Agenda item - *Budget 2023/24 and Medium Term Financial Strategy

To consider and decide on the recommendations as set out in the associated report.

RESOLVED – That Full Council be recommended:

1. That the changes to the base budget along with the assumptions and approach set out throughout the report be approved.

2. That the responses to the budget consultation be approved.

3. That the use of £943,000 from reserves to balance the budget be approved.

4. That the rolling forward of the capital programme including gross funding of £620,000 for new schemes be approved.

5. That an increase in the Basic Amount of Council Tax of £5.71 per annum for a Band D property be approved.

6. That the implementation of Council Tax premiums on second homes from 1 April 2024 and the application of 100% Council Tax premium on properties that have been empty for at least 1 year from 1 April 2024, subject to the Regeneration and Levelling -Up Bill receive Royal Assent be approved.

REASON FOR DECISION: To deliver a sustainable budget to deliver the Council’s key objectives.

Robert Banks had registered to speak which included the following:

- The main areas that the respondents to the consultation wished to reduce the budget for discretionary services (contrary to those proposed by the Council) were, The Amelia Scott, Property and Development and the Assembly Hall Theatre.

- Respondents suggested reductions in all but one of the other areas and instead recommended increasing funding to recreation and climate change incentives.

- Although the results of the consultation had been presented, it didn’t look as though the report had been modified to incorporate those suggestions.

- Respondents to the consultation were not asked for their views on the statutory services.

- Respondents would have been unaware of the subsequent proposal for new collection rounds to be introduced, with the budget for waste and street sweeping to increase by £798k. This increase would include indexation and the cost of terminating the leases on a number of the existing fleet vehicles to facilitate a new fleet of 44 vehicles in 2023/24. The new 8 year lease would exceed Urbasers existing lease (which terminated in March 2027).

- The annual cost of the current contract could have increased by £2m.

- It was surprising that no details had been given regarding the annual cost of the new contract, the criteria for assessing any resulting improvement in the service, or whether any other Councils had adopted a similar business model.

- After 2027, the Council would be responsible for a further 4 years lease for half of the new fleet of diesel vehicles, which even if converted would still produce a carbon footprint that would need to be offset.

- Was it prudent to embark on this arrangement without evaluating the detrimental consequences and encouraging further public engagement.

Councillor Christopher Hall, Cabinet Member for Finance and Performance introduced Lee Colyer, Director of Finance, Policy and Development who presented the report as set out in the agenda.

- It was noted there was a slight change in Recommendation 5 of the report – the figure had been amended to £5.71 (from £5.72).

Discussion and questions from Members included the following:

- There was an excellent response to the budget survey with valuable feedback received.

- The Council was in a very serious situation with action needed in a number of areas, including:

o Increasing revenue

o Looking at the Revenue Budget to find ways to make savings

o The production of a Savings Plan, which was currently in progress but would take some time.

o Looking at the Asset Management Plan

- The 2022/23 budget was a ‘wait and see’ budget. To wait and see what the effects of Covid were and what the economic recovery would look like.

- That period had passed, and it was now clear that there were some very real structural issues that needed to be addressed.

- The Council was having to use £1m in reserves because it had a structural deficit that required the budget to be propped up in that way.

- The Council had to look at its assets e.g. car parks and assess the level of maintenance required and the huge cost that involved, and decide whether they continued to be needed.

- The Council was actively looking at its assets and would make assessments on what cost the most to run/manage but also understanding the need to continue to provide services effectively and efficiently.

- The additional payment to be given to the waste service would deliver additional efficiencies and opportunities in terms of carbon reduction.

- The changes would not affect the entire fleet so there would be opportunities to change other parts of the Council’s collection fleet to be electric vehicles in the future.

- When the new administration took control, the deficit for 2023/24 was £2.649m. An In-Year budget review was undertaken, and now looking at the fees and charges that had been introduced to safeguard the finances, over a year, this would raise £890k. The current projected deficit was now £943k.