Issue - meetings

The Director of Resources submitted a report for committee’s information providing details of the Final Local Government Finance Settlement for 2022/23. The Local Government Finance Settlement is the annual determination of funding to Local Government and is approved by the House of Commons and was issued on 16 December 2021.

The Secretary of State for Housing, Communities and Local Government, RobertJenrick Michael Gove, issued a written ministerial statement to the House of Commons which set out the Local Government Finance Settlement for 2022/23. The consultation period ended on 13 January 2022 and the final settlement was announced on 7 February 2022.

The final settlement figures were broadly in line with the provisional figures and was for one year only which made long term financial planning very difficult. For Ribble Valley the council core spending power in cash terms equated to 0.6% ie £39,000, and assumes that the Council would increase their share of the council tax by the maximum amount.

A new one off 2022/23 Services Grant of £93,368 to provide funding for all tiers of local government in recognition of our services and includes the costs of the increase in NI contribution had been allocated. This would not form part of any transitional protection.

With regard to the rural services delivery grant the Government had announced that this would be continued with the same amount of £113,250 being awarded as last year.

The Director of Resources informed committee that the one-off ‘lower tier services’ grant would continue for 2022/23. Ribble Valley would receive £61,960.

She also reported that the Government had allowed a new round of New Homes Bonus allocations in respect of 2022/23 which would not attract any future legacy payments. They had also allowed the one remaining legacy payment of £464k.This would mean we will receive £741k for 2022/23 along with the legacy payment of £464k = £1.2m.

Ribble Valley BC remained a member of the Lancashire Business Rate pool which would continue in 2022/23, where members benefit from retaining levies on growth above their baseline, and as Lead Authority also received £20k to act as a channel for payments.

With regard to council tax, the Director of Resources informed committee that the Government had decided that we would be allowed to increase our council tax by £5 without having to hold a referendum. Should this be agreed, it would generate extra council tax income of £123k.