Issue - meetings

Report Ref: SCO55 and CAB3318

RECOMMENDATIONS:

The attached report - CAB3318 which was presented to cabinet at its meeting on the 20 October 2021 sets out options for the 2022/23 budget, including anticipated changes and budget proposals.

As part of the budget consultation process, 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 2022.

The Deputy Leader and Cabinet Member for Finance and Service Quality and the Strategic Director introduced the report which set out the options for the 2022/23 budget, including anticipated changes and budget proposals.

The report also included the Medium-Term Financial Strategy and set out the Council’s strategic approach to the use and management of its financial resources. The Deputy Leader and Cabinet Member for Finance and Service Quality updated the committee following the cabinet meeting on 21 October 2021 and specifically drew members attention to amended recommendations 9A and 9C and referred members to the minutes of the cabinet meeting which had been provided at the meeting. The report recommended that the scrutiny committee comment on the proposals within it.

The committee asked questions and made comments on a range of subjects which included: increases to the fees and charges, the wording regarding the ambition of encouraging parking on the perimeter of the city, the permanency of the grant to the Hampshire Cultural Trust, the use of income from car park charges, the expenditure identified for climate emergency work, whether a strategic spending review could have been undertaken prior to this exercise and when one would, the financial provision for digital engagement with customers, the financial impact of greater parking on the perimeter of the city instead of within the central area, potential, additional leisure centre income and if the council benefits financially, the garden waste concessions package,  IT equipment provision for staff working from home, the costs associated with collecting unused garden waste bins, staff numbers in the Planning team, the predicted inflation rate and the impacts of it not being accurate, utilising the accumulated CIL funds and the levels of community grants

The questions were responded to by the Strategic Director and Councillors Cutler, Tod, Learney and Clear.

 RESOLVED:

The committee agreed to the following:

1.    that the comments of the committee be noted by cabinet

2.    that the following be considered:

·         that alternative wording be explored regarding the aim of encouraging parking on the perimeter of the city

·         that the Health & Environment Policy committee be recommended to review the changes in community grants

·         that subject to any future spending review, that proposed significant decreases in grants be reconsidered

·         that any future surpluses generated by the garden waste service be used to increase that service’s discounts.

·         that future budget consultations should ask specific questions to residents regarding council charges and how changes to these charges impact them.

1.     That the projections set out in Appendix A to report CAB3318 which delivers a balanced budget for 2022/23 be noted and the proposal that £1.0m of Transitional Reserve be used if required to address the forecast deficit for 2023/24 be supported.

2.     That the Medium Term Financial Strategy be approved, as set out in sections 17-22 of report CAB3318.

3.     That one off provision of £200k be included in the 2021/22 budget, funded by the forecast surplus for the year, to provide additional short term capacity and support for teams experiencing additional demands on core services.

4.     That “one off” provision of £1m be approved to provide funding for additional project delivery resources to support regeneration work in the district, with £400k funded from the forecast surplus for 2021/22 and the remaining £600k from the Transitional reserve.

5.     Approve a contribution of £75k, (subject to agreement of grant terms and conditions and funded from the Grants reserve), to the Hampshire Cultural Trust towards the development of an Anglo-Saxon experience attraction in the city in 2022, in recognition of the positive impact this initiative will have in supporting high street recovery and visitor numbers to the city.

6.     That the proposal to spend £300k of the Tranche 5 Covid grant fund to upgrade the Council’s IT desktop infrastructure to support “agile/flexible working” proposals be approved.

7.     That a detailed report be prepared on the basis of an average 3% increase in fees and charges (other than parking and garden waste subscriptions) and brought to the next Cabinet meeting for determination.

8.     That a £10 discount to garden waste subscriptions for residents in receipt of Council tax reduction be approved.

9.     That a detailed budget be prepared for consideration by Council in February 2022 based on the above assumptions, final spending review announcements and including the following options:

a.    That there will be no increases to off-street parking charges Winchester’s central AQMA parking zone.  Detailed proposals for the central Air Quality Management zone will be brought forward at a later date;

b.    That no increase is made to Green Waste collection subscriptions for the 2021/22 financial year;

c.    That other fees and charges be subject to recommendation 7 above;

d.    That, subject to referendum limits, Council tax be subject to an overall combined town and district £5 increase for 2022/23 (approx. 2.97%) and that Cabinet indicate whether consideration should be given to a lower district charge.

Cabinet noted that the Leader had declared a pecuniary interest in respect of this report due to being a trustee on the Hampshire Cultural Trust.  Cabinet therefore did not consider recommendation 5 or any related matters in the report until Councillor Thompson had left the room.

Councillor Cutler introduced the report and highlighted key elements of its contents.   He proposed a number of changes to the recommendations in the report (amended recommendations subsequently agreed as set out in the resolution below).

At the invitation of the Leader, Councillor Godfrey addressed Cabinet as summarised briefly below.

He welcomed some of the proposed amendments but considered that the proposed £10 discount for garden waste subscriptions was insufficient to assist residents on lower incomes and requested a review be undertaken without delay.  He acknowledged there was a great deal of uncertainty facing the council, but considered that the medium term financial strategy was inadequate in terms of forecasting and planning.  He questioned how the council’s predicted financial shortfall could be addressed if no actions were proposed.

Councillor Cutler and other Cabinet Members responded to the comments made including emphasising that the transition reserve had been created to assist with dealing with the difficulties created due to ongoing uncertainties, including regarding the level of government settlement.

Cabinet then considered the recommendations, with the exception of recommendation 5, and agreed as set out below for the reasons contained in the report and outlined above

Councillor Thompson left the room at this point in the meeting.

Councillor Cutler (in the chair) introduced the amended recommendation 5 which proposed a contribution to the Hampshire Cultural Trust (HCT) towards the development of an Anglo-Saxon experience in the city in 2022.  During debate, Cabinet Members emphasised that it offered an exciting opportunity to attract more visitors to the city and consequently help with footfall and consumer spending.

Cabinet considered recommendation 5 and agreed as set out below for the reasons contained in the report and outlined above.

RESOLVED:

1.        That the projections set out in Appendix A to the report which delivers a balanced budget for 2022/23 be noted and the proposal that £1.0m of Transitional Reserve be used if required to address the forecast deficit for 2023/24 be supported.

2.        That the Medium Term Financial Strategy be approved, as set out in sections 17-22 of the report.

3.        That one off provision of £200k be included in the 2021/22 budget, funded by the forecast surplus for the year, to provide additional short term capacity and support for teams experiencing additional demands on core services.

4.        That “one off” provision of £1m be approved to provide funding for additional project delivery resources to support regeneration work in the district, with £400k funded from the forecast surplus for 2021/22 and the remaining £600k from the Transitional reserve.

5.        Approve a contribution of £75k, (subject to agreement of grant terms and conditions and funded from the Grants reserve), to the Hampshire Cultural Trust towards the development of an Anglo-Saxon experience attraction  ...  view the full minutes text for item 9