Issue - meetings

Cabinet, at its meeting on 3 February 2023, considered the attached report of the head of finance on the the draft revenue budget 2023/24, and the capital programme to 2027/28.

The Scrutiny Committee considered the report at its meeting on 30 January 2023 and noted the report.

The report of the chief financial officer on the robustness of the budget estimates and the adequacy of the reserves is attached.

RECOMMENDATION: to

1.    set the revenue budget for 2023/24, as set out in appendix A.1 to the head of finance’s report to Cabinet on 3 February 2023;

2.    approve the capital programme for 2023/24 to 2027/28, 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 2027/28, as set out in appendix F to the report.

The chair referred to regulations that require councils to record the names of those members 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.

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 3 February 2023 on the revenue budget for 2023/24 and the capital programme to 2027/28.  

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 2023/24, as set out in appendix A.1 to the head of finance’s report to Cabinet on 3 February 2023;

2.    approve the capital programme for 2023/24 to 2027/28, 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 2027/28, as set out in appendix F to the report. 

In moving the Cabinet recommendations, Councillor Crawford, the Cabinet member for finance introduced the draft budget, noting that the council’s financial position had improved with this year’s budget contributing £2.5 million to reserves.  There were no service cuts in the budget. The budget allocated funds to continue supporting the community hub at a time when the government funding for this service was coming to an end.  The medium term financial plan showed that the council was in a stable financial position for the next two years, but thereafter government funding was uncertain.  Council tax would increase by £5 per Band D property, the maximum allowed before a referendum was required.  The capital programme included a new learner pool at Wantage Leisure Centre, with funds provided from section 106 contributions.  Capital was also allocated towards the Local Authority Housing Fund project, supported by government funding.  Funds were also set aside for decarbonisation projects at Wantage Leisure Centre and the White Horse Leisure and Tennis Centre, which had been supported by government grants. 

Conservative Group amendment

Councillor Howell moved and Councillor Boyd seconded the following amendment:

1)      That the Band D Council Tax for 2023/24 be increased by £3.20 instead of £5.00,

2)      That two hours free car parking be reinstated.  An indicative estimate of the cost of this measure is £75,000 per annum, but the service would be expected to be managed within the new budget envelope created,

3)      That the climate emergency grant funding be increased from £50,000 to £100,000 per annum,

4)      That the funding for the community hub for 2023/24 be increased by £100,000.

In moving the amendment Councillor Howell stated that the overall cost  ...  view the full minutes text for item 63

To consider the head of finance’s report. 

Cabinet considered the head of finance’s report on the draft revenue budget for 2023/24 and the draft capital programme to 2027/28.  The report brought together information to allow Cabinet to recommend its budget to Council.  The budget included the medium term financial plan, detailing a model budget for the next five years.  The report also contained the opinion of the council’s chief finance officer on the robustness of estimates and the adequacy of the council’s reserves. 

Scrutiny Committee had considered the report and received a briefing from the head of finance.  The committee noted the draft budget but made no recommendations to Cabinet. 

The Cabinet member for finance introduced the draft budget, noting that through careful management the council’s financial position had improved.  For example, this year the draft budget contributed £2.5 million to reserves.  There were no service cuts in the budget, yet it allocated funds to continue supporting the community hub at a time when the government funding for this service was coming to an end.  The medium term financial plan showed that the council was in a stable financial position for the next two years, but thereafter government funding was uncertain.  Council tax would increase by £5 per Band D property, the maximum allowed before a referendum was required.  The capital programme included a new learner pool at Wantage Leisure Centre, with funds provided from section 106 contributions.  Capital was also allocated towards the Local Authority Housing Fund project, supported by government funding.  Funds were also set aside for decarbonisation projects at Wantage Leisure Centre and the White Horse Leisure and Tennis Centre, which had been supported by government grants. 

Cabinet members welcomed the budget proposals.  The council was now in a better financial position due to careful management.  In preparing the budget members had to make challenging decisions to ensure the council continued to deliver its corporate plan priorities and reduce long-term running costs.  The council would need to continue to act prudently and invest carefully as the government’s approach to future local government funding was uncertain. 

Members were pleased that the budget allowed the council to continue to support its residents.  It included funding to continue the community hub, which had operated since the start of the Covid-19 pandemic and had assisted residents during the cost-of-living crisis.  The hub had also supported refugees and their host families in the district.  Members supported the investment in leisure facilities by providing funds for a new learner pool at Wantage.  Members were also pleased to allocate funds towards the decarbonisation projects at two leisure centres, which put climate at the heart of decision-making and would reduce running costs. 

Cabinet questioned why the council had to produce a five-year medium term financial plan when it only had certainty over government funding for two years.  The council must keep persuading government to change that. 

Cabinet noted the confidential appendix D2 to the report and decided that it was unnecessary to discuss this in exempt session. 

The Cabinet member for finance  ...  view the full minutes text for item 74