Agenda item

Agreed to recommend to Council that it had regard to the report when making decisions about the calculation of council tax requirement.

The Lead Member for Financial Oversight & Council Assets introduced a report that set out the Executive Director Finance & Commercial’s (Section 151 Officer) report on the robustness of the estimates made for the purposes of the budget calculations and the adequacy of the proposed financial reserves.

The Council was required to consider such a report from the Section 151 Officer and it advised that the reserves were adequate for 2023/24, providing the extensive risks detailed in the report were contained and that the Council’s financial strategy was delivered but would take a further five years to conclude and become financially stable.  The key risks were considered including the fact that reserves, whilst adequate, were at the lower end of where they should be and continued support be forthcoming from the Department for Levelling Up, Housing & Communities (DLUHC) including through their agreement to capitalisations directions.  This was contingent on the Council delivering its challenging savings proposals and asset disposal programme.

The Cabinet noted that Section 151 Officers conclusion in paragraph 9.2 of the report that in the financial circumstances the Council was in it was impossible to give a level of assurance that would normally be required in a Section 25 report, but that the Council now had a well-developed and rigorous financial strategy in place and was therefore able to set a budget.

Councillor Smith addressed the Cabinet and expressed concerns at the level of reserves and the significant risks that the Section 151 had detailed in the report.  The comments were noted.

After due consideration, the Cabinet agreed to recommend the report to Council on 9^th March 2023.

Recommended –  That Council had regard to the Section 25 report when making decisions about the calculation of council tax requirement.