The Committee received report
number PAS/WS/21/016, which informed Members on the approach and
timescales for the 2022-2023 budget setting process and medium-term
plans to 2025. The report set out the
context to the 2022-2023 budget process; key budget assumptions;
the approach for delivering a sustainable budget for 2022-2023 and
beyond and timescales.
The financial impact of COVID-19 on the
council’s budget was likely to be felt for several
years. Therefore, the council would
need to make provision in its medium-term budget plans for recovery
to pre-covid levels. Any longer-term
impact of COVID-19 on the council’s services would only be
established in due course.
The Committee was informed that the 2022 to
2023 budget and medium-term financial strategy was also being
prepared in the context of significant uncertainties around
Government policy in terms of the following:
1)
The Comprehensive Spending Review;
2)
Local Government Finance Settlement;
3)
The Fairer Funding Review, Business Rates Retention
Scheme Review;
4)
Commercial investment policy; and
5)
Potential major reforms with the Resources and Waste
Strategy; Health and Social Care reforms and the Planning Reform
White Paper.
At the February 2021 Council
meeting, the Budget and Council Tax Setting 2021 to 2022 and
Medium-Term Financial Strategy 2021 to 2025 report set out the
financial plan to 2025. The plan set a
balanced budget for 2021 to 2022 but included the following
initiative budget gaps, which would be reviewed as part of the 2022
to 2023 budget process:
|
2022 to 2023
|
2023 to 2024
|
2024 to 2025
|
Budget Gap
|
£1.0m
|
£1.6m
|
£2.2m
|
Members considered the report
in detail, the approach and timescales for the 2022-2023 budget
setting process and the medium-term plans. Members asked a number of questions to which
responses were provided.
In particular, discussions were
held on the assumptions made on the pay inflation and
“behaving more commercially”, to which comprehensive
responses were provided.
In response to a question
raised regarding debt over 90 days, officers advised that the
Committee would receive the Quarter Two Performance report at its
November 2021 meeting, which would set out the current
position. In the meantime, officers
confirmed that debt collection was heading in the right
direction. However, there were still a
small number of national organisations still holding back payment
under their lease obligations.
There being no decision
required at this stage of the budget process, the Committee
noted the contents of the report.