Agenda item

Budget and Medium Term Financial Plan 2022/2023

Minutes:

The Committee considered the proposed budget for 2022/23. Updated Medium Term Financial Plan 2022/23 – 2025/26, Capital Strategy 2022/23, proposed Fees and Charges for 2022/23 and Procurement Forward Plan 2022/23.

 

It was noted that as set out in paragraph 3.9 of the report, there is a balanced budget for 2022/23 but there is greater uncertainty and risk in the MTFP for future years, particular around the Government’s business rates review, fair funding review and new homes bonus review, the outcomes of which are unknown.  Additional pressures had been identified around the pay award, higher than anticipated inflation, and the impact of the recovery from Covid-19.. 

 

A Council Tax increase of £5 on a Band D equivalent property was proposed, which equates to a 2.50% increase, although it was noted that for those residents in Band A. B or C dwellings the average increase will be less than £5.

 

A Council Dwelling Rent of 1.6% was proposed and the Executive Councillor advised that the HRA Working Group would be re-convened to undertaken a review of the HRA business plan which would inform the MTFP going forward.

 

In response to a query around the government payments to assist residents with energy bills, members were advised that this was not a council tax rebate, and that anyone in a Band A, B, C, or D dwelling would receive a £150 payment in April as a separate payment once greater clarity had been received from central government.  It was clarified that this payment could not be used by the council to clear any council tax arrears.  Regarding the council’s own buildings, conditions surveys were ongoing with a view to making them more energy efficient as part of the future Asset Management Plan.

 

It was suggested that the council car parks in Hope Valley be exempt from the parking fee increase, in view of the extent that they are used by non-residents.

 

In response to a query regarding the earmarked reserves for climate change, members were advised that the reserves are listed in the outturn report but would be circulated to members on request.  Further clarity and explanation was requested around the tables on page 25 and 35 of the report around the energy efficient elements within the Capital Strategy.

 

RESOLVED:

 

That Corporate Select Committee supports the following recommendations to Council:

 

·         Approves the General Fund Budget for 2022/23 as detailed in Appendix A (section 9)

 

·         Approves the revised Medium-Term Financial Plan (2022/23 to 2025/26) as detailed in Appendix A, including the revised Capital Programme (attached at Annex A)

 

·         Approves the Capital Strategy 2022/23 as set out in Appendix B

 

·         Approves the updated Housing Revenue Account (HRA)  Business Plan Forecast as detailed in Appendix A (Annex E) and commissions a fundamental review of the HRA Business Plan during 2022/23

 

·         Approves the proposed Fees and Charges for 2022/23 as detailed in Appendix C

 

·         Approves the proposed Procurement Forward Plan for 2022/23, providing the Authority to procure based on procurement activity detailed in Appendix D

 

·         Approves a Band D Council Tax of £205.40 for 2022/23 (an increase of £5.00 or 2.50% from 2021/22)

 

·         HRA charges as follows:

o   All dwellings rents to increase by 1.6% increasing the average rent from £72.64 to £73.96 per week (average rent takes into account new tenancies let over the previous year where the higher formula rent was charged. This gives an arithmetical increase of 1.81%)

o   Garage rents to be increased by 5% from £7.49 to £7.86 average per week

o   Other Charges including service charges to increase by a maximum of 5%

o   Fuel charges at individual blocks have been reviewed and the 2022/23 charge is based on the 2021/22 estimated costs and 2020/21 actual fuel usage/prices, charged on an individual scheme basis.

 

·         Notes the Chief Finance Officer's view that the level of reserves are adequate for the Council, based on this budget and the circumstances in place at the time of preparing it (Appendix A Annex C)

 

 

Supporting documents: