Agenda item

Councillor Richard Samuel, Cabinet Member for Resources, introduced the report by explaining that the economic climate is severe and this is the hardest budget yet. He explained that the Medium Term Financial Strategy highlights the environment that the Council will be operating in and stated that the Council will have to do something different over the next few years. Andy Rothery, Chief Finance Officer talked through the main points of the report.

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

Councillor Hodge asked for information regarding the funding gap; budget re basing; contract inflation; demographic growth and proposed savings. The officer explained that there was some one-off monies last year, Covid funding, which has dropped now. He stated that there was contract inflation – key services exposed due to higher fuel costs etc. He added that proposed savings are currently being reviewed.

Councillor Hounsell commented on the tough situation next year. He asked that if schemes had not spent all of their money this year, would that money be safe. The Cabinet Member stated that this was difficult to answer at this stage. He explained that, looking ahead over the next 5 years, there were a lot of major projects such as Bath Quays and Fashion Museum and capital demand must be calculated. He said that ultimately it was a decision for full Council but it was hard to see how everything could be sustained. He further explained that all Council’s have been affected by the shrinkage in local government funding.

Councillor Hughes asked about the strategy regarding the move away from retail. He asked if hospitality and tourism were potential areas of growth. The officer stated that the centre is reliant on tourist income and there are plans to diversify. He stated that there were also developments outside the centre. The seeds are being planted.

Councillor Hughes asked about the strategy regarding car parking in the centre as there is income from parking but the Council are encouraging Park and Ride and cycling etc. The Cabinet Member stated that there is an incoherence between parking income and measures to reduce carbon production. He stated that, in a perfect world the Council would not have to rely on parking income. He stated that the strategy is to reduce vehicles coming into the city for health and climate reasons.

Councillor Duguid asked about reserves and how they are used. The officer explained that reserves are linked to various things such as insurance reserve and social care. The overall level is £54million. He explained that temporary use of reserves is appropriate if they can be replenished. Reserves must span a range of financial years.

Councillor Duguid asked if BANES is prudent with its reserves. The Cabinet Member explained that if reserve levels are low, the Council has low resilience. He explained that his approach had been to rebuild reserves and this Council was in a stronger position than some others. He further explained his view is that reserves should be spent if something is unavoidable or towards an investment. He confirmed that this administration has built the overall level of reserves to £54million.

Councillor Hodge asked about business rates retention. The officer stated that they are hopeful but have to wait for the settlement.

The Chair thanked the officer and Cabinet Member.