Agenda item

The Council considered a detailed report setting out the Medium Term Financial Strategy (MTFS) 2022/23 to 2025/26, the revenue budgets estimates for the 2022/23 financial year, the indicative estimates for the period 2023/24 to 2025/26, a 4-year capital strategy and programme, plus the Treasury Management Strategy for 2022/23.

 

The Leader, in presenting the budget for 2022/23, referred to the savings already identified in the budget and those that would need to be made that year, along with the savings required over the period of the MTFS. The use of reserves to support the MTFS, along with the plans at the end of the Strategy to begin to replenish reserves again, were noted. It was reported that the budget included an increase to Council Tax of £5 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 in the agenda paper be amended. The amended budget had been circulated prior to the meeting and contained the following proposals:

 

(i)           Freezing Council Tax at the current level (£228.66 for Band D properties);

(ii)          Addressing Poverty issues as follows:

a.      An additional £50k towards support for Food Banks;

b.      An additional £50k towards the Hardship Support Fund for Universal Credit recipients;

(iii)         Funding of £100k for Camberley regeneration incentives to tenants;

(iv)         An additional £50k towards the Staff Pay Award for those in Bands 1-5; and

(v)          An additional savings target of £75k.

 

The Council debated the amendment and, whilst the principles it sought to achieve were acknowledged, concerns were expressed about the impact of the additional savings required and the permanent impact on the Council Tax precept. The amendment was put to the vote and lost.

 

It was moved by Councillor Rodney Bates and seconded by Councillor Victoria Wheeler that (iii) of the items to note in the recommendation be amended as follows:

 

(iii)         “the Medium Term Financial Strategy contains a savings target of £1.350 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, apart from Community Services, Planning Enforcement, Food Safety, and Parks and Open Spaces where no service reductions will be considered, and subject to a Star Chamber challenge review that will commence in March 2022”

 

The Council was informed that the Members proposing this amendment would support efficiencies within the areas identified, but opposed any reduction in service. Having debated the definition of a reduction in service, some Members indicated support for prioritising those areas for protection, whilst also recognising they would not wish to restrict the Council’s options when identifying the necessary savings. The amendment was put to the vote and lost.

 

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

 

(i)     the Revenue Budget Estimates covering the period 2022/23 to 2025/26 as follows:

 

a)        the 2022/23 budget estimates giving a net cost of services revenue budget for the Council of £14.788 million as shown in Appendix 1 to the Medium Term Financial Strategy;

 

b)        the unavoidable and service pressures of £4.791 million shown in Appendix 1 and in more detail in Appendix 1-1 to the Medium Term Financial Strategy;

 

c)        the revenue efficiencies of £2.413 million shown in Appendix 1 and in more detail in Appendix 1-2 to the Medium Term Financial Strategy;

 

d)        the recommendation from the Executive that a sum of up to £7.500 million of earmarked reserves at this stage be repurposed to the general revenue fund balance to support the revenue budget over the period of the Medium Term Financial Strategy and provide a sustainable budget for the Council and that authority be delegated to the Strategic Director of Finance & Customer Services, in consultation with the Chief Executive and the Portfolio Holder for Finance, to identify which reserve(s) this sum is to be drawn from and the eventual amount to be re-purposed;

 

e)        that the Surrey Heath Borough Council element of the annual precept be increased by £5.00 per Band D property and in the appropriate statutory proportions for other properties; and

 

f)         that a total of £0.270 million of earmarked reserves be allocated to support budgets in the services these earmarked reserves were set aside for;

 

(ii)   the Capital Strategy, as set out at Annex A, Appendix 2 to the agenda report, and associated Capital Programme (appendix 2-1) covering the period 2022/23 to 2025/26 which includes:

 

a)        the new capital bids for £1.139 million in Appendix 1 to Annex A for 2022/23 be approved, and that they be incorporated into the Capital Programme; and

 

b)       The Prudential Indicators summarised below and explained in Annex A for 2022/23 to 2025/26 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;

 

Prudential Indicator	2022/23 Proposed £m	2023/24 Estimated £m	2024/25 Estimated £m	2025/26 Estimated £m
Capital Expenditure	1.139	1.428	1.428	0.928
Capital Financing Requirement	174	171	167	164
Ratio of net financing costs to net revenue stream	28.22%	27.54%	26.89%	26.30%
Financing Costs	3	3	3	3
Operational Boundary	230	230	230	230
Authorised Limit	235	235	235	235

 

(iii)  The Treasury Management Strategy for 2022/23 shown at Annex A, Appendix 3 to the agenda report, including;

a)        The Treasury Management Indicators for 2022/23 at Annex C to the Strategy;

 

b)        The Minimum Revenue Provision policy statement and estimated minimum revenue provision payment table at Annex F to the Strategy; and

 

c)        the Treasury Management Policy Statement at Annex G to the Strategy.

 

RESOLVED to note:

 

(i)     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 (2021/22) is known and this will be reported in the revenue outturn report which will be considered by the Performance and Finance Scrutiny Committee and the Executive early in the new financial year;

 

(ii)   the Council Tax base for Surrey Heath Borough Council is 38,976.2 as set at Council on 15 December 2021;

 

(iii)  the Medium Term Financial Strategy contains a savings target of £1.350 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 March 2022 and

 

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

 

Note1: 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 Cliff Betton, Tim FitzGerald, Sashi Mylvaganam, Morgan Rise, John Skipper, Graham Tapper, Helen Whitcroft, Kristian Wrenn.

 

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

 

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, David Mansfield, Alan McClafferty, Emma-Jane McGrath, Charlotte Morley, Adrian Page, Robin Perry, Darryl Ratiram, Pat Tedder, Victoria Wheeler, Valerie White.

 

Voting in favour of the amendment moved by Councillor Rodney Bates and seconded by Councillor Victoria Wheeler:

 

Councillor Graham Alleway, Rodney Bates, Richard Brooks, Tim FitzGerald, Sharon Galliford, Emma-Jane McGrath, Charlotte Morley, Morgan Rise, John Skipper, Graham Tapper, Pat Tedder, Victoria Wheeler, Helen Whitcroft, Kristian Wrenn.

 

Voting against the amendment moved by Councillor Rodney Bates and seconded by Councillor Victoria Wheeler:

 

Councillors Dan Adams, Cliff Betton, Stuart Black, Sarah Jane Croke, Vivienne Chapman, Paul Deach, Colin Dougan, Shaun Garrett, Mark Gordon, Edward Hawkins, Josephine Hawkins, Rebecca Jennings-Evans, David Lewis, David Mansfield, Alan McClafferty, Sashi Mylvaganam, Adrian Page, Robin Perry, Darryl Ratiram, Valerie White.

 

Voting in favour of the substantive motion:

Councillors Dan Adams, 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, David Mansfield, Alan McClafferty, Charlotte Morley, Adrian Page, Robin Perry, Darryl Ratiram, Valerie White.

 

Voting against the substantive motion:

Councillor Graham Alleway, Rodney Bates, Cliff Betton, Tim FitzGerald, Sharon Galliford, Emma-Jane McGrath, Sashi Mylvaganam, Morgan Rise, John Skipper, Graham Tapper,Pat Tedder, Victoria Wheeler, Helen Whitcroft, Kristian Wrenn.

 

Note 2: It was noted for the record that

 

(i)            Councillor Dan Adams declared that his company leased property in the Square; and

(ii)          Councillor Paul Deach declared that he undertook professional work in Camberley Town Centre.