Issue - meetings

Report of the Cabinet Member Finance

The Mayor reminded Members that usual standing orders would be relaxed for this item, and they could speak for more than five minutes should they wish.  He asked, however, that they be as brief as possible.

The Cabinet Member Finance and Assets introduced the budget paper, reminding Members of the unprecedented financial challenges faced by all councils over the last 18 months, in addition to the year-on-year cuts to the council’s funding as a result of a decade of austerity. There was still significant uncertainly about the long-term impact of the pandemic on growth, investment and inflation, which currently stood at 5.5%, the highest level for 40 years, and was expected to peak at 7% in April.

He said that with the emergence of the Omicron variant, uncertainty continued to impact customer behaviour, which may in turn have a further financial impact on the council’s commercial income and town’s economy.  The budget therefore needed to be balanced and targeted to ensure adequate revenue resources to continue recovery from Covid-19. The previous budget included a number of growth items in direct response to the Covid-19, providing revenue funding for climate change, economic recovery, and the introduction of an apprenticeship programme. In addition, in November 2020, the council committed £1.5m additional resources to the Golden Valley development.

He reminded Members that the key priorities, set out in the 2019 Corporate Plan, have not changed, and the council remained committed to:

-       delivering its ambition to be cyber capital of the UK; inclusion of the Golden Valley development and the council in the government’s recent national cyber strategy is testament to this;

-       making Cheltenham a net zero carbon council and town;

-       revitalising the town centre and supporting sustainable, inclusive growth and recovery for all residents and communities;

-       a £180m housing investment plan;

-       the No Child Left Behind initiative.

To continue with these priorities in the current economic environment, he proposed a strategy which re-prioritised and re-set the budget from the bottom up, utilising resources, assets, skills and infrastructure in the most effective way, saying that long-term strategic commitments needed long-term financial planning. By working with stakeholders throughout the consultation process, and by fine-tuning services based on actual needs, over £1.5m-worth of efficiencies had been identified, through collaboration and additional revenue generation. 

The budget proposal also included:

-       an increase in revenue funding for the council’s net zero carbon journey;

-       reduction in the council’s reliance on car parking income to support air quality improvement in the town centre;

-       new capital funding of £75k for a pilot EV off-street charging hub;

-       continued funding to support apprenticeship programme.

He said the budget proposed a modest council tax increase of 2.28% for the council’s proportion of the bill – less than 10p a week for a Band D property.  He put this in context by pointing out the real financial challenges arising from:

-       inflation currently running at 5.5%;

-       our energy bills increasing by 7.5%;

-       employers’ national insurance  ...  view the full minutes text for item 12

Report of the Cabinet Member Finance and Assets to follow

RESOLVED THAT:

1.    The revised budget for 2021/22, which is also reported separately in the 2021/22 budget monitor for 31 December 2021, be approved;

2.    The budget assessment by the Section 151 Officer at Appendix 2 be considered in agreeing the following recommendations;

3.    The final budget proposals be approved, including a proposed council tax increase for the services provided by Cheltenham Borough Council for the year 2022/23 based on a Band D property (an increase of 2.28% or £5.00 a year for a Band D property), as detailed in paragraphs 4.14 to 4.19;

4.    The savings/additional income totalling £1,507,000 and the budget strategy at Appendix 4 be approved;

5.    The use of reserves and general balances and note the projected level of reserves, as detailed at Appendix 5, be approved;

6.    The capital programme at Appendix 6 be approved;

7.    The programmed maintenance programme at Appendix 7 be approved;

8.    The flexible use of capital receipts strategy as detailed in Appendix 8 be approved;

9.    It be noted that the Council will remain in the Gloucestershire business rates pool for 2022/23 (paragraphs 4.4 to 4.13);

10.  The Medium Term Financial Strategy (MTFS) detailed in Appendix 9 be approved;.

11.  The Pay Policy Statement for 2022/23, including the continued payment of a living wage supplement at Appendix 10, be approved;

12.  A level of supplementary estimate of £100,000 for 2022/23, as outlined in Section 14, be approved.

The Cabinet Member Finance and Assets presented the report, noting that it also did not differ significantly from the proposals put out for consultation. Officers’ predictions for the local government funding settlement based on the Budget speech had been essentially dead on, which showed their knowledge and experience. The budget aimed to reset and refocus so that corporate priorities could continue to be delivered even when facing financial challenges. He thanked officers for their diligence and hard work.

The Leader thanked the Cabinet Member Finance and Assets for his work on the finance reports considered by Cabinet, and moved to the vote, where it was unanimously:

RESOLVED THAT:

1.    The revised budget for 2021/22, which is also reported separately in the 2021/22 budget monitor for 31 December 2021, be approved;

2.    The budget assessment by the Section 151 Officer at Appendix 2 be considered in agreeing the following recommendations;

3.    The final budget proposals be approved, including a proposed council tax increase for the services provided by Cheltenham Borough Council for the year 2022/23 based on a Band D property (an increase of 2.28% or £5.00 a year for a Band D property), as detailed in paragraphs 4.14 to 4.19;

4.    The savings/additional income totalling £1,507,000 and the budget strategy at Appendix 4 be approved;

5.    The use of reserves and general balances and note the projected level of reserves, as detailed at Appendix 5, be approved;

6.    The capital programme at Appendix 6 be approved;

7.    The programmed maintenance programme at Appendix 7 be approved;

8.    The flexible use of capital receipts strategy as detailed in Appendix 8 be approved;

9.    It be noted that the Council will remain in the Gloucestershire business rates pool for 2022/23 (paragraphs 4.4 to 4.13);

10.  The Medium Term Financial Strategy (MTFS) detailed in Appendix 9 be approved;.

11.  The Pay Policy Statement for 2022/23, including the continued payment of a living wage supplement at Appendix 10, be approved;

12.  A level of supplementary estimate of £100,000 for 2022/23, as outlined in Section 14, be approved.