Issue - meetings

To receive a report from the Deputy Chief Executive (S151). The Local Government Finance Act 1992 places a legal requirement on the Council to approve a balanced budget. The first draft of the General Fund budget for 2023/24 indicated a deficit of £960k. This report updates that deficit to the current position of £905k and proposes options to consider to achieve the statutorily required neutrality.

The Group had before it a report * from the Deputy Chief Executive. The Local Government Finance Act 1992 places a legal requirement on the Council to approve a balanced budget. The first draft of the General Fund budget for 2023/24 indicated a deficit of £960k. This report updates that deficit to the current position of £905k and proposes options to consider to achieve the statutorily required neutrality.

Key highlights within the report were as follows:

·       This Group had an income generating budget thereby making the identification of savings difficult.

·       The draft budget still had a residual gap with inflation, not grant cuts, being the chief cause.

·       Other influencing factors included the rise in energy costs, a rise in pension contributions and slightly lower Council Tax income due to the loss of any surpluses.

·       Towns and Parish Council’s had been approached to discuss service provision in relation grass cutting and play parks, however, there had not been a great deal of response so far.

·       Pay assumptions had been reviewed as had Business Rate income and the Asset Management Programme.

·       This Group had an opportunity to assess income generation in the coming year.

·       The turnover of staff and vacancy assessment. A robust process was in place to assess each vacant post in terms of income generating opportunities and health and safety risks.

·       Some areas of the Council’s activity needed to be topped up going forwards such as providing sufficient budget for Planning Appeals.

·       The outcome of 3 Rivers Ltd was not yet known.

Discussion took place with regard to the measurement of the SPF and the REPF being evidenced by the successful delivery of these programmes. This was dependent on having the necessary resources in place.

It was therefore:

RECOMMENDED to the Cabinet that the Economic Development team be considered a high priority service area which should be protected and recognised as generating income for the Council at a high ratio.

(Proposed by Cllr B Evans and seconded by Cllr N V Davey)

Reason for decision

As set out within the report.

Note: * Report previously circulated; copy attached to the signed minutes.