Agenda item

Cabinet

 

RECOMMENDED THAT COUNCIL

 

Consider the report and, if satisfied:

 

(a)   Take into account the detailed budgets presented at Appendix B, and summarised at Appendix A, with an estimated General Fund Gross Operating Expenditure for 2022/2023 of £78.807 million, estimated Gross Operating Income of £52.728 million and estimated General Fund Net Operating Expenditure of £26.079 million.

 

(b)  Acknowledge the key factors which have led to the proposed 2022/2023 General Fund Revenue Budget, with service pressures summarised at Appendix C and offsetting efficiency savings/policy options summarised at Appendix D.

 

(c)   Acknowledge that the 2022/2023 General Fund Revenue Budget gross expenditure is covered by forecast income sources (assuming no change in Government grant) and, therefore, any addition(s) to expenditure that are made by the Cabinet or Council will need to be met from the General Fund Balance.

 

(d)  Approve the 2022/2023 General Fund Revenue Budget taking into account the statement by the Chief Finance Officer on the risks and robustness of the estimates as required under Section 25 of the Local Government Act 2003 (reproduced at Appendix F).

 

(e)   Set the Council Tax Requirement for 2022/2023 at £10,489,403.

 

(f)    Approve an increase in the District element of the Council Tax of £5 per annum, giving an average Band D Council Tax of £160.31, plus the relevant amounts required by the precepts of the Parish Councils, Cambridgeshire County Council, Cambridgeshire Police & Crime Commissioner, and the Cambridgeshire Fire Authority.

 

(g)  Authorise the Head of Finance, on the basis of the proposals set out in the report, to prepare the formal Council Tax Resolution for presentation to Council at its scheduled meeting on 22 February 2022.

 

(h)  Approve the estimates of the amounts required to be made under the Non-domestic Rating (Rates Retention) Regulations 2013 as set out in paragraphs 44 and 45.

 

(i)    Approve the acceptance of any grants made during 2022/2023 by the Government under Section 31 of the Local Government Act 2003 in respect of Business Rates. 

 

(j)    Approve the use of the additional income from the Business Rate Pool, estimated at £1,100,000 in 2022/2023, for transfer tothe established Renewables Reserve for priority projects.

 

(k)   Subject to any changes to the recommendations above, Full Council approves:

 

(i)    The 2022/2023 General Fund Revenue Budget based on known commitments at this time and planned levels of Service/functions resulting in a Budget Requirement of £22.668 million.

 

(ii)   The District Council Precept on the Collection Fund (Council Tax Requirement) of £10.489 million in 2022/2023(based on the Local Government Settlement) and a Band D Council Tax of £160.31.

 

(l)    The Council agrees that when appointing the auditor for the next appointment period starting in 2023/24, it accepts the invitation to take part in public sector audit appointments (PSAA) process.

 

 

 

PROPOSED AMENDMENTS SUBMITTED

 

The Conservative Group and the Labour Group have submitted their respective alternative budget proposals, to be proposed as amendments. 

 

Both Groups’ proposals were considered by the Cabinet at its meeting on 7 February 2022 and are included in the agenda pack for Council, following the report and appendices for this item.

Council Agreed to

 

A)        Take into account the detailed budgets presented at Appendix B, and summarised at Appendix A, with an estimated General Fund Gross Operating Expenditure for 2022/2023 of £78.807 million, estimated Gross Operating Income of £52.728 million and estimated General Fund Net Operating Expenditure of £26.079 million.

 

B)        Acknowledge the key factors which have led to the proposed 2022/2023 General Fund Revenue Budget, with service pressures summarised at Appendix C and offsetting efficiency savings/policy options summarised at Appendix D.

 

C)        Acknowledge that the 2022/2023 General Fund Revenue Budget gross expenditure is covered by forecast income sources (assuming no change in Government grant) and, therefore, any addition(s) to expenditure that are made by the Cabinet or Council will need to be met from the General Fund Balance.

 

D)        Approve the 2022/2023 General Fund Revenue Budget taking into account the statement by the Chief Finance Officer on the risks and robustness of the estimates as required under Section 25 of the Local Government Act 2003 (reproduced at Appendix F).

