Agenda item

Report FSD2022/001

The report sought approval of the initial draft 2022/23 Budget including the full year effect of changes agreed as part of the 2021/22 Council Tax report and savings approved during the year with the resultant impact on the Council’s medium term “budget gap.”

A key part of the financial strategy was to highlight the budget issues that would need to be addressed by the Council over the coming financial years, by forecasting the level of available resources from all sources and budget pressures relating to revenue spending. Details of the capital programme would be reported separately to the next meeting of the Executive.

PDS Committees’ views would also be sought and reported back to the next meeting of the Executive, prior to the Executive making recommendations to Council on the 2022/23 Council Tax and Adult Social Care precept levels.

The report provided details of the Provisional Local Government Finance Settlement 2022/23 which had been published on 16^th December 2021 and represented a one-year settlement only. The awaited Fair Funding Review and changes relating to the devolution of business rates, which could have a significant impact on future funding, had been delayed until at least 2023/24.

There were still outstanding issues and areas of uncertainty remaining. Any further updates would be included in the 2022/23 Council Tax report to the next meeting of the Executive. 

The Portfolio Holder for Resources, Commissioning and Contract Management reported that the proposed staff pay award for 2022/23 would be 2.25%. There would also be an increased merit payment pot of £300k to recognise the hard work of staff.

The report had been scrutinised by the Executive, Resources and contracts PDS Committee on 5^th January 2022 and the Committee had supported the recommendations.

RESOLVED that

(1)  The initial draft 2022/23 Budget be agreed as detailed in Appendix 7 to the report including continuation of the iBCF hospital discharge funding reserve and setting aside New Homes Bonus funding for housing investment.

(2) The initial draft 2022/23 Budget for each portfolio be referred to the appropriate PDS Committees for consideration.

(3) The financial projections for 2023/24 to 2025/26 be noted.

(4) It is noted that there are still areas of financial uncertainty which will impact on the final 2022/23 Budget.

(5) The setting of the schools’ budget, mainly met through Dedicated Schools Grant, be delegated to the Children, Education and Families Portfolio Holder, allowing for consultation with the Schools Forum (section 11 in the report.) 

(6) It is noted that the outcome of consultation with the PDS Committees will be reported to the next meeting of the Executive.

(7) The proposed contribution be agreed of £246,470 in 2022/23 to the London Boroughs Grants Committee (section 10 in the report.)

(8) The outcome of the Provisional Local Government Financial Settlement 2022/23 be noted, as detailed in the report.

(9)  The budget gap remaining of an estimated £19.5m per annum by 2025/26 and that any decisions made for the 2022/23 Budget will have an impact on the future year projections, be noted.

(10) It is noted that any final decision by the Executive on recommended Council Tax and Adult Social Care Precept levels to Council will normally be undertaken at the next meeting of the Executive.