Agenda item

The Council considered a report setting out the Medium Term Financial Strategy (MTFS) 2024/25 to 2027/28, the revenue budgets estimates for the 2023/24 financial year, the indicative estimates for the period 2024/25 to 2027,28, a 4-year capital strategy and programme, plus the Treasury Management Strategy for 2024/25

 

In presenting the budget for 2024/25, the Performance & Finance Portfolio Holder, Councillor Leanne MacIntyre, referred to the financial context and pressures impacting the budget. She referred to the savings already identified in the budget, the proposed use of reserves, along with the increased income and efficiency savings targets of £400,000 that would need to be found in 2024/25. 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 Leanne MacIntyre and seconded by Councillor Shaun Macdonald that the recommendations as set in the agenda report be approved.

 

It was moved by Councillor Cliff Betton and seconded by Councillor Liz Noble that the following additional wording be added to the items noted by the Council:

 

“That several matters remain open, including:

·         Externally audited accounts from 2019/20 onwards

·         Published draft accounts from 2020/21 onwards

 

That closure of these items has been influenced by auditing issues nationally, and locally exacerbated including:

·         Resource challenges detailed in the Finance Service Stabilisation Review

·         Resource challenges within the external audit team

 

That the Portfolio Holder for Performance and Finance, in conjunction with the Strategic Director, Finance and Customer Service (Chief Finance Officer), will be asked to report back to Executive, prior to the Government back stop date in order to provide assurance on all material balances as of 31^st March 2023, including all useable and unusable reserves, of the Council, where relevant, by obtaining external support.”

 

The amendment was put to the vote and carried.

 

RESOLVED that

 

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

 

(a)      the Revenue Budget Estimates covering the period 2024/25 to 2027/28 as follows:

 

                           i.        the 2024/25 budget estimates giving a net cost of services revenue budget for the Council of £17.347 million as shown in Appendix 1 to the Medium Term Financial Strategy;

 

                          ii.        to agree the unavoidable service pressures and budget growth of £4.723 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 £4.525 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 £2.500 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 2024/25 to 2027/28 which includes:

 

                        vi.        the new capital bids for £9.539 million in Appendix 2 to the Medium Term Financial Strategy for 2024/25 be approved, and that they be incorporated into the Capital Programme;

 

                       vii.        that previous budgets be reprofiled into the 2024/25 to 2027/28 as detailed in Appendix 2-1 amounting to £1.118 million in 2024/25 are approved; and

 

                     viii.        the Prudential Indicators summarised below and explained in Appendix 2 for 2024/25 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;

 

Prudential Indicator	2024/25 Proposed £m	2025/26 Estimated £m	2026/27 Estimated £m	2027/28 Estimated £m
Capital Expenditure	10.871	4.292	2.280	2.450
Capital Financing Requirement	209.7	210.2	210.7	211.2
Financing Costs	8.42	8.50	8.52	8.54
Operational Boundary	230	230	230	230
Authorised Limit	237	237	237	237
Ratio of net financing costs to net revenue stream	0.57	0.62	0.61	0.62

 

(c)      The Treasury Management Strategy for 2024/25 shown at Appendix 3, Annex A to the Medium Term Financial Strategy including;

                        ix.        The Treasury Management Indicators for 2024/25 at Appendix 3, Annex C to the Medium Term Financial Strategy;

 

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

 

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

 

(d)      to note:

 

                       xii.        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 (2023/24) is known and this will be reported in the revenue outturn report early in the new financial year;

 

                     xiii.        the Council Tax base for Surrey Heath Borough Council is 39,749.5 as set in December 2023;

 

                     xiv.        the Medium Term Financial Strategy contains a savings target of £0.600 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 base budget review that will commence in the summer of 2024;

 

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

 

                     xvi.        the finance settlement from central Government was finalised through the House of Commons on 7 February 2024;

 

                    xvii.        That several matters remain open, including:

 

·                Externally audited accounts from 2019/20 onwards

·                Published draft accounts from 2020/21 onwards

 

                  xviii.        That closure of these items has been influenced by auditing issues nationally, and locally exacerbated including:

 

·                Resource challenges detailed in the Finance Service Stabilisation Review

·                Resource challenges within the external audit team; and

 

                     xix.        that the Portfolio Holder for Performance and Finance, in conjunction with the Strategic Director, Finance and Customer Service (Chief Finance Officer), will be asked to report back to Executive, prior to the Government back stop date in order to provide assurance on all material balances as of 31st March 2023, including all useable and unusable reserves, of the Council, where relevant, by obtaining external support.

 

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 Cliff Betton and seconded by Councillor Liz Noble:

 

Councillors Alan Ashbery, Louise Ashbery, Cliff Betton, Kel Finan-Cooke, Lisa Finan-Cooke, Mary Glauert, Julie Hoad, Nirmal Kang, Sarbie Kang, Rob Lee, Shaun Macdonald, Leanne MacIntyre, Liz Noble, Jacques Olmo, David O’Mahoney, Ying Perrett, Jonathan Quin, Bob Raikes, Murray Rowlands, Morgan Rise, John Skipper, Kevin Thompson, Helen Whitcroft, Richard Wilson.

 

Abstaining from voting on the amendment moved by Councillor Cliff Betton and seconded by Councillor Liz Noble:

Councillors Jonny Cope, Shaun Garrett, Mark Gordon, Emma-Jane McGrath, Lewis Mears,Pat Tedder, Josh Thorne, Victoria Wheeler, Valerie White,

 

Voting in favour of the substantive motion:

 

Councillors Alan Ashbery, Louise Ashbery, Cliff Betton, Jonny Cope, Kel Finan-Cooke, Lisa Finan-Cooke, Shaun Garrett, Mary Glauert, Mark Gordon, Julie Hoad, Nirmal Kang, Sarbie Kang, Rob Lee, Shaun Macdonald, Leanne MacIntyre, Emma-Jane McGrath, Lewis Mears, Liz Noble, Jacques Olmo, David O’Mahoney, Ying Perrett, Jonathan Quin, Bob Raikes, Murray Rowlands, Morgan Rise, John Skipper, Pat Tedder, Josh Thorne, Kevin Thompson, Victoria Wheeler, Helen Whitcroft, Valerie White, Richard Wilson.