Agenda item

RESOLVED:

 

Revenue Budget

      I.          Approved total General Fund savings of £14.729m over the MTFS period 2023/24 to 2026/27, submitted as part of the 2023/24 budget review process. This included £7.396m savings from the General Fund over the same period of which £7.184m was to be delivered from the General Fund in 2023/24.

 

     II.          Authorised the Strategic Director or Director with responsibility for each proposal (including fees and charges) to:

 

   III.          Carry out all steps required in relation to each proposal, including carrying out any consultation.

  IV.          Consider any consultation outcomes and other detailed implications.

    V.          Complete and consider the implications of any equalities analysis assessment required.

  VI.          Following completion of 1.3(a), 1.3(b) and 1.3(c) above:

a.     Determined whether to amend any proposal prior to implementation.

b.     Determined whether a further report needs to be considered by cabinet or the relevant officer or portfolio holder before a final decision is taken on implementation; and

c.     Where a decision was taken not to proceed with any proposal then alternative proposal(s) would be brought forward for consideration.

VII.          In relation to savings proposals that were significantly cross cutting across more than one service, authorised the Strategic Director or Director with primary responsibility for the savings proposal to complete any required equalities analysis assessments and to consider the outcome, and any other cross-cutting implications, following consultation with the Strategic Directors or Directors of the other services significantly impacted by the proposals, prior to taking any decisions to implement such proposals.

VIII.          Noted in relation to above, that where appropriate any key decisions would be brought back to Cabinet.

  IX.          Noted the latest Medium-Term Financial Strategy (MTFS) for 2023/24 to 2026/27.

    X.          Approved £46.368m of revenue growth for 2023/24 (paragraph 5.2.2) and authorised the Strategic Director of Corporate Resources (Section 151), following consultation with the Portfolio Holder and Strategic Leadership Team (SLT) to agree and allocate the service growth as part of the detailed service budget setting process.

  XI.          Noted that the Council is in a position to agree a balanced budget for 2023/24 and that any remaining budget gap following the Council Tax decision by Full Council on 8 March 2023 will be closed using reserves.

Fees and Charges

XII.          Approved the schedule of fees and charges for 2023/24.

Council Tax

XIII.          Considered and recommended to Full Council an increase of 2% for the Social Care Precept and an increase of 2.99% for Council Tax in 2023/24.

Council Tax Reduction Scheme

XIV.          Noted the changes to the current Council Tax Reduction Scheme as approved by Cabinet on 7 December 2022 for recommendation to Full Council on 8 March 2023.

XV.          Noted that Cabinet is being asked to approve the distribution of the additional Council Tax Support Fund for 2023/24.

Council Tax Empty Property Premium Charge 

XVI.          Approved to continue with an additional premium on top of the standard council tax for properties which have been empty for more than 2 years and to agree in principle to commence an additional 100% charge for the properties empty for more than one year from 1 April 2024.

Business Rates Discount

XVII.          Approved (in accordance with powers granted under Section 47 of the Local Government Finance Act 1988) the continued offering of a discount in National Non-Domestic Rates (NNDR) of two times the cost of accreditation to the first 100 businesses in Ealing which were, or which will become accredited with the Living Wage Foundation and who meet the criteria as set out in the February 2016 Cabinet report: Discretionary Discount Scheme for Businesses accredited to Living Wage Foundation and extend the offer to new applicants, for 2023/24 .

XVIII.          Authorised the Strategic Director of Corporate Resources (Section 151) to make determinations in relation to applications for such NNDR discounts, in accordance with the Council’s adopted criteria.

Schools Budget

XIX.          Notedtheoutcome of2023/24 SchoolFunding Formulachanges asagreed in consultationwith SchoolsForum andauthorised the Strategic Director of Corporate Resources (Section 151) to consider and, following consultation with the portfolioholder for a Fairer Start to take on behalf of the Council any actionsnecessary for the Council to fulfil requirements for Dedicated Schools Grant(DSG) budgets.

 XX.          Approved the Dedicated Schools Grant (DSG) Early Years Funding Formula Factors for 2023/24.

Housing Revenue Account (HRA)

XXI.          Noted the HRA revenue budget for 2023/24, as presented to Cabinet on 25 January 2023.

Capital Programme 2023/24 – 2027/28

XXII.          Noted the new General Fund capital programme additions totalling £12.850m to be approved by Full Council on 8 March 2023 and decommissioning of £12.574m.

XXIII.          Noted the capital programme additions relating to the HRA that were considered as part of the HRA Business Plan by Cabinet on 25 January 2023.

XXIV.          Endorsed and approved the following recommendations to Full Council, on 8March 2023, that it:

Revenue Budget 2023/24 and Medium-Term Financial Strategy 2023/24 to 2026/27:

XXV.          Considered and approved the Revenue Budget for 2023/24 as summarised in Appendix 1.

XXVI.          Considered the advice of the Strategic Director of Corporate Resources (Section 151) on the levels of reserves and robustness of estimates in setting the budget as required by Section 25 of the Local Government Act 2003.