 

E)        Set the Council Tax Requirement for 2022/2023 at £10,489,403.

 

F)        Approve an increase in the District element of the Council Tax of £5 per annum, giving an average Band D Council Tax of £160.31, plus the relevant amounts required by the precepts of the Parish Councils, Cambridgeshire County Council, Cambridgeshire Police & Crime Commissioner, and the Cambridgeshire Fire Authority.

 

G)        Authorise the Head of Finance, on the basis of the proposals set out in the report, to prepare the formal Council Tax Resolution for presentation to Council at its scheduled meeting on 22 February 2022.

 

H)        Approve the estimates of the amounts required to be made under the Non-domestic Rating (Rates Retention) Regulations 2013 as set out in paragraphs 44 and 45.

 

I)          Approve the acceptance of any grants made during 2022/2023 by the Government under Section 31 of the Local Government Act 2003 in respect of Business Rates. 

 

J)         Approve the use of the additional income from the Business Rate Pool, estimated at £1,100,000 in 2022/2023, for transfer to the established Renewables Reserve for priority projects.

 

K)        Subject to any changes to the recommendations above, Full Council approves:

 

(i)        The 2022/2023 General Fund Revenue Budget based on known commitments at this time and planned levels of Service/functions resulting in a Budget Requirement of £22.668 million.

 

(ii)       The District Council Precept on the Collection Fund (Council Tax Requirement) of £10.489 million in 2022/2023 (based on the Local Government Settlement) and a Band D Council Tax of £160.31.

 

L)        The Council agrees that when appointing the auditor for the next appointment period starting in 2023/24, it accepts the invitation to take part in public sector audit appointments (PSAA) process.

Councillor John Williams presented this report which invited Council to consider and approve the summary General Fund Revenue Budget for 2022/23. He thanked the finance team for their work in compiling the report. He explained that the aim of the budget was to tackle climate change at a local level in South Cambridgeshire. Promoting affordable housing and local businesses were also priorities. He explained that the Government’s financial settlement continued to be for a year instead of three years, as originally promised, and this made financial planning more difficult.

 

Councillor John Williams explained that Council Tax only raised enough to cover about a third of the Council’s expenditure, with the rest from sources outside the authority’s control, including Business Rates and grants such as the New Homes Bonus. The proposed Council Tax increase equated to an extra £5 a year for a Band D property or an extra 10 pence a week. This authority’s Council Tax remained in the lowest 25% in the country.

 

Councillor John Williams estimated that the Council would deliver a balanced budget with £2.1m going into General Fund reserves, including £1.1m from the Business Rates Pool to the Renewables Reserve, bringing the total of that reserve to £4m.

 

Councillor John Williams explained that a total of £6 million would tackle climate change on a local level in South Cambridgeshire and halve emissions by 2030 and reduce them to zero by 2050. Relevant projects included installing a solar farm at the Waterbeach Depot, initiatives to improve and adapt waste services to encourage recycling and minimise waste, and the maintenance of the 275 kilometres of awarded watercourses that the Council was responsible for. The Council’s retrofit of its offices at Cambourne were nearing completion, reducing the carbon footprint of the building to 25% of current levels by 2030 and to 10% of current levels by 2050.

 

Councillor Heather Williams proposed an alternative budget. Due to cost of living increases it was appropriate to freeze an increase in Council Tax. She recommended that more should be done to prevent fraud, fly-tipping and that an extra planning enforcement officer should be appointed. She stated that money could be saved by reducing the number of Special Responsibility Allowances that could be claimed by a councillor from two to one. She concluded that money could be taken from the Transformation Budget to reduce the need for a Council Tax increase.

 

Councillor Deborah Roberts explained that many of the District’s residents who lived in large homes were now on medium or low incomes but were on a high Council Tax band due to the size of their property. Oil, gas and food prices were all increasing and so the Council had a moral duty to keep Council Tax low.

 

Councillor Sue Ellington supported the proposal to appoint an extra planning enforcement officer, as this would help the Council to enforce its planning decisions as the authority was in danger of having a reputation for not carrying out enforcement. Councillor Tumi Hawkins explained that there was currently a vacancy in the enforcement team and a review was taking place to see how the current resources could be best deployed. It was noted that the number of enforcement cases had reduced this year, partly due to Covid-19. Councillor Sue Ellington explained that she was not inferring any criticism of the Council’s planning officers.

