Agenda item

Council Agreed to

A)        Acknowledge the projected changes in service spending and the overall resources available to the Council over the medium term.

B)        Approve the refreshed Medium Term Financial Strategy at Appendix A and updated financial forecast at Appendix B.

Councillor John Williams, Lead Cabinet for Finance, presented this report which reviewed the Council’s Medium Term Financial Statement, covering the years 2022/23 to 2026/27. He explained that the amount of funding from the Government was difficult to predict. It had been assumed that the New Homes Bonus would be abolished in 2023, but it now appeared that it would be replaced by something else. The results of the Fair Funding Review had been delayed due to the Covid-19 pandemic. Councillor Bridget Smith seconded the recommendations. 

Councillor Bridget Smith thanked the Chief Finance Officer for his work in helping the Council to “weather the storm” caused by the Covid-19 pandemic.  

Councillor Heather Williams agreed that officers had worked admirably, but according to page 175 the deficit two years ago had been £3m and so the situation had got worse. She suggested that the administration needed to curtail spending on its political aspirations to improve the Council’s finances. Councillor John Williams replied that this was not a fair comparison as it related to a different five-year Medium Term Financial Strategy.  

Councillor Grenville Chamberlain suggested that the success of the financial strategy depended on the amount of income generated from its commercial properties, which was currently unclear. Councillor John Williams estimated that currently 90% of the Council’s commercial properties were occupied. Councillor Bridget Smith added that according to a recent report in the Times the cost of renting commercial properties in the area was reassuringly high. Councillor Neil Gough stated that if the Council decided to reduce the number of commercial properties that it was renting it would also have to decide to cut the services it provided. 

Councillor Dr Aidan Van de Weyer stated that the cost of providing services to new homes was greater than the income from New Homes Bonus. Councillor John Williams agreed and added that the funds from the New Homes Bonus related to housing numbers in the Local Plan agreed by the previous administration. Councillor Heather Williams replied that the Local Plan had been agreed by the Council. 

Councillor Deborah Roberts suggested that the authority should be more prudent when spending tax-payers money and not spend funds on political ambitious projects. Councillor Bridget Smith replied that the Council was not relying on Council Tax and government funding to pay for the services it delivered and the administration’s policies, such as providing grants for zero carbon projects, had the support of residents. 

A vote was taken and were cast as follows:

In favour (19):

Councillors Henry Batchelor, John Batchelor, Paul Bearpark, Anna Bradnam, Nigel Cathcart, Dr Claire Daunton, Peter Fane, Corinne Garvie, Neil Gough, Bill Handley, Geoff Harvey, Dr Tumi Hawkins, Pippa Heylings, Peter McDonald, Brian Milnes, Bridget Smith, Dr Ian Sollom, Dr Aidan Van de Weyer and John Williams

Against (8):

Councillors Ruth Betson, Grenville Chamberlain, Graham Cone, Sue Ellington, Deborah Roberts, Bunty Waters, Dr Richard Williams and Heather Williams

Abstain (0)

Council Agreed to

A)       Acknowledge the projected changes in service spending and the overall resources available to the Council over the medium term.

B)       Approve the refreshed Medium Term Financial Strategy at Appendix A and updated financial forecast at Appendix B.