Agenda item

Budget 2023-23 and Medium Term Financial Plan 2023-27

 

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 (Appendix C).

 

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.

Budget 2023-23 and Medium-Term Financial Plan 2023-27

 

The purpose of the report was to enable the Cabinet to make formal budget recommendations to the County Council.  The report provided 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.  (Copy of report attached to the signed minutes as Appendix C.)

 

A report from the meeting of the Corporate Services and Economic Growth Overview and Scrutiny Committee held on 13 February 2023, to which all members had been invited, was circulated at the meeting.  (Copy of the report is attached to the signed minutes.)

 

RESOLVED to make the following recommendations to the County Council:

 

1.     Note that the figures contained within the Budget 2023-24 within Appendix 1 are based on the provisional Local Government Finance Settlement of 19 December 2022.

 

2.     Approve the revenue budget for 2023-24 including, the budget balancing target totalling £17.045 million contained within Appendix 1.

 

3.     Note the Revenue MTFP covering the period 2023-27 detailed within Appendix 1 and the requirement to deliver budget balancing measures of £9.564 million in 2024-25, £18.508 million in 2025-26, and £8.954 million in 2026-27.

 

4.     Note the estimated receipt of Revenue Support Grant of £12.430 million for 2023-24 contained within Appendix 1.

 

5.     Note the estimated retained Business Rates and the Top-Up grant funding to be received by the Council for 2023-24 of £94.805 million and £307.453 million over the remaining period of the MTFP contained within Appendix 1

 

6.     Note the estimated deficit from prior years on Collection Fund Business Rates balances of £1.944 million in 2023-24 contained within Appendix 1.

 

7.     Note the estimated receipt of Rural Services Delivery Grant of £2.745 million in 2023-24 contained within Appendix 1.

 

8.     Note the estimated receipt of the New Homes Bonus of £0.961 million for 2023-24 contained within Appendix 1.

 

9.     Note the estimated receipt of Improved Better Care Funding Grant of £12.496 million for 2023-24 contained within Appendix 1.

 

10.   Note the estimated receipt of Social Care grant funding of £22.056 million for 2023-24 contained within Appendix 1.

 

11.   Note the estimated receipt of Adult Social Care Discharge Grant funding of £1.752 million in 2023-24 and £2.920 million in 2024-25 contained within Appendix 1.

 

12.   Note the estimated receipt of Adult Social Care Market Sustainability and Improvement grant funding of £3.563 million in 2023-24 and £5.357 million in 2024-25 contained within Appendix 1.

 

13.   Note the estimated receipt of the Services Grant of £2.787 million in 2023- 24 contained within Appendix 1.

 

14.   Approve a 2.99% increase in Council Tax for 2023-24, noting that this is in line with the Government’s assumptions regarding the Council’s Core Spending Power: and, within the Government’s referendum limit of 3.00%.

 

15.   Note that the MTFP 2023-27 includes a 2.99% annual increase in Council Tax for 2024-25 and then 1.99% thereafter for the remaining years of the MTFP and, that an estimate of annual tax base growth has been included.

 

16.   Note the non-collection rate for Council Tax purposes remains at 1.00% for 2023-24 (1.00% in 2022-23).

 

17.   Note the estimated surplus of £2.737 million from prior years on the Collection Fund Council Tax balance for 2023-24 contained within Appendix 1.

 

18.   Note the estimated receipt of Council Tax Support funding of £0.654 million in 2023-24 and note the intended use of the grant contained within Appendix 1.

 

19.   Approve a 2.00% increase in Council Tax for 2023-24 for use on Adult Social Care services; raising an additional £4.530 million to support the Budget 2023-24, and note the assumed increase included in the MTFP of 2.00% for 2024-25 and zero thereafter.

 

20.   Approve the Reserves Policy for 2023-24 detailed in Appendix 2.

 

21.   Note the Schedule of Reserves and Provisions contained within Appendix 3

 

22.   Approve: The net contributions from the Strategic Management Reserve of £12.739 million in 2023-24 and note the proposed contributions from reserves of £15.792 million in 2024-25, £6.335 million in 2025-26 and the proposed contribution to reserves of £1.032 million in 2026-27 contained within Appendix 1, comprising: a) non-recurrent pressures of £5.898 million for 2023-24, and note the non-recurrent pressures totalling £4.528 million in 2024-25; £0.935 million in 2025-26 and £0.159 million in 2026-27 (as detailed within Appendix 8; excluding the Adult Social Care Discharge Fund, Adult Social Care Market and Sustainability and Improvement Fund, Locality Coordinators, Council Tax Support Fund and Transformation Programme), b) the Active Northumberland Management fee of up to £1.000 million in 2023-24, c) delayed receipt of investment income from the airport of £0.957 million in 2023-24; and that interest of £0.161 million in 2024-25, and £1.191 million in 2025-26 and 2026-27 will be repaid into the reserve in this respect, d) revenue contribution to capital (RCCO) of £8.171 million in 2024-25 and £6.591 million in 2025-26 for investment in the Schools’ Development Programme, and, e) contribution from the reserve of £4.884 million in 2023-24 and note the subsequent proposed use of £3.254 million in 2024-25 in order

