Issue - meetings

To consider the report of the Director Finance.

Agreed:

RECOMMENDED that Council note the contents of the report and approve the proposals to establish a balanced revenue budget and capital programme.

Reason for Decision: As set out in the report.

The Executive received the report on the strategic overview of the budgetary position for the 2022/23 financial year and beyond, which included the likely level of available resources, the known demand for resources and the proposals to ensure that a balanced budget could be achieved. Members noted that the Council was required to set a balanced budget and Council Tax prior to the start of the financial year.

Particular reference was made to:-

·        The fact that, although a three year settlement in the comprehensive spending review had been provided for local authorities, for the Government had provided  a one year roll over settlement only;

·         due to the further delay to the fair funding review and resetting of the business rates, the Councils’ settlement from the previous year had been improved;

·        lower tier services grants had been granted again for a one year period along with a new Services Grant, which totalled £470,000 extra funding, and - offset the increase to the national insurance contributions under the new Health and Social Care Levy, which equated to an extra £156,000;

·        the Council had an extra one year new homes bonus settlement of £1.362 million. The business rates had not changed and the figures for the business rates return were still pending;

·        the Council Tax referendum threshold had been set at less than 2% or up to a maximum of £5. Exeter’s budget strategy set out in the Medium Term Financial Plan assumed an increase of £5 which would be a decision for Members at Full Council;

·        the proposed Capital Programme had not been finalised and there maybe changes made before February 2022, however the majority had already been approved.

The Director Finance in responding to a question stated:-

·        inflation would be significantly higher and with added costs of £625,000 for next year on the assumption that the national pay award would be 1.5% and that the pay award for this financial year had not been agreed;

·        the Inflation would be similar to the impact on households, notably utility and fuel costs; and

·        the£5 increase on Band D properties would take Council Tax to £165 a year to Exeter City Council, a 3% increase in Council Tax.

The Chair commented on the staff pay award and provided assurances that the Council would honour all pay negotiations and implement those increases.

Members thanked the Director Finance for the detailed briefing on the Budget Strategy and Medium Term Financial Plan, which had been provided to all Members.

RECOMMENDED that Council note the contents of the report and approve the proposals to establish a balanced revenue budget and capital programme.