 

Councillor Graham Cone supported the Council Tax freeze, due to the hardship that our residents were facing. He stated that all councillors were aware of enforcement areas in their wards and so an extra planning enforcement officer made sense.

 

Councillor John Williams explained that Council Tax bands were set according to 1991 property prices. He suggested that response to fly-tipping had improved in the four years since the current administration took office. The current administration had increased the anti-fraud budget by £15,000 also set up an anti-fraud team. He explained that a Council Tax freeze would have an ongoing detrimental effect on the authority’s Medium Term Financial Strategy and create a £1.5m hole in the Council’s budget in five years time.

 

Councillor Heather Williams proposed and Councillor Graham Cone seconded the Conservative alternative budget. A vote was taken and were cast as follows:

 

In favour (10):

Councillors Ruth Betson, Dr Shrobona Bhattacharya, Anna Bradnam, Tom Bygott, Graham Cone, Sue Ellington, Mark Howell, Bunty Waters, Heather Williams and Dr Richard Williams.

It was noted that Councillor Anna Bradnam meant to vote against the proposal.

Against (16):

Councillors Henry Batchelor, Paul Bearpark, Dr Martin Cahn, Gavin Clayton, Dr Claire Daunton, Corinne Garvie, Jose Hales, Bill Handley, Sally Ann Hart, Dr Tumi Hawkins, Brian Milnes, Dawn Percival, Judith Rippeth, Bridget Smith, John Williams and Eileen Wilson.

 

Abstain (1):

Councillor John Batchelor.

 

Council Rejected the Conservative alternative budget.

 

Councillor Gavin Clayton proposed Labour’s alternative budget. He suggested that instead of paying £2.1m into reserves, this money could be used to develop a Cultural Strategy to develop arts projects and working with the charity Mind to improve the mental health of young people.

 

Councillor Nigel Cathcart supported this alternative budget which would improve the lives of residents by providing some form of nursing home provision, introducing a pilot scheme for green infrastructure and protecting Conservation areas.

 

Councillor Dr Martin Cahn explained that he was a member of the Group that was looking at developing a Cultural Strategy and it was premature to commit the Council to a partner as this stage of the Strategy’s development. Councillor Bill Handley agreed with Councillor Cahn. He supported the development of a Cultural Strategy and the Council would work with its partners during its development. Councillor Graham Cone stated that £40,000 was a relatively small amount for the production of a Cultural Strategy and to support art development.

 

Councillor John Williams explained that the Council had three housing advice officers to support its tenants. The Cultural Strategy was in an embryonic stage and it was expected that it would be delivered next year. He understood that concerns regarding nursing home provision but he considered this to be a County Council function. Improving green infrastructure was already being considered and a £10,000 budget was not necessary.

 

Councillor Gavin Clayton proposed and Councillor Graham Cone seconded the Labour alternative budget.  A vote was taken and were cast as follows:

 

In favour (6):

Councillors Tom Bygott, Gavin Clayton, Graham Cone, Sue Ellington, Mark Howell and Heather Williams.

 

Against (21):

Councillors Henry Batchelor, John Batchelor, Paul Bearpark, Ruth Betson, Anna Bradnam, Dr Martin Cahn, Dr Claire Daunton, Corinne Garvie, Jose Hales, Bill Handley, Sally Ann Hart, Dr Tumi Hawkins, Brian Milnes, Dawn Percival, Judith Rippeth, Bridget Smith, Aidan Van de Weyer, Bunty Waters, John Williams, Dr Richard Williams and Eileen Wilson.

 

Abstain (1):

Councillor Dr Shrobona Bhattacharya.

 

Councillor Dr Shrobona Bhattacharya questioned whether the savings depicted on pages 275-6 on the agenda were realistic. Councillor John Williams stated that the budget figures were based on a worst case scenario and so he was confident that it would be delivered.