 

23.   Approve the use of the Public Health Revenue Grant Reserve of £0.199 million in 2023-24 and note the contribution for 2024-25, to fund five fixed term Locality Coordinator posts contained within Appendix 1.

 

24.   Note the proposed use of the General Fund Reserve of £7.850 million in 2024-25, to be set aside as a voluntary Minimum Revenue Provision (MRP) to enable the Council to repay debt at an appropriate time in the future contained within Appendix 1.

 

25.   Approve the use of the Council Transformation Fund Reserve of £3.000 million in 2023-24 and note the use of £3.000 million from this reserve in financial year 2024-25 contained within Appendix 1.

 

26.   Approve the use of the Collection Fund Smoothing Reserve of £1.944 million in 2023-24, to part fund the 2022-23 forecast deficit of the Business Rates element of the Collection Fund, and prior year deficit on Business Rates contained within Appendix 1.

 

27.   Note: a) the Schedule of Service Specific Grants of £250.400 million contained within Appendix 4, and b) the indicative 2023-24 Public Health Grant allocation of £17.366 million contained within Appendix 4, and its proposed usage.

 

28.   Approve the Inflation Schedule for 2023-24 totalling £28.900 million detailed in Appendix 5.

 

29.   Approve the Recurrent Growth and Pressures Schedules of £16.694 million and the additional revenue costs associated with the Capital Programme of £6.164 million for 2023-24; and note the growth and pressures of £2.422 million in 2024-25; £1.773 million in 2025-26; and, £0.392 million in 2026-27 and the additional revenue costs associated with the capital programme of £14.075 million in 2024-25; £10.098 million in 2025-26; and £6.000 million in 2026-27 included within Appendices 1, 6 and 7.

 

30.   Approve the Non-Recurrent Pressures of £15.066 million for 2023-24 and note the non-recurrent pressures of £16.004 million for 2024-25; £0.935 million for 2025-26 and £0.159 million for 2026-27 included within Appendix 8.

 

31.   Approve the Non-Recurrent Income of £0.157 million for 2023-24 and note the non-recurrent income of £5.601 million for 2024-25; £0.252 million for 2025-26 and £0.221 million for 2026-27 included within Appendix 8.

 

32.   Approve the identified budget balancing measures contained within Appendix 9 of £17.045 million for 2023-24; and note those budget balancing measures totalling £10.295 million already identified for 2024-25 to 2025-26.

 

33.   Note the Corporate Equality Impact Assessment at Appendix 10.

 

34.   Note the Budgets by Service Area 2023-24 detailed in Appendix 11.

 

35.   Note the receipt of Dedicated Schools Grant of £160.287 million in 2023-24; and note the revised allocation of £150.832 million for 2022-23. This is following the conversion of three schools to academy status during 2022- 23.

 

36.   Approve the Capital Strategy 2023-24 to 2026-27 contained within Appendix 12.

 

37.   Approve the revised Capital Programme as detailed within Appendix 13 and note the reduction in the Capital Programme 2023-27 of £37.599 million detailed in Appendix 14.

 

38.   Approve the delegation of the detail of the final Local Transport Programme and any subsequent in-year amendments to the Executive Director responsible for Local Services in consultation with the Cabinet Member for Local Services.

 

39.   Approve the delegation of the detail of the capital allocation for highways maintenance investment in U and C roads and footpaths to the Executive Director responsible for Local Services in consultation with the Cabinet Member for Local Services.

 

40.   Approve the Prudential Indicators based on the proposed Capital Programme detailed within Appendix 15.

 

41.   Approve the Annual Minimum Revenue Provision Policy detailed in Appendix 16.

 

42.   Approve the Treasury Management Strategy Statement 2023-24 detailed in Appendix 17.

 

43.   Approve a delegation to amend the Budget 2023-24 and MTFP in light of any changes as a result of the final Local Government Finance Settlement to the Council’s Section 151 Officer in consultation with the Portfolio Holder.