Agenda item

BUDGET 2022-23 AND MEDIUM-TERM FINANCIAL PLAN

This presentation will outline the Council’s strategy to the 2022-23 Budget within the context of the Corporate Plan.?  The presentation will provide details of the approach to setting the budget for the next financial year and the broad impact this will have on the delivery of services. 

Minutes:

Councillor Wearmouth, Portfolio Holder for Corporate Services provided a power point presentation and referred to the current Covid numbers which were decreasing.  Feedback from the Government was likely to see the end of restrictions towards the end of January.  (Copy of the presentation would be attached to the signed minutes). 

He stated that Councillor Sanderson was immensely proud to be the Leader of the Council in a County which looked as good as Northumberland despite the effects of Covid and Storm Arwen which had hit the county and communities in different ways. 

The presentation highlighted: 

 

  • The work of frontline services during the pandemic, and following Storm Arwen, was appreciated and acknowledged with no budget cuts being proposed. 
  • Health inequalities to be addressed across the county with a summit planned in March 2022 to make meaningful change with partner organisations. 
  • Unexpectedly, employment rates were largely comparable with pre-pandemic rates at 4.1% which was lower than regional and national figures and the economic performance of the county was quite strong.  Targeted interventions hoped to address areas where unemployment figures were higher, including those within the 18–24-year-olds, areas where there were job vacancies and the necessity of introducing a real living wage in adult social care to retain staff who were leaving for jobs in other sectors. 
  • The vision and aims of the Corporate Plan identified 48 key priorities with targeted actions to enable their delivery.  Examples included strengthening relationships with town and parish councils, welcoming new businesses, free town centre car parks etc, rail stations at Ashington, Bedlington and Cramlington. 
  • The overall funding context for the 2022/23 budget was set out; the increase in Council Tax precept remained at 2% without holding a referendum with an additional 1% for Adult Social Care for the next three years. 
  • Areas were outlined where the Council intended to invest in the future of the county. 
  • A review of the Budget for 2022-23 and the Medium-Term Financial Plan required savings of £9.704 million to balance the budget.  A provisional savings requirement of £28 million had also been calculated for the following two financial years.  The approach to identifying spend and savings within the budget were outlined with proposed savings by Portfolio Holder, although some of these included opportunities for income generation. 
  • The consultation was due to close on 21 January 2022.  Over 200 responses had been received to date which was helpful when assessing areas which operated well and those that didn’t, as well as suggestions where more funds should be allocated, before the budget was finalised and published ahead of scrutiny and consideration by Full Council on 23 February 2022. 

 

The following issues were discussed:- 

  • Loss of jobs and the contribution of 8% towards council tax.   92% of support was provided, which was the second most generous across the region.  The unemployment figures would be circulated.  Additional jobs would be created by British Volt, JDR cables, development of the Coty site, Techflow in Cramlington and planning applications on the southside of the A1. 
  • Providing jobs and ensuring people were ready to work, physically and mentally by a Ready to Work pilot in Northumberland. 
  • The real living wage in the care sector 
  • Flexibility to help small to medium enterprises (SMEs) and pop-up shops to get business underway 
  • Local energy: heating homes from surplus heat should be written into the budget 
  • Generation of income 

(Councillor Flux joined the meeting at 4.45pm) 

  • Investment in the infrastructure in Cramlington for the elderly – the Places Programme needed to consider mobility and accessibility for vulnerable residents.  
  • Young people should be made aware of employment and vacant posts and University Technical Colleges.  The Education Team looked at what jobs were coming into the county and putting programmes in place.  More information would be presented to FACS in the future. 
  • Data would be extracted for those areas with job expansion. 
  • It was expected that a White Paper would be presented the first week in February on the Levelling Up Fund. 
  • The Government settlement had been more generous than had been anticipated 
  • Income from Local Services came in from a mixed amount of money, £1.4 m from waste, planning application fees and pre-planning advisory service,  
  • A summary would be provided on Community Services and a breakdown explained in the budget.   
  • A response would be provided on the 5G query. 
  • All care workers would receive a wage increase.  A recent report had been agreed by Cabinet, in addition to a Workforce Retention and Recruitment Fund for bonus payments for home care workers. 
  • Further details on library and youth services would be presented to Scrutiny in the near future. 
  • Education regarding costs in waste recycling would be taken to a future informal cabinet.  
  • The details of external contractors and in-house services would be taken up with Councillor Riddle. 
  • British Volt had recently advertised jobs. 
  • A lot of work had been carried out with employers for 16-24 years olds regarding education and learning.   
  • The Council carried out external services which required experience and specialism for other authorities which generated income.   
  • The Local Plan which was due to be implemented had initially been criticised by the Inspector because of too much employment land, but more space would be required in Cramlington and other areas 

 

Councillor Wearmouth was thanked for his presentation. 

 

A short recess took place at 17:03 to allow officers to set up the planning presentation. 

 

The meeting recommenced at 17:05 with Councillor Wilczek in the Chair.