Agenda item

The Council considered a report setting out the Medium Term Financial Strategy (MTFS) 2023/24 to 2026/27, the revenue budgets estimates for the 2023/24 financial year, the indicative estimates for the period 2023/24 to 2026,27, a 4-year capital strategy and programme, plus the Treasury Management Strategy for 2023/24.

The Leader, in presenting the budget for 2023/24, referred to the financial context of the budget, including financial pressures on Council services, which primarily came from the unusually high rates of inflation.  He referred to the savings already identified in the budget, the proposed use of reserves, along with the increased income and efficiency savings targets of £500,000 that would need to be found in 2023/24. It was reported that the budget included an increase to Council Tax of £2.99 a year on a Band D property.

It was moved by Councillor Alan McClafferty and seconded by the Councillor Robin Perry that the recommendations as set in the agenda report be approved.

It was moved by Councillor Sashi Mylvaganam and seconded by Councillor Cliff Betton that the recommendations be amended as set out in the published alternative budget from the Liberal Democrat Group. The proposals in the alternative budget related to the extension of the Medium Term Financial Strategy by a further three years to cover the period of an annual budget for the financial year 2023/24 and indicative budgets for each of the following six years 2024/25 to 2029/30.It was advised that the proposal included in the published alternative budget to provide a Council Tax rebate for the increase to the Surrey Heath precept for Bands A to D would not be included in the amendment moved at the meeting. Following debate, the amendment was put to the vote and lost.

RESOLVED

(i)     that the Medium Term Financial Strategy, as set out at Annex A to the agenda report, be agreed, comprising:

(a)      the Revenue Budget Estimates covering the period 2023/24 to 2026/27 as follows:

                          i.          the 2023/24 budget estimates giving a net cost of services revenue budget for the Council of £17.468 million as shown in Appendix 1 to the Medium Term Financial Strategy;

                        ii.          to agree the unavoidable service pressures and budget growth of £5.210 million shown in Appendix 1 and in more detail in Appendix 1-1 to the Medium Term Financial Strategy;

                       iii.          to agree the revenue efficiencies of £2.348 million shown in Appendix 1 and in more detail in Appendix 1-2 to the Medium Term Financial Strategy;

                       iv.          to approve the recommendation by the Strategic Director Finance and Customer Services, the Council’s Section 151 Officer, that a sum of up to £3.500 million of the interest equalisation earmarked reserve be drawn to support the revenue budget over the period of the Medium Term Financial Strategy and provide a sustainable budget for the Council;

                        v.          that the Surrey Heath Borough Council element of the annual council tax precept be increased by 2.99% across all Council Tax Bands;

(b)      the Capital Strategy, as set out at Appendix 2 to the Medium Term Financial Strategy  and associated Capital Programme (appendix 2-1) covering the period 2023/24 to 2026/27 which includes:

                       vi.          the new capital bids for £2.539 million in Appendix 2 to the Medium Term Financial Strategy for 2023/24 be approved, and that they be incorporated into the Capital Programme; and

                     vii.          the Prudential Indicators summarised below and explained in Appendix 2 for 2023/24 to 2026/27 in accordance with the requirements of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Prudential Code for Capital Finance in Local Authorities 2011 be approved;

(c)      The Treasury Management Strategy for 2022/23 shown at Appendix 3, Annex A to the Medium Term Financial Strategy including;

                    viii.          The Treasury Management Indicators for 2022/23 at Appendix 3, Annex C to the Medium Term Financial Strategy;

                       ix.          The Minimum Revenue Provision policy statement and estimated minimum revenue provision payment table at Appendix 3, Annex F to the Medium Term Financial Strategy; and

                        x.          the Treasury Management Policy Statement at Appendix 3,  Annex G to the Medium Term Financial Strategy.

(d)      to note:

                       xi.          the forecast level of reserve balances shown at Appendix 4 to the Medium Term Financial Strategy.  It should further be noted that these will be subject to confirmation once the outturn position for the current financial year (2022/23) is known and this will be reported in the revenue outturn report early in the new financial year;

                     xii.          the Council Tax base for Surrey Heath Borough Council is 39,613.4 as set in December 2022;

                    xiii.          the Medium Term Financial Strategy contains a savings target of £1.200 million over the period of the strategy which will be achieved through a combination of further services efficiencies, increases in income and potentially service reductions to be identified through a output-based budget review for all services of the Council and subject to a Star Chamber challenge review that will commence in the summer of 2023.  There is also a managed vacancy factor (mvf) of £100,000 built into the budgets as part of the pay settlement agreed by Council;

                    xiv.          the statement of the Chief Financial Officer (Strategic Director Finance and Customer Services) on the robustness of estimates and sustainability of balances; and

                     xv.          the finance settlement from central Government was finalised through the House of Commons on 8 February 2023. 

Note 1: In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, recorded votes were taken.

Voting in favour of the amendment moved by Councillor Sashi Mylvaganam and seconded by Councillor Cliff Betton:

Councillors Rodney Bates,  Cliff Betton, Sharon Galliford, Emma-Jane McGrath, Sashi Mylvaganam, Liz Noble, Morgan Rise, John Skipper, Graham Tapper, Pat Tedder, Victoria Wheeler, Helen Whitcroft.

Voting against the amendment moved by Councillor Sashi Mylvaganam and seconded by Councillor Cliff Betton:

Councillors Dan Adams, Graham Alleway, Stuart Black, Richard Brooks, Sarah Jane Croke, Vivienne Chapman, Paul Deach, Colin Dougan, Shaun Garrett, Mark Gordon, Edward Hawkins, Josephine Hawkins, Rebecca Jennings-Evans, David Lewis, Alan McClafferty, Charlotte Morley, Adrian Page, Robin Perry, Darryl Ratiram, Valerie White.

Voting in favour of the substantive motion:

Councillors Dan Adams, Graham Alleway, Rodney Bates, Stuart Black, Richard Brooks, Sarah Jane Croke, Vivienne Chapman, Paul Deach, Colin Dougan, Sharon Galliford, Shaun Garrett, Mark Gordon,  Edward Hawkins, Josephine Hawkins, Rebecca Jennings-Evans, David Lewis, Alan McClafferty, Emma-Jane McGrath, Charlotte Morley, Adrian Page, Robin Perry, Darryl Ratiram, Pat Tedder, Victoria Wheeler, Valerie White.

Voting against the substantive motion:

Councillors Cliff Betton, Sashi Mylvaganam, Liz Noble, Morgan Rise, John Skipper, Graham Tapper,Helen Whitcroft.

Note 2: It was noted that, in relation to the proposal to provide a Council Tax rebate to households in Council Tax Bands A to D included in the published alternative budget, which was subsequently not moved at the meeting, the Monitoring Officer had advised that, in accordance with paragraph 4.2 of the Members’ Code of Conduct, he would have granted a dispensation to councillors residing in Band A to D properties.