Issue - meetings

The Head of Strategic Finance and Property introduced the report which set the scene for the Budget 2022/23 and the Medium Term Financial Plan (MTFP) 2022 – 2027.  It was noted that the Executive had previously provided guidance to Officers that the budget proposals should be: based on a Council Tax increase of £5; contract inflation of up to 4%,; that there be no inflation in other goods and service budgets; and a provision of 3% for the national pay award be made (which could be reduced by 0.25% of the 2021/22 pay provision carried forward as a result of the 1.75% final pay offer from the employer’s side). He further summarised the recommendations B – G as detailed within the report.

The Head of Strategic Finance and Property referred to savings requirements of £0.967 million in 2022/23 which was principally being driven by the costs in relation to Harlow and Gilston Garden Town (HGGT) and explained that there would be other costs in relation to the crossings over the River Stort.  Furthermore, Compulsory Purchase Orders would impact on the ability to fund the costs from reserves.  He referred to the establishment of a Major Applications Team which would oversee the HGGT applications which could generate  work over a 20 year period.

The Chairman thanked the officer and referred Members to the seven recommendations in the report. He said that that there were a lot of positives throughout the report. 

Councillor Townsend referred to the Equalities Impact Assessment (EIA) and queried the depth of investigations needed.  The Head of Strategic Finance and Property explained that the aim was to ensure that the budget did not impact on individuals who had protected characteristics and if it did, then an in-depth EIA investigation would be conducted.  On the issue of the New Homes Bonus and the Government’s response, the Head of Strategic Finance and Property said the Local Government Finance settlement  in the second week in December.  Based on the government consultation on the new system it was unlikely the council would receive any New Homes Bonus.  Until the Settlement and the consultaion response were announced, about the council did not know whether it would receive any  New Homes Bonus.

Councillor Stowe referred to the possible savings from letting out floor space in 2022/23 i.e. an achievement of £100k in the first year.  The Head of Strategic Finance and Property said that this referred to the overall savings estimate from the Transforming East Herts Programme and confirmed what the estimated transformation savings would be phased over several years and this was an initial estimate of delivery of those savings.

Councillor Curtis referred to the guidance to Officers on the budget and the request that there be no inflation in other goods and services and whether this was a reasonable assumption.  He questioned what might happen if there was an inflationary increase of 4 or 5% in other costs budgets.  The Head of Strategic Finance and Property explained  ...  view the full minutes text for item 222