Issue - meetings

The Executive Member for Financial Sustainability introduced the report which followed on from the paper presented to the Executive last month. This set the scene for the budget and the revised Medium Term Financial Plan for 2023 to 2027 and detailed the events which impacted the Council’s finances. He said that various assumptions were being made in the preparation of the budget at this stage, to include the raising of Council Tax by the allowed maximum of £5 (on a Band D property) without a referendum.

The Executive Member for Financial Sustainability said that another year of receiving the New Homes Bonus was possible as Government funding was again being rolled forward and that the Council’s Transformation Project, which was key for delivering the savings required  was well underway. He said that the re-phasing of the capital programme and revenue impacts of capital financing had been agreed to reduce savings requirements.

The Chairman asked what the Executive’s position would be if the Government’s Autumn Statement relaxed an Authority’s ability to raise Council Tax by more than the current maximum of £5 as rumoured. The Executive Member for Financial Sustainability said that he was hesitant to comment as this was only a rumour, but that there would still be caution in raising Council Tax significantly above the current maximum if this did transpire.   

Councillor Huggins asked for the Executive’s position regarding the rolled forward New Homes Bonus being considered as a windfall and not a continuous prop to budgets. The Executive Member for Financial Sustainability said that he would not describe the New Homes Bonus as a windfall, but that it was certainly helpful. He said that as per the report, £400,000 of potential bonus had been put aside for the refreshing of the District Plan, with £400,000 put into reserves for future funding pressures.

Councillor Crofton asked for further information regarding the delay in the Hertford Theatre Project.  The Executive Member for Financial Sustainability said that the original business case did expect the Council to be receiving an income from the Theatre earlier than now expected, but as with any major project delays did occur. He said that the delay to the project was due to several factors, with tenders going back out to the market on three occasions to get a contractor on site.

Councillor Crofton said that it was disappointing that there was no information within the report relating to the Council’s investment portfolio, namely a profit and loss spreadsheet for Millstream Property Investments Ltd (Millstream). The Head of Strategic Finance and Property said that as per the Council’s Constitution, Millstream’s Business Plan went to Council each year for approval. He said that the Audit and Governance Committee’s remit was to carry out audit function, but as Millstream was a separate private company the Council had no involvement in its audit function (bar some input into its external auditors).

The Head of Strategic Finance and Property said that ‘investment property’ had a particular definition within the Council’s accounts,  ...  view the full minutes text for item 215