Agenda item

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 of the amendment was estimated to be £1.251 million over the Medium-Term Financial Plan (MFTP) period and could be funded from reserves. At the end of the five-year MFTP period reserves would not have fallen below the minimum balance of 10 per cent of net revenue expenditure. The amendment would support residents during the current cost of living crisis with a lower council tax bill, support both residents and traders with the reinstatement of the two hours free car parking, support the council’s work on tackling the climate emergency with an increase in the climate emergency grant fund and provide further support for the district’s most vulnerable residents with an increase in funding for the community hub.

A number of members spoke against the amendment. Increasing council tax by the maximum level permitted would provide a sustainable and financially sensible budget and not undermine the MTFP. Previous low levels of council tax had undermined the financial position of the council. In respect of the car park fees, the reduction in the free charging period had reduced the budget deficit and there was no evidence to suggest that there had been a reduction in the use of the car parks. The current level of climate emergency grant adequately met the level of demand for grants and there was therefore no need to increase the budget. Likewise, the community hub budget was sufficient to cover the needs of the service.  

In accordance with regulations requiring councils to record the names of those members 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:

Amendment

Councillor Gascoigne moved and Councillor Mabbett seconded the following motion:

To provide 100K per annum for the next five years of the Medium-Term Financial Plan for the climate emergency grant fund and ask officers to bring forward proposals to increase the scope of eligible projects.

In supporting the amendment, a number of members stated that the current grant criteria limited the number of projects coming forward. Amending the scope and increasing the budget would facilitate more projects coming forward for funding to help tackle the climate emergency. With the agreement of Council, both the mover and seconder of the original motion accepted the amendment.

A number of members welcomed the funding in the budget 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.  Other members supported the investment in leisure facilities by providing funds for a new learner pool at Wantage whilst others expressed support for the allocation of funds towards the decarbonisation projects at two leisure centres, which put climate at the heart of decision-making and would reduce running costs. 

In accordance with regulations requiring councils to record the names of those members 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: (unanimously) 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 subject to an increase in the climate change grant scheme to £100k per annum for five years and a request that officers bring forward proposals to increase the scope of eligible projects;

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. 

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