Agenda item

To consider proposals for the General Fund and Housing Revenue Account Budget, Capital Programme and Treasury Management Strategy 2022/23.

1.1 Note the key points from the Local Government Finance Settlement and the impact on the budget position for 2022/23

1.2 Note the feedback on the draft budget proposals from the Budget and Corporate Scrutiny Board at para 4.26.

1.3 Note the feedback on the draft budget from business representatives at para 4.25.

1.4 That Cabinet have due regard to the feedback from Equality Impact Assessments and consultation feedback as set out in the report and Appendix C.

1.5 That the fees and charges increases for 2022/23, as set out at Appendix D, be approved.

1.6 That the contract sum for Sandwell Children’s Trust of £70.474m be approved as set out at para 4.10.

1.7 That the final General Fund budget position as set out at Appendix E be approved and recommended to Council.

1.8 That the Housing Revenue Account budget for 2022/23 be approved as shown at Appendix E and recommended to Council.

1.9 That the Council Tax precept for 2022/23 of £117,967,934, representing a 1.99% increase in Council Tax and a further 3% increase in the Adult Social Care precept be recommended to Council for approval.

1.10 That the Director of Finance’s assurance statement on the robustness of the budget estimates and reserves at Appendix G position be noted.

1.11 That the Treasury Management Strategy and Prudential Indicators at Appendix J be recommended to Council for approval.

1.12 That the Capital Programme for the General Fund and Housing Revenue Account for 2022/23 and Capital Strategy be approved and recommended to Council as set out at Appendix H and I.

1.13 That the Director of Finance be authorised to make transfers to or from reserves during the financial year to ensure that adequate reserves are maintained and adjusted when spend from earmarked reserves is required.

1.14 That the Director of Finance be authorised to adjust the funding sources applied to the Capital Programme during the year to maximise flexibility in use of capital resources and minimise borrowing costs where possible.

1.15 That a fundamental review of the Medium-Term Financial Plan and Capital Strategy be undertaken in the first quarter of 2022/23 and bought back to Cabinet for approval.

1.16 That the Director of Finance, in consultation with the Cabinet Member for Finance and Resources, be authorised to approve and administer the Council Tax rebate scheme for 2022/23 and approve a policy for the discretionary element of the scheme.

                  Approval was sought for the proposals for the General Fund and Housing Revenue Account Budget, Capital Programme and Treasury Management Strategy 2022/23.

                  The Chair of the Economy Skills Transport and Environment Scrutiny Board enquired whether the Council would review its proposal to increase garage rent fees further to the comments made by the Budget and Corporate Scrutiny Management Board.

                  In response, the Cabinet Member for Finance and Resources stated that the increase reflected the fact that no rent increase had been applied for a number of years and the new charge was favourable when benchmarked with neighbouring local authorities and storage companies. It was not felt that there would be  equalities implications arising from this action as the service was discretionary and not based on an assessment of needs. On that basis, the proposal  was to proceed with the increase in charges but the Council would  monitor any terminations of garage tenancies as a result of the rent increase to consider if a further Equality Impact Assessment or mitigation was necessary.

                  The Chair of the Economy Skills Transport and Environment Scrutiny Board asked a further question regarding when the new telephony system was expected to be in place. In response, the Cabinet Member for Finance and Resources stated that it was aimed to be in place within 12 months.

Reason for Decision

The Local Government Finance Act 1972 required the Council to set a balanced, risk assessed budget each year and approve a Council Tax precept by 11th March.

Alternative Options Considered

Cabinet could request that alternative savings options be proposed and agreed, although there was limited time to do this and still be able to carry out the appropriate consultation on alternative savings. Cabinet could also consider an alternative Council Tax increase, subject to adhering to the Referendum Principles, or alternative increases in Fees and Charges.

Agreed:-

(1)     that the key points from the Local Government Finance Settlement and the impact on the budget position for 2022/23 be noted;

(2)     that the feedback on the draft budget proposals from the Budget and Corporate Scrutiny Management Board be noted;

(3)     that the feedback received on the draft budget from business representatives be noted;

(4)     that there be due regard to the feedback from Equality Impact Assessments and consultation feedback, as now submitted;

(5)     that the fees and charges increase for 2022/23, as submitted, be approved;

(6)     that the contract sum for Sandwell Children’s Trust of £70.474m be approved;

(10)   that the Director of Finance’s assurance statement on the robustness of the budget estimates and reserves, as now submitted, be noted;

(13)   that the Director of Finance be authorised to make transfers to or from reserves during the financial year to ensure that adequate reserves are maintained and adjusted when spend from earmarked reserves is required;

(14)   that the Director of Finance be authorised to adjust the funding sources applied to the Capital Programme during the year to maximise flexibility in use of capital resources and minimise borrowing costs where possible;

(15)   that a fundamental review of the Medium-Term Financial Plan and Capital Strategy be undertaken in the first quarter of 2022/23 and a further report submitted to Cabinet for approval;

(16)   that the Director of Finance, in consultation with the Cabinet Member for Finance and Resources, be authorised to approve and administer the Council Tax rebate scheme for 2022/23 and approve a policy for the discretionary element of the scheme.