Agenda item

1.       That the assumptions set out in section 13 of report CAB3430 and the projections set out in Appendix A of the report be noted.

2.       That the Medium-Term Financial Strategy be approved as set out in sections 13 to 17 of the report. 

3.       That a detailed budget be prepared for consideration by Council in February 2024 based on the assumptions set out in this MTFS; final spending review announcements; and including the following options:

a.  That, in relation to Greener Faster and carbon reduction priorities:

                    i.     £200,000 per annum be included for the carbon reduction measures on waste and recycling vehicles to enable the change to HVO fuel (as set out in paragraph 15.2 of the report).

                   ii.     £1,400,000 per annum (less assumed 80% government funding) be included to expand recycling services to include food waste collections (as set out in paragraph 15.2 of the report).

                 iii.     £400,000 per annum be included to implement other changes to the collection of recyclables (as set out in paragraph 15.2 of the report).

                 iv.     £500,000 be reduced in the annual waste income budget to reflect proposed changes to the Hampshire Inter Authority Agreement on waste (as set out in paragraph 15.2 of the report).

b.  That, in relation to the council’s TC25 digital transformation programme:

                    i.     £100,000 per annum be included for the support and coordination of digital channel shift work across the council’s services.

c.  That, in relation to services:

                    i.     An additional £100,000 per annum be included to fund the increased external audit fees.

                   ii.     NNDR budgets be reduced by £177,000 per annum to reflect the reduced liability on corporate properties.

                 iii.     An additional £20,000 per annum be included to fund the increased costs of temporary accommodation.

d.  That, in relation to service income annual budgets, amendments be made as follows, in response to revised estimates (see also paragraph 15.3 of the report):

                    i.     Building control fees reduced by £100,000

                   ii.     Land charges income reduced by £100,000

                 iii.     Legal services reduced by £50,000

                 iv.     Pest control reduced by £50,000

                  v.     Garden waste service income increased by £90,000

                 vi.     Car parking income increased by £100,000

e.  That Council Tax will increase in line with the Government referendum limits (currently a maximum of 2.99% for a Band D property).

f.    That the annual contribution to the IT reserve be increased by £100k to support critical infrastructure and the digitalisation theme of the transformation programme.

g.  That a Future of Waste and Recycling reserve of £1m is established (using funds from the Major Investment Reserve) to support the implementation of the new recycling offer for residents.

4.       Due to the inflationary increase in the Waste Collection contract cost, approve a corresponding September 2023 CPI rate increase to Garden Waste subscriptions with effect from March 2024, resulting in charges increasing to £45 for small bins and £69 for large bins (but maintaining the concessionary price at £29).

Councillor Cutler introduced the report including outlining TC25, the council’s organisation-wide transformation programme to seek out and to deliver transformational changes to the way services are provided to save £3m a year within 3 years.

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

Councillor Wallace

He believed it would have been preferable if the report had been considered by the Scrutiny Committee prior to Cabinet.  He also highlighted the lack of inclusion of the council’s nature emergency declaration despite the commitment to include consideration in all future plans.  He asked the following questions: a) whether it was still the intention for the garden waste collection service to be cost neutral; b) queried the apparent proposal to freeze car parking charges; c) requested a more detailed analysis of projected waste collection costs; d) requested evidence of the ability of the TC25 programme to deliver the significant savings required.

Councillor Godfrey

He did not have confidence that the proposals currently available within the TC25 programme would be sufficient to address the predicted budget deficit and asked when councillors would be supplied with more information regarding the programme?  He believed it would be unwise to rely on increased government grants to address the budget deficit.  He considered that there appeared to be a focus on increasing council reserves rather than seeking new sources of income. He welcomed the action to reduce business rate spending on empty buildings but considered much more needed to be done to address the budget situation.

Councillors Cutler and Tod responded to the points raised above, including emphasising that this report was a part of the budget process and that both Scrutiny Committee and then Cabinet would consider the final budget proposals prior to submission to Council in February 2024. 

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

RESOLVED:

1.       That the assumptions set out in section 13 of the report and the projections set out in Appendix A of the report be noted.

2.       That the Medium-Term Financial Strategy be approved as set out in sections 13 to 17 of the report. 

3.       That a detailed budget be prepared for consideration by Council in February 2024 based on the assumptions set out in this MTFS; final spending review announcements; and including the following options:

a.  That, in relation to Greener Faster and carbon reduction priorities:

                    i.     £200,000 per annum be included for the carbon reduction measures on waste and recycling vehicles to enable the change to HVO fuel (as set out in paragraph 15.2 of the report).

                   ii.     £1,400,000 per annum (less assumed 80% government funding) be included to expand recycling services to include food waste collections (as set out in paragraph 15.2 of the report).

                 iii.     £400,000 per annum be included to implement other changes to the collection of recyclables (as set out in paragraph 15.2 of the report).

                 iv.     £500,000 be reduced in the annual waste income budget to reflect proposed changes to the Hampshire Inter Authority Agreement on waste (as set out in paragraph 15.2 of the report).

b.  That, in relation to the council’s TC25 digital transformation programme:

                    i.     £100,000 per annum be included for the support and coordination of digital channel shift work across the council’s services.

c.  That, in relation to services:

                    i.     An additional £100,000 per annum be included to fund the increased external audit fees.

                   ii.     NNDR budgets be reduced by £177,000 per annum to reflect the reduced liability on corporate properties.

                 iii.     An additional £20,000 per annum be included to fund the increased costs of temporary accommodation.

d.  That, in relation to service income annual budgets, amendments be made as follows, in response to revised estimates (see also paragraph 15.3 of the report):

                    i.     Building control fees reduced by £100,000

                   ii.     Land charges income reduced by £100,000

                 iii.     Legal services reduced by £50,000

                 iv.     Pest control reduced by £50,000

                  v.     Garden waste service income increased by £90,000

                 vi.     Car parking income increased by £100,000

e.  That Council Tax will increase in line with the Government referendum limits (currently a maximum of 2.99% for a Band D property).

f.    That the annual contribution to the IT reserve be increased by £100k to support critical infrastructure and the digitalisation theme of the transformation programme.

g.  That a Future of Waste and Recycling reserve of £1m is established (using funds from the Major Investment Reserve) to support the implementation of the new recycling offer for residents.

4.       Due to the inflationary increase in the Waste Collection contract cost, approve a corresponding September 2023 CPI rate increase to Garden Waste subscriptions with effect from March 2024, resulting in charges increasing to £45 for small bins and £69 for large bins (but maintaining the concessionary price at £29).