Agenda item

To receive and consider the recommendations of the Council’s Executive, Committees and Sub-Committees, including:

Executive meeting held on 15 December 2023:

·       Minute 50 – Treasury Management Strategy Mid-Year Report 2022/23

Related Committee agenda, reports and minutes are available here.

Executive meeting held on 26 January 2023:

·       Minute 57 – Budget & Capital Programme 2023/24

Related Committee agenda, reports and minutes are available here.

·       Minute 58 – Council Tax 2023/24

Related Committee agenda, reports and minutes are available here.

·       Minute 61 – Calendar of Meetings 2023/24

Related Committee agenda, reports and minutes are available here.

The Council received recommendations arising from the Executive meetings held on 15 December 2022 and 26 January 2023, relating to:

(i)           Treasury Management Mid-Year Report 2022/23 (Executive minute 50);

(ii)          Budget and Capital Programme 2023/24 (Executive minute 57);

(iii)        Council Tax setting 2023/24 (Executive minute 58); and,

(iv)        Calendar of Meetings for 2023/24 (Executive minute 61).

(i)           Minute 50, Treasury Mid-Year Report 2022/23

RESOLVED that the recommendations of the Executive, from its meeting on 15 December 2022, in respect of minute 50 (Treasury Management Mid-Year Report 2022/23) be adopted.

(ii)          Minute 57, Budget and Capital Programme 2023/24

The Leader of the Council, Councillor Brunt, moved the recommendations and in doing so commended the work of the officers and Members who contributed to it, including the Overview and Scrutiny Committee and Budget Scrutiny Panel.

The Deputy Leader & Executive Member for Finance and Governance, Councillor Schofield, seconded the original recommendations, and reserved the right to speak.

Members’ discussion of the original recommendations of the Executive on 26^th January 2023  included the following considerations:

·         The Budget Scrutiny Panel concluded that the revenue budget savings, the additional income and the cost increases were achievable, realistic and based on sound financial practices and reasonable assumptions.

·         The revenue and capital budget proposals for 2023/24 sought net service budget growth of £0.271m to reflect unavoidable growth (e.g. inflation, legislative change or increased demand on services) of £0.442m, funding risks relating to property voids and energy cost pressures of £1.35m, and planned investment in the Council’s IT Strategy of £0.493m. This growth was offset by the proposed savings of £0.828m and additional income generation of £1.186m. Further income was expected to be generated from the 2023/24 municipal year as a result of the completion of the Rise development in Marketfield Way.

·         Although the proposed savings were not expected to have a significant impact on service scope or quality, some reductions were proposed in the grants and funding to voluntary organisations. There was concern about the impact on residents of reducing funding for voluntary organisations.

·         A Government settlement in December 2022 provided a new minimum funding guarantee to provide an extra 5% in core spending power, plus increased new homes bonus. The net result has been a £1.9m reduction in the use of earmarked reserves to balance the budget. Earmarked reserves of £0.5m was allocated to support the IT Strategy, and £0.5m to fund the net deficit on Housing Benefit Subsidy where government grant funding did not meet the Council’s legal obligations.

·         In relation to the council tax and business rates, with higher collection rates than anticipated during the pandemic, it had been possible to release surpluses from the Collection Fund accounts. Council tax setting for 2023/24 was recommended to increase by 2.99%, however acknowledging that the 1% increase in Council Tax was not anticipated when drafting the budget, and recognising the ongoing financial challenges facing residents, the Council had established an ‘Economic Pressures Reserve’ of £0.150m to provide extra discretionary support to those who needed it.

·         The Pay Award for 2023/24 was commended as a fair and practical approach which achieved balance with ongoing budget pressures.

·         Some Members sought additional funding for the Council’s environmental sustainability strategy, roll-out of recycling scheme, greenspaces management plans, and the provision of social housing and affordable homes; and therefore, sought to move an amendment.

Councillor Chandler proposed, and Councillor Essex seconded, an amendment to recommendations iii (revenue budget requirement), iv (service budget growth), vi (revenue reserves), and vii (capital programme).

The amendments sought additional funding growth in the revenue and capital programme for 2023/24, as listed within the Notice of Amendment published with the addendum on 7^th February 2023, to support the delivery of:

·         a Community Support Programme to increase support for households in fuel poverty.

·         The Council’s Environmental Sustainability Strategy.

·         The roll-out of the Council’s recycling scheme to all properties in the borough.

·         The establishment of a new Empty Homes Officer to deliver the conversion of empty homes into housing for social rent.

