Agenda item

Report number:     CAB/WS/23/008

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 21 February 2023.)

(Note: This item constituted a Key Decision in part where proposed increases in fees and charges contained in the report were greater than five percent (Attachment D, Appendix 6a refers).  Other decisions emanating from the report would require final approval by Council on 21 February 2023.  This was reflected in this Decisions Notice accordingly).

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

(21 February 2023):

1.           The revenue and capital budget for 2023 to 2027, plus 2022 to 2023 capital projects that subsequently require to be carried forward at the year end, attached at Attachment A and as detailed in Attachment D (Appendices 1-5), Attachment E, and Attachment F to Report number CAB/WS/23/008, 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/23/008, the Cabinet recommends the level of council tax for 2023 to 2024 be established at £192.06 for an average band D property  (the level of council tax beyond April 2024 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.           The Director (Resources and Property) in consultation with the Portfolio Holder for Resources and Property, be given delegated authority to formulate and implement in full, Government grant, discount or relief schemes (examples include but not limited to those set out in paragraphs 3.13-3.19 and 4.7-4.9 of Report number CAB/WS/23/008), so long as they are as a minimum, revenue cost neutral to the Council.

5.           The change to the Long Term Empty Property Premium set out in paragraphs 4.10 to 4.13, and to the further class of property not attracting the premium set out in paragraph 4.12 of Report number CAB/WS/23/008, be approved.

Resolved:

That:

6.           The fees and charges price increases (as set out in Attachment D appendix 6a of Report number CAB/WS/23/008), be approved.

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

(21 February 2023):

That:

7.           The Flexible Use of Capital Receipts Strategy (as set out in Attachment F to Report number CAB/WS/23/008), be approved.

(Report number CAB/WS/23/008)

The Cabinet considered this report, which presented the proposals for Budget and Council Tax Setting in 2023 to 2024 and the Medium Term Financial Strategy (MTFS) 2023 to 2027.

Councillor Sarah Broughton, Portfolio Holder for Resources and Property, drew relevant issues to the attention of the Cabinet, including that Report number CAB/WS/23/008 provided details of the Council’s proposed revenue and capital budgets for 2023 to 2024 and in the medium term and the Cabinet was required to recommend to Council, the approval of the 2023 to 2024 budget for the authority, including establishing the level of council tax required to help fund the Council’s activities over the next year.

As set out under minute 440. above, the Cabinet supported the key budget assumptions and proposals for securing a balanced budget for 2023 to 2024, as previously considered and recommended by the Performance and Audit Scrutiny Committee and incorporated into Report number CAB/WS/23/008.

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 and recovery which had not only reduced income through behavioural changes (Government policy had been that councils create income to supplement reduction in national funding) but also costs to the Council in playing its role to support communities and businesses. All UK authorities were now facing tough financial challenges caused by issues such as soaring inflation, cost of living and energy prices, the war in Ukraine and changes to the way communities spend which reduced income. National finances have also been reduced significantly over the last decade for local councils and added burdens have been placed on authorities too during this time.

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

This budget had been created to meet the needs of the Council’s strategic framework and benefit all West Suffolk. It would see the continuation of investments in a range of initiatives to meet priorities, such as meeting zero carbon emissions by 2030, following the authority declaring both climate and environmental emergencies. This investment built on years of carbon reduction initiatives by West Suffolk and its predecessor councils. Not only would this reduce the impact the Council had on the climate, but also actually produced a net income towards the cost of running much valued council services – a win-win for taxpayers and the environment.

The Council would continue to concentrate, with councillors, on its health and wellbeing agenda, including investing in its hubs, LifeLink, housing and families and communities work, as well as the hub network across West Suffolk, investing in new and better ways to work with our partners on the wellbeing of our residents.

In addition, the budget included an additional £240,000 investment per annum in the waste and grounds maintenance team in recognition of the importance of this service to communities and the continued demands through the housing growth in the district. The budget also included £1.3 million (2023 to 2027) for capital investment in its open spaces and parks, as well as its popular museums and attractions that were vital to the wellbeing and health of residents as well as doing their part to protect and improve the local environment.

