Issue - meetings

To receive and consider the report of the Director of Finance.

To agree the contents of the report in order to start the budget consultation process as follows;

·         A proposed 1.99% increase in council tax in 2023/24 with no proposed cuts to services;

·         A forecast balanced budget for 2023/24, based on a 1.99% increase in council tax as noted above;

·         A forecast budget shortfall for 2024/25 which will continue into 2025/26, to be addressed through the development and delivery of the council’s Transformation Strategy and savings programme;

·         To note the proposals in the report for investment in the Labour Administration’s priority areas.

Councillor Peter Wilson, Deputy Executive Leader and Executive Member (Resources) presented the report of the Director of Finance which sets out the draft budget position for the council for 2023/24 and the forecast for 2024/25, reflecting the information contained within the Provisional Local Government Financial Settlement announced on 19 December 2022, which will be finalised in January/early February 2023.

Despite the continued pressures on council expenditure budgets, including the impact of rising inflation and increasing utility costs, combined with the real terms reduction in Government funding provided to the council since 2010, Members supported the proposed council tax increase of 1.99% for 2023/24 as presented to Finance Council in February 2022. The proposal for an increase of 2.99% in 2024/25 will be revisited next year as part of the budget setting process.

Members recognised the financial challenges the Council faces with regards to the £1.357m forecast budget deficit by next year but also recognised the need to keep council tax at a reasonable level due to the cost of living crisis whilst also maintaining strong service provision and providing support for residents. Members supported the work already being undertaken to reduce the forecast deficit and supported the recommendations in the report.

Consultation on the proposed budget for 2023/24 will commence following approval of the proposals by Executive Cabinet.

Decision:

To agree the contents of the report in order to start the budget consultation process as follows;

·         A proposed 1.99% increase in council tax in 2023/24 with no proposed cuts to services;

·         A forecast balanced budget for 2023/24, based on a 1.99% increase in council tax as noted above;

·         A forecast budget shortfall for 2024/25 which will continue into 2025/26, to be addressed through the development and delivery of the council’s Transformation Strategy and savings programme;

·         To note the proposals in the report for investment in the Labour Administration’s priority areas.

Reasons for recommendations

The council wishes to set out its budget proposals and consult on them with residents.

Other options considered and rejected

None, this is the draft budget and alternative budgets may be considered as part of the final budget proposal.