Agenda item

To receive the report of the Finance Manager (s151 Officer)

Resolved

Recommendations to Full Council

a)     That Torridge’s Band D Council Tax for 2022/23 be increased by £5 (2.90%) from £173.66 to £178.66 per year

b)     That Torridge’s Net Revenue Budget 2022/23 is £7.983m

c)      That the contributions to the Council’s reserves as outlined in paragraph 11.4 are approved.

d)     That a working group be established the membership to be agreed by Full Council to be tasked with reporting back to Community and Resources for options to bring the Council’s finances back into balance.

That members note:

The Chief Finance Officer (s151 Officer) assurance of the robustness of the budget 2022//23 set out in section 13 of the report.

Note the assumptions and forecast applied to develop the MTFS outlined in section 8

Note the risks associated with the Budget 2022/23 and MTFS outlined in section 12

The Section 151 Officer introduced the report, the purpose of which

was for Members to consider, formulate and recommend the Budget 2022/23 to Full Council. The Medium Term Financial Strategy (MTFS) indicates the possible extent of the budget and funding shortfall that the Council will face in the future. It is an aid in identifying the extent of service changes that the Council will need to make to achieve a balanced budget in each financial year up to 2026/27. 

A detailed and informative slide presentation was given by the Section 151 Officer highlighting the salient points in the report.

Members were asked for any questions and the following discussions took place.

Following a question regarding how Torridge compares with the picture nationally a discussion took place regarding the Provisional Local Government Financial Settlement.

It was highlighted that the Torridge has seen it’s Core Spending Power (CSP) increased by 1.1%, which is a cut of 4% in real terms when inflation is considered.  The Section 151 Officer also highlighted the comparison with other Shire Districts (4.3%) and with those Authority areas in the same deprivation grouping (7%); showing the CSP for Torridge to be significantly lower than average.

The Chief Executive advised members of a meeting last week with the MP for Torridge & West Devon, Sir Geoffrey Cox. It was confirmed that the issue of the CSP rise was discussed and the Section 151 Officer had also challenged the Department for Leveling Up Housing and Communities.  It was stated that Sir Geoffrey Cox MP indicated he would raise the matter with Michael Gove MP on behalf of Torridge. 

Members queried the revised assumptions regarding New Homes Bonus funding, detailed on page 15 of the report, as it was understood the scheme was due to be phased out. The Section 151 Officer explained that this was an assumption and based on a replacement model being put in place. It was requested that members are advised of any new model.

A question was raised in relation to charges for second homes and holiday homes, and whether there was scope to increase council tax or business rates for these properties.  It was confirmed that business rates could not be raised by the council and that internal scrutiny had already previously raised Council Tax for second homes to 200%, the maximum level increase, and there was no further scope for an increase.

Asked if the issues had been raised with the MP for Torridge & West Devon the Chief Executive stated it was raised and this was also a concern that had been raised by several Local Authorities and the Local Government Association. It was confirmed that changes to the process will be introduced from April 2022 to make it more robust.

Councillor Hodson addressed the meeting and stated that Sir Geoffrey Cox MP was made aware of the Council’s disappointment regarding a settlement of 1.1% and the decision-making process had been challenged on behalf of members. She explained that concerns were also raised regarding this being a one-year settlement, as this made it hard to plan for the future and develop a medium term plan. 

Following questions regarding the potential impact of a freeze in Council Tax the Section 151 Officer explained the financial impact of a previous freeze in Council Tax and how no rise in council tax would impact future budgets for the council.

Following member discussion on potential future projects the Chief Executive highlighted ‘recommendation d’ on page 23 of the report. That subject to member approval a working group is to be established, which would investigate and consider these issues going forward.

Following concerns raised about the potential impact of a rise in Council Tax and affordability for people at the current time the Household Hardship Fund was discussed. The Chief Executive went on to explain that the Council Tax Support Scheme was approved at last Full Council and a working group will be looking at the reintroduction of the scheme for 2023-24.

Following further discussion around the impact of a rise in Council Tax Councillor James addressed members, highlighting the financial impact of not rising Council Tax in 2014, and the potential impact of no rise in 2022-23 for services and the community.   

It was proposed by Councillor Bushby, seconded by Councillor Lock and –

Resolved:

That Members recommend to Full Council -

a)    That Torridge’s Band D Council Tax for 2022/23 be increased by £5 (2.90%) from £173.66 to £178.66 per year.

b)    That Torridge’s Net Revenue Budget 2022/23 is £7.983m.

c)    That the contributions to the Council’s reserves as outlined in paragraph 11.4 are approved.

d)    That a working group be established the membership to be agreed by Full Council to be tasked with reporting back to Community and Resources for options to bring the Council’s finances back into balance.

That members note:

·         The Chief Finance Officer (s151 Officer) assurance of the robustness of the budget

2022//23 set out in section 13 of the report.

·         Note the assumptions and forecast applied to develop the MTFS outlined in section 8.

·         Note the risks associated with the Budget 2022/23 and MTFS outlined in section 12.

Recorded Vote:

(Vote: For 7, Against 3, Abstain 1)