Issue - meetings

Report of Councillor P Parkin, Portfolio Holder for Finance.

Key Decision

RESOLVED -

Council be recommended at its meeting on 31 January 2022:

(1)           That the view of the Assistant Director – Finance & Resources, that the estimates included in the Medium Term Financial Plan 2021/22 to 2025/26 are robust and that the level of financial reserves are adequate at this time, be accepted.

(2)           That officers report back to Cabinet and the Audit and Corporate Governance Scrutiny Committee on a quarterly basis, regarding the overall position in respect of the Council’s budgets. These reports to include updates on achieving the savings and efficiencies necessary to secure a balanced budget over the life of the Medium Term Financial Plan.

General Fund

(3)           A Council Tax increase of £4.99 be levied in respect of a notional Band D property (2.58%).

(4)           The Medium Term Financial Plan in respect of the General Fund, as set out in Appendix 1 to the report, be approved as the Current Budget 2021/22, as the Original Budget 2022/23, and as the financial projections in respect of 2023/24 to 2025/26.

(5)           That the General Fund Capital Programme, as set out in Appendix 5 to the report, be approved as the Current Budget in respect of 2021/22, and as the Approved Programme for 2022/23 to 2025/26.

(6)           That any under-spend in respect of 2021/22 be transferred to the Resilience Reserve to provide increased financial resilience for future years of the plan.

Housing Revenue Account (HRA)

(7)           That Council sets its rent levels for 2022/23 in line with the Social Housing Rent Standard, increasing rents by 4.1% from 1st April 2022.

(8)           That all other charges be implemented in line with the table shown at 1.43 in the report, with effect from 1 April 2022.

(9)           The Medium Term Financial Plan in respect of the Housing Revenue Account, as set out in Appendix 4 to the report, be approved as the Current Budget in respect of 2021/22, as the Original Budget in respect of 2022/23, and the financial projection in respect of 2023/24 to 2025/26.

(10)        That the HRA Capital Programme, as set out in Appendix 5 to the report, be approved as the Current Budget in respect of 2021/22, and as the Approved Programme for 2022/23 to 2025/26.

(11)        That the Management Fee for undertaking housing services at £9.751m and the Management Fee for undertaking capital works at £1.100m to Rykneld Homes in respect of 2022/23 be approved.

(12)        That Members endorse the section in the current Financial Protocol, which enables the Council to pay temporary cash advances to Rykneld Homes in excess of the Management Fee, in order to help meet the cash flow requirements of the company, should unforeseen circumstances arise in any particular month.

(13)        That Members note the requirement to provide Rykneld Homes with a ‘letter of comfort’ to the company’s auditors and grant delegated authority to the Council’s Assistant Director – Finance & Resources in consultation with the Portfolio Holder for Finance, to agree the contents of that letter.

REASONS FOR DECISION - To recommend budgets  ...  view the full decision text for item 73

As part of the Council’s Medium Term Financial Plan (MTFP), the report to Cabinet set out the Current Budget for the 2021-22 financial year. It also set out the proposed Original Budget for the 2022-23 financial year, covering the General Fund, Housing Revenue Account and Capital Programme. Cabinet was asked to endorse and recommend them to Council for approval, at its meeting on 31 January 2022.

Members discussed the report. They considered the current year (2021-22) Revised Budget. Cabinet was reminded that the final outturn position would depend on actual financial performance. It noted that further budget changes might be required as the year progresses.

Cabinet was informed that the Coronavirus (Covid-19) outbreak had continued to impact on some of the Council’s services. In particular, it had reduced the income received from fees and charges by the Leisure Service.  Members were informed that this income had begun to recover, as more people begin to use Leisure Centres and facilities again.   Cabinet also heard about the support that had been provided under the Government’s Sales, Fees and Charges compensation scheme and how this had helped to make good the lost income.

Cabinet discussed the proposed Original Budget for 2022/23. Members were informed that the Local Government Finance Settlement, announced in late December 2021, had benefited the Council in several ways. This had reduced the financial challenges which had to be met when preparing the proposed Original Budget for 2022-23.

Members recognised that further efficiency savings would be required in order to address the underlying forecast budget deficits during the other remaining years of the Council’s Medium Term Financial Plan (MTFP). Cabinet welcomed the work which had taken place to develop an Efficiency Plan for achieving the necessary financial savings.

Members discussed the proposed Council Tax increase of £4.99 (2.58%), to be levied in respect of a notional Band D property for 2022-23. Cabinet felt that an increase in the Council Tax at this level would be required to maintain the Council’s services to the District and its communities.

Cabinet discussed the proposed Housing Revenue Account. Members noted the 4.1% increase in housing rents recommended for 2022/23.  Members reflected on how the proposed rent increase would be in line with Social Housing Rent Standard, set by the Government. This Standard allowed all registered providers of social housing, including local authorities, to apply annual rent increases of up to the Consumer Price Index (CPI) plus 1%. Cabinet felt that an increase at this level would help ensure that the Council’s housing stock was adequately maintained and improved.

RESOLVED -

Council be recommended at its meeting on 31 January 2022:

(1)           That the view of the Assistant Director – Finance & Resources, that the estimates included in the Medium Term Financial Plan 2021/22 to 2025/26 are robust and that the level of financial reserves are adequate at this time, be accepted.

(2)           That officers report back to Cabinet and the Audit and Corporate Governance Scrutiny Committee on a quarterly basis, regarding the overall position in  ...  view the full minutes text for item 73