Agenda item

The Portfolio Holder for Corporate Governance, Finance and Resource to submit a report on the Revenue Budget for 2021/22 including the proposed level of council tax for borough council purposes and the Medium Term Financial Strategy 2022/26.

Cabinet:

1)    NOTED the year end forecast and financial position for the General Fund and Special Expenses for 2021/22.

2)    RECOMMENDED to Council:

a)    The proposals for General Expenses and Special Expenses Melton Mowbray as set out in Appendix B (i) and (ii) and summarised in section 4.5 of the report be approved for inclusion in the 2022/23 budget resulting in the estimates set out in Appendix C;

b)    The revenue budget for 2022/23 for General and Special Expenses, as set out in Appendix C, be approved resulting in an overall council tax increase of £5, the individual council tax levels being as set out in paragraph 4.5 of the report;

c)     Any surplus against the target working balance on General Expenses at 31 March 2022 is transferred to the General Expenses Working Balance and any shortfall is made up from the Corporate Priorities Reserve and for Special Expenses Melton Mowbray any surplus/deficit be transferred to/from the Special Expenses Reserve thereby bringing the actual Special Expenses Melton Mowbray Working Balance back to the target;

d)    Members note the changes made to the risk categorisation of budgets as set out in paragraph 4.6.2 of the report and Appendix E;

e)    That a new General Property Repair Fund be established using the residual balance on the Waterfield Leisure Centre Income Smoothing Reserve with delegation provided to the Director for Growth and Regeneration in consultation with the Director for Corporate Services to access the reserve to meet unexpected repairs and maintenance needs that arise during the year that cannot be met from existing revenue budgets.

The Director for Corporate Services introduced the report. It was noted that the Council’s finances continue to be challenging due to the impact Covid has had upon income. Members were also informed that any surplus at year end on general expenses would be added to the General Expense Working Balance.

Cabinet was informed that due to finalised financial settlement there was no longer a requirement for a recommendation to delegate authority to Director for Corporate Services to make necessary amendments, this was because the budget had already been adjusted to take the final financial settlement into account.

In moving the recommendations, the Portfolio Holder for Corporate Governance, Finance and Resources reminded the Cabinet that 2021/22 had been challenging and that the confirmed financial settlement is welcome. The future for the Council’s finances remain uncertain and the Council need to be ready to respond to ensure any reductions in central government funding has minimal effect upon the core services of the Council.

The Leader congratulated all involved in the preparation of the budget and recognised the year round hard work that Officers do towards it.

Cabinet:

1)    NOTED the year end forecast and financial position for the General Fund and Special Expenses for 2021/22.

2)    RECOMMENDED to Council that:

a)    The proposals for General Expenses and Special Expenses Melton Mowbray as set out in Appendix B (i) and (ii) and summarised in section 4.5 of the report be approved for inclusion in the 2022/23 budget resulting in the estimates set out in Appendix C;

b)    The revenue budget for 2022/23 for General and Special Expenses, as set out in Appendix C, be approved resulting in an overall council tax increase of £5, the individual council tax levels being as set out in paragraph 4.5 of the report;

c)     Any surplus against the target working balance on General Expenses at 31 March 2022 is transferred to the General Expenses Working Balance and any shortfall is made up from the Corporate Priorities Reserve and for Special Expenses Melton Mowbray any surplus/deficit be transferred to/from the Special Expenses Reserve thereby bringing the actual Special Expenses Melton Mowbray Working Balance back to the target;

d)    Members note the changes made to the risk categorisation of budgets as set out in paragraph 4.6.2 of the report and Appendix E;

e)    That a new General Property Repair Fund be established using the residual balance on the Waterfield Leisure Centre Income Smoothing Reserve with delegation provided to the Director for Growth and Regeneration in consultation with the Director for Corporate Services to access the reserve to meet unexpected repairs and maintenance needs that arise during the year that cannot be met from existing revenue budgets.

Reasons for the recommendations

The Council, having set a Budget at the start of the financial year, needs to ensure the delivery of this Budget is achieved. Consequently, there is a requirement to regularly monitor progress so corrective action can be taken when required, which is enhanced with the regular reporting of the financial position.

To propose to Council a General Fund budget and level of council tax for the 2022/23 financial year which takes into account the proposals set out in the approved Corporate Strategy. The proposals take into account the net expenditure that the Council expects to spend in the next financial year to deliver services to our customers. The report also includes details of the funding and income received to support these services to ensure a balanced budget is proposed.

The Council also holds a number of reserves which can be drawn upon to fund future expenses. The level of reserves is considered within this report, as is the future outlook for spending in the years ahead in order for the Council’s future financial resilience to be considered as part of the proposals.

Cabinet and Council are required to consider and approve the General Fund Revenue Account budget proposals in order to set the budget and council tax for the forthcoming financial year.