Issue - meetings

RECOMMENDATIONS:

1.         That the level of General Fund Budget for 2024/25 be agreed, and recommend the summary as shown in Appendix A of report CAB3444.

2.         That the Greener Faster and carbon reduction investment proposals set out in section 14 of the report be approved, including:

a.       £200,000 per annum for the carbon reduction measures on waste and recycling vehicles to enable the change to HVO fuel.

b.      £1,400,000 per annum (less assumed 80% government funding) to expand recycling services to include food waste collections.

c.       £400,000 per annum to implement other changes to the collection of recyclables.

d.      £250,000 reduction in the annual waste income budget to reflect proposed changes to the Hampshire Inter Authority Agreement on waste.

3.         That in relation to the Cost of Living focus of the Council Plan, the following be approved:

a.       In the absence of any government funded scheme, the allocation of up to £100,000 from the Cost of Living / Living Well reserve to wholly or partially fund a local Council Tax Support Fund for 2024/25 in accordance with section 19 of the report.

b.      Extending the council tax Exceptional Financial Hardship Fund, with the remaining balance of 2023/24 funding (£38,000 as at Jan 2024), to 2024/25 to support any council tax payers experiencing exceptional hardship, regardless of whether they are in receipt of Council Tax Reduction.

c.       A discretionary 7.7% cap for 2024/25 on the annual increase in rent for Partnered Home Purchase scheme property owners, in line with the increase in social and affordable rents to existing tenants and for shared owners in the HRA.

4.         That in relation to the council’s Homes for All priority the following be approved:

a.       an additional £20,000 per annum contribution to the New Burdens Reserve to support the Preventing Homelessness Strategy, including funding the increased costs of providing temporary accommodation for homeless households where required.

b.      to reduce the long term empty property period from 2 years to 1 year, of the 100% council tax premium which applies to all unoccupied and unfurnished property.

5.         That in relation to the council’s TC25 transformation programme the following be approved:

a.       The £607,000 of immediately recognised TC25 savings set out in section 13 of the report be reassigned to contributions to the Transitional Reserve for 2024/25 and 2025/26 to support the delivery of the wider transformation programme.

b.      A new budget of £100,000 per annum for the support and coordination of digital channel shift work across the council’s services.

c.       The transfer of the £130,000 of additional 4% Funding Guarantee income to the transitional reserve to invest in the TC25 transformation programme.

6.         That the unavoidable budget growth of £100,000 per annum to fund increased external audit fees be approved.

7.         That savings in corporate property budgets for Non Domestic Rates (NNDR) of £177,000 to reflect reduced liabilities be approved.

8.         That service income annual budgets be amended as follows, in response to revised estimates:

a.       Building control fees  ...  view the full agenda text for item 6

Councillor Cutler (Cabinet Member for Finance and Performance) moved that the recommended minute of Cabinet be approved and adopted (seconded by Councillor Tod, Leader and Cabinet Member for Asset Management).

By way of an update, the meeting had been provided with revised Council Tax Resolution information following review of the decisions made at the Hampshire County Council budget meeting of the same day – Thursday 22 February 2024.  At Resolution 2 (a), the Council Tax Base was updated to £53,691.65 (was £53,691.67).  This change had a consequential impact and reduction on each of the precepts for Hampshire County Council, Police and Crime Commissioner and Hampshire Fire and Rescue Authority as set out at Resolution 5.  These had been updated respectively to £82,322,185 (was £82,322.216), £14,038,219 (was £18,486,042) and £4,447,816 (was £4,447,818).

Council proceeded to ask questions and then debate the matters in the recommended minute and report.

AMENDMENT – Moved by Councillor Godfrey and seconded by Councillor Bolton:

Amend the recommended minutes by addition of a new recommendation 2e: The removal of overnight parking charges in city centre car parks, funded by the deletion of long-term vacant posts.

As the Mayor was satisfied that there had been adequate debate of the original motion, the Mayor called for a short adjournment to the meeting whilst the amendment was circulated in writing.

Upon its reconvening, Council proceeded to debate the matters in the Amendment.  At conclusion of debate, Councillor Cutler was invited to exercise his right of reply before Council voted on the Amendment.

In accordance with legislative requirements on recorded votes at Budget meetings, a recorded vote was taken on the Amendment before Council.

