Agenda item

RESOLVED:-

 

(KEY DECISION)

 

a)      Approved for consultation the 2022-23 Draft Budget, which includes:

                              

i.          An estimated net revenue budget of £293.2m (£618.6m including the Dedicated Schools Grant) as set out in Appendix A, noting that this is subject to further update following the publication of the provisional Local Government Finance Settlement.

 

ii.         An average Band D Council Tax of £1,578.73 for North Northamptonshire Council, representing a 1.99% increase in the ‘core’ Council Tax and a further 1% for the Adult Social Care Precept.

 

iii.        Net Pressures of £8.2m, including adjustments for the reversal of one-off funding in 2021-22, and savings and income generation proposals of £7.6m as set out in Appendix B.

 

iv.        That the draft fees and charges proposed at Appendix C be subject to further review

 

v.         Corporate budget requirements as set out in paragraph 8.1, including a contingency sum of £4.250m as set out in paragraph 8.2.

 

vi.        The draft planned use of, contribution to, and movement in, reserves as identified in paragraph 5.54 and section 9 of the report, noting the reserves will be reviewed again prior to the final budget proposals to consider the risk applying at that time.

 

vii.      The provisional dedicated schools grant budget of £325.4m for 2022-23, pending the Final Settlement, as detailed in Appendix D.

 

b)     For the Dedicated Schools Grant (DSG):

 

i.          Noted the provisional allocations of the increased funding for the Schools Block and High Needs Block for 2022-23 and reduced Central School Services Block for the Dedicated Schools Grant (DSG) allocations.

 

ii        Following consultation with the Schools Forum, delegated authority to the Executive Member for Children’s Services in consultation with the Executive Member for Finance and Transformation, Director for Children’s Services, and the Executive Director of Finance (S151 Officer) to determine the DSG 2022-23 schools funding formula, high needs funding arrangements and the early years funding formula in line with Department for Education guidance.

 

c)      Endorsed the budget consultation process as outlined at paragraphs 13.13 to 13.17 which commences following the approval of the recommendations in this report.

 

d)      Noted that the funding allocations are estimates at this stage and will not be confirmed until the publication of the Local Government Finance Settlement.

 

e)      Delegated authority to the Executive Member for Finance and Transformation in consultation with the Executive Director of Finance (Section 151 Officer) to amend the draft budget following the publication of the Local Government Finance Settlement.

 

Reason for Decisions: To ensure that the Council complies with its Constitution and legislative requirements in setting the budget for North Northamptonshire Council from 2022-23.

 

 

The Chair, Cllr Jason Smithers invited Cllr Dorothy Maxwell to address the meeting, however Cllr Maxwell declined the opportunity.

 

Cllr Lloyd Bunday, Executive Member for Finance and Transformation then introduced a report that set out the Draft Revenue Budget for 2022-23 and the indicative Medium-Term Financial Plan for North Northamptonshire Council and sought approval from the Executive to commence consultation on the draft budget.

 

It was noted that, if approved, the consultation process would run until 28^th January 2022 and would provide residents, local partners and other stakeholders with the opportunity to review the proposed budget and provide feedback. The draft budget would also be presented to the Finance and Resources Scrutiny Committee for feedback.

 

The meeting heard that, taking into account the comments from the Finance and Resources Scrutiny Committee and the wider consultation response, the Executive would consider the final draft budget proposals and the Council Tax Resolution report for 2022-23 at its meeting on 10^th February, with a view to recommending its approval by Full Council at its budget meeting on 24^th February 2022. The Council Tax Resolution report would contain the final information from all the precepting authorities required to propose the Council Tax for all areas of North Northamptonshire.

 

Cllr Bunday stated that the Fees and Charges element of the report (Appendix C to the report) had been withdrawn in order for further review of the contents to be undertaken.

 

Cllr Bunday noted that at the time of publication of the report, the finance settlement from central government had not been announced and therefore a number of assumptions had been made in the production of the draft budget. Details of the settlement had subsequently been received and were reflected in the addendum to the report that had been published and circulated.

 

The budget report set out the latest estimated funding position, service budget pressures, key financial risks and challenges influencing the development of the Council’s financial plans for 2022-23 and the ongoing financial impact of those plans, together with the longer-term estimates of funding and spending requirements.

 

Cllr Bunday brought members attention to Section 4 of the report that provided the detailed economic context nationally and locally for the 2022/23 budget and noted that there was governmental assumption that councils would set their Council Tax increases to the maximum permitted.

 

It was noted that the revenue account for the Council had five main income sources: Council Tax, Business Rates, government grants, fees and charges and the use of reserves where necessary and Cllr Bunday stated that it was imperative that the Council did everything possible to maintain and grow local resources that lay within its control.

 

Cllr Bunday referenced funding for the medium-term, noting that although there was a balanced draft budget for 2022/23, there was a shortfall to the end of 2025 of approximately £32m. It was heard that the government had, in the light of the Covid-19 pandemic, provided great support to both organisations and individuals, with further measures still being announced, however, it remained to be seen what the legacy effect would be on the health of residents and economy.

