Agenda item

The purpose of this report is to enable the Cabinet to make formal budget recommendations to the County Council.

The report provides the Revenue Budget for 2023-24 and Revenue Medium-Term Financial Plan (MTFP) 2023-27 and the Capital Budget for 2023-24 and Capital MTFP 2023-27, following the Government’s Autumn Statement on 17 November 2022, and the publication of the provisional Local Government Finance Settlement on 19 December 2022.

It is important to note that there may need to be some revisions to the figures following receipt of the Government’s February 2023 Final Local Government Finance Settlement figures. It is proposed that any changes to the figures as a result of this announcement, which impact on the Budget 2023-24 and MTFP 2023-27 are delegated to the Council’s Section 151 Officer in consultation with the Portfolio Holder for Corporate Services.

Update to the Budget 2023-24 and Medium-Term Financial Plan 2023-27 Report

The purpose of this report is to update Members with matters relating to the Budget 2023-24 which have arisen following publication of the report which was presented to the all-Member Corporate Services and Economic Growth Overview and Scrutiny Committee on 13 February 2023 and then Cabinet on 14 February 2023.

Councillor Richard Wearmouth, Deputy Leader and Portfolio Holder for Corporate Services is required to attend for this item.

Councillor Glen Sanderson, Leader of the Council, introduced the report to committee. He thanked Jan Willis the Section 151 Officer, Alison Elsdon and all of the finance team for their hard work. The budget promoted the three priorities which were agreed at the policy conference held in January. These priorities were: value for money, tackling inequalities and supporting businesses. There had been consultation with the public and other stakeholders through online consultations, meetings with Town & Parish Councils and meetings with business leaders.  

The Leader highlighted that there would be no cuts to frontline services. The leisure investment programme would continue as would the school programmes. There were broadband programmes that would start and an extensive cycling and walking initiative. Car parking in town centres and the first hour of parking at country parks would remain free.  

The administration wanted to tackle inequalities in the County and give children and young people the best opportunities in life regardless of their background. The skills programme in Blyth would allow young people to gain valuable skills needed in industries within the County. There was the Hardship fund to help eligible residents with Council rent. There was also a council tax support scheme that would help eligible residents with Council Tax. 

The Authority would continue to work with Advance Northumberland to help support businesses. There was funding from Borderlands and several town deals which were expected to commence soon. The budget illustrated value for money, it would encourage jobs and opportunities and a good quality of life for residents. 

The following comments were made in response to members questions: 

• It was confirmed that where there had been deletion of vacant posts in services this was due to Officers determining the service could function without them.  

• A schedule of the new fees and charges would be shared with members highlighting any changes from the current year.  
• It was acknowledged that 1.25% addition to the national insurance had been removed following the Autumn budget statement. The employer contribution to the pension fund was also decreasing, both of which had been reflected in the budget. 
• The report addressed the robustness of the budget and members were assured that if there were any risks to the Authority the budget would not have been brought forward. The Authority held reserves for any uncertainty that may occur. There were unusable reserves that the Authority was required to keep for accounting purposes. 
• Members were informed that the Council was working with all academies and maintained schools to invest money into the school system. It was noted that the Council was the owner of the freehold that the academies were built on. 
• The Authority was waiting for the final sign off from Government of funding for the Northumberland Line but the Leader was confident that the project would go ahead and there had been a commitment from Government. Assessments had been carried out and the Authority was aware of what impact the Northumberland Line would make on the area. 
• The increase in Council Tax was necessary to ensure there was no damage to Council Tax base. The cumulative impact of a lower increase would have been significant in the future.  

RESOLVED to advise the Cabinet that it supported the recommendations contained in the report, subject to consideration of the issues highlighted above.