Decision details

Budget Strategy Mid-Year Review 2022

Decision Maker: Cabinet

Decision status: Recommmend Forward to Council

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

This report provides an update on the Council’s Budget Strategy


Decision:

RESOLVED

 

That the Full Council be recommended to approve the Budget Strategy Mid-Year Review 2022 and to:

 

a)        agree the growth items for both the General Fund and Housing Revenue Account as outlined in sections 5.17 and 8.1 of report  FIN/596

 

b)        agree the inclusion of new capital schemes in future budgets with the value of £165,000 as identified in section 9.2 of report  FIN/596

 

c)        agree an increase in the capital programme for Park Tennis by £111,390 funded from Lawn Tennis Grant as outlined in paragraph 9.3 of report  FIN/596.

 

d)        approve the revised Crawley Homes capital investment plan as outlined in Appendix B to report  FIN/596 which includes the financial year 2025/26 and the garage repairs which was transferred to the General Fund.

 

e)        note the following highlights of the Budget Strategy Mid-Year Review 2022:

 

i       Note the uncertainties around Government funding prior to the settlement in December and the delay in Local Government Funding reforms such as business rates retention and the future of New Homes Bonus.

 

ii      Note, for the purpose of projections, the current budget deficit of £201,792 for 2023/24 before use of reserves, on the basis of a Council tax increase of 2.31% which is £4.95 on a Band D in property 2022/23.  Future years gaps are shown in section 4.2 of report  FIN/596.

 

iii     Note that the Gap from 2024/25 will need to be addressed once the finance settlement is announced as there will be insufficient reserves in the long term to fund future gaps.  The methodology of approaching the gap is outlined in section 7 of report  FIN/596.

 

iv     Note that items for the Capital Programme are driven by the need for the upkeep of council assets and environmental obligations and schemes will also be considered that are spend to save or spend to earn but that such prioritisation should not preclude the initial consideration of capital projects that could deliver social value.

 

v      Note that the Budget is aligned to the Council’s Corporate Priorities.

 

 

Reasons for the Recommendations

 

To continue with the implementation of the Council’s Budget Strategy and to deal with the Council’s projected budget deficit which is higher than previously anticipated due to the impact of increasing inflation, increased homelessness costs, future Council Tax and Business rates income projections and impact of the cost-of-living crisis on other income sources such as fees and charges.

 

To agree the revised Crawley Homes capital investment plan for inclusion within the capital budget.

 

To agree growth items and capital schemes outlined in the report.

 

To note that until the Local Government Finance Settlement is known in December 2022 these projections are highly likely to change. 

 

Report author: Karen Hayes

Publication date: 24/11/2022

Date of decision: 23/11/2022

Decided at meeting: 23/11/2022 - Cabinet

Effective from: 30/11/2022

Accompanying Documents: