Agenda item

A report was presented which recommended a draft budget for 2022/23; a Medium Term Financial Strategy; Council Tax exemptions and discounts; the Council Tax base for 2022/23; funding for the planning service; an application to Government for a ‘capital dispensation’; and the flexible use of capital receipts strategy.

The report explained the twin track approach to developing the Council’s financial plans, namely focusing on delivering a balanced budget for 2022/23 while seeking to address pressures over the medium term. It reflected upon the challenges associated with developing a balanced budget, especially the continuing impact pf the pandemic and the underlying £920,000 budget pressure which was the subject of the Grant Thornton review commissioned by the Committee earlier in the year. At this early stage, the report concluded that up to £200,000 could be required from reserves to balance the budget for 2022/23, pending settlement outcomes, before being replenished in 2023/24. 

The report provided details about:

·           the need for Council wide transformation over the next two years to deliver a leaner, more sustainable organisation, involving a review of all services beyond the change programmes already underway in finance and planning (an ‘improved operating model for Tandridge’ was attached to the report - in response to a comment during the debate, the Chief Executive confirmed that actions for delivering the model would be developed in the near future)  

·           progress in implementing the finance transformation programme to date and an explanation of the change programme for the planning service (as reported to the Planning Policy Committee on the 25^th November 2021) which involved the creation of four additional posts at a cost of £76,000 per annum; £114,000 was being sought for an eighteen-month period, expected to be funded from the flexible use of capital receipts  

·           the work undertaken in conjunction with IMPOWER to identify savings opportunities

·           an explanation of the flexible use of capital receipts regime whereby the Government allowed Councils to spend their capital receipts on the revenue costs of transformation projects, and the requirement for the application of this type of receipt to be matched by revenue savings and/or cost containment

·           strategies applicable to the four policy committees

·           financial performance in 2021/22

·           the emerging draft 2022/23 budget and Medium Term Financial Strategy/ outlook to 2023/24 as attached at Appendix D

·           an update on the development of the capital programme 2022/23 to 2024/25.

Information concerning the proposed new and revised Council Tax discounts, exemptions and premiums were provided as per Appendix E.

Details regarding the Council Tax base for 2022/23 were presented as per Appendix F.

The Chief Finance Officer explained how the scope of the finance transformation project had extended since its inception, given the identification of the budget gap in April 2021 and associated activities to provide Members with confidence in the underlying numbers and to allow the Finance Transformation Programme to be built on a solid foundation.  This had created a delay in its anticipated completion beyond the current financial year. However, she confirmed that the key objectives of the project would still be delivered within the original budget envelope. 

Details of the £1.2 million efficiency savings referred to in the report (identified by senior officers and IMPOWER) had arisen from a Member workshop on the 9^th November 2021 and had been shared with Group Leaders. However, some Members expressed concern that the information had not been presented to this or the other relevant committees for consideration and that all Councillors (especially those who were unable to attend the workshop) and residents (given that committee meetings are held in public) needed to be aware of the detailed aspects of the proposed savings before the draft budget could be approved. Officers explained that, as per paragraph 10.2 of the report (‘Next Steps’) it was intended to enable policy committees to review their individual future revenue and capital budgets, commencing with the Community Services Committee on the 18^th January 2022 and concluding with the Strategy & Resources Committee on the 1^st February 2022. Nevertheless, changes to Recommendation A of the report were proposed by Councillors Morrow and Caulcott, culminating in the following amendment:

          “the draft budget for 2022/23 and Medium Term Financial Strategy to 2023/24 be approved noted, pending consideration by policy committees of their proposed revenue and capital budgets, commencing with the Community Services Committee on the 18^th January 2022 and concluding with the Strategy & Resources Committee on the 1^st February 2022.     

Upon being put to the vote, the amendment was agreed.

COMMITTEE DECISIONS

(under powers delegated to the Committee)

R E S O L V E D – that:

A.    the draft budget for 2022/23 and Medium Term Financial Strategy to 2023/24 be noted, pending consideration by policy committees of their proposed revenue and capital budgets, commencing with the Community Services Committee on the 18^th January 2022 and concluding with the Strategy & Resources Committee on the 1^st February 2022;

B.    the following Council Tax exemptions and discounts for 2022/23 be approved:

(i)      an exemption should the Council Taxpayer (liable person) be a care leaver living in independent accommodation under 25 years of age;

(ii)     a 25% discount should the Council Taxpayer (liable person) be a care leaver living in semi-independent accommodation under 25 years of age;

(iii)     an additional 300% Council Tax premium for long-term empty property (properties empty over 10 years)

C.    the gross Council Tax Base for 2022/23, be determined at 39,162.8 after taking account of the Council’s agreed Council Tax Support Scheme, and the net Council Tax Base for 2022/23 be determined at 38,692.9 after adjustment by 1.2% to allow for irrecoverable amounts, appeals and property base changes;

D.    the funding request for the proposed transformation of the planning service of £114,000, including on-costs, be approved;

E.    the draft Flexible use of Capital Receipts Strategy, to be finalised and approved by Full Council in February 2022, be noted.

COUNCIL DECISION

(subject to ratification by Council)

            R E C O M M E N D E D– that the request for a capital dispensation from the       Department for Levelling Up, Housing and Communities be approved to:

·           initially replenish general fund reserves; and

·           if the sector-wide flexibilities are not extended, secure flexibility for a further amount to pump-prime transformation.