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 2023/24.

 

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 the Medium Term Financial Strategy (MTFS) 20023/28 and 2023/24 Budget and Council Tax proposals.

 

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

 

Councillor Parry extended his thanks to the Director of Finance and his team, Cabinet Members, the Council’s Senior Leadership Team and the members of the MTFS Working Group for their support in compiling the MTFS and Budget proposals.

 

In presenting the report, Councillor Parry informed Members that, in line with most other local authorities, the County Council was requested to approve a 4.99 per cent council tax increase for 2023/24, comprising 2.99 per cent for general purposes and 2 per cent ringfenced for social care. This meant that the annual increase for a Band D property would be the equivalent of £1.34 a week. Despite this proposed increase, the County Council would remain in the lower quartile with regard to the Council tax levy amongst Shire Authorities.

 

Councillor Parry spoke about the Council’s investment in Children’s Services and in adult social care.  He also added that since 2014, the Council’s Economic Growth Programme had delivered more than 11,000 jobs; and that the additional approved investment included:

 

·       £50 million for the repair and maintenance of roads;

·       £40 million on public health projects, including diabetes-prevention, supporting good mental health in the young, and drug and alcohol addiction treatment;

·       building the major road junction to Pets at Home’s national distribution centre in Stafford, which would create 800 jobs; and

·       the £3.1 million Chatterley Valley West employment site near Kidsgrove, which would create up to 1,700 jobs.

 

It was also highlighted that almost two-thirds of the budget would be spent on the provision of care for young and old, including helping around 6,600 people remain independent in their homes.

 

Councillor Charlotte Atkins extended her congratulations to officers for preparing a balanced budget but expressed concern about the impact the proposed increase in Council Tax would have on families on low incomes.  She also spoke about the need for Central Government to reform the way in which social care was funded and also for long-term fairer funding for Local Government.

 

In response to a question from Councillor Pardesi in relation to the use of new technologies, Councillor Alan White cited the case of the 75 people in Staffordshire who were using an iPad to have their health monitored in a virtual hospital ward whilst being able to remain at home.

 

Councillor Sutton spoke about the investment in Children’s Services including SEND and the progress of the on-going transformation programme.

 

In response to a question from Councillor Yates as to whether the proposed budget included provision for meals for children during school holidays for those in receipt of free school meals, Councillor Alan White indicated that the funding for this came from a Government ring-fenced grant.

 

Councillor Philip Atkins and Councillor Hussain referred to the pressures on local government finances due to inflation, increases in interest rates and also the demand for services.  Councillor Atkins also extended his thanks to the Council’s staff for the work they do in supporting Staffordshire’s communities.

 

Councillor Worthington commended Councillor Parry on the budget proposals.

 

Councillor David Williams referred to the Council spend on pothole repairs and the new technology being tested to tackle such issues.  He also referred to increasing highway maintenance costs, such as the 30% increase in the cost of tarmac.

 

Councillor Deaville and Councillor Philip White highlighted the Council’s investment in infrastructure, the Staffordshire economy and in creating jobs.  Councillor Deaville also commended the Council’s staff for the work they do including those who work tirelessly to keep the County’s roads clear during adverse weather.

 

Councillor Wilkes and Councillor Greatorex praised the prudent way in which the Council’s finances were managed and indicated that many local authorities were not in as good a position financially as was the case in Staffordshire.  Councillor Wilkes also referred to the financial challenges which lay ahead and the need for Central Government to commit to longer-term and fairer funding for local councils.

 

Councillor Alan White concluded the debate by indicating that the County Council would continue to deliver value for money services to the people of Staffordshire.

 

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:

 

Jak Abrahams Philip Atkins, OBE Gill Burnett Tina Clements Richard Cox Mike Davies Mark Deaville Janet Eagland Ann Edgeller Keith Flunder Colin Greatorex Philippa Haden Gill Heath Phil Hewitt Jill Hood Derrick Huckfield

Philip Hudson Graham Hutton Thomas Jay Julia Jessel Peter Kruskonjic Thomas Loughborough-Rudd Johnny McMahon Paul Northcott Jeremy Oates Ian Parry Jeremy Pert Robert Pritchard Janice Silvester-Hall David Smith Paul Snape Bob Spencer

Mike Sutherland Mark Sutton Stephen Sweeney Simon Tagg Samantha Thompson Carolyn Trowbridge Ross Ward Jill Waring Alan White Philip White Mike Wilcox Bernard Williams David Williams Victoria Wilson Mark Winnington Mike Worthington

 

Those Members voting against the recommendations: Nil

 

Those Members abstaining from voting:

Arshad Afsar Charlotte Atkins

Syed Hussain Nigel Yates

Gill Pardesi

Resolved – (a) That the following be approved:

 

(i)                a net revenue budget of £649.663m for 2023/24 as set out in Appendix 11 to the report;

(ii)               planning forecasts for 2024/25 to 2027/28 as set out in Appendix 11 to the report;

(iii)              a contingency provision of £15.000m for 2023/24;

(iv)             a net contribution from reserves of £2.108m for 2023/24;

(v)               a budget requirement of £647.555m for 2023/24;

(vi)             a council tax requirement of £432.196m for 2023/24;

(vii)            a council tax at Band D of £1,471.23 for 2023/24 which is an increase of 4.99% when compared with 2022/23.  This results in council tax for each category of dwelling as set out in the table below:

 

Category of dwelling	Council Tax rate £
Band A	980.82
Band B	1,144.29
Band C	1,307.76
Band D	1,471.23
Band E	1,798.17
Band F	2,125.11
Band G	2,452.05
Band H	2,942.46

 

(viii)       that the Director of Finance 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;

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

 

(b) That the following recommendations, which are included within the Capital and Minimum Revenue Provision Strategy 2023/24, the Treasury Management Strategy 2023/24 and the Commercial Investment Strategy 2023/24 (Appendices 9a to 9c of the report) be approved:

 

(i)                The Minimum Revenue Policy for 2023/24 as contained within the Capital and Minimum Revenue Provision Strategy 2023/24 in Appendix 9a to the report;

(ii)               The Prudential Indicators as set out within the Capital and Minimum Revenue Provision Strategy 2023/24 at Appendix 9a to the report;

(iii)              The 2023/24 Treasury Management Strategy, based on the 2021 CIPFA Codes (Prudential Code and Treasury Management Code), and 2018 MHCLG (now DLUHC) Guidance (on Local Government Investments and on Minimum Revenue Provision;

(iv)             The adoption of the Annual Investment Strategy (AIS) 2023/24 detailed in paragraphs 63 to 109 and Annex A and Annex B of the Treasury Management Strategy 2023/24 (Appendix 9b to the report);

(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 110 to 120 of the Treasury Management Strategy 2023/24 (Appendix 9b to the report);

(vi)             The proposed borrowing strategy for the 2023/24 financial year detailed in paragraphs 41 to 62 of the Treasury Management Strategy 2023/24 (Appendix 9b to the report);

(vii)            The Treasury Management Strategy recommendations will operate within the prudential limits set out in Annex C of the Treasury Management Strategy 2023/24 (Appendix 9b to the report) 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 2023/24 (Appendix 9c to the report) 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 2023/24;

(xi)             A maximum limit for an individual service investment loan of £10 million in 2023/24;

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

 

(c) That the Director of Finance be authorised to adjust the contingency provision to reflect any grant and local taxation changes announced in the final 2023/24 Local Government Finance Settlement.

 

(d) That the Cabinet Member for Finance and Resources and the Director of Finance 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.