Issue - meetings

Report of Director of Resources - enclosed

The Director of Resources submitted a report for information providing details of the Provisional Local Government Finance Settlement for 2023/24.

Members were reminded that the Local Government Finance Settlement is the annual determination of funding to local government and is approved by the House of Commons. The grant settlement for next year was issued on 19 December 2022.

The Secretary of State for Levelling Up, Housing and Communities, Michael Gove MP, issued a written ministerial statement to the House of Commons.

The consultation period ended on 16 January 2023 but the final settlement had not yet been announced.

The report noted with disappointment that this is in effect another one year only settlement which means the Council cannot plan beyond next year with any certainty. It has been made clear that the Funding Guarantee is a one-off grant.

The main points of the Policy Statement as far as the Council are concerned are;

·  Revenue Support Grant will increase in line with CPI (10.1% in September).

·  Council Tax – the referendum threshold for shire districts will be 3% or £5 whichever is greater.

· Rural Services Delivery Grant will be unchanged.

·      The Services Grant will reduce in 2023/24 to reflect the national insurance contribution increase being abolished.

·  New Homes Bonus (NHB) will continue in 2023/24 but without legacy payments.

·  The Lower Tier Services Grant will be repurposed together with a proportion of the NHB legacy payments to create a new one-off funding guarantee grant to ensure all Council’s receive at least a 3% increase in Core Spending Power before any decision on Council Tax.

Members were informed that the Council expects there will be transitional protection alongside the implementation of finance reforms going forward. However transitional protection is usually against a council’s Core Spending Power. It is important to note the income the Council receives from business rate growth does not form part of its Core Spending Power.