3% Council Tax increase, this would raise more money.  Business rates would also be frozen in 2023/24, but Councils would be compensated for the loss of income arising. 

·  Whilst the longer-term position remained challenging, these recent developments had had a positive impact, such that it was now anticipated that the Council would be able to set a balanced budget for 2023/24, provided that the savings proposals were adopted, and Council Tax was increased up to the referendum threshold.

·  In the Local Government Finance Settlement 2023/24, there were changes to the one-off funding received by the Council, predominantly New Homes Bonus (NHB).  This did not affect the proposals set out in the report because the Council had always treated NHB as one-off funding, not part of the revenue budget.  Although the Government was reducing NHB in 2023/24, this was broadly compensated for by a new one-off Funding Guarantee.

·  Three revenue budget proposals had been identified in respect of the services falling within the remit of the Committee: the funding of Economic Development in future, new income arising from the re-opening of the Mote Park Café and a reduction in income from the Market.

·  In terms of the Capital Programme schemes falling within the remit of the Committee, the major change was that the proposal in relation to the Leisure Centre was now £7 million over five years which would fund the practical improvements discussed at the last meeting rather than a replacement facility within the Five-Year plan.  However, this did not mean that there would not be further capital expenditure in the future.

In response to questions:

Mote Park Café

The Lead Member for Leisure and Arts explained that, in terms of achieving income targets in respect of the Café, the operator was fitting out the kitchen and the work was nearing completion which would enable the facility to re-open.

One-off Funding Guarantee

The Leader of the Council confirmed that choices would need to be made about the use of the one-off Funding Guarantee considering the plans in relation to the 1,000 Affordable Homes Programme and demands in relation to the staff budget.

Business Rates Pool

The Leader of the Council confirmed that there was potential for growth in Business Rates income with the business park at junction 8  ...  view the full minutes text for item 95