To receive a report from the Head of Finance – Client.

The Chairman welcomed Christine Marshall, Deputy Chief Executive (Corporate Development) and Section 151 Officer, Colleen Warren, Head of Finance (Client) PSPS Limited and Councillor Richard Fry, Portfolio Holder for Finance to the Meeting.

Councillor Fry informed Members that the Council was in an excellent financial position and was being vigilant of the remaining risks.

Members received a presentation that detailed budget progress, including the impact that the 2024/2025 Spending Review would have on the budget, the  Medium Term Financial Strategy (MTFS) and an overview of budget pressures, risks and opportunities (a copy of the presentation is attached at Appendix A to the Minutes).

The Portfolio Holder for Finance further advised that final checks were being undertaken on the budget, and that the Capital Programme remained in draft pending final adjustments.  Public consultation had commenced on 15^th January 2024 and the budget was being presented to the Audit and Governance Committee, followed by the Executive Board and then to Full Council on 28^th February 2024.

The Chairman invited James Gilbert, Assistant Director (Corporate) to provide an update on progress with Drainage Board levies.  It was advised that the Special Interest Group (SIG), Chaired by Councillor Paul Redgate (SHDC) consisted of 28 Member Councils and momentum was gathering with a key event taking place at the House of Commons on 6th February 2024 with MPs, Ministers and the Secretary of State for DEFRA in attendance.  There were positive signs emerging from Government to support the effort.  IDBs were a huge challenge and examples such as St Germans Pumping Station had seen extremely large increases in standing charges passed to the Local Authority.  A collaborative effort was continuing to lobby government and a sustainable funding solution was being sought to take the pressures away from local authorities.

At this point in the Meeting, Councillor Edginton requested that it be noted he was a Board Member of Lindsey Marsh Drainage Board, however would remain in the Meeting to speak on this item.  The Chairman advised that a number of Members of this Committee were also members of Drainage Boards across the district.

Members were invited to put their comments and questions forward.

·       A Member thanked Councillor Fry for his report and queried if the presentation was circulated to Members prior to the meeting. In response, the Chairman advised that a copy of the presentation would be provided to Members following the meeting. 

·       A Member expressed their disappointment with the fairer funding deal and stated that the Rural Support Network and MP Victoria Atkins should be made aware that East Lindsey was disadvantaged. Further concern was expressed that increases in business rates did not encourage economic growth or enable businesses to flourish.

·       In reference to Table 4 – ‘Precepting Authority Band D charges’ a Member further highlighted that many vulnerable people could not afford further increases in Council Tax and that IDB charges should be part of the governments flooding policies and be funded by central government, page 45 of the Agenda refers.  In response, the Chairman and the Portfolio Holder for Finance offered reassurances on Council Tax increases.  The Head of Finance (Client) further advised that the government was not passing National Non-Domestic Rates (NNDR) increases on to businesses.

·       In reference to Table 12 – ‘Reserves Balances’, a Member requested clarity on the difference between the two reserve balances and a breakdown of what they included, page 55 of the Agenda refers. In response, the Head of Finance (Client) advised that the information would be obtained and reported back to Committee.

• A Member stated that huge savings could be made by utilising and investing in Artificial Intelligence (AI).  Further to a discussion, it was agreed that money saving opportunities with AI was to be considered by the Overview Committee at a future meeting.

·       Referring to the Council’s proposed 5-year Capital Programme and its 5- year capital resource projects, a Member expressed concern that the Sutton on Sea Colonnade project was not listed, page 58 of the Agenda refers.  In response, the Portfolio Holder for Finance advised that the Colonnade was still included, and a subsequent update was to be provided to Committee Members. 

No further comments or questions were received. 

The Chairman thanked the Section 151 Officer, the Head of Finance (Client) and the Portfolio Holder for Finance for attending the Meeting and for the extensive work going into the budget.