Issue - meetings

Report of Assistant Director of Finance (S151 Officer)

Purpose of report

This report sets out the capital bids, revenue savings proposals and budget pressures for Cherwell District Council for the period 2023/24 to 2027/28.  Feedback on the savings proposals will be taken into account as part of the overall response to the budget engagement. Feedback from the Committee on the revenue pressures and capital bids will be provided to the Executive to consider in finalising its budget proposals for Council.

Recommendations

The meeting is recommended to:

1.1     Agree feedback on the capital bids, revenue savings proposals and budget pressures to provide to the Executive to consider in finalising its 2023/24 budget proposal.

Resolved

(1) That, having given due consideration, Executive be advised that the Budget Planning Committee have no feedback, comments or recommendations in relation to capital bids, revenue savings proposals and budget pressures for inclusion as part of the 2023/24 budget proposal.

The Assistant Director of Finance submitted a report which set out the capital bids and revenue savings proposals and budget pressures for Cherwell District Council (CDC) for the period 2023/24 to 2027/28. This was an opportunity for the Budget Planning Committee to consider the proposals and provide feedback to Executive to consider in finalising is budget proposals which would be presented to the 27 February 2023 Full Council meeting.

The Leader of the Council advised the Committee that the budget proposals were subject to a number of assumptions regarding the level of funding made to the council by Central Government. The Autumn statement had implied that there would not be any significant short-term reductions to local government funding, but provisional Local Government Finance Settlement fir 2023/24, which sets out the specific funding levels for councils, was expected to be published in late December.

The Assistant Director of Finance presented an update on the councils Medium Term Financial Strategy (MTFS) and advised that inflation, funding assumptions, reserves movements, the impacts of Covid-19 and the delay in the business rates reset until 2025/26 had been included when updating the MTFS position.

The Assistant Director of Finance presentation also provided an update on the overall capital position advising that of the £18m capital bid total, £14m was funded from external contributions.

In response to Members’ questions, the Assistant Director of Finance advised that it was expected that most of the grant schemes used to fund capital bids would be received as there had not been any announcement or indication from the Government that these would end.

Executive Portfolio Holders, Corporate Directors and Assistant Directors gave an overview of the pressures, proposed saving and capital bids by service area within each directorate and answered questions from the Committee.

In response to a question regarding Housing Assets pressures, the Assistant Director Wellbeing and Housing Services advised that it was not anticipated that Town Centre House would be shown in next year’s budget pressures as the work required on the building was expected to be finished by the end of 2023.

Following further questions from Members’, the Assistant Director Wellbeing and Housing Services advised that the proposed rent increase for affordable rent and shared ownership properties was in accordance with government guidance for social housing and consultation was currently underway on the rent increase cap. The Assistant Director Wellbeing and Housing undertook to provide details on the potential numbers of residents affected by rent capping.

In relation to the leisure facilities utility costs budget pressure, in response to questions from the Committee seeking clarity on how the figure was reached, the Assistant Director Wellbeing and Housing Services explained that the figure was based on the current energy usage figures over the last 15 months and by taking into account the rate of the cost of energy. The Assistant Director Wellbeing and Housing Service also explained that no figures were listed in the budget for the energy created by the councils solar investments as the energy produced  ...  view the full minutes text for item 21