Agenda item

Final Budget 2022-23 and Medium Term Financial Plan

Meeting of Cabinet, Tuesday 15th February 2022 6.00 pm (Item 108.)

Decision:

RESOLVED: That Cabinet:

a) Approved the 2022-23 Budget for West Northamptonshire set out in this report, and recommended the Budget to the Full Council meeting on 24 February 2022, including

I. An estimated net revenue budget of £753.375m (£342.203m excluding Dedicated Schools Grant) as set out in Appendix A.

II. An average Band D Council tax of £1,613.23 for West Northamptonshire Council, which represents an increase of 2.99%. (1.99% increase in ‘core’ Council Tax and 1% Adult Social Care Precept).

III. Noted the Council Tax rebate of £150.00 for all Band A-D Council Tax payers and a further discretionary amount of funding for properties in Bands E-H. The details of this scheme were yet to emerge and more information would be provided once it is available.

IV. Noted the balance of the WNC Council Tax hardship fund and encouraging residents to apply for such funding if they are facing financial hardship.

V. Fees and Charges schedule as detailed in Appendix D

VI. Dedicated schools grant budget of £411.2m as detailed in Appendix E

VII. The Capital Strategy as set out at paragraphs 6.116-6.134 and Appendix F1, and Capital Programme as set out in Appendix F2.

VIII. Adoption of the changes to the 2021-22 capital strategy and MRP policy as outlined in paragraph 6.125

IX. The Flexible Use of Capital Receipts Strategy set out in Appendix G

X. The Treasury Management Strategy set out in Appendix J

XI. Set the authorised limits for borrowing as set out in the table at paragraph 6.141

b) Would recommend the following to Full Council on 24 February 2022, to ensure that the revenue and capital budget and all associated financial policies can be delivered in a safe and legal manner from 1 April 2022 and also to ensure there is flexibility to manage the overall budget

in the year:

I. Delegated authority to the Executive Director - Finance to manage any variation in budget prior to the start of 2022-23 as a result of final confirmation of the local government finance settlement, or as a result of unforeseen commitments; in consultation with the Finance Portfolio Holder.

II. Delegated authority to the Executive Director - Finance in consultation with the portfolio holder for Finance to amend the capital programme for 2022-23 going forward so that it accurately reflects issues such as slippage on current year projects that will need to be added to the programme, any amendments made to existing capital programmes, adjustments to accommodate any future use of capital receipts policy and for any other reason where the capital programme needs to be adjusted.

III. Approved the review of reserves as summarised in the table contained at paragraph 6.103

IV. Delegated authority to the Executive Director - Finance to employ earmarked reserves for the purposes they were set up for including the release of the risk reserve if required.

V. Delegate authority to the Executive Director – Finance in consultation with the portfolio holder for finance to release the general contingency fund of £9.7m if required in the year.

VI. Delegated authority to the Executive Director – Finance in consultation with the portfolio holder for Finance to amend Fees and Charges if required in 2022-23

VII. Delegated authority to the Executive Director – Finance to finalise and agreed all outstanding financial policies and strategies in order to ensure that the Council has the policies in place by 1 April 2022

c) For the Dedicated Schools Grant (DSG):

I. Noted the allocations and planned usage of the DSG for 2022-23, and

II. Followed consultation with the Schools Forum, delegated authority to the Executive Director for Children’s Services to determine the DSG 2022-23 schools funding formula, high needs funding arrangements and the Early Years Funding Formula in line with Department for Education guidance.

d) Considered the Section 25 statement of the Chief Finance Officer detailed at paragraphs 7.1- 7.42 of the report.

e) Noted the consultation feedback on the budget in Appendix H

f) Noted the feedback from the Overview and Scrutiny Committee in Appendix I

g) Cabinet appreciated the amount of time and effort the Corporate Services Overview and Scrutiny Committee put into analysing the budget proposals for 2022-23 and welcomed their report on the subject. After due consideration Cabinet recommended that full council include provision in the budget for the minimum hourly rate to be increased above the Foundation Living Wage of £9.90 to £10.00 per hour for all Council staff recognising that the final award is subject to the collective bargaining with the recognised trade union representatives. It is recommended that the additional costs are funded through the base budget contingency contained within the final budget proposals.

REASONS RESOLVED:

To ensure that the Council complied with its Constitution and all other relevant requirements in setting the budget for West Northamptonshire Council.

ALTERNATIVE OPTIONS:

None

Minutes:

At the Chair’s invitation Councillor Malcolm Longley presented the report, copies of which had been previously circulated. There had been no significant changes to the report since the draft version, with WNC going into next year in a good position. Members were advised to review appendix C for any changes and asked that any in-depth questions be emailed.

The Chair invited Councillor Danielle Stone the Chair of the Corporate Overview and Scrutiny Committee to present that committees report. Councillor Stone made the following comments.

Cabinet was informed that any decisions made had been through cross party member groups and had been a complex project.
So far there had been 3 meetings.
It had been felt that Carbon Neutral needed a cohesive plan, the committee recommended a delegated officer, and should be costed.
The committee had asked for confirmation with regards the £100,000 set aside for two posts to support the council in its climate pledge.
The committee had been please by the robust budget for Children’s Services, this had been a huge improvement on previous years.
The committee was happy with the openness and transparency of Adult Social Services.
A unanimous recommendation had been to apply some uplift to carers in the Adult Social Services sector.

Councillor Malcolm Longley made the following comments.

· It was agreed that Carbon Neutrality should be costed.

· There would be two new dedicated members of staff to support climate work.

· Cabinet would welcome any information on committee-based investment.

Councillor Mike Hallam proposed that the living wage be increased to £10 per hour. This was agreed.

Councillor Matt Golby felt that WNC needed to value carers more within society which included rates of pay. The re-procurement of the care contract would address some of the underlying issues.

Councillors made the following comments.

Thanks were given to Tracy Tiff, Deputy Democratic Services Manager, and her team for the work they had done to ensure the smooth running of the Scrutiny Committee.

The lack of services like Sure Start had created an issue.
It had been noted that the anti-poverty strategy would be very important.
It was acknowledged that Adult Care was one of the most difficult areas budget wise.
The income provision and savings looked different from previous reports, could this be clarified?
The role of the Hardship Fund was an important one.
It was queried whether business rates were an area of risk for WNC?
It was noted that other unitaries of a similar size normally have a budget fund of £30 million. WNC has a fund of £40 million due to the newness of the council and to mitigate for any risks.
Cabinet was advised that residents were being double charged for the collection of green waste as it had already been paid for in tax.
It was queried whether the council could take a less risk adverse stance.
Could there be some confirmation as to when the increase (of £10) for carers would begin.
Not all residents were technologically minded, it was important to ensure that they would still have access to the services they require.
It was noted that Talavera Way had been promised extra funding, but this was not mentioned in the report. This area had high levels of poverty and homelessness.

Councillor Lizzy Bowen agreed that business rates had a huge impact on shops, MPs had been spoken to, but this was outside the remit of WNC.

Councillor Malcolm Longley advised that a set date for the increment in carer pay would be announced as soon as possible.

Councillor Fiona Baker noted that the Children’s Trust seemed to be funded quite well but would like to see it funded enough to weather a crisis.

Councillor Mike Hallam advised that investing digitally was important as this would then free up time for more face-to-face communication.

The Chair advised that WNC was committed to work on Talavera Way.