Issue - meetings

The Leader’s Portfolio

To consider FIN/606 of the Chief Executive and Chief Accountant (s151 officer), which was referred to the meeting of the Overview and Scrutiny Commission on 30 January 2023.

RESOLVED

That the Full Council be recommended to approve the following items regarding the 2023/2024 Budget:

a)        approve the proposed 2023/24 General Fund Budget which includes using £261,970 of general fund reserve and includes savings rolled forward from the current financial year as set out in section 6 of report FIN/606,

b)        approve the proposed 2023/24 Housing Revenue Account Budget as set out in Appendix 3 of the report which includes the savings and growth items as set out in section 10 of report FIN/606,

c)         agree to increase the capital budget for Crawley Homes retrofit schemes by £900,000 to assist with water neutrality, funded from the HRA but reimbursed by developers to carry out further retrofitting works on Council’s housing stock and new-build schemes (para 11.3 of report FIN/606).  In addition that authority be delegated to the Head of Crawley Homes, the Head of Corporate Finance, and the Head of Governance, People & Performance; in consultation with the Leader of the Council and the Cabinet Member for Housing, to enter into the necessary contracts, and complete all relevant legal documentation to achieve the above recommendation

(Generic Delegation 2 and 3 will be used to enact this recommendation).

d)        increase the capital programme by £129,950 funded from Government grant for the Town Centre DHN Phase 2 extended feasibility.  An increase of £184,950 for the DHN and a reduction of £55,000 for the Town Centre Capital programme (para 11.5 of report FIN/606).

e)        approve the 2022/23 and future years Capital Programme and funding as set out in paragraph 11.6 of report FIN/606, 

f)          agree the transfers between reserves as outlined in Section 12 of report FIN/606, this includes creating a Cost of Living reserve.

g)        agree that the Council’s share of Council Tax for 2023/24 be increased by 2.99% (£6.55) from £218.79 to £225.34 for a band D property as set out in paragraph 13.1 of report FIN/606,,

h)        approve the Pay Policy Statement for 2023/2024 as outlined in paragraph 16.3 and Appendix 6 of the of report FIN/606, noting that the pay award has yet to be agreed,

i)          approve that the S151 Officer (in consultation with the Chief Executive and Leader of the Council) be delegated authority to make minor amendments to the Hardship Policy (under Generic Delegation 7).

j)        agree to increase the capital budget for Temporary Accommodation by £1,150,000, funded from grant funding of £474,000 and borrowing of 676,000 as detailed in reportFIN606A.

k)       agree to increase the capital budget for Acquisitions of Land and Dwellings by £10,000,000 funded from 1-4-1 receipts £4,000,000 and borrowing of £6,000,000 as detailed in reportFIN606A

Reasons for the Recommendations

To provide adequate funding for the proposed level of services and to fulfil the statutory requirement to set a Budget and Council Tax and report on the robustness of estimates.

The Leader presented reports FIN/606 and FIN606Aof the Chief Executive and Chief Accountant (s151 officer).  The Council had a statutory responsibility to set a Council Tax and Budget in advance of the commencement of the new financial year. It was noted that the report detailed each of the Revenue, Capital and Housing Revenue Accounts that combine together to formulate ‘The Budget’. In proposing the level of Council Tax for the Financial Year 2023/24, each of those accounts identified had been considered. The proposed Council Tax for 2023/24 was to be increased by 2.99%. In presenting the report the Leader highlighted the proposal to use £261,970 from the General Fund reserve, the proposal to increase the capital budget for Crawley Homes retrofit schemes by £900,000 to assist with water neutrality and the expenditure on capital projects.

The Leader also detailed the additional recommendations contained within the supplementary agenda which proposes to increase the capital programme for temporary accommodation by £1,150,000 to £9,548,258 and the budget for acquisitions of Land and Dwellings by £10,000,000.  It was noted that the reasons for both additional proposals were to allow the Council to maximise any opportunities to help tackle the increasing pressures on the Council’s in respect of temporary accommodation and the need for affordable housing.

