Agenda item

Report of Assistant Director of Finance (S151)

Purpose of report

This report is the culmination of the Budget and Business Planning process for 2023/24 to 2027/28 and sets out the Executive’s proposed Business Plan and related revenue budget for 2023/24, medium term financial strategy to 2027/28, capital programme to 2027/28 and all supporting policies, strategies, and information to recommend to full Council.

The Council adopts a forward looking and anticipatory approach to its financial management, which was acknowledged by the recent Peer Review in November 2022.  The Council plans for, and continues to succeed in, encouraging and facilitating economic growth across the district.  This success flows through to the Council’s finances, reflected in the level of income received from business rates and the New Homes Bonus grant. 

The Council has proactively monitored both the economic situation and Government announcements over the past 12 months and devised and implemented a budget and business planning strategy that has delivered within the constraints identified, consulting on a proposed balanced budget in November 2022.  The Council was able to identify the risk of interest rate rises at an early stage, locking in low interest rates for all of its planned borrowing requirements, meaning only new borrowing requirements will need to be taken at higher rates.

The proposed net budget for the Council is £28.2m, which is an increase of £4.6m from 2022/23.  A Band D Council Tax of £148.50 is proposed for the year which is an increase of £5 compared to 2022/23. The Capital Programme for the period 2023/24 – 2027/28 is proposed to be £35.9m.  The Council plans to fund £2.0m of budget pressures and will deliver £1.0m of savings proposals as part of the 2023/24 budget.

Recommendations           

The Council is recommended to:

1.1          Have regard to the statutory report of the Chief Finance Officer (Section 25 report) at Appendix 3 in approving recommendations 1.3 – 1.10.

1.2          Approve the proposed Fees and Charges schedule for 2023/24 (Appendix 7) and statutory notices be placed where required.

1.3          Consider and note the Equality Impact Assessment of the Budget (Appendix 8)

1.4          Approve a pension fund prepayment for the years 2023/24 – 2025/26 of £5.7m.

1.5          In relation to the Business Plan (Section 3.1) to approve:

1.5.1         The Business Plan and Annual Delivery Plan set out in Appendices 1 and 2 respectively.

1.6          In relation to the Revenue Budget (Section 3.3) and Medium-Term Financial Strategy (MTFS) (Section 3.6) to approve:

1.6.1               The net revenue budget for the financial year commencing on 1 April 2023, as set out in Table 3.3.1, and further analysed in the Budget Book provided at Appendix 12

1.6.2               The MTFS and Revenue Budget 2023/24 (Sections 3.6 and 3.3 respectively), including the Savings Proposals, and Pressures included at Appendices 4 and 5 respectively.

1.7          In relation to Council Tax to approve:

1.7.1               An increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2023 of £5, resulting in a Band D charge of £148.50 per annum.

1.7.2               For long term empty properties, an additional Council Tax premium will be charged of 100 percent for properties empty for two years or more, 200 percent for properties empty 5 years or more and 300 percent for properties empty 10 years or more.

1.7.3               Removal of the 25 percent discount currently available for 12 months to properties that are uninhabitable or undergoing structural repairs.

1.8          In relation to the Capital Programme and related strategies (Section 3.4) to approve:

1.8.1               The Capital Bids 2023/24 and Capital Programme 2023/24 – 2027/28 at Appendix 17 and 18 respectively.

1.8.2               The Capital and Investment Strategy 2023/24 (Appendix 19) and revised 2022/23 (Appendix 20) including the Minimum Revenue Provision (MRP) Policy.

1.8.3               The Treasury Management Strategy 2023/24, including the Prudential Indicators, and Affordable Borrowing Limit for 2023/24 (Appendix 21).

1.9          In relation to reserves to approve (Section 3.5):

1.9.1               A minimum level of General Balances of £6m as supported by Appendix 15.

1.9.2               The Reserves Policy (Appendix 14).

1.9.3               The medium-term reserves plan described in Appendix 16.

1.10      In relation to the Pay Policy Statement approve:

1.10.1            The Pay Policy Statement, as required by the Localism Act 2010, detailed in Appendix 9.

Resolved

(1)          That, having due regard, the statutory report of the Chief Finance Officer (Section 25 report) be noted.

(2)          That the proposed Fees and Charges schedule for 2023/24 (annex to the Minutes as set out in the Minute Book) be approved and it be noted that statutory notices would be placed where required.

(3)          That, having given due consideration, the Equality Impact Assessment of the Budget be noted.

(4)          That a pension fund prepayment for the years 2023/24 – 2025/26 of £5.7m be approved.

(5)          That the Business Plan and Annual Delivery Plan (annexes to the Minutes as set out in the Minute Book) be approved.

(6)          That the net revenue budget for the financial year commencing on 1 April 2023, as set out in annexes to the Minutes (as set out in the Minute Book) be approved.

(7)          That the Medium Term Financial  Strategy and Revenue Budget 2023/24, including the Savings Proposals, and Pressures, as set out in annexes to the Minutes (as set out in the Minute Book) be approved.

(8)          That an increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2023 of £5, resulting in a Band D charge of £148.50 per annum be agreed.

(9)          That, for long term empty properties, an additional Council Tax premium  charge of 100 percent for properties empty for two years or more, 200 percent for properties empty 5 years or more and 300 percent for properties empty 10 years or more be approved.

