Issue - meetings

That:

a) the budget proposals should be based on a Council Tax increase of £5, contract inflation up to 4%, no inflation in other goods and services budgets and that the provision for the national pay award will be up to 4%;

b) the assumption that the current local government finance system will continue for a further year and the windfall New Homes Bonus payment will be used to set aside £400k in reserves to meet part of the estimated cost of the refresh of the District Plan with the remainder being used to support the budget through the exceptional circumstances of the current economic and political climate as detailed in Appendix B to the report be endorsed;

c) the savings requirements that the Transforming East Herts Programme will need to deliver in order to balance the budget in the Medium Term be noted;

d) officers re-phase the capital programme and revenue impacts of capital financing and make recommendations about schemes that could be delayed or cancelled to reduce the savings requirements; and

e) the revised savings requirements of £0.812 million in 2023/24, £2.050 million in 2024/25, £2.114 million in 2025/26, £0.792 million in 2026/27 and £0.268 million in 2027/28 be noted.

The Executive Member for Financial Sustainability presented the Medium Term Financial Plan. Councillor Williamson said that the purpose of the report was to set the scene for Members and for the Executive to provide Officers with a steer and approve assumptions to devise the budget for 2023/24. He said that rapidly changing external factors such as the war in Ukraine and the rise in interest rates has made it harder to assemble a budget.

Councillor Williamson highlighted the budget gaps for the next four years provided in Appendix A. He said that the Transformation Programme was key for delivering future savings but options were becoming limited.

Councillor Haysey said it wasn’t easy to set a budget in the current context but the council would work hard to ensure residents received value for money.

Councillor Williamson proposed, and Councillor Cutting seconded a motion supporting the recommendation in the report. On being put to the meeting and a vote taken, the motion was declared CARRIED.

RESOLVED – That (A) the budget proposals should be based on a Council Tax increase of £5, contract inflation up to 4%, no inflation in other goods and services budgets and that the provision for the national pay award will be up to 4%;

B) the assumption that the current local government finance system will continue for a further year and the windfall New Homes Bonus payment will be used to set aside £400k in reserves to meet part of the estimated cost of the refresh of the District Plan with the remainder being used to support the budget through the exceptional circumstances of the current economic and political climate as detailed in Appendix B to the report be endorsed;

C) the savings requirements that the Transforming East Herts Programme will need to deliver in order to balance the budget in the Medium Term be noted;

D) Officers re-phase the capital programme and revenue impacts of capital financing and make recommendations about schemes that could be delayed or cancelled to reduce the savings requirements; and

E) the revised savings requirements of £0.812 million in 2023/24, £2.050 million in 2024/25, £2.114 million in 2025/26, £0.792 million in 2026/27 and £0.268 million in 2027/28 be noted.