Issue - meetings
Revenue Budget 2023/24, Capital Programme 2023/24-2027/28, MTFS 2023/24-2027/28 and Business Plan 2023/24-2027/28
Meeting: 06/02/2023 - Executive (Item 91)
91 Budget Setting for 2023/24 and the Medium-Term Financial Strategy up to 2027/28 PDF 507 KB
Report of Assistant Director of Finance (S151 Officer)
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 Executive is recommended to:
1.1 Delegate authority to the Section 151 Officer (S151), following consultation with the Leader of the Council and Lead Member for Finance, to complete the legal Council Tax calculations once all the information required has been received and submit a separate report to Council.
1.2 Delegate authority to the S151, following consultation with the Leader of the Council and Lead Member for Finance, to make appropriate changes to the Executive’s proposed budget to Council.
The Executive is recommended to recommend to Council as follows:
1.3 Approve the proposed Fees and Charges schedule for 2023/24 (Appendix 7) and statutory notices be placed where required.
1.4 Consider and note the Equality Impact Assessment of the Budget (Appendix 8)
1.5 Approve a pension fund prepayment for the years 2023/24 – 2025/26 of £5.7m.
1.6 In relation to the Business Plan (Section 3.1) to approve:
1.6.1 The Business Plan and Annual Delivery Plan set out in Appendices 1 and 2 respectively.
1.7 In relation to the Revenue Budget (Section 3.2) and Medium-Term Financial Strategy (MTFS) (Section 3.5) to approve:
1.7.1 The net revenue budget for the financial year commencing on 1 April 2023, as set out in Table 3.2.1, and further analysed in the Budget Book provided at Appendix 12
1.7.2 The ... view the full agenda text for item 91
Additional documents:
- Appendi 1 - Business plan 2023 24, item 91
PDF 540 KB
- Appendix 2 - Annual Delivery Programme, item 91
PDF 6 MB
- Appendix 3 - Not used for Executive report, item 91
PDF 3 KB
- Appendix 4 - Savings Proposals 2023-24, item 91
PDF 570 KB
- Appendix 5 - Revenue Pressures 2023-24, item 91
PDF 573 KB
- Appendix 6 - Budget Summary, item 91
PDF 410 KB
- Appendix 7 - Fees and Charges Schedule, item 91
PDF 620 KB
- Appendix 8 - Overarching Equalities Impact Assessment re budgets 2023-24, item 91
PDF 480 KB
- Appendix 9 - Pay Policy Statement 2023, item 91
PDF 222 KB
- Appendix 10 - Budget Planning Committee Responses to Budget Proposals, item 91
PDF 26 KB
- Appendix 11 - Gross Budget, item 91
PDF 430 KB
- Appendix 12 - Budget Book, item 91
PDF 446 KB
- Appendix 13 - Revenue Grants, item 91
PDF 426 KB
- Appendix 14 - Reserves Policy, item 91
PDF 304 KB
- Appendix 15 - General Balances Risk Assessment, item 91
PDF 421 KB
- Appendix 16 - Forecast use of earmarked reserves, item 91
PDF 470 KB
- Appendix 17 - Capital Bids 23-24, item 91
PDF 29 KB
- Appendix 18 - Capital Programme 2023-24, item 91
PDF 93 KB
- Appendix 19 - Capital and Investment Strategy 2023-24, item 91
PDF 585 KB
- Appendix 20 - Revised MRP Statement for 2022-23, item 91
PDF 143 KB
- Appendix 21 - Treasury Management Strategy 2023-24, item 91
PDF 612 KB
- Webcast for Budget Setting for 2023/24 and the Medium-Term Financial Strategy up to 2027/28
Decision:
Resolved
(1) That authority be delegated to the Section 151 Officer (S151), following consultation with the Leader of the Council and Portfolio Holder for Finance, to complete the legal Council Tax calculations once all the information required has been received and submit a separate report to Council.
(2) That authority be delegated to the S151, following consultation with the Leader of the Council and Portfolio Holder for Finance, to make appropriate changes to the Executive’s proposed budget to Council.
