Agenda item

Report number:     CAB/WS/22/008

Portfolio holder: Councillor Sarah Broughton

Lead officer: Rachael Mann

(Note: This item constitutes a Key Decision in part where proposed increases in fees and charges contained in the report are greater than five percent (Attachment D, Appendix 6a refers). Other decisions emanating from the report will require final approval by Council on 22 February 2022.)  

(Note: This item constitutes a Key Decision in part where proposed increases in fees and charges contained in the report are greater than five percent (Attachment D, Appendix 6a refers). Other decisions emanating from the report will require final approval by Council on 22 February 2022. This is reflected in this decisions notice accordingly.) 

Recommended to Council (as part of the budget setting process):

(22 February 2022)

That:

1.       the revenue and capital budget for 2022 to 2026, plus 2021 to 2022 capital projects that subsequently require to be carried forward at the year end, attached at Attachment A to Report number: CAB/WS/22/008, and as detailed in Attachment D (Appendices 1-5), Attachment E (Appendices 1-4), Attachment F and Attachment H, be approved.

2.       Having taken into account the conclusions of the Director’s (Resources and Property) report on the adequacy of reserves and the robustness of budget estimates (Attachment C) and the Medium Term Financial Strategy (MTFS) (Attachment D), particularly the Scenario Planning and Sensitivity Analysis (Attachment D, Appendix 5) and all other information contained in Report number: CAB/WS/22/008, the Cabinet recommends the level of Band D council tax for 2022 to 2023 be set at £187.11, an increase of £5 on the average West Suffolk council tax for 2021 to 2022. This recommendation is based on the option to harmonise the council tax levels of the two predecessor areas (Forest Heath and St Edmundsbury) by 2022 to 2023. The level of council tax beyond 2022 to 2023 will be set in accordance with the annual budget process for the relevant financial year.

3.       The Director (Resources and Property), in consultation with the Portfolio Holder for Resources and Property, be authorised to vire funds between existing Earmarked Reserves (as set out at Attachment D, Appendix 3) as deemed appropriate throughout the medium term financial planning period.

4.       Approval be given to the extension of the business rate reliefs set out in paragraphs 3.12 to 3.15 of Report number: CAB/WS/22/008, in support of West Suffolk’s business community.

Resolved:

That:

5.       Approval be given for the fees and charges price increases (as set out in Attachment D appendix 6a).

Recommended to Council (as part of the budget setting process):

(22 February 2022)

That:

6.       Approval be given to the Flexible Use of Capital Receipts Strategy (as set out in Attachment G).

The Cabinet considered this report, which presented the proposals for Budget and Council Tax Setting in 2022 to 2023 and the Medium Term Financial Strategy (MTFS) 2022 to 2026.

Councillor Sarah Broughton, Portfolio Holder for Resources and Property, drew relevant issues to the attention of Cabinet, including that Report number: CAB/WS/22/008 provided details of the Council’s proposed revenue and capital budgets for 2022 to 2023 and in the medium term, and the Cabinet was required to recommend to Council approval of the 2022 to 2023 budget for the authority, including establishing the level of council tax required to help fund the Council’s activities over the next year. 

As minuted under minute 327. above, the Cabinet supported the key budget assumptions and proposals for securing a balanced budget for 2022 to 2023, as previously considered and recommended by the Performance and Audit Scrutiny Committee and incorporated into Report number: CAB/WS/22/005.

West Suffolk Council had an exemplary track record in robust financial management which had meant it had continued to deliver high quality services as well as meeting the strategic vision of the authority.

This was despite a series of challenges. For example, the COVID-19 pandemic which had not only reduced income (Government policy had been that councils created income to supplement reduction in national funding) but also costs to the Council in playing its role to support communities and businesses. National finances had been reduced significantly over the last decade for local councils and added burdens had been placed on authorities too during this time.

The 2022 to 2023 budget had been created not only to be balanced and sustainable but as an investment in the priorities of the district’s residents and businesses. It was designed to make the communities of West Suffolk greener, healthier and more prosperous.

Members considered the report in detail, which included the following issues for securing a balanced budget for 2022 to 2023 and plans for the medium term from 2022 to 2026, together with corresponding detailed appendices:

Section 1:    Summary: which included reference to the Council’s proposed new £9 million investment in a range of initiatives to help meet priorities that would contribute to achieving the aspiration of zero carbon emissions by 2030; progressing its health and wellbeing agenda; and a proposed £1.3 million (2022 to 2026) for the upkeep of the district’s open spaces, parks and other leisure attractions

Section 2:    Context: which included reference to the Council’s robust financial planning and management enabling the Council to deliver both services and the strategic aims of West Suffolk despite the pressures on local government finances; the impact of the COVID-19 pandemic on the Council’s finances, including the role of the Council in supporting residents and businesses throughout the pandemic; ‘Investing in our Growth Agenda’; the Council’s transformation programme; and further detail on the Council’s plans to achieve net zero carbon emissions by 2030

Section 3:    Provisional local government finance settlement: which included reference to the Revenue Support Grant and Rural Services Delivery Grant; the Lower Tier Services Grant; the new 2022 to 2023 Services Grant; the future of New Homes Bonus; the expected cessation of the Sales, Fees and Charges Lost Income Reimbursement scheme; business rates and business rates reliefs; Transitional Relief and Supporting Small Business Relief; Collection Fund deficits; and council tax referendum limits.

