Agenda and draft minutes

Councillor M Smith was appointed Chair for the meeting.

By Acclamation

Apologies for absence had been received from Councillors C Gare, M Foster, D Skinner and C Smith.

Members are requested to declare the existence and nature of any disclosable pecuniary interests and/or other interests, not already on their register of interests, in any item on the agenda and withdraw from the meeting at the appropriate time.

None.

Report of the Director of Finance & Resources and Section 151 Officer

The report to the Joint Scrutiny Committee set out the proposed Medium Term Financial Plan (MTFP) for 2023-24 to 2027-28 respectively.  Committee was asked to consider the Plan. It’s views would then be taken into account when the Plan was submitted to Cabinet for endorsement on 25 January 2024 and then to Council for approval on 29 January 2024 respectively.

The report to Joint Committee set out the Current Budget for the 2023/24 financial year.   It also set out the proposed Original Budget for the 2024/25 financial year and the financial projections in respect of 2025-26 to 2027-28.

The Deputy Leader of the Council and Portfolio Holder for Strategic Leadership and Finance, Councillor P Kerry, introduced the report. He explained how the 2023-24 and 2024-25 financial settlements would essentially be ‘rollovers’ of the 2019 position. Any changes to the funding arrangements would probably not now be implemented until after the General Election had taken place. Consequently, the earliest impact of these on the Council’s budget was now likely to be 2026-27. As the scope and scale of the reforms were not yet clear, there remained uncertainty about what impact they would be on the later years of the Financial Plan.

The Director of Finance and Resources and Section 151 Officer then spoke to the report. She explained how it set out the Current Budget for the 2023/24 financial year.  As part of this, the Director highlighted the financial pressures facing the Council.  These included £2.3M in additional pay costs following the nationally agreed pay settlement, an increase in contractual spending and the higher costs of regulation that would have to be met from the Housing Revenue Account.  She also explained the proposed Original Budget for the 2024/25 financial year, covering the General Fund. This assumed:

·             That the Budget be cash-limited, where possible;

·             That cost pressures from previous years would be included in the base budget; and

·             That Council Tax ought to increase by 2.99%.

Joint Committee heard how the Council, along with other local authorities had become increasingly dependent on the income generated from the Council Tax. In particular, Members were informed that this now accounted for 40% of the General Fund Income

The report also explained the forecast positions in respect of 2025-26 to 2027-28 financial years. Joint Committee was informed that the budget gap before any Council Tax increase was projected to be £302,000. However, this would fall to £100,00 if Council Tax increased by the recommended 2.99%. This would reduce still further if the additional Government funding was in line with the Council’s estimates. Consequently, far less use would probably have to be made of the Resilience Reserve in order to cover the budget than originally expected.

Committee then considered the Housing Revenue Account (HRA). The Managing Director of Rykneld Homes Limited, which manages the Council’s housing stock, spoke to this part of the report. In particular, she explained the significant cost pressures facing the company and other social housing providers. These included the costs of the  ...  view the full minutes text for item JSC4/23-24

To consider any other matter which the Chair of the Joint Scrutiny Committee is of the opinion should be considered as a matter of urgency.

None.