The following Members voted in favour of the Amendment before Council:

1. Councillor Neil Bolton
2. Councillor Caroline Brook
3. Councillor Susan Cook
4. Councillor Patrick Cunningham
5. Councillor Stephen Godfrey
6. Councillor Caroline Horrill
7. Councillor Fiona Isaacs
8. Councillor Paula Langford-Smith
9. Councillor Steve Miller
10. Councillor Frank Pearson
11. Councillor Michael Read
12. Councillor Jan Warwick

The following Members voted against the Amendment before Council:

1. Councillor Sudhakar Achwal
2. Councillor Vivian Achwal
3. Councillor James Batho
4. Councillor Kathleen Becker
5. Councillor Adrian Brophy
6. Councillor Chris Chamberlain
7. Councillor Angela Clear
8. Councillor Steve Cramoysan
9. Councillor Neil Cutler
10. Councillor Chris Edwards
11. Councillor Nathan Eve
12. Councillor Russell Gordon-Smith
13. Councillor Brian Laming
14. Councillor Kelsie Learney
15. Councillor Danny Lee
16. Councillor Jonny Morris
17. Councillor Jerry Pett
18. Councillor Jackie Porter
19. Councillor Margot Power
20. Councillor George Prest
21. Councillor Mark Reach
22. Councillor Jane Rutter
23. Councillor Jamie Scott
24. Councillor Lucille Thompson
25. Councillor John Tippet-Cooper
26. Councillor Martin Tod
27. Councillor Malcolm Wallace
28. Councillor Chris Westwood
29. Councillor Jonathan William

AMENDMENT LOST.

Following summing up by the proposer of the substantive motion (which was the Recommended Minute of Cabinet) and the seconder exercising his right to speak, in accordance with legislative requirements on recorded votes at Budget meetings, a recorded vote was first taken regarding Recommendations 1 – 9 of the Recommended Minute of Cabinet.

The following Members voted in favour of Recommendations 1 – 9:

1. Councillor Sudhakar Achwal
2. Councillor Vivian Achwal
3. Councillor James Batho
4. Councillor Kathleen Becker
5. Councillor Adrian Brophy
6. Councillor Chris  ...  view the full minutes text for item 6

That Cabinet recommend to Council*:

1.    That the level of General Fund Budget for 2024/25 be agreed, and recommend the summary as shown in Appendix A of report CAB3444.

2.    That the Greener Faster and carbon reduction investment proposals set out in section 14 of the report be approved, including:

a.    £200,000 per annum for the carbon reduction measures on waste and recycling vehicles to enable the change to HVO fuel.

b.    £1,400,000 per annum (less assumed 80% government funding) to expand recycling services to include food waste collections.

c.     £400,000 per annum to implement other changes to the collection of recyclables.

d.    £250,000 reduction in the annual waste income budget to reflect proposed changes to the Hampshire Inter Authority Agreement on waste.

3.    That in relation to the Cost of Living focus of the Council Plan, the following be approved:

a.    In the absence of any government funded scheme, the allocation of up to £100,000 from the Cost of Living / Living Well reserve to wholly or partially fund a local Council Tax Support Fund for 2024/25 in accordance with section 19 of the report.

b.    Extending the council tax Exceptional Financial Hardship Fund, with the remaining balance of 2023/24 funding (£38,000 as at Jan 2024), to 2024/25 to support any council tax payers experiencing exceptional hardship, regardless of whether they are in receipt of Council Tax Reduction.

c.     A discretionary 7.7% cap for 2024/25 on the annual increase in rent for Partnered Home Purchase scheme property owners, in line with the increase in social and affordable rents to existing tenants and for shared owners in the HRA.

4.    That in relation to the council’s Homes for All priority the following be approved:

a.    an additional £20,000 per annum contribution to the New Burdens Reserve to support the Preventing Homelessness Strategy, including funding the increased costs of providing temporary accommodation for homeless households where required.

b.    to reduce the long term empty property period from 2 years to 1 year, of the 100% council tax premium which applies to all unoccupied and unfurnished property.

5.    That in relation to the council’s TC25 transformation programme the following be approved:

a.    The £607,000 of immediately recognised TC25 savings set out in section 13 of the report be reassigned to contributions to the Transitional Reserve for 2024/25 and 2025/26 to support the delivery of the wider transformation programme.

b.    A new budget of £100,000 per annum for the support and coordination of digital channel shift work across the council’s services.

c.     The transfer of the £130,000 of additional 4% Funding Guarantee income to the transitional reserve to invest in the TC25 transformation programme.