Councillor T Belben presented the Overview and Scrutiny Commission’s comments on the report OSC/308to the Cabinet following consideration of the matter at its meeting on 30 January 2023, which including acknowledging the serious impact of the cost of homelessness was and would be having on the Council finances in the next couple of years.

Councillors C Mullins, Jhans, and S Mullins spoke as part of the discussion on the report.

RESOLVED

That the Full Council be recommended to approve the following items regarding the 2023/2024 Budget:

a)         approve the proposed 2023/24 General Fund Budget which includes using £261,970 of general fund reserve and includes savings rolled forward from the current financial year as set out in section 6 of report FIN/606,

b)         approve the proposed 2023/24 Housing Revenue Account Budget as set out in Appendix 3 of the report which includes the savings and growth items as set out in section 10 of report FIN/606,

c)         agree to increase the capital budget for Crawley Homes retrofit schemes by £900,000 to assist with water neutrality, funded from the HRA but reimbursed by developers to carry out further retrofitting works on Council’s housing stock and new-build schemes (para 11.3 of report FIN/606).  In addition that authority be delegated to the Head of Crawley Homes, the Head of Corporate Finance, and the Head of Governance, People & Performance; in consultation with the Leader of the Council and the Cabinet Member for Housing, to enter into the necessary contracts, and complete all relevant legal documentation to achieve the above recommendation

(Generic Delegation 2 and 3 will be used to enact this recommendation).

d)         increase the capital programme by £129,950 funded from Government grant for  ...  view the full minutes text for item 6

To consider report FIN/606 of the Chief Executive and Chief Accountant (s151 officer).

The Commission considered reports FIN/606 and FIN606Aof the Chief Executive and Chief Accountant (s151 officer).  The Council has a statutory responsibility to set a Council Tax and Budget in advance of the commencement of the new financial year. The Council Tax has to be set by March each year.

During the discussion, the following points were expressed:

·         Acknowledgement that there have been several movements since the Budget Strategy report and the budget assumed a use of reserves of £261,970.  There were sufficient General Fund reserves for this and during the year £413k of savings has been identified for the current and future financial years.  Fees and charges would also increase by an average of 5% as per the approved Budget Strategy.

·         The budget projection for the financial year 2024/25 provided a projected gap of over a million as a result of inflation and pay provisions, the additional costs of waste management and reduced Government funding.  Over the four years the average gap was £701k and work would be required to find savings and efficiencies to meet this gap.  Any growth item going forward would have to have a compensating saving identified to fund it.

·         Recognition that the Government increased the Council Tax capping guidance to 3% or £5 on a Band D, whichever was the highest. The proposed 2.99% increase in Council Tax for the year for a Band D property equated to an increase of £6.55 for the year.  Recognition that with regards to Council Tax the most common band within the town was Band C. It was commented that the proposed increase for the Borough Council was low when compared to those projected across the three authorities (CBC £6.55, WSCC £77.67, PCC £15.00).  It was important to be mindful and proportionate in the increases to the ‘public purse’.

·         Acknowledgement that the capital programme requested an additional £900k for Crawley Homes retrofit initiatives, to unblock developments due to water neutrality.  These costs would be reimbursed by developers back to the HRA and tenants would benefit from lower water bills.

·         Recognition of the supplementary report additional recommendation for £10m budget for Acquisition of Land and Dwellings in the HRA, and £1.15m for Temporary Accommodation which would provide the flexibility to acquire properties on the market for either general needs or temporary accommodation purposes.

·         Confirmation sought and provided on the apprenticeship schemes and salaries.

·         Detailed discussion ensued in relation to the potential reduction in homelessness numbers.  Recognition that regular liaison took place with Strategic Housing and whilst it was a challenge to estimate the impact on future budgets of homelessness demands it was hoped that additional factors (such as grants and increases to capital budgets as documented in the supplementary agenda) would assist in reducing the demand for the service in future years. Acquisitions could play a significant role in addressing the increasing pressures on the Council’s Housing Register.

·         Acknowledgement that forecasting trends, variables and future housing needs was complex and on a local level.  The reasons for homelessness  ...  view the full minutes text for item 5