Issue - meetings

The attached report - CAB3374 which was presented to cabinet at its meeting on the 15 November 2022 sets out options for the 2023/24 budget, including anticipated changes and budget proposals.

RECOMMENDATIONS:

That:

1.         It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, which can then be considered by cabinet prior to its meeting in February 2023.

2.         It is noted that the committee will be presented with an updated General Fund Budget report at its meeting on the 7th February 2023 prior to Full Council on the 23rd November 2023.

Councillor Margot Power, Cabinet Member for Finance and Value, introduced the report, ref SC080, and CAB3374 which set out proposals for the General Fund Budget Options And Medium Term Financial Strategy, (available here). 

The committee was recommended to comment on the proposals within the attached cabinet report, which could then be considered by the cabinet before its meeting on the 9th of February 2023 whilst noting that the committee would be presented with an updated General Fund Budget report at its meeting on the 7th February 2023.

The committee proceeded to ask questions and debate the report. In summary, the following matters were raised:

1.         Regarding page 57, clarification was sought concerning:

•           the vacancy management provision of £200k,

•           the £130k to fund staffing “to support the move into delivery phase” for major regeneration projects

•           the additional £80k to address the impact of the on-street parking agency ending in 2023.

2.         Regarding page 65, paragraph 16.3 concerning the use of £450k to support invest to save reviews of key services, Clarification was sought on what this money would be used for and the range of expected outcomes.

3.         Would the council, where required, look to employ officers on short-term contracts rather than recruiting consultants for short-term, specific pieces of work?

4.         Following the recent Government announcement concerning council tax limits, was the council's position on the setting of council tax for 2023/2024 established?

5.         Regarding earlier comments concerning the council's CCTV system and whether an update could be given regarding plans for its improvement.

6.         Were the results of the 2022 residents’ survey available to be shared with all councillors?

7.         Clarification regarding the proposals for the garden waste concessionary discount amounts

8.         Whether there was any indication of a future 2 or 3-year Government Funding settlement.

9.         Whether further details could be provided concerning the possible solar farm referenced on page 78.

10.       Whether further details could be provided concerning the possible sale of assets, referenced on page 79.

These points were responded to by Councillor Margot Power, Councillor Martin Tod, Laura Taylor, Chief Executive, Richard Botham, Strategic Director and Liz Keys, Corporate Head of Finance accordingly.

RESOLVED:

That the Cabinet Member and officers note the comments of the committee.

1.     That the projections set out in Appendix A of report CAB3374 be noted and the proposal that the Exceptional Inflation Reserve be used if required to address the forecast deficit for 2023/24 be supported.

2.     That, subject to final Government Spending Review announcements in December 2022, any additional grant award (such as continuation of New Homes Bonus) not included in current forecasts be used to fund the forecast deficit before reserves are used.

3.     That the Medium-Term Financial Strategy be approved, as set out in sections 22-28 of the report. 

4.     That an increase to Garden Waste subscriptions with effect from November 2022 be approved in order to achieve cost recovery, resulting in charges increasing to £43 for small bins and £65 for large bins.  For residents in receipt of a council tax reduction, to increase the discount from £10 to £15 on the cost of purchasing the green waste service.

5.     That, following consultation, parking charges in Zone 1 (City Centre) car parks be subject to an increase in line with inflation (10%) and that charges and weekday charging periods or times for these car parks be extended to include Sundays and bank holidays with new overnight charging introduced, to be implemented as soon as is practicable.  There is no increase to Park and Walk or Park and Ride charging as part of this recommendation.

6.     That Sunday on-street parking restrictions within the Winchester Inner Area Parking Permit Zone and on city centre parking meters be added to the Traffic Regulation Order Programme for 22/23. The exact zones to be included will be subject to consultation.

7.     That, following consultation, parking charges in “market town” car parks be increased by a 20p flat amount on each chargeable rate; to £2.00 for the daily rate (where charged); and no change to season tickets, to be implemented as soon as is practicable.  This change will not apply to the Alresford Station Car Park, where charges were amended recently.

8.     That other fees and charges be increased where appropriate in line with the September Consumer Price Index figure (10.1%) to address contractual increases, to achieve cost recovery or to bring a fee in line with the market norm and that the Section 151 officer be authorised, in consultation with the Cabinet Member for Finance and Value and the Cabinet Member responsible for the service, to approve a different fee where appropriate.

9.     That £450k of the Transitional Reserve be used to support a council wide transformation challenge programme, incorporating focussed independent reviews of key services over the next 6 months with the clear aim of determining longer term savings or income generation to support the delivery of the Medium-Term Financial Strategy and the Council Plan.

10.  That £900k of the existing “Business Rates Retention Reserve” be re-allocated to the “Exceptional Inflation Reserve”.

11.  That a detailed budget be prepared for consideration by Council in February 2023 based on the above assumptions, final spending review announcements and including the following options:

a.  ...  view the full decision text for item 7

Councillor Power introduced the report and emphasised that the ongoing volatile national economic situation would result in difficult decisions having to be made by the council.

At the invitation of the Leader, Councillors Godfrey and Wallace addressed Cabinet as summarised briefly below.

Councillor Godfrey

He believed that in the face of the national economic uncertainty and the unlikelihood of additional government grants being forthcoming, there was little information in the report about how the budget deficit would be addressed.  He disputed the benefits of the proposed expenditure of the Transitional Reserve to support a council wide transformation challenge programme.  He considered that the council should focus on generating more income and highlighted the lack of progress on major projects in his view.

Councillor Wallace

He welcomed the thorough analysis in the report and the proposals to ensure the continuation of services for residents.  He requested further clarification regarding the base assumptions used, for example in relation to contractual, future staffing costs and increasing utility costs.  He also requested information on the reasons for the reduction in reserves between April 2022 and March 2024.

Councillor Power and the Strategic Director and Section 151 officer responded to the comments made, including providing further reassurance about the sensitivity analysis undertaken, the base assumptions adopted and the proposals included in the report to address the budget deficit.  The Strategic Director also provided further details about the proposed future and previous use of reserves.

The Strategic Director clarified that some further information about the Government’s proposals would be available following the Autumn Statement announcement on 17 November, however it was likely that the level of detail required to prepare the 2023/24 budget would not be provided until the end of December 2022.

Due to her interest as Hampshire Cultural Trust board member, Councillor Thompson took no part in the discussion or vote on resolution 11 as set out below.

Cabinet agreed to the following for the reasons set out above and outlined in the report.

RESOLVED:

1.            That the projections set out in Appendix A of the report be noted and the proposal that the Exceptional Inflation Reserve be used if required to address the forecast deficit for 2023/24 be supported.

2.            That, subject to final Government Spending Review announcements in December 2022, any additional grant award (such as continuation of New Homes Bonus) not included in current forecasts be used to fund the forecast deficit before reserves are used.

3.            That the Medium-Term Financial Strategy be approved, as set out in sections 22-28 of the report. 

4.            That an increase to Garden Waste subscriptions with effect from November 2022 be approved in order to achieve cost recovery, resulting in charges increasing to £43 for small bins and £65 for large bins.  For residents in receipt of a council tax reduction, to increase the discount from £10 to £15 on the cost of purchasing the green waste service.

5.            That, following consultation, parking charges in Zone 1 (City Centre) car parks be subject to  ...  view the full minutes text for item 7