Issue - meetings

The Executive Member for Finance and Governance.

RESOLVED:

That Executive RECOMMEND to Council:

(i)               The latest Medium-Term Financial Plan forecast at Annex 1.

(ii)             An increase in Reigate & Banstead’s Band D Council Tax of £7.25 (2.99%) and a final tax base of £63,495.31 Band D equivalents;

(iii)           A Revenue budget requirement of £23.194 million for 2023/24, as set out in this report and at Annex 2, which reflects:

• Service budget growth proposals totalling £0.442 million, savings of (£0.828) million; additional income of (£1.186) million and forecast issues, risks and opportunities totalling £1.843 million;

• Central Revenue Budget net growth proposals totalling £2.379 million and forecast issues and risks totalling £0.564 million;

(iv)           The forecast for Revenue Reserves (Annex 3) and the recommended use of £0.977 million from Reserves in 2023/24 comprising:

·        £0.493 million from the IT Strategy Reserve to fund implementation of the approved IT Strategy; and

·        Up to £0.484 million from the Government Funding Risks Reserve, where necessary, to fund the forecast reduction in housing benefit subsidy;

(v)             A Capital Programme of £59.899 million for 2023/24 to 2027/28 as set out in this report and including net Capital Programme Growth Proposals of £7.672 million;

(vi)           The updated Fees & Charges Policy (Annex 7)

(vii)         The Chief Finance Officer’s report on the robustness of the Budget estimates and adequacy of Reserves.

The Executive AGREED to authorise:

(viii)       The Chief Finance Officer to make any necessary final technical adjustments to the Budget and Council Tax arising from final budget refinements or changes to Government funding.

The Deputy Leader and Portfolio Holder for Finance and Governance, Councillor Schofield, presented the final revenue and capital budget proposals for 2023/24 onwards as set out in the published report and annexes of the agenda pack. This recommended the net revenue budget requirement of £23.194m (£3.214m higher than the budget for 2022/23). A recommended council tax increase of 2.99% (equivalent to £7.25 a year) for the average Band D property was proposed.

The increased budget reflected higher energy cost pressures, potential property voids and planned investment in IT. These pressures had been offset by identifying £828k of savings and additional income of £1.186m.

Central budgets were also set to rise by £2.943m to fund staff pay increases, pension contributions and shortfalls in housing benefits subsidies. These pressures were offset from savings in other central budgets, with the balance being funded from increased income from council tax, business rates and government grants.

In total, it was proposed that council tax income rise by just over £1m in 2023/24.  The Council’s share of business rates will increase to £2.2m compared to recent years. There had been a more favourable government settlement and net increased in government grants than in recent years.

Councillor Schofield noted that the additional 1% allowable increase in Council Tax to 2.99%, announced just before Christmas, had not been anticipated when drafting the budget in the autumn. The increasing economic pressures on residents over the coming year was recognised; an economic pressures reserve of £150k (equivalent to 1%) would provide additional discretionary support as and when needed.

The Financial Sustainability Programme was continuing to look at how the Council’s assets were performing, explore opportunities to generate new sources of income and ensure all services deliver value for money.

The Reserve budgets were healthy to help manage future budget risks and opportunities. The General Fund Balance at £3.5m remained more than adequate to cover financial risks. Capital growth for 2023 to 2028 was set at £7.7m, primarily to continue the programme of investment in the Council’s land, property and vehicle assets over the five-year period.

The budget proposals had been subject to thorough review by Members of the Budget Scrutiny Panel in November and by the Overview and Scrutiny Committee in December. Their findings and recommendations were reported separately to Executive on 15 December. An update to the budget had been considered by Overview and Scrutiny Committee at its meeting on 19 January. The proposed Budget will go to Full Council on 9 February.

Councillor Harrison, Chair of Overview and Scrutiny Committee, noted the proposed budget changes from December These included: the proposed updates to council tax, increased business rates and an increase in core spending to meet secondary pension contributions. Increased government grants meant that that there was less need to draw on earmarked reserves which was a positive net change from December to January. There were no specific recommendations from the Committee. 

Visiting Members made comments and asked questions on the following points:

·        Pay award 2023/24 – It  ...  view the full minutes text for item 57