Agenda item

1.  The initial draft 2023/24 Budget detailed in Appendix 7 be agreed.

2.  The initial draft 2023/24 Budget for each portfolio be referred to the relevant PDS Committees for consideration.

3.  The financial projections for 2024/25 to 2026/27 be noted.

4.  It be noted that there are still areas of financial uncertainty which will impact on the final 2023/24 Budget.

5.  Increase rent levels for London Affordable Rents and Social (Formula) Rents by 7% from April 2023 as set out in Section 12.2 of the report be agreed.

6.  The proposed contribution of £246,470 in 2023/24 to the London Boroughs Grant Committee (see section 22 of the report) be agreed.

7.  The setting of the schools’ budget, mainly met through Dedicated Schools Grant, be delegated to the Education, Children and Families Portfolio Holder, allowing for consultation with the Schools Forum (see section 23 of the report).

8.  The outcome of consultation with PDS Committees be reported to the next meeting of the Executive.

9.  The outcome of the Provisional Local Government Financial Settlement 2023/24 as detailed in the report be noted.

10.  The budget gap remaining of an estimated £29.6m per annum by 2026/27 and that any decisions made for the 2023/24 Budget will have an impact on the future year projections be noted.

11.  Any final decision by Executive on recommended Council Tax and Adult Social Care Precept levels to Council will normally be undertaken at the next meeting of Executive.

12.  Where possible any identified savings should be taken in year.

Report FSD23003

The report sought approval of the initial draft 2023/24 Budget including the full year effect of changes agreed as part of the 2022/23 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 and the impact on the revenue budget was reported elsewhere on agenda.

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 2023/24 Council Tax and Adult Social Care precept levels.

The report provided details of the Provisional Local Government Finance Settlement 2023/24 which was published on 19th December 2022 and represented a one-year settlement only, with limited indication of funding for 2024/25. 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 2025/26 – more realistically unlikely to be implemented until 2026/27.

There were still outstanding issues and areas of uncertainty remaining, including, for example grant conditions, which could impact on the final revenue budget. Further updates would be included in the 2023/24 Council Tax report to the next meeting of the Executive.

In Councillor Marlow’s absence, The Leader announced that the proposed staff pay award for 2023/24 would be 5.75%.  This was to be supplemented by an additional 2.00% for 2022/23 making a total of 7.75% all in. There would also be an increase in the merit payment scheme to £400k pa to reward outstanding performance in service.

The report had been scrutinised by the Executive, Resources and Contracts PDS Committee on 16th January 2023 and the Committee made recommendations to the Executive in respect of the London Boroughs Grant Committee and recommended that any identified savings should be taken in year.

The Executive considered and discussed the recommendations from the Executive, Resources and Contracts PDS Committee but felt further discussion was needed.  The Leader offered to write to the Chairman of London Councils outlining any concerns held by Members.  The Executive agreed that the position should be reviewed next year after further consideration.

RESOLVED: That

1. The initial draft 2023/24 Budget detailed in Appendix 7 be agreed.

2. The initial draft 2023/24 Budget for each portfolio be referred to the relevant PDS Committees for consideration.

3. The financial projections for 2024/25 to 2026/27 be noted.

4. It be noted that there are still areas of financial uncertainty which will impact on the final 2023/24 Budget.

5. The proposed increase in rent levels for London Affordable Rents and Social (Formula) Rents by 7% from April 2023 as set out in Section 12.2 of the report be agreed.

6. The proposed contribution of £246,470 in 2023/24 to the London Boroughs Grant Committee (see section 22 of the report) be agreed.

7. The setting of the schools’ budget, mainly met through Dedicated Schools Grant, be delegated to the Education, Children and Families Portfolio Holder, allowing for consultation with the Schools Forum (see section 23 of the report).

8. Note that the outcome of consultation with PDS Committees will be reported to the next meeting of the Executive.

9. The outcome of the Provisional Local Government Financial Settlement 2023/24 as detailed in the report be noted.

10. The budget gap remaining of an estimated £29.6m per annum by 2026/27 and that any decisions made for the 2023/24 Budget will have an impact on the future year projections be noted.

11. Any final decision by Executive on recommended Council Tax and Adult Social Care Precept levels to Council will normally be undertaken at the next meeting of Executive.

12. Where possible any identified savings should be taken in year.