 

Cllr Bunday highlighted the key proposals of the Draft Revenue Budget for 2022-23 as follows:

 

·         A balanced budget for 2022-23

 

·         Further investment to protect vital services and invest in service change, including removal of previous one-off funding predominantly related to Covid-19

 

·         Efficiencies and income generation

 

·         Investment in the Children’s Trust to protect and increase the baseline funding from 2021-22 into 2022-23. A further additional one-off revenue and capital investment to help deliver service improvements for some of the most vulnerable children and young people

 

·         Planned savings and pressures from previous Medium Term Financial Plans would remain to be delivered, unless there was a requirement to change the assumptions following review

 

·         Use of reserves to support non-recurring investment in service improvement, fund time limited projects, pump-prime invest to save schemes and help manage risk

 

·         Investment of £1m spread over three years to forward fund initiatives to help address climate issues

 

·         Investment in Social Care to recognise the increase in the National Living Wage and the increase in national insurance contributions for care providers

 

·         Investment to consolidate the increase in pay for the Council’s lower paid staff to the real living wage in 2021-22, together with improved incremental progression

 

·         An increase in council tax and the Adult Social Care precept, resulting in an average weekly increase of 88 pence for a Band D equivalent property

 

·         The Local Council Tax Support Scheme would remain unchanged

 

·         Inclusion of a contingency to mitigate against uncertainty

 

·         Officers and members would continue to seek efficiencies in order to help address the budget requirement from 2023/24

 

It was heard that the draft budget before members would support a wide range of services and reflecting the Council’s newly adopted Corporate Plan. It was acknowledged that the draft budget had been set against an uncertain economic backdrop and the advent of unitary authorities in Northamptonshire had provided the Council with both opportunities and challenges. It was envisaged that stabilisation would continue into the second year of the Council, with transformation opportunities brought forward for the benefit of residents.

 

It was also acknowledged that the Council would continue to face financial challenges, with an element of the financial settlement from government proposed to be moved into Council reserves to assist in smoothing any future financial shocks that may arise.

 

Cllr Bunday concluded by noting that monthly budget monitoring and budget challenge sessions with each Directorate had assisted in shaping the draft budget and each service area would continue to take ownership of their part. Each Directorate would receive a copy of their budget to share with their respective portfolio holders.

 

Councillors Brackenbury, Howell, Pentland, Harrison and Lawman all spoke, offering their thanks to those involved in the preparation and setting of the draft budget which was considered to be comprehensive and well-constructed.

 

 

 

 

RESOLVED:-

 

(KEY DECISION)

 

a)      Approved for consultation the 2022-23 Draft Budget, which includes:

                              

i.          An estimated net revenue budget of £293.2m (£618.6m including the Dedicated Schools Grant) as set out in Appendix A, noting that this is subject to further update following the publication of the provisional Local Government Finance Settlement.

 

ii.         An average Band D Council Tax of £1,578.73 for North Northamptonshire Council, representing a 1.99% increase in the ‘core’ Council Tax and a further 1% for the Adult Social Care Precept.

 

iii.        Net Pressures of £8.2m, including adjustments for the reversal of one-off funding in 2021-22, and savings and income generation proposals of £7.6m as set out in Appendix B.

 

iv.        That the draft fees and charges proposed at Appendix C be subject to further review

 

v.         Corporate budget requirements as set out in paragraph 8.1, including a contingency sum of £4.250m as set out in paragraph 8.2.

 

vi.        The draft planned use of, contribution to, and movement in, reserves as identified in paragraph 5.54 and section 9 of the report, noting the reserves will be reviewed again prior to the final budget proposals to consider the risk applying at that time.

 

vii.      The provisional dedicated schools grant budget of £325.4m for 2022-23, pending the Final Settlement, as detailed in Appendix D.

 

b)     For the Dedicated Schools Grant (DSG):

 

i.          Noted the provisional allocations of the increased funding for the Schools Block and High Needs Block for 2022-23 and reduced Central School Services Block for the Dedicated Schools Grant (DSG) allocations.

 

ii        Following consultation with the Schools Forum, delegated authority to the Executive Member for Children’s Services in consultation with the Executive Member for Finance and Transformation, Director for Children’s Services, and the Executive Director of Finance (S151 Officer) to determine the DSG 2022-23 schools funding formula, high needs funding arrangements and the early years funding formula in line with Department for Education guidance.

 

c)      Endorsed the budget consultation process as outlined at paragraphs 13.13 to 13.17 which commences following the approval of the recommendations in this report.

 

d)      Noted that the funding allocations are estimates at this stage and will not be confirmed until the publication of the Local Government Finance Settlement.

 

e)      Delegated authority to the Executive Member for Finance and Transformation in consultation with the Executive Director of Finance (Section 151 Officer) to amend the draft budget following the publication of the Local Government Finance Settlement.

 

Reason for Decisions: To ensure that the Council complies with its Constitution and legislative requirements in setting the budget for North Northamptonshire Council from 2022-23.