(3) That Council be recommended to approve the proposed Fees and Charges schedule for 2023/24 and agree that statutory notices be placed where required.
(4) That Council be recommended to consider and note the Equality Impact Assessment of the Budget.
(5) That Council be recommended to approve a pension fund prepayment for the years 2023/24 – 2025/26 of £5.7m.
(6) That, in relation to the Business Plan, Council be recommended to approve the Business Plan and Annual Delivery Plan.
(7) That, in relation to the Revenue Budget and Medium Term Financial Strategy (MTFS), Council be recommended to approve:
i. The net revenue budget for the financial year commencing on 1 April 2023, as set out in the table below and further analysed in the Budget Book.
Directorate |
Net budget 2023/24 |
Communities |
8.693 |
Resources |
5.097 |
Chief Executive |
5.460 |
Service Sub-total |
19.250 |
Corporate Costs |
3.695 |
Policy Contingency |
5.229 |
Net Cost of Services |
28.174 |
ii. The MTFS and Revenue Budget 2023/24, including the Savings Proposals, and Pressures.
(8) That, in relation to Council Tax, Council be recommended to approve:
i. 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.
ii. 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.
iii. Removal of the 25 percent discount currently available for 12 months to properties that are uninhabitable or undergoing structural repairs.
(9) That, in relation to the Capital Programme and related strategies, Council be recommended to approve:
i. The Capital Bids and Capital Programme.
ii. The Capital and Investment Strategy 2023/24 and revised 2022/23 including the Minimum Revenue Provision (MRP) Policy.
iii. The Treasury Management Strategy, including the Prudential Indicators, and Affordable Borrowing Limit for 2023/24.
(10) That, in relation to reserves, Council be recommended to approve:
i. A minimum level of General Balances of £6m.
ii. The Reserves Policy.
iii. The medium-term reserves plan.
(11) That, in relation to the Pay Policy Statement, Council be recommended to approve the Pay Policy Statement, as required by the Localism Act 2010.
Minutes:
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 to recommend to full Council.
In introducing the report, the Portfolio Holder for Finance explained that the Council adopted a forward looking and anticipatory approach to its financial management, which was acknowledged by the recent Peer Review in November 2022. The Council planned for, and continued to succeed in, encouraging and facilitating economic growth across the district. This success flowed through to the Council’s finances, reflected in the level of income received from business rates and the New Homes Bonus grant.
The Council had 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 had delivered within the constraints identified, consulting on a proposed balanced budget in November 2022. The Portfolio Holder thanked all who had responded to the budget consultation.
The Portfolio Holder for Finance reported that 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 would need to be taken at higher rates.
The proposed net budget for the Council was £28.2m, which was an increase of £4.6m from 2022/23. A Band D Council Tax of £148.50 was proposed for the year which was an increase of £5 compared to 2022/23. The Capital Programme for the period 2023/24 – 2027/28 was proposed to be £35.9m. The Council planned to fund £2.0m of budget pressures and would deliver £1.0m of savings proposals as part of the 2023/24 budget.
The Portfolio Holder for Finance paid tribute to the Assistant Director of Finance and Finance Officers who worked hard to put together a balanced budget. The comments were echoed by the Leader and Deputy Leader on behalf of Exeuctive.
Resolved
(1) That authority be delegated to the Section 151 Officer (S151), following consultation with the Leader of the Council and Portfolio Holder for Finance, to complete the legal Council Tax calculations once all the information required has been received and submit a separate report to Council.
(2) That authority be delegated to the S151, following consultation with the Leader of the Council and Portfolio Holder for Finance, to make appropriate changes to the Executive’s proposed budget to Council.
(3) That Council be recommended to approve the proposed Fees and Charges schedule for 2023/24 and agree that statutory notices be placed where required.
(4) That Council be recommended to consider and note the Equality Impact Assessment of the Budget.
(5) That Council be recommended to approve a pension fund prepayment for the years 2023/24 – 2025/26 of £5.7m.
(6) That, in relation to the Business ... view the full minutes text for item 91