Issue - meetings

The Director of Resources submitted a report providing members with information on the inflationary increases allowed for in the 2022/23 revenue budget, and the potential impact of further inflationary increases above that allowed for in the budget.

Committee were informed that inflation had been increasing substantially over the last twelve months reaching 5.4% in January 2022, largely driven by items such as vehicle fuel and utilities, particularly gas and electricity costs. The Bank of England were currently forecasting that inflation would reach 7.25% by spring.

Some substantial increases had already been allowed for in the budget in respect of the council’s own direct costs in these areas, but suppliers were now passing on substantially more of their own costs in their prices as inflation becomes more sustained.

To be able to set a prudent and affordable budget it would be recommended that a contingency for inflationary increase be provided for within the budget for 2022/23 of at least £140,000 which allowed a further 1% inflationary increase on top of the 2% allowed on pay and the 3% allowed for on prices.

Councillor G Mirfin was given permission to speak on this item.