Issue - meetings

The Chairman reminded Members that a revised Appendix C – Fees and Charges had been published in the supplementary agenda and these were the figures that needed to be included in the recommendations.

The Executive Member for Financial Sustainability presented the Budget 2023/24 and the Medium Term Financial Plan 2023/24 – 2027/28. He said that he was proud of the administration’s record on producing budgets which showed sound financial management and protected frontline services which had been achieved over the last few years despite adverse circumstances such as the pandemic, the economic impact from the war in Ukraine and the employers pay offer and the higher than expected inflationary contract increase of £840k. He said that the budget had been prepared against an increasingly challenging background and uncertainties over future funding.

Councillor Williamson said one way for a council to increase revenue was council tax. Central government had made it clear that local authorities must do all that was necessary to raise funds and the Chancellor announced in the Autumn Statement in 2022 that local authorities would have more flexibility to increase council tax; the higher of £5 or 3% rounded. He said that 3% rounded was the higher for East Herts so council tax would be increased by £5.50 or 11p a week. He said that increasing council tax was never an easy decision but the increase would bring in an extra £350,000 each year for the delivery of services.

Councillor Williamson said that the Council Tax increase and the Fees and Charges policy was not enough to close the budget gap. He reported that sufficient operational savings had been found in the Transformation Programme without any impact on frontline services. However, he said that substantial savings of £6.7 million would need to be found in future years of the MTFP and this was after the temporary use of reserves to remove some of the pressure. The Leadership Team had embarked on a Reconciling Resources and Performance exercise to ensure the council’s resources were aligned with its corporate priorities.

Councillor Williamson referred to the council’s capital programme. He said the total capital investment across the district would reach £18.4 million of which the council’s major projects contribute £14.9 million. He said the council now had to allow for interest payments and minimum revenue provision of capital borrowing in the MTFP. He said that by pausing some of the lower priority capital projects and moved them into approved but not committed category, the council did not need to allow for financing of these items in the MTFP.

Councillor Williamson said the council had been successful in receiving £2.2 million in funding through the UK Shared Prosperity Fund to invest into the district over the next two years.

Councillor Williamson thanked the Leadership Team and Officers across the council for having robust and solid plans moving forward and said that the administration had acted prudently with finances and was in a much better place that other authorities across the country.

Councillor  ...  view the full minutes text for item 379

The Executive Member for Financial Sustainability presented the Budget 2023/24 and the Medium Term Financial Plan 2023/24 – 2027/28 report. Councillor Williamson ran through the key highlights which included the increase in Council Tax by 2.99% in line with the Chancellor’s Autumn Statement which would provide the council with an extra £33,000 in revenue. He said that the council could deliver a balanced budget for 2023/24 despite the challenging background of high inflation and interest rates. He reminded Members that £6.7 million needed to be saved in 2024 – 2028 so further savings would need to be found.

Councillor Williamson said it was clear that further work was required to balance future budgets. He said the Leadership Team would be preparing a Reconciling Policy, Performance and Resources exercise for after the District elections in May 2023. He said that lower priority capital spending had been moved into the approved but not committed category so that the council did not need to allow for financing of these items and they could be brought back into committed spending if funding was found for them.

Councillor Williamson proposed an amendment to Recommendation C to “That Executive Members consider the results of the full cost recovery calculations for their portfolio and approve the fees and charges to be recommended to Council.”

Councillor Buckmaster said that the Council Tax with the increase, equated to approximately £189 across the year for a Band D property. He said that considering the number and level of services the council provides, he felt this was good value for money.

Councillor Haysey said that although the District council collected the tax, most of it goes to the County Council and the Police.

Councillor McAndrew echoed Councillor Williamson’s words about future budgets. He said that recommendation D referred to further efficiencies and every council across the country faced the same challenges and the next year would be difficult for councils across the country.

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

RESOLVED – To recommend to Council (A) The approval of the budget and Medium Term Financial Plan at Appendix A with a Council Tax increase of 2.99%, which will result in a Band D Equivalent Council Tax annual increase of £5.50;

(B) The approval of the Capital Programme at Appendix B;

(C) That Executive Members consider the results of the full cost recovery calculations for their portfolio and approve the fees and charges to be recommended to Council; and

(D) To note that the level of budget reductions required to balance the budget in the medium term is beyond further efficiency measures alone and that Leadership Team are preparing a Reconciling Policy, Performance and Resources exercise that the new Council, elected in May 2023, will need to undertake alongside the development of the new Corporate Plan, to balance the budget over the  ...  view the full minutes text for item 345