Agenda item

(Key Decision)

The Financial Planning and Assets Portfolio Holder to submit the 2023/24 Budget and Medium Term Financial Plan General Fund Revenue and Capital for Cumberland Council.

(Copy Report herewith)

(Key Decision)

***This item was exempted from Call in by the Chair of the Overview and Scrutiny Committee on 8 February 2023.***

Subject:

The Financial Planning and Assets Portfolio Holder presented the first Revenue Budget and Medium Term Financial Plan for Cumberland Council which identified the key factors influencing and informing the development of the Council’s financial plans for 2023-24, along with the ongoing impact of those plans into the medium term.

Included in the within the budget report was the latest estimated funding position, service and corporate budget pressures, financial risks and challenges influencing the development of Cumberland Council’s financial plans.

Proposals for 2023-24 were based on the outcome of the Provisional Local Government Finance Settlement, released on the 19^th of December. It was noted that the Settlement was for a one year period, as such financial planning over a greater timescale was necessarily predicated on assumptions. 

The report also covered the issues which needed to be considered prior to the Council finalising the budget and setting the Council Tax for 2023-24.

In moving the recommendations in the report, the Financial Planning and Assets Portfolio Holder gave her thanks to the Officers from the sovereign authorities who had worked to develop the budget.  The Leader seconded the proposals. 

As part of the consultation process, the matter had been considered by the Shadow Authority Scrutiny Committee the previous day.  Copies of notes of that meeting had been circulated to the Executive Councillors.  The Vice Chair of the Scrutiny Committee, Councillor Pratt, was in attendance, he gave an overview of the Committee’s discussion and rationale for the submitted recommendations. 

The Leader welcomed the Scrutiny Committee’s response to the consultation on the budget. 

Alternative Options:

The Council had a legal duty to set a balanced budget each year and the proposals fulfilled the requirement.

DECISION

That the Shadow Executive:

1)    Approved the 2023-24 Budget for recommendation to Cumberland Shadow Authority for approval and adoption including: -

·         The General Fund net revenue budget for 2023-24 of £303,278,387 and Directorate service budgets for 2023-24 as outlined in Appendix A

·         Council Tax Harmonisation for Cumberland Council using the weighted average (alternative notional amount) from 1 April 2023

·         An average Band D Council Tax in 2023-24 of £1,730.84 for Cumberland Council which represents an increase of 4.99% on the average Council Tax levied across the Cumberland area (2.99% increase in core council tax and 2% Adult Social Care precept)

·         The capital programme as set out in Appendix C

·         The detailed Fees and Charges as set out in Appendix D

·         Notes the S25 statement of the Chief Finance Officer as set out in Section 16 and the risk-based assessment of the level of General Fund Balances

·         Notes the consultation feedback on the budget as set out in Appendix E

2)    Made the following recommendations to the Shadow Council to ensure that the revenue and capital budget and all associated financial policies would be delivered in a safe and legal manner from 1^st April 2023 while ensuring flexibility to manage the overall budget in the year

·           To delegate authority to the Section 151 Officer, in consultation with,  the Portfolio Holder for Financial Planning and Assets, to amend the capital programme for 2023-24 going forward so that it accurately reflects issues such as slippage / acceleration on current year projects that would need to be added to the programme

·           To delegate authority to the Section 151 Officer to finalise and agree all outstanding financial policies and strategies to ensure that the Council had the policies in place by 1 April 2023.

·           To delegate authority to the Section 151 Officer, in consultation with, the Portfolio Holder for Financial Planning and Assets to employ earmarked reserves for the purposes they were originally set up for

·           To delegate authority to the Section 151 Officer, in consultation with, the Portfolio Holder for Financial Planning and Assets to amend the Fees and Charges if required in 2023-24

·           To delegate authority to the Section 151 Officer, in consultation with, the Portfolio Holder for Financial Planning and Assets to release the general contingency fund if required in the year.

Reasons for Decision

To ensure that a balanced budget us set.