Issue - meetings

The Chief Finance Officer addressed the Panel and gave a presentation. A summary is set out below and a copy will be attached as an online appendix to these minutes.

Budget Assumptions 2022/23

The forecast includes the following cost pressures and assumptions:

·  Pay Inflation - Estimated 2.00% per annum

·  Council tax - Assumed at 1.99% & 1% Social Care precept for next 3 years

·  Pension Costs - Have been revised in line with the recent revaluation for the next two years followed by a 1% increase per annum from 2023 24

·  Demographic Growth & Increase in Service Volumes - Additional demand from new placement and market pressures in Adult Children Social Care

·  Inflation - CPI projections held at existing planning levels of 2% this will be refreshed for the detailed budget proposal based on ONS data Financial risk is being recognised with contingencies made in high risk areas

·  Budget Pressures / Rebasing – 2022/23 budget rebasing of income budgets taking account of Covid recovery, with improvement in future years

·  Capital Spending - an allowance has been made to fund a minimal number of new schemes given current financial constraints

·  Reserves - Planned use of £3m corporate £2.22m service reserves to manage the transitional pressures from reduced income, and £5m commitment against un earmarked general reserve for unbudgeted Covid pressures

He explained that the Council was still awaiting the outcome of the Spending Review from the Government.

He informed the Panel that a contingency budget (inflation and pressures) had been constructed with the following elements in mind.

·  Adults and Childrens Corporate Contingency £2m

·  Energy Inflation contingency £1.25m

·  N.I. Uplift £0.75m

·  Business Rates base pressure £0.5m

·  New Homes Bonus grant risk £0.92m

·  Total £5.42m

The Chair asked if enough measures were in place given the continuing pressure on funding within the Council.

The Chief Finance Officer replied that it was difficult to account for all eventualities, but that he felt the Council was as prepared as it could be.

Revised Budget profile

·  Increase in Government funding into base budget for 2022/23

·  2022/23 will reset the budget taking account of new funding requirements

·  Council funding and the budget requirement is more aligned in future years

Budget setting timetable:

·  Nov: Area Forum discussion on Winter Pressures

·  Dec: 14th December Budget Engagement event

·  Jan: 10th & 31st Corporate Scrutiny Panel

·  Feb: 10th Cabinet

·  Feb: 15th Full Council

The Chair requested that as much information as possible be shared with the Panel ahead of its meetings on Jan 10^th and 31^st respectively.

The Chief Finance Officer replied that it was the intention that all of the detailed budget annexes, in terms of adjustments to the budget, including savings, investment and the capital programme would be discussed on Jan 10^th.

Councillor Andrew Furse asked if the 2% assumption on pay inflation was sufficient.

The Chief Finance Officer replied that he felt that it was a reasonable figure over the five year term. He added that a contingency may need to be considered as negotiations regarding pay  ...  view the full minutes text for item 52