Issue - meetings

This report presents the revenue and capital budgets together with proposals for increases in Council Tax and the Adult Social Care Precept for 2023/24.

The Council considered a report which presented the revenue and capital budgets together with proposals for increases in Council Tax and the Adult Social Care Precept for 2023/24.

On a motion from Councillor Richard Samuel, seconded by Councillor Kevin Guy, it was

RESOLVED

1.  To approve

a)  The General Fund net revenue budget for 2023/24 of £131.03m and the individual service cash limits for 2023/24 as outlined in Annex 1;

b)  The savings and income plans outlined in Annex 2(i), funding requirements 2(ii), in conjunction with the Equalities Impact Assessment Report in Annex 3.

c)  An increase in Council Tax of 2.99% in 2023/24 (an increase of £47.10 per Band D property or 91p per week).

d)  An increase of 2% to Council Tax for the Adult Social Care Precept in recognition of the current demands and financial pressures on this service. This is equivalent to an increase of £31.50 on a Band D property (61p per week).

e)  The movement in reserves outlined in section 5.6 and the adequacy of Un-earmarked Reserves at £12.58m within a risk assessed range requirement of £11.6m - £12.8m.

f)  To note the Children’s Services management plan set out in section 5.2.7 of the report.

g)  The Efficiency Strategy attached at Annex 4.

h)  The Capital Programme for 2023/24 of £87.89m including new and emerging capital bids outlined in Annex 5(i), planned sources of funding in 5.8.2, and notes the programme for 2024/25 to 2027/28 and that any wholly funded projects coming forward during the year will be added to the Capital Programme in line with the Budget Management Scheme.

i)  The delegation of implementation, subject to consultation where appropriate, of the capital programmes set out in Annex 5(i) to Annex 5(iv) to the relevant Director in consultation with the appropriate Portfolio Holder.

j)  The Community Infrastructure Levy (CIL) allocations and amendments outlined in Annex 5(v).

k)  The Capital & Investment Strategy attached at Annex 6.

l)  The MRP Policy attached at Annex 7.

m)  The Capital Prudential Indicators outlined in 5.8.6.

n)  The Annual Pay Policy Statement at Annex 8.

o)  The Community Contribution Fund pilot 12-month extension outlined section 5.5.

p)  The Council Tax Support Scheme for 2023/24 shown in the following link and referred to in 5.3.5:

https://beta.bathnes.gov.uk/sites/default/files/2023-01/Proposed%20Council%20Tax%20reduction%20scheme%20April%201%202023%20-%20March%2031%202024.pdf

q)  To approve the Fees and Charges schedule for 2023/24 at Annex 11 and support its publication following approval of the budget.

2.  That the Council approves the technical resolutions that are derived from the budget report, and all the figures in that report, including the precepts for towns, parishes and other precepting bodies as set out in Annex 12.

3.  That the Council note the S151 Officer’s report on the robustness of the proposed budget and the adequacy of the Council’s reserves outlined in 5.7.

4.  That Council note the budget consultation responses in Annex 10.

[Notes;

1.  An amendment was moved by Councillor Joanna Wright, and seconded by Councillor Robin Moss, to request a budget  ...  view the full minutes text for item 78

The attached report presents the revenue and capital budgets together with proposals for increases in Council Tax and the Adult Social Care Precept for 2023/24.

Cllr Richard Samuel introduced the report and made the following statement:

“I want to start by paying tribute to the council staff who have worked with me to pull this budget together in the most challenging circumstances. From the Chief Executive to Andy Rothery – the chief Financial Officer and his staff, in particular Gary Adams, Giles Oliver and Paul Webb but also to the finance staff in departments who have pulled together the numbers as we progressed.

When we began work last summer none of could have known what was in store. At that point inflation was looking like it would rise, but interest rates were still low although the storm clouds were gathering over the rapidly escalating cost of energy. What we could never have anticipated was that a new prime minister and her trainee chancellor were about to trash the economy by advancing unfunded tax cuts thereby leading to higher taxes, higher interest rates and a collapse in market confidence in government bonds. Just as with Black Wednesday in 1993 the Conservative Party threw away its already tenuous claim to be the party of fiscal responsibility.