·         Improved Countryside and Biodiversity Management, town centre and street environments, and social housing developments.

Members’ discussion of the amendment included the following considerations:

·         Whether the additional funding arising from:

o   the additional 1% increase in the Council Tax setting for 2023/24 (proposed at 2.99% in total); and,

o   the government settlement in December 2022 –

-       should be used to deliver the objectives outlined within the amendment instead of following the original recommendations, which sought to allocate surplus funds to the revenue reserves.

·         The Council continued to manage an ongoing funding shortfall with the use of its reserves to balance the annual budget. The amendment would commit the Council to drawing an additional £0.5m annually from its reserves, at a time when the Council, through its Financial Sustainability Programme, was seeking to find savings and efficiencies to reduce its reliance on reserves to balance the budget.

·         Whilst there was not consensus in support of the amendment as a whole, some Members did support elements of the amendment, including the proposals to:

o   strengthen countryside management and biodiversity.

o   accelerate progress to complete the scheme to roll-out a full recycling service across the borough.

o   continue funding support for local charities and voluntary organisations.

o   introduce food waste bins.

·         The Executive contended that the amended recommendations relating to countryside management and biodiversity were addressed by the original recommendations, insofar that:

o   funding for a replacement Countryside Officer was already provided, and that a recruitment process to fill that vacancy was in progress.

o   The Countryside Officer would support a revised Greenspaces Strategy and greenspaces management plans in consultation with local communities and interest groups.

·         The amended recommendation in respect of funding a Town Centre Manager post to improve the day-to-day management of the borough’s town centres was considered to be a duplication of the work already undertaken by the borough’s business guilds and liaison meetings with stakeholders such as Horley Town Council.

The Mayor called upon the Managing Director to conduct a recorded vote on the amendment to the recommendations of Executive Minute 57 (Budget and Capital Programme 2023/24) as within the addendum, and voting was recorded as follows:

For: Councillors Chandler, Chester, Essex, Kulka, McKenna, Proudfoot, Ritter, Sinden, and Torra.

Against: Councillors Absalom, Archer, Ashford, Avery, Baker, Biggs, Blacker, Bramhall, Bray, Brunt, Buttironi, Cooper, Harper, Harrison, Hinton, Hudson, A. King, J. King, Lewanski, Michalowski, Moses, Neame, Parnall, Schofield, Stevens, Tary, Turner, and Walsh.

Abstain: Councillors Adamson, Harp, and Kelly (the Mayor).

The Mayor declared the amendment lost. Accordingly, the original recommendations, as moved, were voted upon and voting was recorded was follows:

For: Councillors Absalom, Adamson, Archer, Ashford, Avery, Baker, Biggs, Blacker, Bramhall, Bray, Brunt, Buttironi, Cooper, Harp, Harper, Harrison, Hinton, Hudson, A. King, J. King, Lewanski, Michalowski, Moses, Neame, Parnall, Schofield, Stevens, Tary, Turner, and Walsh.

Against: Councillors Chandler, Chester, Essex, Kulka, McKenna, Proudfoot, Ritter, Sinden, and Torra.

Abstain: Councillor Kelly (the Mayor).

The Mayor declared that the original recommendations were adopted.

At 10:05pm the meeting was adjourned for ten minutes for a comfort break. At the resumption of the meeting at 10:18pm, the Council RESOLVED in accordance with Council Procedure Rule 2.6.2 of the Constitution to continue the meeting after 10:30pm so that all of the business on the agenda could be completed.

(iii)        Minute 58 (Council Tax Setting 2023/24)

The Mayor called upon the Managing Director to conduct a recorded vote on the recommendation under Executive Minute 58 (Council Tax Setting 2023/24), which was recorded as follows:

For: Councillors Absalom, Adamson, Archer, Ashford, Avery, Baker, Biggs, Blacker, Bramhall, Bray, Brunt, Buttironi, Cooper, Essex, Harp, Harper, Harrison, Hinton, Hudson, A. King, J. King, Kulka, Lewanski, McKenna, Michalowski, Moses, Neame, Parnall, Proudfoot, Ritter, Schofield, Sinden, Stevens, Tary, Torra, Turner, and Walsh.

Against: Councillor Chandler.

Abstain: Councillors Chester and Kelly (the Mayor).

(iv)        Minute 61, Calendar of Meetings for 2023/24

RESOLVED that the recommendation of the Executive, from its meeting on 15 December 2022, in respect of minute 61 (Calendar of Meetings for 2023/24) be adopted.