Section 4:    Council tax for 2022 to 2023

Section 5:    Setting the budget – 2022 to 2023 and across the medium term to 2025 to 2026:which included reference to inflation assumptions assumed in the MTFS; fees and charges (see further detail below); delivering a sustainable future beyond 2022 to 2023

Section 6:    Capital programme 2020 to 2025: which included reference to the planned capital expenditure over four years to 2025/2026; disposal of surplus assets

Section 7:    Minimum revenue provision (MRP)

Section 8:    General fund balance

Section 9:    Earmarked reserves

Section 10: Strategic priorities and MTFS reserve

Section 11: Adequacy of reserves

Members noted that a number of fees and charges had been reviewed, as explained in Attachment D, Appendix 6. Detailed in Attachment D, Appendix 6a were those fees and charges that were proposed to be increased by more than five percent or be increased by less than five percent but due to their nature and potential public interest had been included. As set out in the West Suffolk Fees and Charges Policy and the Constitution, where fees and charges were proposed to be increased by more than five percent, this constituted a Key Decision. This would therefore be a decision of Cabinet and would be subject to call-in.

Having acknowledged the issues highlighted above, the Cabinet also noted that currently, council tax made up approximately one fifth of the authority’s budget (exclusive of housing benefit) and therefore only contributed to a fifth of service delivery. West Suffolk Council charged around 11 percent of a local council tax payer’s bill with the rest comprising precepts from the County Council, Police and Crime Commissioner as well as the relevant Parish or Town Council. It was recognised that any increase provided an extra burden on taxpayers but did mean the protection of vital services which would otherwise possibly have to be considered for reductions. Councillors were asked and expected by Government to look at local taxation levels to meet the authority’s financial needs to support its communities and help future proof from financial uncertainty.

To help secure a balanced budget for 2022 to 2023, it was proposed that the Cabinet should recommend to Council the level of Band D council tax for 2022 to 2023 be set at £187.11, an increase of £5 on the average West Suffolk council tax for 2021 to 2022. This recommendation was based upon the option to harmonise the council tax levels of the two predecessor areas (Forest Heath and St Edmundsbury) by 2022 to 2023. For 2022 to 2023 this represented an average Band D weekly increase of 22 pence (for the predecessor area of Forest Heath) and three pence (for the predecessor area of St Edmundsbury). Noting that just over 70 percent of West Suffolk residents were in bands A to C, these would actually see a lower increase.

Councillor Broughton commended the finance team and the Performance and Audit Scrutiny Committee, together with staff and other members across the authority for their work in securing a balanced budget for 2022 to 2023 and for developing plans in the medium term. This sentiment was echoed by other members, including commending the Anglia Revenues and Benefits Partnership, particularly for the additional work created for the partnership during the pandemic.

The Cabinet acknowledged that despite the financial challenges being faced including the added pressures of COVID-19 and particularly its impact on income, the Council had made, and were continuing to make, successful investments in services; growth; greener; and health and well-being projects; together with creating efficiencies, resilience and ensuring the effective management of resources, all of which and more would enable West Suffolk Council to secure a balanced budget for 2022 to 2023.

Recommended to Council, as part of the budget setting process (22 February 2022):

That:

1.       the revenue and capital budget for 2022 to 2026, plus 2021 to 2022 capital projects that subsequently require to be carried forward at the year end, attached at Attachment A to Report number: CAB/WS/22/008, and as detailed in Attachment D (Appendices 1-5), Attachment E (Appendices 1-4), Attachment F and Attachment H, be approved.

2.       Having taken into account the conclusions of the Director’s (Resources and Property) report on the adequacy of reserves and the robustness of budget estimates (Attachment C) and the Medium Term Financial Strategy (MTFS) (Attachment D), particularly the Scenario Planning and Sensitivity Analysis (Attachment D, Appendix 5) and all other information contained in Report number: CAB/WS/22/008, the Cabinet recommends the level of Band D council tax for 2022 to 2023 be set at £187.11, an increase of £5 on the average West Suffolk council tax for 2021 to 2022. This recommendation is based on the option to harmonise the council tax levels of the two predecessor areas (Forest Heath and St Edmundsbury) by 2022 to 2023. The level of council tax beyond 2022 to 2023 will be set in accordance with the annual budget process for the relevant financial year.

3.       The Director (Resources and Property), in consultation with the Portfolio Holder for Resources and Property, be authorised to vire funds between existing Earmarked Reserves (as set out at Attachment D, Appendix 3) as deemed appropriate throughout the medium term financial planning period.

4.       Approval be given to the extension of the business rate reliefs set out in paragraphs 3.12 to 3.15 of Report number: CAB/WS/22/008, in support of West Suffolk’s business community.

Resolved:

That:

5.       Approval be given for the fees and charges price increases (as set out in Attachment D appendix 6a).

Recommended to Council, as part of the budget setting process (22 February 2022):

That:

6.       Approval be given to the Flexible Use of Capital Receipts Strategy (as set out in Attachment G).

(Councillor Ian Houlder left the meeting at the conclusion of this item.)