Agenda item

Joint report of the Leader of the Council and the Cabinet Member for Finance and Resources outlining how the Council will finance its operations over the next five years and recommending a budget to the Council for 2022/23.

NOTE: Members are reminded that, under Section 106 of the Local Government Finance Act 1992, if they are two months or more in arrears with their Council Tax it is an offence for them to vote on the budget. Members are also required to disclose at the meeting the fact that this Section applies to them.

The Council received a joint report by the Leader of the Council and the Cabinet Member for Finance and Resources on Medium Term Financial Strategy (MTFS) 20022/27 and 2022/23 Budget and Council Tax proposals.

Cllr Alan White informed Members that the County Council was a well-run, financially stable authority which was investing for the future.  He added that much of the budget was spent on social care for the old and young and that Central Government needed to find a sustainable solution to these funding issues.  He also spoke about the success of the Council’s economic growth programme and the proposed investments going forward.

Cllr Alan White moved, and Cllr Philip White seconded, the recommendations contained in the report before the Council.

Cllr Charlotte Atkins extended her congratulations to officers for putting forward a balanced budget despite the Authority being amongst the most under-funded Councils in England.  She added that the Government’s Levelling-up White Paper did nothing to address this issue, and neither did the Social Care White Paper.  She, together with Cllr Hussain, also referred to the impact on the elderly, disabled and those on low incomes of the anticipated increase in fuel prices alongside increases in National Insurance contributions and inflation above expected levels.  Cllr Hussain also asked that, bearing in mind the issues highlighted above, the Council give further consideration to its proposal to increase Council Tax by 2.99%.  In response, Cllr Jessel indicated that the Council would welcome a long-tern sustainable solution for the funding of social care.  She also extended her thanks to the Government for its response to the Covid Pandemic and indicated that this additional support needed to be paid for.

Cllr Sutton, Cllr Francis, Cllr David Williams, Cllr Deaville, Cllr Winnington and Cllr Philip Atkins expressed their support for the MTFS and Budget proposals.

Cllr Sutherland extended his thanks to the County Treasurer and those other members of staff who had assisted in the development of the MTFS, and also to the Cabinet, for presenting a good and balanced budget.

Cllr Alan White thanked Members for their comments and indicated that Staffordshire still had the fifth lowest level of Council Tax in England.

In accordance with statutory requirements, the Chairman called for a named vote to be taken in relation to the approval of the recommendations contained in the report, the result of which was as follows:

Those Members voting in support of the recommendations:

Those Members voting against the recommendations:

Those Members abstaining from voting: Nil

RESOLVED – (a) That the following be approved:

(i) a net revenue budget of £567.826m for 2022/23 as set out in Appendix 11 to the report:

(ii) planning forecasts for 2023/24 to 2026/27, as set out in Appendix 11 to the report;

(iii) a contingency provision of £10.000m for 2022/23;

(iv) a net contribution to reserves and general balances of £12.442m for 2022/23;

(v) a budget requirement of £580.268m for 2022/23;

(vi) a council tax requirement of £406.258m for 2022/23;

(vii) a council tax at Band D of £1,401.30 for 2022/23 which is an increase of 2.99% when compared with 2021/22. This results in council tax for each category of dwelling as set out in the table below:

(viii) that the County Treasurer be authorised to sign precept notices on the billing authorities respectively liable for the total precept payable and that each notice states the total precept payable and the council tax in relation to each category of dwelling, as calculated in accordance with statutory requirements; and

(ix) the Financial Health Indicators as set out in Appendix 10 to the report.

(b) That the following recommendations, which are included within the Capital and Minimum Revenue Provision Strategy 2022/23, the Treasury Management Strategy 2022/23 and the Commercial Investment Strategy 2022/23 (Appendices 9a to 9c to the report), be approved:

(i)                the Minimum Revenue Policy for 2022/23 as contained within the Capital and Minimum Revenue Provision Strategy 2022/23 in Appendix 9a;

(ii)               the Prudential Indicators as set out within the Capital and Minimum Revenue Provision Strategy 2022/23 at Appendix 9a;

(iii)               the 2022/23 Treasury Management Strategy, based on the 2017 CIPFA Codes (Prudential Code and Treasury Management Code), and 2018 MHCLG Guidance (on Local Government Investments and on Minimum Revenue Provision);

(iv)             the Annual Investment Strategy (AIS) 2022/23 detailed in paragraphs 61 to 107 and Annex A and Annex B of the Treasury Management Strategy 2022/23 (Appendix 9b);

(v)               the policies on reviewing the strategy, the use of external advisors, investment management training and the use of financial derivatives as described in paragraphs 108 to 118 of the Treasury Management Strategy 2022/23 (Appendix 9b);

(vi)             the proposed borrowing strategy for the 2022/23 financial year detailed in paragraphs 39 to 56 of the Treasury Management Strategy 2022/23 (Appendix 9b);

(vii)            the Treasury Management Strategy recommendations will operate within the prudential limits set out in Annex C of the Treasury Management Strategy 2022/23 (Appendix 9b) and will be reported to the Cabinet Member for Finance, with respect to decisions made for raising new long-term loans, early loan repayments and loan rescheduling;

(viii)           the Commercial Investment Strategy for 2022/23 (Appendix 9c) and note the circumstances under which commercial investments can be made;

(ix)             the governance arrangements that are in place for proposing and approving commercial investments;

(x)                a maximum quantum for commercial investments of a further £20 million in 2022/23;

(xi)             a maximum limit for an individual service investment loan of £10 million in 2022/23; and

(xii)            any upwards change in the amounts of the limits specified in recommendations (x) and (xi) be delegated to the County Treasurer in consultation with the Cabinet Member for Finance and Resources.

(c) That the County Treasurer be authorised to adjust the contingency provision to reflect any grant and local taxation changes announced in the final 2022/23 Local Government Finance Settlement.

(d) That the Cabinet Member for Finance and Resources and the County Treasurer be authorised to challenge Cabinet, the Senior Leadership Team and services to manage and deliver the current five-year plans and to identify further cost reductions and income generation opportunities, as appropriate.