To receive Report No. 01/2022 from the Portfolio Holder for Finance, Governance and Performance, Change and Transformation.

In consultation with the Cabinet, Councillor K Payne, Portfolio Holder for Finance, Governance and Performance, Change and Transformation:

1)    Approved for consultation:

·       The General Fund Budget for 2022/23 of £42.345m.

·       An increase in Council Tax of 4.99% including 3% for the Adult Social Care precept resulting in a Band D charge of £1,917.36

·       Use of the remaining Government hardship fund to provide further council tax discounts to the most vulnerable residents.

·       Authority for the Chief Executive and s151 Officer in consultation with the Portfolio Holder for Finance to continue discussions with cost reduction consultants and spend up to £100k on a viable project.

·       The questions set out in Appendix 8.

·       Additions/deletions to the capital programme as per 12.1.2

·       Changes to earmarked reserves as per 9.2.3

2)    Noted:

·       That the funding position may change when the NNDR (business rates) tax base and local government finance settlement is finalised.

·       That additional revenue or capital expenditure may be incurred in 2022/23 funded through 2021/22 budget under spends to be carried forward via earmarked reserves. The use of reserves for budget carry forwards is not currently shown in the budget but will have no impact on the General Fund.

·       The estimated surplus of £186k on the Collection Fund as at 31 March 2022 of which £159k is the Rutland share.

·       That Council will be considering the Treasury Management Strategy and Capital Investment Strategy separately.

·        The position on the Dedicated Schools Grant budget.

Report No. 01/2022 was introduced by Councillor K Payne, Portfolio Holder for Finance, Governance and Performance, Change and Transformation.

The report presented the draft Revenue and Capital Budget for 2022/23.  Councillor Payne highlighted various key points:

• The Council received a one-year settlement from the Government which gave it more funding than expected.
• This time last year the Council was projecting a deficit in 22/23 of over £2m. 
• With additional funding, savings and proposed Council tax increase of 4.99%, the Council would be drawing on less than £100k of reserves to balance the budget.
• One of the key challenges in setting the budget has been the rising cost of services.
• Rutland receives £331 less funding per household from the Government than other unitary councils.  This factor was one of the key reasons why the draft budget includes a proposal to increase council tax by 4.99%. 
• The Council intended to use its remaining Government Hardship fund to provide further Council Tax discounts to reduce council tax bills for those on the lowest incomes.
• The Council is projecting a funding shortfall of in excess of £2m in 23/24.
• The Leader and Deputy Leader were working closely with our MP Alicia Kearns to lobby numerous Government ministers to achieve a fairer deal for Rutland residents. 

A three week consultation on the budget would be undertaken and that Members were aiming to engage residents directly in Oakham and Uppingham market places over the coming weeks. Following this the final budget would come to Cabinet in February before final approval by Council the same month.  

Members thanked Councillor Payne and the finance team for the report and its contents. Councillor L Stephenson stated that it was important for the public to engage with the consultation.

RESOLVED

In consultation with the Cabinet, Councillor K Payne, Portfolio Holder for Finance, Governance and Performance, Change and Transformation:

1)    APPROVED for consultation:

• The General Fund Budget for 2022/23 of £42.345m.
• An increase in Council Tax of 4.99% including 3% for the Adult Social Care precept resulting in a Band D charge of £1,917.36
• Use of the remaining Government hardship fund to provide further council tax discounts to the most vulnerable residents.
• Authority for the Chief Executive and s151 Officer in consultation with the Portfolio Holder for Finance to continue discussions with cost reduction consultants and spend up to £100k on a viable project.
• The questions set out in Appendix 8.
• Additions/deletions to the capital programme as per 12.1.2
• Changes to earmarked reserves as per 9.2.3

2)    NOTED:

• That the funding position may change when the NNDR (business rates) tax base and local government finance settlement is finalised.
• That additional revenue or capital expenditure may be incurred in 2022/23 funded through 2021/22 budget under spends to be carried forward via earmarked reserves. The use of reserves for budget carry forwards is not currently shown in the budget but will have no impact on the General Fund.
• The estimated surplus of £186k on the Collection Fund as at 31 March 2022 of  ...  view the full minutes text for item 6