Agenda item

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.

Council Tax 2023-24

The report provided Council Members with the financial information to enable the Council to calculate and set the Council Tax for 2023-24.

Councillor Wearmouth moved the recommendations, which was seconded by Councillor Jackson. On the recommendations being put to the vote there voted FOR: 29 as follows:-

AGAINST: 20 as follows:

ABSTENTIONS: 8 as follows:

1.              County CouncilRESOLVED

a.             That the Council Tax Requirement for the Council’s own purposes for 2023-24 (excluding Parish Precepts) is £218,689,232;

b.             That the following amounts be calculated for 2023-24 in accordance with Sections 31 to 36 of the Act: 

               i.Being the aggregate amount of gross expenditure which the Council estimates for the items set out in Section 31 A (2) of the Act taking into account all precepts issued to it by parish councils: £858,904,271. 

              ii.Being the aggregate of the gross income which the Council estimates for the items set out in Section 31 A (3) of the Act: £629,921,180. 

             iii.Being the amount by which the aggregate at (b) i) above exceeds the aggregate at (b) ii) above, calculated by the Council in accordance with Section 31 A (4) of the Act as its Council Tax requirement for the year.  (Item R in the formula in Section 31B of the Act) (including Parish Precepts): £228,983,091. 

            iv.Being the amount at (b) iii) above (Item R), all divided by Item T, above, calculated by the Council, in accordance with Section 31B of the Act as the basic amount of its Council Tax at Band D for the year (including Parish Precepts): £2,078.79. 

              v.Being the aggregate amount of all special items referred to in Section 34 (1) of the Act (total all Parish Precepts): £10,297,521. 

            vi.Being the amount at (b) iv) above less the result given by dividing the amount at (b) v) above by Item T, above, calculated by the Council, in accordance with Section 34 (2) of the Act, as the basic amount of its Council Tax at Band D for the year for dwellings in those parts of its area to which no Parish Precept relates: £1,985.30;

c.              That the Council Tax for 2023-24, excluding the Police Precept, will be increased by 4.99% (including the Adult Social Care Precept of 2.00%), equating to a charge per Band D household of£1,985.30 (excluding Special Expenses).  For other bands different proportions will apply.  For example, Band A properties will be charged 6/9 (two thirds) of a Band D property and Band H properties will be charged 18/9 (double) of a Band D property.

The relevant valuation bands are as follows:

d.             Under Section 52ZB of the Local Government Finance Act 1992 that the Council’s basic amount of Council Tax for 2023-24 is not excessive in accordance with principles approved under Section 52ZC(1) of the Act (i.e. the proposed Council Tax increase for 2023-24 means that the Council does not need to hold a referendum on its proposed Council Tax.  The regulations set out in Section 52ZC of the Act requires all billing authorities (Council and precept authorities (i.e. Fire and Police authorities)) to hold a referendum on their proposed level of basic Council Tax each year if they exceed government guidelines which are set out annually.  For 2023-24 the guideline increase for Northumberland is 5.00% (including the Adult Social Care Precept).

As the Council is proposing a Council Tax increase of 4.99% (including Adult Social Care Precept and Special Expenses) for 2023-24 then the above regulations have no impact for 2023-24. 

2.             County Council APPROVED:

a.                That the matters listed in section 3 (c) of this report are identified as Special Expenses and that all other matters which might otherwise be considered to be Special Expenses under the prevailing legislation are deemed to be General Expenses;

b.                That the Council Tax Leaflet continues to be made available via the Council’s website, rather than enclosed with Council Tax bills, and that the final document is delegated to and finalised by the Section 151 Officer;

3.             County Council NOTED:

a.                The Police and Crime Commissioner has agreed the recommended level of precept of £18,598,114 for 2023-24.  This represents an increase of 9.75%, equating to an additional £15.00 on a Band D property; the resulting valuation bands will be as follows:

b.                 The Aggregate of Council Tax requirements, including that of Northumbria Police Authority, the Council’s own requirement and that for Adult Social Care purposes (excluding Parish Precepts), are as follows:

c.                 The total amount of Parish Precepts requested is £10,293,859 and is detailed in Appendix 1.  This represents an increase of £424,290 when compared to 2022-23;

d.              Kielder Parish Council has not yet set its precept.  The Parish Clerk has indicated that this should be done at the parish meeting on 13 February 2023. However, the Clerk has verbally indicated that the precept will most likely be set at £5,000. If the precept changes a report updating the position will be tabled at the County Council meeting on 22 February 2023;

e.              Special expenses of £3,662 are applied to North Sunderland Parish only in relation to play area inspection and maintenance.  This has increased from £3,351 in 2022-23.

4.          County Council NOTED

a.                The basic Council Tax valuation bands are shown in paragraph 3 (b).

b.                The detailed Council Tax calculations are set out in Appendices 2 and 3. Analysis of the Council Tax by parish is provided at Appendix 2 excluding Northumbria Police Precept. Appendix 3 shows the total Council Tax charge by parish (including the Council only element and Adult Social Care Precept, Northumbria Police Precept, Special Expenses and Parish Precepts).