Agenda item

Report number:     CAB/WS/24/010

Portfolio holder: Councillor Diane Hind

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 20 February 2024)

(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).  Other decisions emanating from the report would require final approval by Council on 20 February 2024.  This was reflected in the Decisions Notice accordingly).

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

(20 February 2024):

That:

1.           The revenue and capital budget for 2024 to 2028, plus 2023 to 2024 capital projects that subsequently require to be carried forward at the year end, attached at Attachment A and as detailed in Attachment D (Appendices 1-6), Attachment E, and Attachment F to Report number CAB/WS/24/010, 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/24/010, the Cabinet recommends the level of council tax for 2024 to 2025 be established at £197.82 for an average band D property (the level of council tax beyond April 2025 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, 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, 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 3.14-3.16 and 4.7-4.10 of Report number CAB/WS/24/010), so long as they are as a minimum, revenue cost neutral to the Council.

5.           The change to the Second Home Premium, set out in paragraphs 4.7 to 4.10 of Report number CAB/WS/24/010, be approved.

Resolved:

That:

6.           The fees and charges price increases (as set out in Attachment D, Appendix 6a of Report number CAB/WS/24/010) be approved.

Recommended to Council (as part of the budget setting process) (20 February 2024):

7.           The Flexible Use of Capital Receipts Strategy (as set out in Attachment F of Report number CAB/WS/24/010), be approved.

(Report number CAB/WS/24/010)

The Cabinet considered this report, which presented proposals for the budget and council tax setting in 2024 to 2025 and the Medium Term Financial Strategy (MTFS) 2024 to 2028.  This report provided details of the Council’s proposed revenue and capital budgets for 2024 to 2025 and in the medium term and the Cabinet was required to recommend to Council, the approval of the 2024 to 2025 budget for the authority, including establishing the level of council tax required to help fund the Council’s activities over the next year.

Councillor Diane Hind, Portfolio Holder for Resources, drew relevant issues to the attention of the Cabinet.  The budget had been created to invest in West Suffolk’s future, improve services and keep charges low.  It invested in a fair, thriving and sustainable future for West Suffolk and improved essential services, whilst meeting significant national and local financial challenges.  The budget would support and help drive the delivery of the authority’s ambitious strategic priorities.  Investment in these areas included:

-      Essential services that residents relied on, such as improved grass cutting and grounds maintenance.

-      Funding leisure improvements, as well as new equipment and refurbishment of play areas and open spaces.

-      Ways to bring more affordable homes to West Suffolk and help prevent people becoming homeless.

-      Working alone and with partners to improve and rent out property for businesses to create jobs, improve skills and grow the local economy.

-      Helping the town centres, by supporting the markets and parking improvements.

-      Backing sustainable communities by supporting crucial groups and volunteers that were the backbone of society and provided vital support.

-      Funding commissioning work around Brandon and potential economic benefits on the A11, A1307 and A14 corridors.

The Council would continue to invest in initiatives that generated income and wider benefits, such as Solar for Business.  In addition, £1million would be made in savings or new local income over the next two years as part of the Council’s forthcoming service improvement and behaving commercially programmes.  This would be in addition to the £1 million already achieved in the current year’s budget to make the Council as efficient as possible.

West Suffolk Council was forecasting a two-year balanced budget despite an additional £5 million in pressures (around 7 per cent of the overall £69 million gross budget). This had been caused by increased inflation, cost of living and higher demand for services, additional demands from Government and traditional reduced funding.

This year the Government had given a significantly below inflation settlement and expected in their calculations that all councils put up Council Tax to the maximum amount available (2.99 per cent). West Suffolk Council was proposing to follow other local authorities and Government guidance, with a rise of 11p a week extra (£5.76 a year increase) to £197.82 for the average Band D property. 70 per cent of properties in West Suffolk were in Bands A to C and, would, therefore pay less than this. The Council Tax paid to West Suffolk Council was only around 11 per cent of the total bill and covered under a fifth of the cost of services. The Council had also agreed to extend up to 100 per cent discount on Council Tax to many low income and vulnerable residents, including those in work.

The 2023 to 2024 budget approved in February 2023, included support for the introduction of a long term empty homes premium after twelve months of a property becoming vacant and this 2024 to 2025 budget included proposals to implement additional powers given to local government to levy a second homes premium within the district from April 2025. These financial levers enabled local councils to use council tax to achieve behavioural changes linked to bringing empty properties and second homes back into general use within the locality.

Members also 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, Appendix 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.  This would, therefore, be a decision of Cabinet and would be subject to the call-in process.

Councillor Hind concluded by commending the Finance Team, the Performance and Audit Scrutiny Committee, together with Officers and Cabinet colleagues, for their work in being able to secure a balanced budget for 2024 to 2025.

Councillor Cliff Waterman, Leader of the Council, expressed his thanks to Councillor Diane Hind, the Cabinet, the Performance and Audit Scrutiny Committee and Officers for all of the work which had been undertaken to produce a balanced and forward looking budget.  The Council would also continue to lobby Government for fairer funding for Local Government as its medium term plans could be significantly impacted if the current level of funding continued to reduce.  Local Government was at the forefront of delivering the services that residents relied on and the Council must be able to continue to meet the needs of its communities and businesses.

Councillor Victor Lukaniuk, Deputy Leader of the Council, also expressed his support for the budget proposals.  This support was also expressed by other members of the Cabinet.

Recommended to Council (as part of the budget setting process) (20 February 2024):

          That:

1.           The revenue and capital budget for 2024 to 2028, plus 2023 to 2024 capital projects that subsequently require to be carried forward at the year end, attached at Attachment A and as detailed in Attachment D (Appendices 1-6), Attachment E, and Attachment F to Report number CAB/WS/24/010, 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/24/010, the Cabinet recommends the level of council tax for 2024 to 2025 be established at £197.82 for an average band D property (the level of council tax beyond April 2025 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, 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, 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 3.14-3.16 and 4.7-4.10 of Report number CAB/WS/24/010), so long as they are as a minimum, revenue cost neutral to the Council.

5.           The change to the Second Home Premium, set out in paragraphs 4.7 to 4.10 of Report number CAB/WS/24/010, be approved.

Resolved:

That:

6.           The fees and charges price increases (as set out in Attachment D, Appendix 6a of Report number CAB/WS/24/010) be approved.

Recommended to Council (as part of the budget setting process) (20 February 2024):

That:

7.           The Flexible Use of Capital Receipts Strategy (as set out in Attachment F of Report number CAB/WS/24/010), be approved.