Agenda item

To consider a report from the Cabinet Member for Finance (copy enclosed).

The Cabinet Member for Finance presented the first budget and Medium Term Financial Plan for the new Unitary Westmorland and Furness Council.  The creation of a new unitary council provided the opportunity to transform and improve local services by taking a fresh approach to the delivery of inclusive services to achieve the Council’s vision and priorities.

 

The report set out the spending plans for the Council for the Revenue Budget 2023/24 and Medium Term Financial Plan (2023 -2028) for Westmorland and Furness Council, and included the proposed Capital Programme 2023-2028

 

The budget proposals set out the financial considerations and estimates on the different elements of Local Government funding (including the Council Tax requirement for 2023/24), national and local financial pressures and proposed savings as well as plans for the future to invest and transform the Council to achieve its Council Plan priorities.

 

The report sets out the: -

 

·               Draft Medium Term Financial Plan (MTFP) 2023-2028

·               Revenue spending plans to achieve a balanced budget in 2023/24 (including the HRA budget 2023/24)

·               Council Tax Requirement for 2023/24

·               Draft Capital Programme for 2023-2028

·               Draft Treasury Management Strategy for 2023/24

·               Fees and charges policy

·               Locality Board Budgets

·               Senior Leadership Pay Policy Statement

 

The Cabinet Member for Finance took members through the report in detail, highlighting the following:

 

·           Budget Planning – Financial Context

·           Council Tax Increase Consideration

·           Council Tax Harmonisation

·           Medium Term Financial Plan 2023-2028 – Revenue Spending Plans

·           Pressures

·           Fees and Charges

·           Locality Board Budgets

·           Schools’ Expenditure

·           Housing Revenue Account

·           Senior Leadership Pay Policy Statement

·           Capital Spending Plans

·           Adequacy of Reserves

 

Councillor Jarvis asked that recommendation 2.8 be amended by inserting the wording after slippage “or accelerated spend”.

 

Councillor Jarvis proposed the recommendations as amended, which were seconded by Councillor Brook.

 

Councillor Hughes and Thornton thanked the Portfolio Holder, Director of Resources and finance staff on producing the draft budget.

 

Councillor Thornton did criticise the Government for not funding any of the Local Government Reorganisation costs.

 

Pam Duke, the Director of Resources reported the recommendations from the Overview and Scrutiny Committee as follows:-

 

Assurance sought that funds allocated to the Strategic Highways Committee which previously within Cumbria County Council had been delegated to the Local Committees would be distributed fairly across the authority area.

 

As part of the Overview and Scrutiny process, Quarterly Budget Monitoring Reports to be built into the Forward Plan and discussed at the Corporate Scrutiny Committee.

 

Post vesting day, Cabinet to look at which further elements of the budget and decision-making would be appropriate to devolve to the Locality Boards.

 

Correction to be made to page 22, paragraph 4.11 of the Cabinet Report – “A590 Dalton in Furness to Barrow Town Centre” is inaccurate.

 

Councillor Jarvis commented on one other correction recommended by the Overview and Scrutiny Committee was that a 4.99% increase was not Government Policy but a Government assumption.

 

Councillor Jarvis as Portfolio Holder accepted the recommendations of the Overview and Scrutiny Committee which was seconded by Councillor Brook.

 

Councillor Archibald commented that he was delighted to see a budget for transformation as well as money to invest in communities, biodiversity and climate change.

 

A unanimous vote to approve the recommendations as amended was taken.

 

RESOLVED, that the Shadow Cabinet

 

(1)        Agreed the recommendations from the Overview and Scrutiny Committee;

(2)        notes the Director of Resources/ (S151 Officer) Section 25 Report as at Section 5 including her review of the robustness of the estimates and the adequacy of the reserves;

(3)        RECOMMENDS to Council a 2.99% increase in general council tax and an additional 2% increase for the Adult Social Care precept for 23/24 resulting in an overall increase of 4.99%;

(4)        RECOMMENDS to Council to harmonise Council Tax levels for Westmorland and Furness in the first year, as contained in paragraphs 3.28 to 3.33;

(5)        RECOMMENDS to Council to approve the intention to introduce a 100% Council tax premium on second homes from 1 April 2024, subject to the Levelling Up Bill achieving royal assent;

(6)        subject to the approval of 2.3 and 2.4 above, RECOMMENDS to Council:

 

Ø  a Council Tax requirement of £152.700m which results in a Band D Council Tax of £1,740.89 for Westmorland and Furness Council,

Ø  noting that a separate report on Calculating and setting the 2023/24 Council Tax Report would be presented at the Shadow Authority meeting on 7th March

 

(7)     RECOMMENDS to Council in respect of the draft Net Revenue Budget Requirement of £268.478m:

 

Ø  a five-year Medium Term Financial Plan 2023/24 -2027/28 (see Appendix A).

Ø  The schools budget for 2023/24 of £155.5m including £71.1m for academies and free schools and other providers

Ø  The use of reserves and levels of forecast reserves contained in the MTFP (See Appendix A)

Ø  The fees and charges policy for 2023/24 (see Appendix C)

Ø  The Senior Leadership Pay Policy Statement for 2023/24 (see Appendix F)

Ø  Housing Revenue Account - balanced budget including the use of £0.770m earmarked reserves and a 3.5% increase on dwelling and garage rents.

Ø  Treasury Management Strategy for 2023/24 (Appendix D)

Ø  Capital Programme for 2023/24 of £104.168m (set within a five-year programme 2023-2028 of £252.786m.

Ø  Equality Impact Assessment (EIA) for Council Tax changes, Fees and charges increases and the Housing Revenue Account rent increases. (See Appendix G)

 

(8)   RECOMMENDS to Council to approve that the slippage or accelerated spend position on the District Council and disaggregated County Council 2022/23 capital programmes at 31 March 2023 is included within the 2023/24 Westmorland and Furness capital programme and reviewed as part of Q1 budget monitoring.

 

(9)   approves the Strategic Highways and Transport Committee budget of £1.377m revenue and £19.9m capital subject to agreement by Council of the overall budget.

 

(10) approves the Locality Boards revenue budget allocation of £2.568m as set out in Appendix E, subject to agreement of the total Council budget and the draft guidance in respect of allocations and the limitations of virements. That was subject to agreement by Council of the overall budget.

 

(11) RECOMMENDS to Council to delegate to the Director of Resources (Section 151 officer) in consultation with the Finance portfolio holder and Asset portfolio holder to approve the capital strategy for 2023/24. That would be reported back to Council at the earliest opportunity.

 

(12) RECOMMENDS to Council to delegate to the Director of Resources (Section151 officer) in consultation with the Finance portfolio holder to finalise the fees and charges schedule (2023/24) in accordance with the approved Fees and Charges policy.

 

(13) RECOMMENDS to Council to delegate to the Director of Resources (section 151 officer) the full range of powers including taking all decisions, implementing decisions and acting as the authorised signatory for the Council to ensure the safe transfer of the Cumbria Pension Fund assets from Cumbria County Council to Westmorland and Furness on 1 April 2023.