Agenda item

a)   Agree, as guidance to officers, that 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 3% (effectively 2.75% as 0.25% of the pay provision this year will be carried forward as a result of the 1.75% final pay offer from the employer’s side);

b)   Note the comprehensive spending review savings to be implemented in 2022/23 and 2023/24 as agreed by Council in March 2021 and acknowledge the requirement of Council that compensating savings, delivered to the same timescales, have to be put in place and reported to the next Council meeting should the Executive decide that any savings proposals should not proceed, or are reduced by 10% or more;

c)    Welcome the Collection Fund updated estimate that the Business Rates deficit being spread over 3 years will be met in full by changes to the appeals provision removing a £0.900 million pressure on the General Fund and the forecast increase in Local Council Tax Support cases has not materialised and the Council Tax Base is now forecast to increase in future years;

d)   Note the assumption that the Transforming East Herts Programme will not start to result in revenue savings until the latter half of 2022/23 and into 2023/24

e)    Agree: the re-phasing of the capital programme and revenue impacts of capital financing; that existing minor projects should be subject to a full value for money test before proceeding; and that no new projects may come forward for the capital programme unless they are able to cover the capital financing costs in full or mitigate significant increases in revenue costs;

f)     Note the revised savings requirements of £0.967 million in 2022/23, £1.520 million in 2023/24 – 2025/26 rising to £1.901million in 2026/27; and

g)    Agree that all service areas should review fees and charges and ensure that, where the council has discretion to set the charge, that charges should be set so as to: recover full costs; concessions should be explicitly linked to an Equalities Impact Assessment; and that services which are not currently charged for the introduction of a charge should be considered unless the service is provided generally under a statutory provision.

The Executive Member for Financial Sustainability presented a report on the Budget 2022/23 and Medium Term Financial Plan 2022-25 preparations. He said the purpose of the report was to set the scene for Members and for the Executive to give Officers a steer and approve the recommendation and assumptions to provide a basis for Officers to work from. There were a range of emerging factors with both positive and negative impacts on the budget and the forecast had been updated in light of these factors, for example the earlier assumptions of an increase in council tax support did not happened as the economy had opened up.

Councillor Williamson said that finding savings remained a challenge and they would have to be found through efficiencies and new sources of income, such as the introduction of charging for garden waste collection. A number of savings had been built into the budget from the previously agreed three year saving plan. Additionally, the Transformation Programme was underway and would not have a significant impact until 2023/24.

Councillor Haysey commented that the council was in a better position than had first been thought. East Herts was a prudent and cautious council and Members would continue to ensure that their ambitious plans for residents are fundable and available, and that services are maintained.

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

RESOLVED – that (A) agree, as guidance to Officers, that 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 3% (effectively 2.75% as 0.25% of the pay provision this year will be carried forward as a result of the 1.75% final pay offer from the employer’s side);

(B)       Note the comprehensive spending review savings to be implemented in 2022/23 and 2023/24 as agreed by Council in March 2021 and acknowledge the requirement of Council that compensating savings, delivered to the same timescales, have to be put in place and reported to the next Council meeting should the Executive decide that any savings proposals should not proceed, or are reduced by 10% or more;

(C)       Welcome the Collection Fund updated estimate that the Business Rates deficit, being spread over 3 years, will be met in full by changes to the appeals provision, removing a £0.900 million pressure on the General Fund, and that the forecast increase in Local Council Tax Support cases has not materialised and the Council Tax Base is now forecast to increase in future years;

(D)      Note the assumption that the Transforming East Herts Programme will not start to result in revenue savings until the latter half of 2022/23 and into 2023/24;

(E)        Agree: the re-phasing of the capital programme and revenue impacts of capital financing; that existing minor projects should be subject to a full value for money test before proceeding; and that no new projects may come forward for the capital programme unless they are able to cover the capital financing costs in full or mitigate significant increases in revenue costs;

(F)        Note the revised savings requirements of £0.967 million in 2022/23, £1.520 million in 2023/24 – 2025/26 rising to £1.901million in 2026/27; and

(G)      Agree that all service areas should review fees and charges and ensure that, where the council has discretion to set the charge, that charges should be set so as to: recover full costs; concessions should be explicitly linked to an Equalities Impact Assessment; and that services which are not currently charged for the introduction of a charge should be considered unless the service is provided generally under a statutory provision.