Agenda item

2022/23 Revenue Budget

Decision:

The Cabinet resolved to:

 

Recommend to full Council the following:

 

1.  Approval of the 2022/23 budget to enable the Council Tax for 2022/23 to be set;

 

2.  Approval of the Model Council Tax Resolution 2022/23 as set out in Appendix B;

 

3.  Delegate authority to the Director of Finance, to place a notice in the local press of the amounts set under recommendation 2 within a period of 21 days following the Council's decision;

 

4.  Approve the Medium-Term Financial Strategy (MTFS) as based on the estimated financial deficit in the Capitalisation Direction and to be funded by capitalisation of:

 

a. £223.1m up to 2021/22

b. £84.1m for 2022/23

c. £171.1m for beyond 2022/23

 

5.  Approve the Capital Receipts Flexibility Strategy as agreed in 2021/22.

 

6.  Approve the overall General Fund revenue budget of £191.7m, to include:

 

a. growth for pressures for contract inflation and pay inflation of £8.178m

b. proposed savings by directorate of £19.959m

 

7.  Approval of the Members Allowances Scheme for 2022-23 at Appendix I

 

The noted the following:

 

8.  The balanced budget position for 2022/23 requiring savings of £19.959m and the projected financial deficit between 2023/24 to 2028/29

 

9.  The inclusion within the Capitalisation Direction of £1m per year from 2022/23 onwards as a means to rebuild the General Fund and Earmarked Reserves balance

 

10.The intention to increase Council Tax by 1.99% in 2022/23

 

11.The intention to increase Council Tax by a further 1% in 2022/23 in respect of the Adult Social Care Precept

 

12.The assumed funding for the protection of social care 2022/23 through the Better Care Fund

 

13.That due regard has been had to the s.25 report by the Director of Finance at Appendix H

 

To agree the following:

 

14.Approval of the Fees and Charges Policy Framework, with a recommendation that Council approve this for non-executive functions

 

The Cabinet considered an Addendum set out in the Supplementary Agenda and agreed to:

 

Recommend to full Council:

 

i.  Acceptance of the capitalisation direction of £223m up to 31.03.22

ii.  Acceptance of the capitalisation direction of £84.1m for the 2022/23 financial year

iii.  Acceptance of the accompanying conditions set out in the report.

 

Noted:

 

i.  The capitalisation direction is not a grant.  The Council needs to fund the revenue expenditure capitalised from disposing of assets to repay the resulting debt.

ii.  The Council is in a precarious state and will be required to request future capitalisation directions to balance future years budgets, estimated at an additional £172m, £479m in total

iii.  The minded to directions will be converted into actual directions on an annual basis as the accounts for each year are closed and audited

Minutes:

The Cabinet considered the revenue budget report for 2022/23.  A supplementary agenda had been issued which contained the following:

 

·  A revised recommendation in section 1 of the report to clarify that Cabinet was being asked to recommend the Members Allowances Scheme to Council for approval

·  A revised Appendix B on the Council Tax Resolutions which replaced the version published in the original agenda pack.

·  An addendum to the report on seeking approval of further recommendations on the acceptance of Indicative Capitalisation Directions for 2016/17 to 2022/23 following the Letter from Minister of 7th March 2022.

 

Councillor Smith was invited to speak and commented on the adult social care savings and budget.  The Director of Finance explained the accounting adjustment that had been made to separate the base budget from income such as the Public Health Grant and Better Care Fund but this adjustment did not impact on the budget available for services.  There was £2m of growth in the budget to take account of inflation and demand.  The Executive Director People (Adults) summarised the progress in implementing the Adult Social Care Transformation Programme which aimed to deliver £9m of savings over three years.  The Lead Members responsible for adult and children’s services both explained the work taking in place to continue to support vulnerable people in Slough.  The recent improvements in children’s services were noted as had been discussed by Cabinet in February 2022 when the Slough Children First interim business plan was approved.

 

At the conclusion of the discussion, the Cabinet agreed to recommend the revenue budget and all the recommendations set out in the Supplementary Agenda, including the acceptance of indicative capitalisation directions to Council on 10th March 2022.

 

Recommended to Council –

 

The Cabinet agreed to recommend the following to full Council:

 

1.  Approval of the 2022/23 budget to enable the Council Tax for 2022/23 to be set;

 

2.  Approval of the Model Council Tax Resolution 2022/23 as set out in Appendix B;

 

3.  Delegate authority to the Director of Finance, to place a notice in the local press of the amounts set under recommendation 2 within a period of 21 days following the Council's decision;

 

4.  Approve the Medium-Term Financial Strategy (MTFS) as based on the estimated financial deficit in the Capitalisation Direction and to be funded by capitalisation of:

 

a. £223.1m up to 2021/22

b. £84.1m for 2022/23

c. £171.1m for beyond 2022/23

 

5.  Approve the Capital Receipts Flexibility Strategy as agreed in 2021/22.

 

6.  Approve the overall General Fund revenue budget of £191.7m, to include:

 

a. growth for pressures for contract inflation and pay inflation of £8.178m

b. proposed savings by directorate of £19.959m

 

7.  Approval of the Members Allowances Scheme for 2022-23 at Appendix I

 

The noted the following:

 

8.  The balanced budget position for 2022/23 requiring savings of £19.959m and the projected financial deficit between 2023/24 to 2028/29

 

9.  The inclusion within the Capitalisation Direction of £1m per year from 2022/23 onwards as a means to rebuild the General Fund and Earmarked Reserves balance

 

10.The intention to increase Council Tax by 1.99% in 2022/23

 

11.The intention to increase Council Tax by a further 1% in 2022/23 in respect of the Adult Social Care Precept

 

12.The assumed funding for the protection of social care 2022/23 through the Better Care Fund

 

13.That due regard has been had to the s.25 report by the Director of Finance at Appendix H

 

The following was Resolved:

 

14.Approval of the Fees and Charges Policy Framework, with a recommendation that Council approve this for non-executive functions

 

The Cabinet approved the recommendations in the Supplementary Agenda containing an Addendum:  Acceptance of Indicative Capitalisation Directions for 2016/17 to 2022/23 and agreed to recommend to full Council:

 

i.  Acceptance of the capitalisation direction of £223m up to 31.03.22

ii.  Acceptance of the capitalisation direction of £84.1m for the 2022/23 financial year

iii.  Acceptance of the accompanying conditions set out in the report.

 

Noted that:

 

i.  The capitalisation direction was not a grant.  The Council needed to fund the revenue expenditure capitalised from disposing of assets to repay the resulting debt.

ii.  The Council was in a precarious state and will be required to request future capitalisation directions to balance future years budgets, estimated at an additional £172m, £479m in total

iii.  The minded to directions would be converted into actual directions on an annual basis as the accounts for each year are closed and audited.

Supporting documents: