Report by the Director of Resources and Deputy Chief Executive to the Strategy and Resources Committee on 6 February 2023 (attached).

Councillor Worden, provided an introduction to the Revenue Budget 2023-24, Capital Programme and the Medium Term Financial Strategy 2023-24 to 2028-29 which had been considered by the Strategy and Resources Committee and Policy Development Committee. He thanked those Councillors that had attended the workshops held in August and October 2023.  The workshops had been cross party and considered options for reducing the £2m budget gap.  Some of these options had been included within the budget report to reduce the budget gap. He thanked the Director of Resources and the Finance team for producing a balanced budget and advised that the Council was extremely fortunate for having these officers.

Council received a presentation by the Director of Resources regarding the Revenue Budget 2023-24, Capital Programme and Medium Term Financial Strategy 2023-24 to 2028-29 (circulated previously) as follows:

• Consultation on the financial plans had taken place with local business rate payers at an event held on 21 February 2023 at Node.  Around 25 businesses had attended and positive feedback on the Council’s projects and plans was received.
• Funding levels to Local Authorities from 2012/13 to 2023/24.
• Finance Settlement – core spending power of 9.2% and analysis.
• As a Shire District the Council’s actual core spending power was on average only at 5%.
• The spending power varied according to region and the overall national level of 9.2% equivalent for the South West was 8.8%.
• Central Government had run a finance settlement consultation, closed 16 January 2023.  Appendix F of the report showed the response our Council had made in relation to this consultation.

• The draft budget was assuming an increase of 2.99% on Council Tax.
• Retained growth on Business rates of around £2 million.
• The challenges to the budget came from reduced grant funding from Government, reduced workforce levels since 2010 and the uncertainty of the future Local Government Funding.
• Inflationary pressures on the budget came from increased staff pay, increased energy prices, rising fuel prices and increased costs of external contracts.
• There had been two earlier budget workshops with Members and a full report to Council in November 2022 to approve options identified to draft the refreshed Medium Term Financial Strategy.
• Bridging the gap in the budget as follows (as detailed in section 4.1.2.14 of the report):

• Positive feedback received from Parishes and Town Councils in taking on responsibility for public conveniences.  This was being assumed as a revenue saving in the 2023/24 budget.
• A  ...  view the full minutes text for item 100

Report by Director of Resources and Deputy Chief Executive (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Revenue Budget 2023-24, Capital Programme and Medium Term Financial Strategy 2023-24 to 2028-29.

The Director of Resources and Deputy Chief Executive gave the Committee a presentation, which included the following highlights:

·       Funding levels to Local Authorities from 2012/13 to 2023/24.

·       Finance Settlement – core spending power of 9.2% and analysis.

·       As a Shire District the Council’s actual core spending power was on average only at 5%.

·       The spending power varied according to region and the overall national level of 9.2% equivalent for the South West was 8.8%.

·       Central Government had run a finance settlement consultation, closed 16 January 2023.  Appendix F of the report showed the response our Council had made in relation to this consultation.

·       The draft budget was assuming an increase of 2.99% on Council Tax.

·        Retained growth on Business rates of around £2 million.

·       The challenges to the budget came from reduced grant funding from Government, reduced workforce levels since 2010 and the uncertainty of the future Local Government Funding.

·       Inflationary pressures on the budget came from increased staff pay, increased energy prices, rising fuel prices and increased costs of external contracts.

·       There had been two earlier budget workshops with Members and a full report to Council in November 2022 to approve options identified to draft the refreshed Medium Term Financial Strategy.

·       Bridging the gap in the budget as follows (as detailed in section 4.1.2.14 of the report):

·       Positive feedback received from Parishes and Town Councils in taking on responsibility for  public conveniences.  This was being assumed as a revenue saving in the 2023/24 budget.

·       A breakdown in how the split of Council Tax was shared out and to whom showed that this Council received 10% of collected council tax for services such as refuse collections, kerbside recycling, housing, planning, street cleaning and leisure.

·       Green Lanes Shopping Centre financials update showed performance was in line with the budgeted position for 2022/23 and the cash flow was in line with forecasts for 2023/24.

·       Appendix A of the report detailed the Council’s summary budget for 2023/24.  The net budget for 2023/24 was £14.766 million.

·       Appendix B of the report detailed the recommended level of strategic grants for 2023/24.

·       Assumptions and risks had been detailed within the budget report.

·       Appendix C of the report detailed reserves held.  The General fund balance was £1.211 million, which  ...  view the full minutes text for item 98