 

Councillor Dr Richard Williams welcomed the extra £2.2m for the planning services and asked what it would fund. Councillor John Williams explained that the Joint Planning service was being reviewed as part of the transformation project.

 

Councillor Heather Williams explained that she supported the green initiatives in the budget and the establishment of a joint enforcement group. However, she opposed the £200,000 on replacing carpets and £70,000 on redecorating. She stated that there was an error on paragraph 28 on page 189 of the agenda where the bottom right SFA should be in the total at the bottom. The table indicated more funds from the Government and so the increase in Council Tax could not be justified. Councillor John Williams explained that the extra funds from the Government were a one off payment and so the increase in Council Tax was necessary to avoid a funding gap in the longer term.

 

Councillor John Williams proposed and Councillor Peter McDonald seconded the recommendations in the report. A vote was taken and were cast as follows:

 

In favour (18):

Councillors Henry Batchelor, John Batchelor, Paul Bearpark, Anna Bradnam, Dr Martin Cahn, Dr Claire Daunton, Corinne Garvie, Jose Hales, Bill Handley, Sally Ann Hart, Dr Tumi Hawkins, Brian Milnes, Dawn Percival, Judith Rippeth, Bridget Smith, Aidan Van de Weyer, John Williams and Eileen Wilson.

 

Against (10):

Councillors Ruth Betson, Dr Shrobona Bhattacharya, Tom Bygott, Gavin Clayton, Graham Cone, Sue Ellington, Mark Howell, Bunty Waters, Heather Williams and Dr Richard Williams.

 

Abstain (0)

 

Council Agreed to

 

A)        Take into account the detailed budgets presented at Appendix B, and summarised at Appendix A, with an estimated General Fund Gross Operating Expenditure for 2022/2023 of £78.807 million, estimated Gross Operating Income of £52.728 million and estimated General Fund Net Operating Expenditure of £26.079 million.

 

B)        Acknowledge the key factors which have led to the proposed 2022/2023 General Fund Revenue Budget, with service pressures summarised at Appendix C and offsetting efficiency savings/policy options summarised at Appendix D.

 

C)        Acknowledge that the 2022/2023 General Fund Revenue Budget gross expenditure is covered by forecast income sources (assuming no change in Government grant) and, therefore, any addition(s) to expenditure that are made by the Cabinet or Council will need to be met from the General Fund Balance.

 

D)        Approve the 2022/2023 General Fund Revenue Budget taking into account the statement by the Chief Finance Officer on the risks and robustness of the estimates as required under Section 25 of the Local Government Act 2003 (reproduced at Appendix F).

 

E)        Set the Council Tax Requirement for 2022/2023 at £10,489,403.

 

F)        Approve an increase in the District element of the Council Tax of £5 per annum, giving an average Band D Council Tax of £160.31, plus the relevant amounts required by the precepts of the Parish Councils, Cambridgeshire County Council, Cambridgeshire Police & Crime Commissioner, and the Cambridgeshire Fire Authority.

 

G)        Authorise the Head of Finance, on the basis of the proposals set out in the report, to prepare the formal Council Tax Resolution for presentation to Council at its scheduled meeting on 22 February 2022.

 

H)        Approve the estimates of the amounts required to be made under the Non-domestic Rating (Rates Retention) Regulations 2013 as set out in paragraphs 44 and 45.

 

I)          Approve the acceptance of any grants made during 2022/2023 by the Government under Section 31 of the Local Government Act 2003 in respect of Business Rates. 

 

J)         Approve the use of the additional income from the Business Rate Pool, estimated at £1,100,000 in 2022/2023, for transfer to the established Renewables Reserve for priority projects.

 

K)        Subject to any changes to the recommendations above, Full Council approves:

 

(i)        The 2022/2023 General Fund Revenue Budget based on known commitments at this time and planned levels of Service/functions resulting in a Budget Requirement of £22.668 million.

 

(ii)       The District Council Precept on the Collection Fund (Council Tax Requirement) of £10.489 million in 2022/2023 (based on the Local Government Settlement) and a Band D Council Tax of £160.31.

 

L)        The Council agrees that when appointing the auditor for the next appointment period starting in 2023/24, it accepts the invitation to take part in public sector audit appointments (PSAA) process.