Report CSD22023

The Director of Finance confirmed that there were no changes to the levy amounts that were presented to the Executive at its meeting on 10^th February 2022 (recommendation 2.1(e)). The GLA Precept amounts that were presented to the Executive on 10^th February 2022 (recommendations 2.2 and 5) had now been confirmed as final following agreement of the Mayoral Budget for 2022/23 on 24^th February 2022.  

Councillor Michael Rutherford, seconded by Councillor Colin Smith, moved acceptance of the recommendations made by the Executive, subject to the following amendment -

The following change be made to the recommended budget for 2022/23: 

“Amended Recommendation (2.1): 

(b)Approves the draft revenue budgets for 2022/23 to include the following updated change: 

(i)  Council is requested to agree that a sum of £1m be set aside as a Platinum Jubilee Parks earmarked reserve, funded from underspends.  

  (ii)  Members are asked to note that the utilisation of the reserve will be reported to the Environmental Services Portfolio Holder with the agreement of the Resources, Commissioning and Contract Management Portfolio Holder.” 

The recommendations, as amended, were CARRIED as follows –

That Council -

(1)  (a) Approves the schools budget of £92.411m which matches the estimated level of Dedicated Schools Grant (DSG) after academy recoupment;

(b) Approves the draft revenue budgets for 2022/23 to include the following updated change: 

(i)  Agrees that a sum of £1m be set aside as a Platinum Jubilee Parks earmarked reserve, funded from underspends.  

  (ii) Notes that the utilisation of the reserve will be reported to the Environmental Services Portfolio Holder with the agreement of the Resources, Commissioning and Contract Management Portfolio Holder. 

  (c)  Agrees that Chief Officers identify alternative savings/mitigation within their departmental budgets where it is not possible to realise any savings/mitigation reported to the previous meeting of the Executive held on 12^th January 2022;

(d) Approves a revised Central Contingency sum of £18,231k (see Section 6, Recommendation 7 and Recommendation 2.1e of the report);

(e) Approves the following provisions for levies for inclusion in the budget for 2022/23:

The reduction of £65k in the 2022/23 levy amounts is offset by a £65k increase in the 2022/23 Central Contingency as a provision towards meeting inflation cost pressures.

(f)  Notes the latest position on the GLA precept, as above, which will be finalised in the overall Council Tax figure to be reported to full Council (see section 12);

(g) Sets a 1% increase in Adult Social Care Precept with a nil increase in Bromley’s General Council Tax, compared with 2021/22 (1.99% general increase plus 3% Adult Social Care Precept) and note that, based upon their consultation exercise, the GLA are currently assuming a 8.8% increase in the GLA precept;

(h) Approves the revised draft 2022/23 revenue budgets to reflect the changes detailed above;

(i) Approves the approach to reserves outlined by the Director of Finance (see Appendix 4 to the report);

(2)  Council Tax 2022/23 – Statutory Calculations and Resolutions (as amended by the Localism Act 2011).

Subject to (1) (a) to (i) above, if the formal Council Tax Resolution as detailed below is approved, the total Band D Council Tax will be as follows:

* The GLA Precept may need to be amended once the actual GLA budget is set.

(#)  in line with the 2022/23 Council Tax Referendum Principles, the % increase applied is based on an authority’s “relevant basic amount of Council Tax” (£1,341.13 for Bromley) – see paragraph 6 below.  Any further changes arising from these Principles will be reported directly to Council on 28^th February 2022.

(3)   (1)  It be noted that the Council Tax Base for 2022/23 is 133,347 ‘Band D’ equivalent properties.

  (2)  It is calculated that the Council Tax requirement for the Council’s own purposes for 2022/2023 is £178,835k.

(3)  That the following amounts be calculated for the year 2022/23 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended (the Act):

(a)  £573,590k being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

(b)  £394,755k being the aggregate of the amounts which the Council estimates or the items set out in Section 31A(3) of the Act.

(c)  £178,835k 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.

(d)  £1,341.13 being the amount at 3(c) above, divided by (1) above, calculated by the Council in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year. 

(4)  Notes that the Greater London Authority (GLA) has issued a precept 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 indicated in the table below (NB. the GLA precept figure may need to be amended once the actual GLA budget is set).

(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 below as the amounts of Council Tax for 2022/23 for each part of its area and for each of the categories of dwellings.

(6)  That the Council hereby determines that its relevant basic amount of council tax for the financial year 2022/23, which reflects a 1% increase (Adult Social Care Precept increase of 1%), is not excessive.  The Referendums Relating to Council Tax Increases (Principles) (England) Report 2022/23 sets out the principles which the Secretary of State has determined will apply to local authorities in England from 2022/23.  Any further changes arising from these Principles will be reported directly to Council on 28^th February 2022. The Council is required to determine whether its relevant basic amount of Council Tax is excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992.

(7)  Notes that the Government have provided additional core funding as part of its Local Government Finance Settlement 22/23 of £771k which reflects additional inflation compensation to Councils for core funding through business rates income. Given the continuing inflation pressures, highlighted in the report, it is proposed that these monies be set aside within the 2022/23 Central Contingency as a provision towards meeting further inflation cost pressures across services. This will increase the Draft 2022/23 Central Contingency Sum by £771k.

The following Members voted in favour of the motion -

Councillors Gareth Allatt, Graham Arthur, Yvonne Bear, Nicholas Bennett, Kim Botting, Mike Botting, Katy Boughey, Mark Brock, David Cartwright, Aisha Cuthbert, Judi Ellis, Robert Evans, Simon Fawthrop, Peter Fortune, Hannah Gray, Will Harmer, Colin Hitchins, Colin Hitchins, Samaris Huntington-Thresher, William Huntington-Thresher, David Jefferys, Charles Joel, Kate Lymer, Christopher Marlow, Robert Mcilveen, Alexa Michael, Peter Morgan, Tony Owen, Angela Page, Chris Pierce, Neil Reddin, Will Rowlands, Michael Rutherford, Richard Scoates, Colin Smith, Diane Smith, Gary Stevens, Melanie Stevens, Harry Stranger, Kieran Terry, Michael Tickner, Pauline Tunnicliffe, and Stephen Wells.

No Members voted against the motion.

The following Members abstained -

The Mayor, Councillor Russell Mellor, and Councillors Vanessa Allen, Kathy Bance, Ian Dunn, Simon Jeal, Kevin Kennedy-Brooks, Josh King, Ryan Thomson, Michael Turner and Angela Wilkins.

(During consideration of this item the Mayor informed Members under Council Procedure Rule 8 that the meeting had been in progress for three hours. Members agreed to continue the meeting to deal with all the business on the agenda.)