These unexpected and unnecessary costs have hit the council hard as they have every household and business in the country adding millions to our running costs.

Fortunately, due to the tight fiscal control we have maintained over the past four years we have found ourselves in a sufficiently resilient position to be able to protect our front line services that are some important to residents, and continue to invest in high priorities for residents such as our clean and green campaign, and our highway and transport programmes as well as continuing the momentum to build council housing for the first time in a generation. A wide range of initiative across Bath and North East Somerset will benefit those areas and continue the drive towards net zero.

In total savings of £14m have been made to balance the books and maintain our drive to improve our area.

At this point it is worth commenting on the support the council receives from the government. As recently as 2013 we were receiving around £30m on support grant and this enabled the council to provide a range of valued services to residents. That has been chipped away by the government to the point that this year we received £800k. It is not unreasonable to say that the Conservative government has removed nearly £300m from B&NES residents in the past 10 years and made the council make up the difference by raising council tax and making local taxpayers pay more to the cost of social care through the social care levy.

We have decided that to avoid any more cuts council tax does unfortunately have to rise but only buy 2.99% not 4.99% as stated by the local media today. In addition, there will be a social care levy of 2% which will go directly towards the funding of services for elderly and vulnerable adults  ...  view the full minutes text for item 64

Andy Rothery, Chief Finance Officer (Section 151 Officer) and Councillor Richard Samuel, Cabinet Member for Resources introduced the report. Councillor Samuel set the context – he explained that since 2010 there had been a steady decline in external grants to Local Authorities. The Council would have more core funding if it were not for this decline, the Covid period and current inflation issues have added further stresses.

Andy Rothery gave a presentation to the Panel which covered the following:

·  Autumn Statement National Headlines

·  December Settlement Headlines

·  Budget Summary – demand and funding changes (5 years)

·  Cost pressures and assumptions included in the forecast

·  Budget Growth of £17.5m

·  Proposal regarding Council Tax and Social Care precept

·  Capital Programme 2023/24 to 2027/28

·  General Fund Un-Earmarked Reserve

Panel members made the following points and asked the following questions:

Councillor MacFie asked the following questions (officer replies shown in italics):

·  Can we offer reductions in business rates (for a period, such as 2 years) as an introductory benefit and if so how is this done? The officer explained that smaller businesses (rateable value £15k or below) qualify for some relief. The scheme for retail/hospitality/leisure is also continuing into next year.

·  If we have some vacancies (not full employment) is there some money left over or do we budget for not having full employment? The officer explained that 2/3% vacancy factor is built into the base budget regarding staffing levels.

Councillor Furse asked the following questions (officer replies shown in italics):

·  Regarding recruitment, is it optimistic to assume a 2% salary increase going forwards? We recognise the risk that next year may be higher and have budgeted at 3% plus 1% contingency for 2023/24.

·  Regarding capital funding savings – with inflation and the increase in the cost of borrowing – will the savings be narrower? This has been factored in.

·  Regarding Council Tax banding, we have some high value properties, can we ask the Government about adding bands? Residents in lower bands have more burden. The Cabinet Member explained that the current bands were set in 1991. The Government has not brought them up to modern levels. The system is inherently unfair and not related to the income of the occupier. It is a regressive tax. All areas are affected by this.

·  Regarding managing risk, are the £12.6million reserves earmarked? The unearmarked reserve risk is separate from earmarked reserves.

Councillor Hodge asked the following questions (officer replies shown in italics):

·  Regarding the level of savings we have to find this year, has the risk been quantified. Is the proportion of cost reduction against income similar to previous years? The proportions are similar although slightly higher on income. The Cabinet Member further explained that the income that comes from the Commercial Estate, Heritage and Car Parking is not limitless, they cannot be constantly increased so we have to look at other sectors for efficiencies for example being tougher on arrears.

·  Amber/Green risks – The risks have been assessed, there is 10% contingency against savings.

·  Is the  ...  view the full minutes text for item 41