To receive Report No.02/2023 from the Portfolio Holder for Finance, Governance and Performance, Change and Transformation.

RESOLVED

That Cabinet:

1)    APPROVED the draft budget for consultation, including

·       the General Fund Budget (Net Expenditure) for 2023/24 of £46.549m (section 9)

·       budget reductions at service level (service savings, reversal of National Insurance rise and use of earmarked reserves) of £1.735m (Section 9.3) and corporate budget reductions of £1.889m as per section 9.3

·       budget increases to meet service pressures of £5.401m arising from the inflation, cost of living and demand (Section 9.3) and a pay contingency of £743k

·       the use of £589k of reserves to subsidise the main budget (Section 9) plus £900k set aside from general reserves to fund the Local Plan, Leisure and High Needs deficit (Section 7.1.4)

·       an increase in Council Tax of 4.99% including 2% for the Adult Social Care precept resulting in a Band D charge of £2,013.04 (Section 8)

·       the approach to consultation set out in Section 13

·       additions/deletions to the capital programme as per Section 10

·       changes to earmarked reserves as per Section 7

2)    NOTED that:

·       assuming the draft budget was approved, Council tax rises of 4.99% continue to be applied and the Council delivers extra savings of £4m by 27/28, the Council’s financial gap would still be £147k (Section 4.1.4);

·       the funding position for 2023/2024 may change when the NNDR (business rates) tax base and local government finance settlement was finalised;

·       that additional revenue or capital expenditure may be incurred in 2023/24 funded through 2022/23 budget under spends to be carried forward via earmarked reserves. The use of reserves for budget carry forwards was not currently shown in the budget but would have no impact on the General Fund

·       the estimated surplus of £38k on the Collection Fund as at 31 March 2023 (Section 8.3) of which £33k was the Rutland share

·       that Council would consider the Treasury Management Strategy and Capital Investment Strategy separately (Section 11)

·       the position on the Dedicated Schools Grant budget (Section 12)

Report No.02/2023 was introduced by Councillor Karen Payne, Portfolio Holder for Finance, Governance and Performance, Change and Transformation.

The Council was required to set a balanced budget and agree the level of Council Tax for 2023/24 in the context of its Medium Term Financial Plan. This report presented the draft budget of £46.549m for consultation.  The final budget would be approved at Full Council in late February.

Councillor Payne highlighted to Members that for the Council to be financially stable, council tax would need to be raised, savings would need to be made and reserves to be used to balance the books. The proposed budget fulfilled those outcomes.

Service savings of £1.8m would be made and planned to make £4m more savings over a 4 year period. It would use reserves to balance the books of £590k in 2023/24 and over £1.4m the following year. It raised Council Tax by 4.99%, (2.99% increase in Council Tax and 2% increase in the Adult Social Care levy). Members were reminded that inflation was currently running around 10%.

Councillor Powell asked a question whether the budget strook the right balance with using the reserves which had built up from public money, the council tax increases and the savings from the transformation programme. Councillor Payne strongly believed it was the right approach to take to prevent risk in the future and doing what was right for the residents of Rutland.

The Leader thanked the Strategic Director for Resources, the Portfolio Holder and the wider team for delivering this budget in such difficult circumstances.

It was proposed by Councillor K Payne that the recommendations of report No. 02/2023 be agreed, this was seconded and upon being put to the vote the motion was unanimously agreed.

RESOLVED

That Cabinet:

a)    APPROVED the draft budget for consultation, including

·       the General Fund Budget (Net Expenditure) for 2023/24 of £46.549m (section 9)

·       budget reductions at service level (service savings, reversal of National Insurance rise and use of earmarked reserves) of £1.735m (Section 9.3) and corporate budget reductions of £1.889m as per section 9.3

·       budget increases to meet service pressures of £5.401m arising from the inflation, cost of living and demand (Section 9.3) and a pay contingency of £743k

·       the use of £589k of reserves to subsidise the main budget (Section 9) plus £900k set aside from general reserves to fund the Local Plan, Leisure and High Needs deficit (Section 7.1.4)

·       an increase in Council Tax of 4.99% including 2% for the Adult Social Care precept resulting in a Band D charge of £2,013.04 (Section 8)

·       the approach to consultation set out in Section 13

·       additions/deletions to the capital programme as per Section 10

·       changes to earmarked reserves as per Section 7

b)   NOTED that:

·       assuming the draft budget is approved, Council tax rises of 4.99% continue to be applied and the Council delivers extra savings of £4m by 27/28, the Council’s financial gap will still be £147k (Section 4.1.4);

·       the funding position for 2023/2024 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 2023/24 funded through 2022/23 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 £38k on the Collection Fund as at 31 March 2023 (Section 8.3) of which £33k is the Rutland share

·       that Council will be considering the Treasury Management Strategy and Capital Investment Strategy separately (Section 11)

·      the position on the Dedicated Schools Grant budget (Section 12)