6.    That the unavoidable budget growth of £100,000 per annum to fund increased external audit fees be approved.

7.    That savings in corporate property budgets for Non Domestic Rates (NNDR) of £177,000 to reflect reduced liabilities be approved.

8.    That service income annual budgets be amended  ...  view the full decision text for item 9

The Chief Finance Officer and Section 151 Officer confirmed that the information requested regarding the change in the empty property criteria would be available for the Council meeting on 22 February 2024.  She advised that the current council tax collection rate was 99.1%.

Councillor Cutler responded to comments made above and also the comments made by Scrutiny Committee, including clarifying the following:

a.       The reasons for the proposed decision in connection to building control fees included consideration of wider issues surrounding continuation of the service.

b.       The amount proposed for the exceptional hardship fund was considered to be sufficient but it could be reviewed if necessary during the course of the next year.

c.       Providing examples of recent additional government and other body grants that had been received which were outside of the core budget process.

The Chief Finance Officer and Section 151 Officer advised that since the report had been published further government instructions had been received regarding the use of the additional 4% Funding Guarantee income stipulating that it should be used in the creation of efficiency savings.  Consequently, the proposal to use the funds for a reserves in relation to the delivery of a food waste collection service be removed (previously recommendation 2.e of the report) and instead the £130,000 be allocated to the transitional reserve to invest in the TC25 transformation programme.  This was agreed as set out in new recommendation 5.c below.

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

RECOMMENDED (TO COUNCIL):

1.         That the level of General Fund Budget for 2024/25 be agreed, and recommend the summary as shown in Appendix A of report CAB3444.

2.         That the Greener Faster and carbon reduction investment proposals set out in section 14 of the report be approved, including:

a.       £200,000 per annum for the carbon reduction measures on waste and recycling vehicles to enable the change to HVO fuel.

b.      £1,400,000 per annum (less assumed 80% government funding) to  ...  view the full minutes text for item 9

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3444 which is to be considered by cabinet at its meeting on the 8 February 2024.

Councillor Cutler, Cabinet Member for Finance & Performance introduced the report, ref CAB3444 which set out proposals for the General Fund Budget 2024/25, (available here).  The introduction included the following points.

1.    That the Government’s initial Finance Settlement aligned closely with forecasts, varying by only £11,000 from the assumed core funding level in the Medium Term Financial Plan presented in November, but noting it was only a one-year settlement agreement.

2.    That the updated budget projections showed the Council's stable financial position through 2026, albeit with identified longer-term deficits.

3.    An organisation-wide transformation programme, TC25, was initiated to address a £3 million funding gap within three years.

4.    Significant investments were being made and included improvements to our website and app to make contacting and reporting matters to the council easier; streamlining the back-office of the parking service to improve the operation of our car parks; and digitalisation of the planning service to make submission of applications easier and the processing of them more efficient.

5.    The report outlined proposals for the next year focusing on supporting core services and the 'Greener, Faster' initiative, notably in recycling, food waste collection, and decarbonisation of the waste fleet, reducing the council’s overall carbon emissions by 25%.

6.    Provision existed to assist residents with the cost of living challenges through schemes like the Council Tax Reduction and additional funding for hardship schemes, alongside continued community grant support.

7.    Despite longer-term financial hurdles, a balanced 2024/25 budget was presented, ensuring the preservation of essential services and enhancing the Council's transformation capacity.

The committee was asked to comment on the proposals within the attached cabinet report, ref CAB3444 which was to be considered by the cabinet at its meeting on 8 February 2024.

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

1.    The use of the exceptional financial hardship fund and whether new funding was available.

2.    The impact of reducing the long-term empty property criteria from two years to one.

3.    Clarification regarding any potential impact of the civil enforcement team's redesign.

4.    Clarification on the budget provision for carbon offsetting projects and further details on future investment plans for carbon reduction.

5.    Clarification regarding the TC25 initiative, and whether it would generate genuine efficiencies or cost reductions.

6.    Clarification regarding any additional government funds/grants that had been received and an explanation of how these funds are factored into the budget.

7.    Clarification was sought regarding the reduction in the building control budget and the proposed increase in associated fees.

8.    Questions were asked regarding the response to the budget consultations and whether improvement in public engagement could be considered.

9.    Whether the forecasted savings from TC25 considered additional government grants and if it presented figures represented worst-case scenarios.

10. Clarification was sought regarding managing or reducing the costs associated with external audit fees.

11. Clarification regarding the digital transformation budget and whether it represented ongoing maintenance or transformative projects.

These points were responded  ...  view the full minutes text for item 7