Agenda item

Reports and matters referred from the Executive, 8 February 2023 EXE 75 Medium Term Financial Plan (MTFP) 2023-2027 (Agenda Item 5 (1) ) and Revenue Budget Update 2023/24 and Council Tax Setting 2023/24 (Agenda Item (Agenda Item 6)

The agenda item number mentioned in the heading of the individual extract refers to the agenda of the relevant Executive meeting. All Members have received the agenda papers and are commended to review them prior to the Council meeting.

 

(1)      EXE75   Medium Term Financial Plan 2023-2027 (MTFP) and Revenue Budget for 2023-24 (Agenda Item 14) (draft minute extract and report attached)

 

Note: The published Equality Impact Assessments (EIAs) that underpin the 2023/24 budget savings plans can be found at Appendix 3 to the Executive report. Councillors are asked to familiarise themselves with the EIAs in advance of the meeting.

 

(2)      EXE76 Treasury Management Strategy 2023-24 (Agenda Item 15) (draft minute extract and report attached)

 

(3)      EXE77 Capital Strategy 2023-28 and Capital Budget 2023-24 (Agenda Item 16) (draft minute extract and report attached)

 

Note for Councillors:

Council is requested to consider item 5 (1) above together with the following report (item 6) which contains the Council Tax charges for the Council and the precepting authorities for 2023/24.

 

If changes are approved to the recommendations from the Executive, alterations to the recommended Council Tax resolution as contained within the following report might be required.  In this case Council will be requested to adjourn to enable the figures in the Council Tax resolution report to be recalculated and re-circulated.

 

Minutes:

With the agreement of the Chairperson, Councillor Cartman presented the Executive finance references and the council tax setting reports en bloc, that is: Treasury Management Strategy 2023/24; Capital Strategy 2023-2028 and Capital Budget 2023/24; Medium Term Financial Plan (MTFP) 2023-2027 and Revenue Budget Update 2023/24 and Council Tax Setting 2023/24.  It was noted that a named vote would be required on the budget decision and that an update report had been published containing the precept demand from outside bodies not available at the time of the publication of the original report.

 

In presenting the Executive references and reports, Councillor Cartman expressed his thanks to officers and members for the work on the budget.  He acknowledged that progress had been made over the previous four years, but much remained to be done.  He added that the budget was based on the guiding principles of the council – “Open, Fairer, Greener” – and advised that it resulted from cross-party collaboration and compromise.

 

The collaboration was reflected in the long budget setting process and in the context of local government financial constraints.  Difficult decisions had been made and had been changed in response to consultation.  Councillor Cartman stated that the council’s aim was to protect services for its most vulnerable residents, achieve efficiencies where possible and deliver good value for money for the local taxpayer.  He added that the proposal to raise the council tax by 4.99% was in line with neighbouring authorities.

 

He highlighted that for the first time the council’s next expenditure was budgeted to be in excess of £200m due to increasing costs and demand pressures but £10m efficiency savings were proposed.  He added that the council had an ambitious capital programme for the following year which included the Bus Service Improvement Plan, the re-opening of the Portishead rail line, green initiatives and schools’ expansion.  He noted the council’s success in winning over £100m of inward investment.

 

In discussing the Executive reference and Council report, members expressed support for the finance strategy but also noted areas of concern.  Questions were raised around the level of council tax increase over the previous four years and concern was expressed over whether sufficient budget had been set aside for children’s and adults’ care services particularly if there was an increase in demand.  It was noted that salaries of care sector workers needed to be raised to retain current staff and attract new entrants into the sector in the face of a competitive market for carers.  Concern was raised over the lack of contingency which would require the use of one-off reserves or borrowing if demand outstripped the budget.  The lack of budget set aside for a contribution to infrastructure required to support new homes was highlighted.

 

Members raised questions around the depth and breadth of the consultation and engagement carried out with local residents and noted the desire for more cross-party working.  They added that whilst the council was an imaginative, ambitious and forward-thinking council, fair and sustainable funding for social care from central government was required together with more power at local level to reflect the choices and decisions of local residents.

 

Councillor Cartman responded to the points made adding that he hoped for more consultation, engagement and cross-party working to include all parties in the years to come.

 

It was noted that Standing Order 22A required a named vote to be taken on the budget decision.

