Agenda item

To seek approval to recommendations from the Executive contained in the attached report of the Chief Finance Officer (Introduced by the Cabinet Member (Finance, Property and Assets)) and within the appendices listed below.

a)      Approve the budget and proposals set out in this report, including the level of Council Tax as set out in the Formal Council Tax Resolution, including Parish Precepts, for 2022/23, at Appendix A;

b)      Note the advice of the Chief Finance Officer in relation to the robustness of the estimates within the overall budget, including the risks contained within it and the adequacy of the proposed level of financial reserves, as set out in the Statutory Report at Appendices B1 – B3;

c)      Approve the council’s Medium-Term Financial Strategy (MTFS) at Appendix C;

d)      Note the council’s forecast Cumulative Budget Deficit and Budget Strategy 2021-22 to 2024-25 at Appendix D;

e)      Note the analysis of the movement in the 2022/23 Budget from the position approved by Council in February 2021 at Appendix E;

f)       Approve the capital programme for 2021/22 to 2024/25 (Appendices F1, F2 & F3);

g)      Approve the Capital Strategy at Appendix G;

h)      Approve the Treasury Management Strategy at Appendix H and note the advice of the treasury management consultants at Appendix H1;

i)       Approve the council’s Pay Policy at Appendix I for publication on the council’s website from April 2022;

j)       Note the budget consultation 2022/23 Report at Appendix J;

k)      Note the Assessing the Impact of Budget Proposals 2022/23 Report at Appendix K.

The Mayor advised that one vote would cover the Budget, Council Tax setting and all other issues covered within the report and appendices.

The Executive Member (Finance, Property and Assets), Councillor Matthew Tomlinson, presented the Cabinet’s Budget Strategy and proposals for the Revenue Budget 2022/23, together with the Medium Term Financial Strategy (MTFS) and Capital Programme for 2022-2025. 

Councillor Tomlinson thanked the Labour and Liberal Democratic Groups and officers for their hard work and input into the proposed budget.

Councillor Tomlinson referred to the achievements of the council since the administration took control and the plans within the Corporate Strategy which would be delivered by the proposed budget, including a freeze on council tax in 2022/23. 

The proposals included a freeze on council tax in 2023/24 and a 1.99% increase in council tax in 2024/25, although these proposals would be revisited each year as part of the budget setting process and be dependent upon the outcome of the government’s reviews of both the future funding framework and the future distribution of funding between councils.

Councillor Tomlinson explained that proposals set out a balanced budget for 2022/23 and, based on current assumptions, forecasts deficits of £0.619m for 2023/24 and £0.732m for 2024/25.  However, the council was ambitious in its approach to meeting the budget deficit through generating efficiency savings, such as those already realised through shared services, and additional income generated through investments within the borough.

The council was expanding its capital programme with large scale investments included in the budget over the coming three years.

The proposals ensure the objectives of the council’s Corporate Strategy priorities would be met;

An exemplary council – continue to work with our residents to address climate change and achieve our commitment of being a carbon neutral council by 2030

Thriving communities – providing support and grants for businesses and developing our approach to apprenticeships, graduate and training posts in areas of high market demand and supporting people into high quality employment;

A fair local economy that works for everyone – investing in our local play and community facilities, supporting the delivery of affordable homes and improving our leisure centres;

Good homes, green spaces, healthy places - making improvements across the Borough, supporting our young people, health and wellbeing and local areas

The Leader of the Opposition, Councillor Karen Walton, explained that the Conservative Group had prepared a statement regarding the proposed budget.  On behalf of the Group she thanked the staff at the council and the residents of the borough for their contributions during a difficult time.  The Conservative Group were supportive of the proposal for 0% council tax increase and some of the proposals, but expressed concern regarding the level of debt being taken on.  Councillor Walton requested a copy of the letter received by the council from Michael Gove.  Councillor Michael Green echoed some of the comments made by Councillor Walton.

Several members spoke in favour of the proposals, including Councillors Ange Turner, Will Adams, Keith Martin, Aniela Bylinski Gelder, Michael Titherington and Paul Foster.  Particular reference was made to supporting residents during a time of high cost of living issues, climate change and supporting communities. 

It was proposed by the Cabinet Member (Finance, Property and Assets), Councillor Matthew Tomlinson, seconded by the Leader of the Council, Councillor Paul Foster, and subsequently

Resolved (unanimously)

In accordance with Rule 16.5 in Part 4 of the Constitution, the voting was recorded and the Members of the Council present at the time voted as follows:

For: Councillors Will Adams, Jane Bell (Mayor), Renee Blow, Julie Buttery, Aniela Bylinski Gelder, Colin Coulton, Bill Evans, James Flannery, Paul Foster, Harry Hancock, Mick Higgins, Clare Hunter, Susan Jones, Chris Lomax, Jim Marsh, Keith Martin, Caroline Moon, Peter Mullineaux, Alan Ogilvie, Colin Sharples, David Shaw, Phil Smith, Mick Titherington, Caleb Tomlinson, Matthew Tomlinson, Angela Turner, Kath Unsworth, Karen Walton, Ian Watkinson, Gareth Watson, Paul Wharton-Hardman and Carol Wooldridge.

a)      Approve the budget and proposals set out in this report, including the level of Council Tax as set out in the Formal Council Tax Resolution, including Parish Precepts, for 2022/23, at Appendix A;

b)      Note the advice of the Chief Finance Officer in relation to the robustness of the estimates within the overall budget, including the risks contained within it and the adequacy of the proposed level of financial reserves, as set out in the Statutory Report at Appendices B1 – B3;

c)      Approve the council’s Medium-Term Financial Strategy (MTFS) at Appendix C;

d)      Note the council’s forecast Cumulative Budget Deficit and Budget Strategy 2021-22 to 2024-25 at Appendix D;

e)      Note the analysis of the movement in the 2022/23 Budget from the position approved by Council in February 2021 at Appendix E;

f)       Approve the capital programme for 2021/22 to 2024/25 (Appendices F1, F2 & F3);

g)      Approve the Capital Strategy at Appendix G;

h)      Approve the Treasury Management Strategy at Appendix H and note the advice of the treasury management consultants at Appendix H1;

i)       Approve the council’s Pay Policy at Appendix I for publication on the council’s website from April 2022;

j)       Note the budget consultation 2022/23 Report at Appendix J;

k)      Note the Assessing the Impact of Budget Proposals 2022/23 Report at Appendix K.

Formal Council Tax Resolution

1.    It be noted that on 31^st  January 2022 the Statutory Finance Officer calculated the Council Tax Base 2022/23

a)    for the whole Council area as 36,584.90 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the "Act")] ; and

b)    for dwellings in those parts of its area to which a Parish precept relates (as in the attached Appendix B).

2.    Calculate that the Council Tax requirement for the Council’s own purposes for 2022/23 (excluding Parish precepts) is £8,167,356

3.    That the following amounts be calculated for the year 2022/23 in accordance with Sections 31 to 36 of the Act:

a)    £49,451,466   being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.

b)    £40,815,600   being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

c)    £8,635,866     being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).

d)    £236.05 being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).

e)    £468,510 being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as in the attached Table 1).

f)     £223.24          being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T (1(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates.

4.    To note that the County Council, the Police Authority and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

5.    That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2021/22 for each part of its area and for each of the categories of dwellings.

6.    That the Statutory Finance Officer and his officers be authorised to take any action necessary to ensure collection and recovery of the Council Tax and Non-Domestic Rates.

7.    South Ribble Borough Council’s basic amount of Council Tax for 2022/23 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.

Table 1

Parish Precepts