Report of the Executive Director of Resources is attached

Contact:  James Walton.  Tel. 01743 258915

It was proposed by the Portfolio Holder for Finance and Corporate Resources Councillor Gwilym Butler, and seconded by the Deputy Leader, Councillor Ian Nellins that the report of the Executive Director of Resources, a copy of which is attached to the signed minutes and the recommendations contained therein, be received, and agreed.

By way of amendment Councillor Roger Evans proposed that the recommendation be changed to read: -

It is recommended that Members

In respect of the revenue budget:

a)    Note with dismay that again the budget agreed by council was overspent by £8.499m.

b)    Note that as a result of this overspend the level of the General Fund balance has now been reduced to a dangerous level of just £7.093m.

c)    Note that during the year our service-related Earmarked Reserves and Provisions were further reduced by £33.192m

d)    Note that yet again only 69% of the 2022/23 was delivered. £6.566m of savings were not achieved, and £1.965 of these have had to be carried forward into 2023/24.

e)    Council notes that the combination of earmarked and un-earmarked (General) reserves is below a level that would be regarded as safe, taking into account local circumstances.

Relating to ringfenced funding:

f)     Note the performance of the Housing Revenue Account (HRA) – £0.768m (4%) surplus outturn for 2022/23 on £19m turnover, and the resulting level of the HRA reserve of £12.359m. The level of the accumulated surpluses held as a reserve should be reviewed and an appropriate action plan brought forward.

g)    Note that the level of school balances has increased by £2.296m, from £8.191m in 2021/22 to £10.487m. The level of accumulated net surpluses in schools’ balances is considerable, and schools should identify the rationale for holding balances at those levels. 

In respect of the capital programme:

h)    Approve net budget variations of -£4.007m to the 2022/23 capital programme (in Appendix 11) and the re-profiled 2022/23 capital budget of £111.112m.

i)     Approve the re-profiled capital budgets of £26.575m for 2023/234, including slippage of £10.747m from 2022/23, £110.787m for 2024/25 and £56.264m for 2025/26 as detailed in Appendix 15.

j)     Accept the outturn expenditure set out in Appendices 12 and 13 of £100.365m, representing 90.3% of the revised capital budget for 2022/23.

k)    Approve retaining a balance of capital receipts set aside of £17.465m as at 31st March 2023 to generate a one-off Minimum Revenue Provision saving of £0.572m in 2023/24.

This was seconded by Councillor David Vasmer.

On being put to a recorded vote with 20 Members voting for, 39 against and no abstentions as follows:

FOR:

Councillors Bagnall, Bentick, Buckley, Clarke, Connolly, Dartnall, Davies, J Evans, R Evans, Halliday, Hartin, Houghton, Isherwood, Kerr, Mosley, Pardy, Parry, Vasmer, Wagner and M Williams.

AGAINST:

Councillors Aldcroft, Anderson, Bardsley, Barrow, Biggins, Broomhall, Burchett, Butler, Carroll, Davenport, Elner, D Evans, Gill, Gittins, Harris, Hignett, Hunt, Hurst-Knight, M Jones, S Jones, Lea, Luff, Lumby, Macey, Marshall, Minnery, Morris, Motley, Mullock, Nellins,   Potter, Price, Schofield, Thomas, Towers, Turley, Wild, B Williams and Wynn.

The amendment fell.

RESOLVED:

That Members: 

In respect of the revenue budget: 

a)    Note that the outturn is an overspend of £8.499m.  

b)    Note the consequent level of the General Fund balance is £7.093m. 

c)    Note the service-related use of £33.192mof Earmarked Reserves & Provisions.  

d)    Note that the combination of earmarked and un-earmarked (General) reserves is below a level that would be regarded as safe, local circumstances. The MTFS sets out an agreed plan to restore these balances to safer levels. 

Relating to ringfenced funding: 

e)    Note the performance of the Housing Revenue Account (HRA) – £0.768m (4%) surplus outturn for 2022/23on £19m turnover, and the resulting level of the HRA reserve of £12.359m. The level of the accumulated surpluses held as a reserve should be reviewed and an appropriate action plan brought forward.  

f)     Note that the level of school balances has increased by £2.296m, from £8.191m in 2021/22 to £10.487m. The level of accumulated net surpluses in schools’ balances is considerable, and schools should identify the rationale for holding balances at those levels.   

In respect of the capital programme: 

g)    Approve net budget variations of -£4.007m to the 2022/23 capital programme (in Appendix 11) and the re-profiled 2022/23 capital budget of £111.112m. 

h)    Approve the re-profiled capital budgets of £26.575m for 2023/234, including slippage of £10.747m from 2022/23, £110.787m for 2024/25 and £56.264m for 2025/26 as detailed in Appendix 15. 

i)     Accept the outturn expenditure set out in Appendices 12 and 13 of £100.365m, representing 90.3% of the revised capital budget for 2022/23. 

j)     Approve retaining a balance of capital receipts set aside of £17.465m as 31st March 2023 to generate a one-off Minimum Revenue Provision saving of £0.572m in 2023/24.