Agenda item

Cabinet, at its meeting on 4 February 2022, considered the attached report of the head of finance on the the draft revenue budget 2022/23, and the capital programme to 2026/27.

The Scrutiny Committee considered the report at its meeting on 1 February 2022 and made no suggestions or recommendations to Cabinet.

RECOMMENDATIONS: to  

1.    set the revenue budget for 2022/23, as set out in appendix A.1 to the head of finance’s report to Cabinet on 4 February 2022;

2.    approve the capital programme for 2022/23 to 2026/27, as set out in appendix D.1 to the report, together with the capital programme changes as set out in appendix D.2 and appendix D.3 to the report;

3.    set the council’s prudential limits, as listed in appendix E to the report;

4.    approve the medium-term financial plan to 2026/27, as set out in appendix F to the report. 

The chair referred to regulations that require councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget, including amendments, and the council tax. In accordance with the regulations, she would call for a named vote on each of these matters at this meeting.

The chair reminded councillors that they were not entitled to vote on any issue affecting the level or administration of the council tax or other decisions which might affect the making of any such calculation such as the budget, if they were over two months in arrears with their council tax payments. Where such circumstances applied, councillors were under a statutory obligation to disclose the restriction placed on them and refrain from voting at the relevant meeting. No councillor made any such declaration.

Council noted the report of the chief finance officer on the robustness of the budget estimates and the adequacy of the reserves.

Council considered Cabinet’s recommendations, made at its meeting held on 4 February 2022 on the revenue budget for 2022/23 and the capital programme to 2026/27. Scrutiny Committee had considered the report of the interim head of finance on 1 February and had made no recommendations. 

Councillor Crawford, Cabinet member for finance, presented Cabinet’s proposals for the revenue budget and capital programme. He moved and Councillor Fawcett, seconded a motion to approve Cabinet’s recommendations as follows:

to 

1.    set the revenue budget for 2022/23, as set out in appendix A.1 to the head of finance’s report to Cabinet on 4 February 2022;

2.    approve the capital programme for 2022/23 to 2026/27, as set out in appendix D.1 to the report, together with the capital programme changes as set out in appendix D.2 and appendix D.3 to the report;

3.    set the council’s prudential limits, as listed in appendix E to the report;

4.    approve the medium-term financial plan to 2026/27, as set out in appendix F to the report. 

In moving the Cabinet recommendations, Councillor Crawford, noted that the council had faced significant financial issues in the preparation of the budget.  Its council tax was the fifteenth lowest in the country for a shire district and well below the national average; the council was unable to increase its council tax significantly.  The council had not benefitted from the business rates retention scheme and, whilst the council had benefitted from the New Homes Bonus scheme, this was under review by the government and was expected to be less generous in future. 

The revenue budget set for 2021/22 had been balanced through the use of reserves at a level that was unsustainable over the medium term.  For 2022/23, officers had undertaken a review of all expenditure and income, which resulted in a significant reduction in the base budget.  This allowed the council to set a balanced revenue budget for 2022/23 with savings of £1.4million, with the use of reserves being significantly lower than previously forecast and the council could claim to be solvent across the five year medium term financial plan period, based on future estimates of government funding.  The budget proposed no cuts to services but included revenue growth to support climate initiatives.  The council tax for a Band D property would increase by £5, the maximum allowed under the draft referendum rules.  The capital programme included new schemes that would be funded from community infrastructure levy income. 

Conservative Group amendment

Councillor Howell moved and Councillor Boyd seconded the following amendment:

1)         Defer for one year the changes to the member Basic Allowances only for all Councillors. (£15,162)

2)         Increase the Community Climate initiatives in 2022/23 by £75,000 to £125,000. This increase is for 2022/23 only.  This is funded by the deferral of increase in member basic allowances above, and the use of the budgeted transfer of the 2022/23 surplus to reserves (£58,659).

3)         Reduce office accommodation costs on departure from 135 Milton Park by using existing Vale of White Horse District Council owned property to save rental costs over the five years of the MTFP.  Additionally, by accommodating staff serving both councils, the resulting income for use of existing council buildings by South Oxfordshire District Council will generate small additional income for the council.

4)         As a result of the savings from use of existing properties the Council Tax required can be kept at £141.69 for the budget year of 2022/23, a one-off Council Tax Freeze.

In moving the amendment Councillor Howell stated that it would re-balance a couple of specific items in line with priorities for residents and that the amendment is net cost neutral to the Council over the life of the Medium-Term Financial Plan (MTFP) period and therefore operates within the current overall revenue and spending plans. 

A number of councillors spoke in support of the amendment. The provision of additional funds for the Community Climate initiatives would increase support to community groups and parish councils to apply for grants to tackle the climate emergency and promote sustainability in communities. The view was expressed that the grants should be awarded via the Area Committees. A freeze in the level of council tax would help residents at a time of rising fuel bills and inflation.  However, other councillors expressed the view that the amendment represented a last-minute party-political manoeuvre. A freezing in the level of council tax would not address the long-term financial stability of the council. Proposals in respect of reduced office accommodation costs were not costed. 

In accordance with regulations requiring councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget the chair called for a recorded vote which was not carried with the voting being as follows:

A number of councillors spoke against the budget proposal which, following the defeat of the amendment, had a lower level of support for Community Climate initiatives. The proposed council tax increase was not necessary providing for an increase in reserves at a time when residents were facing increased costs.

However, the majority of councillors supported the budget proposals and welcomed the news that the base budget had been reduced, allowing the council to balance its budget over the five year medium term financial plan with an increase in reserves.  The budget included funds to support schemes to address the climate emergency, to fund new technology to provide green solutions, community safety initiatives and to improve leisure facilities and children’s play facilities for local communities.  The budget also included a number of capital schemes to fund much-needed infrastructure.

In accordance with regulations requiring councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget the chair called for a recorded vote which was carried with the voting being as follows:

RESOLVED: to 

1.    set the revenue budget for 2022/23, as set out in appendix A.1 to the head of finance’s report to Cabinet on 4 February 2022;

2.    approve the capital programme for 2022/23 to 2026/27, as set out in appendix D.1 to the report, together with the capital programme changes as set out in appendix D.2 and appendix D.3 to the report;

3.    set the council’s prudential limits, as listed in appendix E to the report;

4.    approve the medium-term financial plan to 2026/27, as set out in appendix F to the report. 

Councillors thanked the head of finance and his team for the work undertaken to prepare the budget.