Cabinet considered the proposed draft revenue budget for 2023/24 based on the current information available.

Councillor Johnson, Leader of the Council set out the budget consultation process including an opportunity for discussion at the Overview and Scrutiny budget challenge session, the public consultation, further meeting of Cabinet in February as well as a full debate at Council. He reiterated that the Local Government Financial Settlement was not anticipated until late in December which therefore meant that element of the draft balanced budget proposals were based on assumptions. He was proud to reflect that the Council was proposing a balanced budget with an accompanying low level of Council Tax. He regretfully acknowledged that residents would be asked to contribute a higher level of Council Tax for the reprioritised budget focusing on key areas such as Adult Social Care and Children’s Services. He stated that this needed to be benchmarked against rocketing financial pressures as the Council was not immune to the rising costs being experienced by residents including increasing fuel costs, inflation and borrowing costs as well as obligations to support asylum seeking children. He acknowledged it had not been an easy process to deliver the budget proposals.

Councillor Hilton, Cabinet Member for Asset Management & Commercialisation, Finance & Ascot presented the Cabinet report reiterating that like other organisations local government was facing significant financial challenges such as high interest rates, inflation and additional uncertainty around funding levels. The Autumn Statement had confirmed that Council tax could be increased by up to 2.99% before a referendum was required and a further 2% for adult social care precept. He confirmed that it was proposed to increase Council Tax by those levels. He explained that a 4.99% increase for a Band D property would mean £58.09 increase to £1223.11 which was still lower than others in Berkshire. He noted that precepts from the Police and Fire & Rescue Service would be added to this figure. He advised that for every 1% Council Tax was increased the Council would raise £831K. The budget had been set whilst pressures on services such as Adult Social Care, Children’s Services and housing were increasing. Recruitment challenges remained across services and the risk that some income budgets may not recover to pre-pandemic levels. The medium-term financial strategy was aligned to the Council’s Corporate Plan for the period 2021-2026, “Building a borough of opportunity and innovation” which set out the Council’s overarching strategy and priorities.

The budget proposals would be consulted on until February 2023. The outcome of the consultation would be fed back to Cabinet alongside analysis from engagement with other key stakeholders such as businesses and partner organisations.

He explained that within the Cabinet report:

·       Table three was the draft revenue Budget for 2023/24

·       Table four set out Service Department growth above £0.100m

·       Table five set out Service Department savings above £0.100m

·       Individual budget growth requirements were shown in Appendix C

·       Equality Impact Assessments were appended to the report at Appendix D to explore the impact of proposed changes

Cabinet members were asked to note the EQiA on page 172, relating to savings proposal reference AHH30S, had not been taken forward but demonstrated how reliant local authorities were on central funding as such considerations may have been required to achieve a balanced budget.

He explained that Table six listed fees and charges income which included both statutory and discretionary fees.

Appendix B set out the detail of the Medium-Term Financial Plan which detailed the assumptions made. Including the allowed Council Tax and Adult Social Care precepts into the Medium-Term Financial Plan results in the savings previously reported at the July meeting reduced from £10.4m to £4.68m over the period 2023-24 to 2027-28.

He concluded that the budget worked hard to maintain residents’ services whilst focusing efficiencies on back-office functions. Councillor Hilton moved the recommendations within the Cabinet report which were seconded by Councillor Johnson.

Councillor Rayner congratulated the team involved in developing the proposals acknowledging the challenges of the financial context. She referenced a number of Council initiatives demonstrating support and protection of vulnerable residents including the ‘Cost of Living’ and ‘Here to Help’ campaigns and Warm Places. She noted that the proposals included 3% pay increase for appreciated Council staff, £206K growth bid for the upcoming election, £114K for ICT to support business continuity as well as increases in income from the Registrars of £55K. She concluded by saying that it was clear that the Corporate Plan was integral to the budget setting process and encouraged residents to participate in the consultation. She quoted that 50% of respondents to the Residents’ Survey believed that the Council offered value for money.

Councillor Coppinger commented on the challenges facing Adult Social Care services and highlighted that Optalis would require £4m to stay balanced and deliver its services.

Councillor Johnson concluded the discussion by advising that as there would be further opportunities for questions and debate on the proposals he would not be accepting questions or comment from non-Cabinet members. 

RESOLVED UNANIMOUSLY: That the draft budget that would be consulted on prior to final budget setting during February 2023 be agreed including:

i)               the draft budget and revised Medium Term Financial Plan set out in Appendices A and B of the Cabinet report;

ii)             proposed growth and budget pressures set out in Appendix C of the Cabinet report; and

iii)            proposed savings set out in Appendix D of the Cabinet report.