To consider the General Fund Budget for 2023/24 including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury Management Strategy, MRP Policy and Annual Investment Strategy, Fees and Charges for 2023/24 and the Annual Delivery Plan.

That the following recommendations be approved for onward referral to Full Council on 1st March 2023:

1.       The Revenue Estimates for the General Fund for 2023/24 (Appendices 1, 1a and 1b) be approved;

2.       That the Council Tax for a Band A property in 2023/24 be set at £107.76 (£3.30 per annum increase on 2022/23 levels) and band D £161.64 for 2023/24 (a £4.95 per annum increase on 2022/23 levels);

3.       The additions to and use of reserves (as detailed at Appendix 1) be approved;

4.       The Medium Term Financial Strategy (at Appendix 1) be approved;

5.       The Capital Programme and Capital Strategy (Appendices 1 and 2) be approved;

6.       The Treasury Management Policy 2023/24 (Appendix 3a) and Treasury Management Strategy, including the Minimum Revenue Provision Policy and Annual Investment Strategy 2023/24 (Appendix 3b) be approved;

7.       The Annual Delivery Plan for 2023/24 (Appendix 4) be approved;

8.       That Executive Board notes the results of the Budget Consultation process at Appendix 5 (to follow);

9.       That Full Council delegates approval to the Deputy Chief Executive Corporate Development (S151), to account as required for any s31 grant and reserve transactions required in respect of the Collection Fund;

10.   That delegated authority be given to the Deputy Chief Executive Corporate Development (S151), in consultation with the Portfolio Holder for Finance, to make any necessary amendments to the budget prior to Council due to late notifications.

A report was presented to enable consideration of the General Fund Budget for 2023/24, including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury Management Policy/Strategy, MRP Policy and Annual Investment Strategy and the Annual Delivery Plan.

Firstly, the Portfolio Holder for Finance wished to extend his thanks to Christine Marshall, Deputy Chief Executive (Corporate Development) and s151 Officer and her team for their work in preparing the budget.  During his introduction the Portfolio Holder referred to this year’s budget being set within a background of unprecedented inflationary pressures and significant changes in residents, customers and business needs.  It was highlighted that despite this the Council was well placed and able to take a considered approach to mitigating theses exceptional challenges.  Furthermore, the Council had been and continued to be successful in drawing in significant capital and revenue investment for the area. 

It was noted that the budget had been through a consultation procedure and the summary had been circulated (Appendix 5).  The draft budget proposals had been considered by Overview Committee and Audit and Governance Committee respectively, Overview Committee Minute 71 and Audit and Governance Committee Minute 46 refer.

The Treasury Management Strategy was also presented to Audit and Governance Committee on 1^st February, Audit and Governance Committee Minute No. 46 refers and had been updated to reflect the final budget accompanying the report presented.

Key budget pressures were listed at paragraph 3 of the report and were noted as:

·                 A pay award for 2022/23 was agreed in November 2022 averaging 5% across the pay spine.  For 2023/24 a 5% award had been assumed, this allowance would be held corporately and adjusted to any savings target should it be settled at a lower level.  This was one of the most significant impacts in the budget.

•         Pension contributions would be 23.8% in 2023/24 with an additional lump sum amount payable towards the deficit on the pension scheme. This rate was applied only to those staff in the local government pension scheme. The pension contribution rate was assumed to stay at 23.8% throughout the life of the MTFS.

·                 The return on cash investment reflected recent increases to Bank of England base rates which had increased significantly from the recent historic low levels.

·                 Electricity and gas costs had been inflated for 2023/24, as a result of increased wholesale prices.

·                 Vehicle fuel costs have also experienced inflationary pressures.

·                 Increased Internal Drainage Board levy of particular concern (as detailed at paragraph 6.1 of the report presented). 

·                 Increased contract and service costs were similarly a feature of the budget, albeit officers and members are working closely to seek to manage these implications and impacts, these included:

·       External audit fees;

·       External contract pay and inflation pressures.

In respect of Council Tax and Business Rates paragraph 4.1 of the report detailed the previous Medium Term Financial Strategy (MTFS) committed to a Council Tax increase in line with the maximum allowed under the recent Local Government Settlement.  For ELDC in 2023/24 this  ...  view the full minutes text for item 71