 

Motion: Moved by Councillor Cartman, seconded by Councillor Bridger it was

 

Resolved: That Council:

 

(1)  approved the 2023/24 net revenue budget for North Somerset Council services of £202.766m; and the Council Tax Requirement of £209.699m, being the value including town and parish council precepts, as set out in Appendix 1 to the report

 

(2) approved the directorate gross income and expenditure budget allocations as detailed in the body of the report and as set out in Appendix 1 to the report

 

(3) approved the council tax charges for 2023/24 in accordance with the formal Resolution as set out in Appendix 2 to the report:

 

a.       which provides for an average Band D council tax charge in respect of North Somerset Council services for 2023/24 of £1,626.52, plus special expenses, where such charges apply, giving an overall charge of £1,627.38

 

b.       and provides for other major preceptors being, the Avon Fire Authority, the Police and Crime Commissioner for Avon and Somerset and the town and parish councils

 

This represents an increase for North Somerset Council services of 2.99% on the general level council tax, and a 2% charge in respect of an adult social care precept.

 

(4) approved the refreshed Pay Policy for 2023/24 in accordance with the details set out in Appendix 5 to the report.

 

 

 

 

 

 

 

 

 

 

COUNCIL TAX RESOLUTION

 

The Council resolves as follows:

 

1

It be noted that on 31st January 2023 the Council calculated the Council Tax Base for 2023/24:

 

 

 

 

 

 

 

 

 

 

 

 

(a)

for the whole Council area as 81,014.7 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the "Act")] and ,

 

 

 

 

 

 

 

 

 

 

 

 

(b)

for dwellings in those parts of its area to which a Parish precept relates as in the attached Appendix B.

 

 

 

 

 

 

 

 

 

 

 

2

Calculate that the Council Tax requirement for the Council's own purposes for 2023/24 (excluding Parish precepts and Special Levies) is £131,841,701

 

 

 

 

 

 

 

 

 

 

 

3

That the following amounts be calculated for the year 2023/24 in accordance with Sections 31 to 36 of the Act:

 

 

 

 

 

 

 

 

 

 

 

 

a

Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils
(Gross Expenditure)

429,346,616

 

b

Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act
(Gross Income)

290,572,041

 

c

Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).  (North Somerset Council Tax Requirement, inc. special expenses, town and parish precepts and special levies)

138,774,576

 

d

Being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).  (Band D Council Tax for North Somerset Council including an average of special expenses and town and parish precepts)

1,712.96

 

e

Being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per the attached Appendix C)
(Area related expenditure, i.e. town and parish precepts and special expenses)

Precepts

 

6,932,874.47

 

Spec Exp

 

69,410.00

 

7,002,284.47

 

f

Being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T (1(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precepts relates.  (The Band “D” amount for North Somerset Council excluding “area” related expenditure, i.e. special expenses and town and parish council precepts)

1,626.52

 

g

The amount of Special Expenses (expressed in Band D)

0.86

 

h

The total Relevant Basic Amount for North Somerset Council

1,627.38

 

 

 

 

 

 

 

 

 

 

 

4

Precepting Authorities

 

 

 

 

 

 

 

 

 

 

 

 

To note that the Police and Crime Commissioner and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area, as shown in the table below

 

 

 

 

 

 

 

 

 

 

 

 

Precepting Authority

Valuation Bands

 

A

B

C

D

E

F

G

H

 

Police & Crime Commissioner

177.47

207.04

236.62

266.20

325.36

384.51

443.67

532.40

 

Fire Authority

55.30

64.52

73.73

82.95

101.38

119.82

138.25

165.90

 

 

 

 

 

 

 

 

 

 

 

5

That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the table on the following page, as the amounts of Council Tax for 2023/24 for each part of its area and for each of the categories of dwellings.

 

 

 

 

 

 

 

 

 

 

6

The Council’s basic amount of Council Tax for 2023/24is not determined to be excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.

 

Named Vote as required under Standing Order 22A

 

For the Motion (27): Mike Bell, Steve Bridger, Mark Canniford, Ashley Cartman, John Cato, Caroline Cherry, James Clayton, Ciaran Cronnelly, Don Davies, Catherine Gibbons, Hugh Gregor, Wendy Griggs, Karin Haverson, Sandra Hearne, Steve Hogg, Huw James, John Ley-Morgan, Stuart McQuillan, Phil Neve. Robert Payne, Bridget Petty, Geoffrey Richardson, Timothy Snaden, Mike Solomon, James Tonkin, Richard Tucker, Richard Westwood

 

 

 

Against the Motion (4): Nigel Ashton, Peter Bryant, Gill Bute, Lisa Pilgrim

 

Abstentions (5): Caritas Charles, Andy Cole, Peter Crew, Ann Harley, Terry Porter

Supporting documents: