Decision details

To note, as necessary, any changes and/or progress following the financial remit report submitted in October 2022 including provisional budget options, updates and fees and charges

The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept this item as urgent as the council were committed to publishing budget proposals at the earliest possible opportunity to ensure they were available to the public for comments and questions. Presenting the report to cabinet on 6 December 2022 gave the opportunity for debate prior to presentation of budget figures to cabinet on 17 January 2023.

RESOLVED:

1.  That the outcome of the autumn statement delivered on 17 November 2022, and that the provisional local government finance settlement is due to be delivered on the 21 December 2022 (paragraphs 20-21 of the report), be noted.

2.  That it be noted that before the announcement of the final local government settlement, strategic directors will continue to work with their respective cabinet members to find additional savings options.

3.  That the intention to prepare a balanced one-year 2023-24 budget for recommendation by cabinet, in advance of council assembly in February 2023, be noted.

4.  That it be noted that the budget proposals for 2023-24 contained within this report include:

·  Estimated government grant (settlement funding assessment) is assumed to remain cash flat at £153.65m, a reduction of £3m from the October 2022 position

·  Other grant income of £89.8m, an increase from the October position of £4.7m largely a result of the ring-fenced social care grant. The distribution of the social care grant is highly uncertain and will not be known until  the provisional settlement

·  Estimated council tax revenues of £137.9m, including a council tax increase of 4.99% (2% social care precept and 2.99% general increase)

·  A forecast deficit on the collection fund in 2022-23 of £4.4m after allowing for spreading adjustments – this will be offset by government funding set aside for this purpose

·  Pay provision, contractual inflation and energy price inflation of £25m. 

5.  That it be noted that the Greater London Authority (GLA) is expected to increase its council tax precept and that given current circumstances, including Transport for London (TFL) finances, this increase could be significant.

6.  That it be noted that GLA council tax precept is due to be set on the 23 February 2023, therefore a council tax setting committee will need to be convened.

7.  That the current budget options proposed to help achieve a balanced 2023-24 budget be noted (Appendices B to E of the report) including:

·  Efficiency savings of £12.1m

·  Net income increase of £1.2m

·  Savings impacting on services of £1.1m

·  Commitments and growth of £4.8m.

8.  That the updated budget gap for 2023-24 of £6.3m be noted.

9.  That the draft fees & charges schedules at Appendix F of the report be noted.

10.  That it be noted that the officers will complete further work in light of the provisional settlement, when published, to present further options and a fully balanced budget position for cabinet on 17 January 2023.

11.  That the initial departmental narratives at Appendix A of the report, pending further detail in January be noted.

12.  That it be noted that equality impact assessments are ongoing and that a cumulative impact assessment will be presented to cabinet as part of the budget update in January.

13.  That officers be instructed to undertake further consultation for new budget options where necessary or appropriate.

14.  That it be noted that the report to cabinet on 17 January 2023 will be considered by overview and scrutiny committee on 23 January and that any recommendations arising will be incorporated into the final report to cabinet in February 2022 for recommendation to council assembly on 22 February 2023.