Agenda item - 2022/2023 Budget and Council Tax

The Leader’s Portfolio

To consider report FIN/549 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission held on 31 January 2022.

RESOLVED

That Full Council be recommended to approve the following items regarding the 2022/23 Budget:

a) to approve the proposed 2022/23 General Fund Budget including savings rolled forward from the current financial year as set out in paragraph 6.4 of report FIN/549, this includes a transfer from reserves to cover the additional costs of Covid-19 of £451,730,

b) to approve the proposed 2022/23 Housing Revenue Account Budget as set out above and Appendix 3(ii) of the report FIN/549 which includes the growth items as set out in Table 9,

c) to agree to ringfence £1,055,000 of capital reserves for investment in the Towns Fund as a result of using an advance of 5% Government funding of the £21.1m in year. The requirement is to use this sum in year and set aside an equal sum of our own resources,

d) to agree to increase the capital budget for Tilgate Park lake erosion by £150,000 funded from the capital programme reserve, this will be repaid over a three year period by the park,

e) to approve the 2021/22 and future years Capital Programme and funding as set out in paragraph 11.6 of the report FIN/549,

f) to agree that the Council’s share of Council Tax for 2022/23 be increased by 2.31% (£4.95) from £213.84 to £218.79 for a band D property as set out in paragraph 13.1 of report FIN/549,

g) to approve the Pay Policy Statement for 2022/2023 as outlined in paragraph 16.3 and Appendix 6 of report FIN/549 noting that the pay award has yet to be agreed in the current financial year.

h) to agree to increase the capital budget for Temporary Accommodation by £6,000,000, funded from grant funding of £1,000,000 and borrowing of £5,000,000 and to note the changes to table 11 paragraph 11.6 as detailed in report FIN/560 which superseded the same table and paragraph in report FIN/549.

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.

Increasing the capital programme for temporary accommodation by £6,000,000 to £8,400,000 will provide approximately 65 units of temporary accommodation. There are currently 121 in nightly paid accommodation and the use of these units will reduce Bed & Breakfast costs, this would cover the cost of borrowing for the schemes.

The Leader presented report FIN/549 of the Head of Corporate Finance. 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 2022/23, each of those accounts identified had been considered. The proposed Council Tax for 2022/23 was to be increased by 2.31%.

The Leader emphasised that the proposed budget was being achieved without the need to make any cuts to services, instead the Council were going to use specifically created reserves to address any shortfall. The Council’s aim was to achieve a balanced Budget over a four year period including putting back into the reserves when the Budget was in surplus. He informed the Cabinet that the proposed Budget had been produced based on the principles set in the Budget Strategy which had been approved by Full Council on 15 December 2021.

The Leader highlighted the additional recommendation contained within report FIN/560 (in the supplementary agenda) that requested an increase to the temporary accommodation capital budget of £6,000,000 and also proposed a slight change to recommendation 2.2d) to include the words ‘Three Years’ so it would read ‘to agree to increase the capital budget for Tilgate Park lake erosion by £150,000 funded from the capital programme reserve, this will be repaid over a three year period by the park.’

Councillor Khan presented the Overview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on 31 January 2022, which included:

· That the Commission sought confirmation regarding the increase to the capital budget for Tilgate Park lake erosion in that it had previously been agreed with the Park for a certain amount of capital in return for cost-neutrality. This increased fund was required for lake erosion works as a result of environmental improvements required.

· That the Commission noted within the pay policy statement 2022/23 that the pay award had not been agreed within the current financial year. The exact date was currently unknown due to ongoing negotiations.

· That the Commission had securitised the supplementary agenda and report and had been informed that there was always the need to ease the reliance on bed and breakfast accommodation and increase the provision of temporary accommodation as much as possible. Housing policy was strictly adhered to, and it was also noted that the numbers on the housing register had not reduced over the years.

Councillors Mullins, Irvine and Jones all spoke in support of the proposed Budget and the amendments.

The Cabinet asked that its thanks and gratitude be recorded, for all the hard work and dedication over the years, to Karen Hayes, Head of Corporate Finance as this would be the last Budget she produced for the Council as she would be entering semi-retirement later on this year.

RESOLVED

That the Full Council be recommended to approve the following items regarding the 2022/23 Budget: