Agenda item

[To present a balanced budget for 2022-2023 aligned to the Council Plan priorities and an update to the Medium Term Financial Strategy (MTFS) 2022-2023 to 2025-2026, for recommendation to Full Council]

That Council be recommended to approve:

1.    The net budget requirement for 2022-2023 of £267.2 million for General Fund services.

2.    The Medium Term Financial Strategy (MTFS) 2022-2023 to 2025-2026 as detailed in Table 5 and the key assumptions underpinning the MTFS as detailed in Appendix 1 to the report.

3.    A Council Tax for Council services in 2022-2023 of £1,818.27 for a Band D property, being an increase of 2.99% on 2021-2022 levels, which incorporates the 1% in relation to Adult Social Care.

That Cabinet approves:

1.    The updated assumptions used in the Budget 2022-2023 and the MTFS 2022-2023 to 2025-2026 as detailed in section 7 of the report.

2.    That authority be delegated to the Portfolio Holder for Resources, in consultation with the Director of Finance, to approve the calculation and allocation of growth in the central share of business rates for 2022-2023 and future years to be passported to the West Midlands Combined Authority (WMCA).

3.    That authority be delegated to the Portfolio Holder for Resources and the Cabinet Member for Education, Skills and Work, in consultation with the Director of Finance and the Executive Director of Families, to approve changes to the local funding formula for Schools including method, principles and rules adopted.

4.    That authority continues to be delegated to the Portfolio Holder for Resources in consultation with the Director of Finance to consider further opportunities to accelerate pension contribution payments to secure additional budget reductions.

5.    The continuation of the policy to fully disregard income that claimants receive from the War Widows (Widowers), War Disablement Scheme and the Armed Forces Compensation Schemes in any housing benefit assessment.

6.    That the Council enter into the Better Care Fund Section 75 Agreement along with the necessary ancillary agreements from the main agreement for 2022-2023 with the Black Country and West Birmingham Clinical Commissioning Group, and delegate authority to the Portfolio Holder for Resources, Cabinet Member for Adult Services and the Cabinet Member for Public Health and Wellbeing, in consultation with the Executive Director of Families and the Director of Finance to approve the final terms of the agreement.

7.    That approval is given to build in supplementary budgets, fully funded by grant for the £150 council tax energy rebate for all households in England whose primary residence is valued in council tax bands A – D and delegate authority to the Portfolio Holder for Resources, in consultation with the Director of Finance to approve any changes to the Council Tax Discretionary Discount Scheme including the establishment of supplementary budgets as required.

That Cabinet notes:

1.    That the budget for 2022-2023 is in balance without the use of general reserves.

2.    That, in the opinion of the Director of Finance (Section 151 Officer), the proposed levels of reserves, provisions and balances is adequate in respect of the forthcoming financial year.

3.    That it estimated that a further £12.6 million needs to be identified for 2023-2024, rising to £25.8 million over the medium term to 2025-2026 in order to address the projected budget deficit.

4.    That, due to external factors, in particular the impact of Covid-19, budget assumptions remain subject to significant change, which could therefore result in alterations to the financial position facing the Council.

5.    That, there continues to be considerable amount of uncertainty with regards to future funding streams for local authorities over the Spending Review period.  At the point that further information is known it will be incorporated into future reports to Councillors. Any reduction in the Government’s allocation of funding to the Council would have a significant detrimental impact and further increase the budget deficit forecast over the medium term.

6.    That, the overall level of risk associated with the Medium Term Financial Strategy to 2025-2026 is assessed as Red.

7.    That Councillors must have due regard to the public sector equality duty (Section 149 of the Equality Act 2010) when making budget reduction decisions.

8.    That the Council continues to engage with residents, businesses and other key stakeholders throughout the year which focuses on understanding people’s priorities for Wolverhampton.

9.    The impact of related parties on the Medium Term Financial Strategy.

Councillor Ian Brookfield presented the highlights from the report on a balanced budget for 2022-2023 aligned to the Council Plan priorities and an update on the Medium Term Financial Strategy (MTFS) 2022-2023 to 2025-2026, for recommendation to Full Council. Councillor Brookfield also reported on a correction to be made to the report.  Figures for ‘Projected Budget Annual Change in Budget Deficit/(Surplus)’ had been transposed with the figures for ‘Projected Cumulative Budget Deficit’ in Table 5 (paragraph 1.16) and in Table 9 (paragraph 1.54) in the report and should be corrected accordingly.

Whilst supporting the budget, Cabinet members spoke about the budget proposals from the perspective of their cabinet portfolio.

Cabinet also placed on record its thanks to the Council’s officers, particularly from the Finance and Treasury teams, who under political direction had enabled the Council to provide these levels of service.

Resolved:

That Council be recommended to approve:

1.    The net budget requirement for 2022-2023 of £267.2 million for General Fund services.

2.    The Medium Term Financial Strategy (MTFS) 2022-2023 to 2025-2026 as detailed in Table 5 and the key assumptions underpinning the MTFS as detailed in Appendix 1 to the report.

3.    A Council Tax for Council services in 2022-2023 of £1,818.27 for a Band D property, being an increase of 2.99% on 2021-2022 levels, which incorporates the 1% in relation to Adult Social Care.

That Cabinet approves:

1.    The updated assumptions used in the Budget 2022-2023 and the MTFS 2022-2023 to 2025-2026 as detailed in section 7 of the report.

2.    That authority be delegated to the Portfolio Holder for Resources, in consultation with the Director of Finance, to approve the calculation and allocation of growth in the central share of business rates for 2022-2023 and future years to be passported to the West Midlands Combined Authority (WMCA).

3.    That authority be delegated to the Portfolio Holder for Resources and the Cabinet Member for Education, Skills and Work, in consultation with the Director of Finance and the Executive Director of Families, to approve changes to the local funding formula for Schools including method, principles and rules adopted.

4.    That authority continues to be delegated to the Portfolio Holder for Resources in consultation with the Director of Finance to consider further opportunities to accelerate pension contribution payments to secure additional budget reductions.

5.    The continuation of the policy to fully disregard income that claimants receive from the War Widows (Widowers), War Disablement Scheme and the Armed Forces Compensation Schemes in any housing benefit assessment.

6.    That the Council enter into the Better Care Fund Section 75 Agreement along with the necessary ancillary agreements from the main agreement for 2022-2023 with the Black Country and West Birmingham Clinical Commissioning Group, and delegate authority to the Portfolio Holder for Resources, Cabinet Member for Adult Services and the Cabinet Member for Public Health and Wellbeing, in consultation with the Executive Director of Families and the Director of Finance to approve the final terms of the agreement.

7.    That approval is given to build in supplementary budgets, fully funded by grant for the £150 council tax energy rebate for all households in England whose primary residence is valued in council tax bands A – D and delegate authority to the Portfolio Holder for Resources, in consultation with the Director of Finance to approve any changes to the Council Tax Discretionary Discount Scheme including the establishment of supplementary budgets as required.

That Cabinet notes:

1.    That the budget for 2022-2023 is in balance without the use of general reserves.

2.    That, in the opinion of the Director of Finance (Section 151 Officer), the proposed levels of reserves, provisions and balances is adequate in respect of the forthcoming financial year.

3.    That it is estimated that a further £12.6 million needs to be identified for 2023-2024, rising to £25.8 million over the medium term to 2025-2026 in order to address the projected budget deficit.

4.    That, due to external factors, in particular the impact of Covid-19, budget assumptions remain subject to significant change, which could therefore result in alterations to the financial position facing the Council.

5.    That, there continues to be considerable amount of uncertainty with regards to future funding streams for local authorities over the Spending Review period.  At the point that further information is known it would be incorporated into future reports to Councillors. Any reduction in the Government’s allocation of funding to the Council would have a significant detrimental impact and further increase the budget deficit forecast over the medium term.

6.    That, the overall level of risk associated with the Medium Term Financial Strategy to 2025-2026 is assessed as Red.

7.    That Councillors must have due regard to the public sector equality duty (Section 149 of the Equality Act 2010) when making budget reduction decisions.

8.    That the Council continues to engage with residents, businesses and other key stakeholders throughout the year which focuses on understanding people’s priorities for Wolverhampton.

9.    The impact of related parties on the Medium Term Financial Strategy.