Decision details

The Director or Resources submitted a report asking Members to approve the revised revenue budget for 2022/23, and to consider and recommend a revenue budget and council tax requirement for 2023/24 to Full Council on 7 March 2023.

Members were reminded that the Original Estimate initially allowed 3% for price increases and 2% for pay increases along with a further 1% for both included in a £140k contingency fund. The revised budget now forecasts a further shortfall of £125k after taking £412k from General Fund Balances as agreed when setting the original budget.

Members were advised that the lack of a multi-year financial settlement, together with inflation and interest rate uncertainty continue to make medium- and longer-term financial planning very challenging. The Council have updated their Budget Forecast for the five-year period to 2027/28 based on the assumptions set out in the report.

It was noted that the Council are potentially faced with the following budget shortfalls each year.

2024/25    £1,316,106

2025/26    £2,456,434

2026/27    £2,492,331

2027/28    £2,529,373

This is based on many assumptions, not least the Council’s speculation as to the level of transitional protection and business rate growth. If these prove correct and the Council are not able to set a balanced budget, they will need to use £9.794m of their earmarked reserves/general fund balances for the period 2024/25 to 2027/28.

Members were reminded that it is a crucial as ever that the Budget Working Group continue to review the council finances carefully as we enter 2023/24.

RESOLVED THAT COMMITTEE:

1.     Approve the revised budget for 2022/23.

2.     Approve the Budget Working Group’s recommendations and set a budget and council tax requirement for 2023/24 as set out below:

3.     ***Recommend the budget and council tax requirement to Council on 7 March 2023 ***

4.   Request the Budget Working Group to begin work to address the budget deficit forecast from 2024/25 early in the new municipal year.