Members considered Report number CAB/WS/23/008 in detail, which included the following issues for securing a balanced budget for 2023 to 2024 and plans for the medium term from 2023 to 2027, together with corresponding detailed Appendices:

Section 1:    Summary: which included investing in the priorities of residents and businesses; meeting the needs of the Council’s strategic framework.

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 pressure on local government finances; Investing in our Growth agenda; Transforming West Suffolk Council; Net Zero Carbon Emissions by 2030.

Section 3:    Provisional local government finance settlement: which included the Revenue Support Grant; Rural Services Delivery Grant; Services Grant; New Homes Bonus; Funding Guarantee Grant; Business rates and business rates evaluation; Retail, hospitality and leisure relief and supporting small business relief; Local Authority Housing Fund; Collection Fund deficits; Council tax referendum limits.

Section 4:    Council tax for 2023 to 2024, including Local Council Tax Support Scheme 2023 to 2024; Council Tax Support Fund 2023 to 2024; Changes to the Long-term empty property premium and second homes.

Section 5:    Setting the budget – 2023 to 2024 and across the medium term to 2026 to 2027: which included inflation assumptions assumed in the MTFS; fees and charges (see further detail below); delivering a sustainable future beyond 2023 to 2024.

Section 6:    Capital programme 2023 to 2027: which included reference to planned capital expenditure over four years to 2026 to 2027; 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: including New Homes Bonus

Section 11:  Adequacy of reserves.

Members noted that as part of the budget setting process, the Council had undertaken a review of its fees and charges pricing used in the budget and medium-term.  The fees and charges that were changing were detailed in Attachment D, Appendices 6 and 6a.  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.  There 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 taxpayer’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 it 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 2023 to 2024, it was proposed that the Cabinet should recommend to Council, the level of Band D council tax for 2023 to 2024 be set at £192.06. This represented an average Band D weekly increase of just under 10 pence. It was noted that just over 70 per cent of residents in the district were in Bands A to C so would actually see a lower increase. This increase was still below the expectation from Government for a greater rise in council tax up to 3 percent for district councils.

Councillor Broughton commended the Finance Team and the Performance and Audit Scrutiny Committee, together with staff and other members across the Council, for their work in securing a balanced budget for 2023 to 2024 and for developing plans in the medium term.  This sentiment was also echoed by other Cabinet Members.

The Cabinet acknowledged that the Council’s on-going robust and responsible financial management allowed the Council to be in a strong position to face many of the challenges that had affected all local government authorities.  However, the Council must continue to transform the way that it worked and how it was funded in response to these challenges to be able to meet future savings and to enable the Council to continue to be able to secure balanced budgets.

Recommended to Council, as part of the budget setting process (21 February 2023):

          That:

1.           The revenue and capital budget for 2023 to 2027, plus 2022 to 2023 capital projects that subsequently require to be carried forward at the year end, attached at Attachment A and as detailed in Attachment D (Appendices 1-5), Attachment E, and Attachment F to Report number CAB/WS/23/008, 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/23/008, the Cabinet recommends the level of council tax for 2023 to 2024 be established at £192.06 for an average band D property  (the level of council tax beyond April 2024 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.           The Director (Resources and Property) in consultation with the Portfolio Holder for Resources and Property, be given delegated authority to formulate and implement in full, Government grant, discount or relief schemes (examples include but not limited to those set out in paragraphs 3.13-3.19 and 4.7-4.9 of Report number CAB/WS/23/008), so long as they are as a minimum, revenue cost neutral to the Council.

5.           The change to the Long Term Empty Property Premium set out in paragraphs 4.10 to 4.13, and to the further class of property not attracting the premium set out in paragraph 4.12 of Report number CAB/WS/23/008, be approved.

Resolved:

That:

6.           The fees and charges price increases (as set out in Attachment D, Appendix 6a of Report number CAB/WS/23/008), be approved.

Recommended to Council, as part of the budget setting process (21 February 2023):

That:

7.           The Flexible Use of Capital Receipts Strategy (as set out in Attachment F to Report number CAB/WS/23/008), be approved.