(10)       That the removal of the 25 percent discount currently available for 12 months to properties that are uninhabitable or undergoing structural repairs be approved.

(11)       That the Capital Bids 2023/24 and Capital Programme 2023/24 – 2027/28 (annexes to the Minutes as set out in the Minute Book) be approved.

(12)       That the Capital and Investment Strategy 2023/24 and revised 2022/23,  including the Minimum Revenue Provision (MRP) Policy (annexes to the Minutes as set out in the Minute Book) be approved.

(13)       That the Treasury Management Strategy 2023/24, including the Prudential Indicators, and Affordable Borrowing Limit for 2023/24  (annex to the Minutes as set out in the Minute Book) be approved.

(14)       That a minimum level of General Balances of £6m as supported in the annex to the Minutes (as set out in the Minute Book) be approved.

(15)       That the Reserves Policy (annex to the Minutes as set out in the Minute Book) be approved.

(16)       That the medium-term reserves plan (annex to the Minutes as set out in the Minute Book) be approved.

(17)       That the Pay Policy Statement, as required by the Localism Act 2010,  (annex to the Minutes as set out in the Minute Book) be approved.

Prior to consideration of the item, the Chairman advised that no amendments to the budget had been notified and the item would therefore be debated as published in the agenda. It was convention for the estimates to be taken as one integrated set of financial figures and it was not appropriate to debate the revenue and capital estimates and the Business Plan separately.

The Chairman reminded Members that the arrangements for debating the budget were set out in the meeting procedure rules. The proposer, when presenting the budget, and Group Leaders (or their nominated representative) when responding to the budget may speak for up to 10 minutes. All other speakers had a three minute time limit. 

The Assistant Director of Finance (S151 Officer) submitted a report which was the culmination of the Budget and Business Planning process for 2023/24 to 2027/28 and set out the Executive’s proposed Business Plan and related revenue budget for 2023/24, medium term financial strategy to 2027/28, capital programme to 2027/28 and all supporting policies, strategies, and information.

The Portfolio Holder for Finance, Councillor Nell, paid tribute to the Assistant Director of Finance and the finance team who had worked hard on the budget process and submitted a balanced budget to Council against a difficult financial backdrop. Councillor Nell also thanked the Budget Planning Committee and Accounts, Audit and Risk Committee for their hard work supporting the budget setting and business plan process.

Having presented the report,Councillor Nell proposed the adoption of the Business Plan and related revenue budget for 2023/24, medium term financial strategy to 2027/28, capital programme to 2027/28 and all supporting policies, strategies and information. Councillor Wood seconded the proposal.

Councillor Hingley, on behalf of the Progressive Oxfordshire Group, addressed Council in response to the budget.

Councillor Woodcock, on behalf of the Labour Group, addressed Council in response to the budget.

Councillor Webster, on of behalf of the Independent Group, addressed Council in response to the budget.

A recorded vote was taken, and Members voted as follows

Resolved

(1)          That, having due regard, the statutory report of the Chief Finance Officer (Section 25 report) be noted.

(2)          That the proposed Fees and Charges schedule for 2023/24 (annex to the Minutes as set out in the Minute Book) be approved and it be noted that statutory notices would be placed where required.

(3)          That, having given due consideration, the Equality Impact Assessment of the Budget be noted.

(4)          That a pension fund prepayment for the years 2023/24 – 2025/26 of £5.7m be approved.

(5)          That the Business Plan and Annual Delivery Plan (annexes to the Minutes as set out in the Minute Book) be approved.

(6)          That the net revenue budget for the financial year commencing on 1 April 2023, as set out in annexes to the Minutes (as set out in the Minute Book) be approved.

(7)          That the Medium Term Financial  Strategy and Revenue Budget 2023/24, including the Savings Proposals, and Pressures, as set out in annexes to the Minutes (as set out in the Minute Book) be approved.

(8)          That an increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2023 of £5, resulting in a Band D charge of £148.50 per annum be agreed.

(9)          That, for long term empty properties, an additional Council Tax premium  charge of 100 percent for properties empty for two years or more, 200 percent for properties empty 5 years or more and 300 percent for properties empty 10 years or more be approved.

(10)       That the removal of the 25 percent discount currently available for 12 months to properties that are uninhabitable or undergoing structural repairs be approved.

(11)       That the Capital Bids 2023/24 and Capital Programme 2023/24 – 2027/28 (annexes to the Minutes as set out in the Minute Book) be approved.

(12)       That the Capital and Investment Strategy 2023/24 and revised 2022/23,  including the Minimum Revenue Provision (MRP) Policy (annexes to the Minutes as set out in the Minute Book) be approved.

(13)       That the Treasury Management Strategy 2023/24, including the Prudential Indicators, and Affordable Borrowing Limit for 2023/24  (annex to the Minutes as set out in the Minute Book) be approved.

(14)       That a minimum level of General Balances of £6m as supported in the annex to the Minutes (as set out in the Minute Book) be approved.

(15)       That the Reserves Policy (annex to the Minutes as set out in the Minute Book) be approved.

(16)       That the medium-term reserves plan (annex to the Minutes as set out in the Minute Book) be approved.

(17)       That the Pay Policy Statement, as required by the Localism Act 2010,  (annex to the Minutes as set out in the Minute Book) be approved.