XXVII.          Noted the financial risks and pressures set out in the report.

XXVIII.          Approved the Parking Account 2023/24.

XXIX.          Approved the draft Schools budget of £310.595m and agrees that any changes to the budget reasonably required as a result of the final 2023/24 DSG settlement were delegated to the Strategic Director of Children’s following consultation with the Strategic Director of Corporate Resources (Section 151).

XXX.          Approved for the Strategic Director of Corporate Resources (Section 151) to agree appropriate actions to comply with the revised DSG guidance, including agreeing the appropriate Deficit Recovery plan for DSG.

XXXI.          Noted that the General Fund balance is scheduled to remain the same at £15.919m for 2022/23 and noted the forecast levels of earmarked reserves.

 

Capital Programme 2023/24 – 2027/28

XXXII.          Approved the new General Fund capital programme additions totalling £12.850m and £12.574m of budgets to be decommissioned.

XXXIII.          Approved the updated profile of the current Capital Programme.

 

Capital Strategy, Treasury Management and Pension Fund

XXXIV.          Approved the Treasury Management Strategy including the associated Prudential Indicators and Annual Investment Strategy.

XXXV.          Approved the Treasury Management Policy Statement.

XXXVI.          Noted the Strategic Director of Corporate Resources (Section 151) will implement the Treasury Management Strategy under existing officer delegated powers.

XXXVII.          Approved the Minimum Revenue Provision (MRP) policy.

XXXVIII.          Noted that the Council manages cash on behalf of the Pension Fund and West London Waste Authority in accordance with the Treasury Management Strategy.

XXXIX.          Approved the Capital Strategy.

XL.          Approved the Flexible Use of Capital Receipts policy for 2023/24 over the new MTFS period, subject to meeting Department for Levelling Up Housing and Communities (DLUHC) criteria.

XLI.          Authorised for the Strategic Director of Corporate Resources (Section 151) to agree commencement of the programme and sub-projects to be funded from the Flexible Use of Capital Receipts.

 

Council Tax and Business Rates

XLII.          Approved the officer recommendation of an increase of 2% for the Social Care Precept and an increase of 2.99% for Council Tax in 2023/24.

XLIII.          Noted the Greater London Authority (GLA) Band D precept of £434.14 for 2023/24.

XLIV.          Noted that the Strategic Director of Corporate Resources (Section 151) calculated under delegated authority on 9 January 2023 the amount of 121,612.9 as the Council Tax Base, being the number of properties in Bands A-H in the Borough, expressed as an equivalent number of Band D units for the year 2023/24; in accordance with regulation 3 of the Local Authorities Calculation of Council Tax Base Regulations 1992 as amended made under Section 335 and 344 of the Local Government Finance Act 1992.

XLV.          Noted the forecast Collection Fund position for 2022/23.

XLVI.          Noted the Council’s share of the council tax and business rates income forecast for 2023/24, as approved by the Strategic Director of Corporate Resources (Section 151).

XLVII.          Approved to continue an additional premium on top of the standard council tax for properties which have been empty for more than 2 years and to agree in principle to commence an additional 100% charge for the properties empty for more than one year from 1 April 2024.

XLVIII.          Noted the revised Local Council Tax Reduction Scheme for the financial year 2023/24 as approved by Cabinet on 7 December 2022.

XLIX.          Noted that elsewhere on this agenda Cabinet is being asked to approve the Additional Council Tax Support Fund for 2023/24.

 

     L.          Noted the verbal feedback from the Portfolio Holder for the following meetings with regards to the budget proposals:

 

a.     Ealing Business Partnership meeting held on 16 February 2023; and

b.     Overview and Scrutiny meeting held on 21 February 2023.

 

 

REASON FOR DECISION AND OPTIONS CONSIDERED:

 

This report to Members on the 2023/24 Budget and Medium-Term Financial Strategy (MTFS) finalises the position since the last budget strategy report to Cabinet in July 2022 and brings together a number of significant issues for Cabinet decision. The main purpose is to enable Cabinet to consider the budget proposals and make recommendations to Full Council for when it finalises the budget and sets the council tax on 8 March 2023.

 

The Council has continued to invest in services that experience significant and continued demand pressures, with prioritisation being given to the most vulnerable groups.  Due to the complexity of the service provision, against the backdrop of a pandemic, continuing uncertainty of long-term Government funding notwithstanding the increase in funding as a result of the final Local Government finance settlement, these services continue to operate in a challenging resource environment where small demand changes can lead to material budget variances.

 

The proposals in this report will contribute to the savings agreed in the budget strategy. Some of the savings’ proposals will have more detailed implications which will only emerge following consultation. Where this is the case, those detailed implications will be considered before a final decision is taken on implementing the proposal, including whether a proposal should be amended prior to implementation. Where proposals when considered in more detail result in a lower financial saving, it is the responsibility of the respective Director to find alternative savings to the equivalent value to replace the reduced amount.

 

Any consultation in relation to proposals will be carried out as required and in accordance with the Council’s legal duties and responsibilities.