Agenda item

To consider the Council’s financial position over the medium term and set a budget requirement and the level of council tax for 2023/24.

The Strategic Director of Resources introduced the report and highlighted the following key areas:

·         Paragraph 2.1 included the main highlights of the local government financial settlement and the finance policy paper issued in December 2022. The settlement received was slightly better than expected.

·         The report proposed a 2.99% increase in Council Tax.

·       The Council Tax Base had been recalculated using 98.5% collection.

·       Appendix A had been adjusted following the withdrawal of Agenda Item 13, Council Tax Premium – Second Homes.

·       On average across Stroud District the rateable value of businesses had increased by 21.9% meaning that many businesses would see increases. The government had introduced a transitional scheme which meant the increase would be phased over a number of years.

·       The increase in business rates would not bring additional income to the Council as they would be required to pay a higher tariff to Central Government.

·       The New Homes Bonus was expected to continue to decrease.

·       Other non-ringfenced grants were set out in the report and it was confirmed that the Council would receive an element of Revenue Support Grant again.

·       The council were still expecting a fundamental review of Local Government finance and a reset of business rates growth, this would lead to an expected decrease in funding received.

·       Inflation was high and therefore adjustments were being made to the amounts for the government pay award and contracts.

·       Additional budget allocations were set out in the report and Appendix B, these included:

-       An additional £250k for walking and cycling schemes as requested at Environment Committee.

-       Additional support for the Regeneration and CN2030 Teams.

-       Additional support for the Climate Leadership Gloucestershire.

-       A Damp and Mould officer to look at issues in private sector housing.

-       Proposal for replacing heating systems at the leisure centre and Museum in the Park. A full report would be taken to Council including a business case.

-       Reserves had been highlighted in Section 4 of the report.

-       The Statement of the Chief Financial Officer had been included in Section 6.

Councillor Davies asked whether there had been any feedback given to Members on the consultation with residents and businesses. The Strategic Director of Resources confirmed that the information had been provided during a Members Briefing and published on the Members Hub. The Council had not carried out a separate consultation regarding the budget as this was included as part of the annual residents and business survey.

In response to further questions from Councillor Davies, the Strategic Director of Resources confirmed that he would send a copy of the financial implications included in the previous Political Balance Report which laid out the changes to the political structure and number of Group Leaders. It was also confirmed that the planning application fees were set by statute and could not be altered by the Council.

The Strategic Director of Resources confirmed, in response to Councillor Hurst, that section 2.11 should refer to Band ‘D’ properties and that the last sentence in 4.2 should have advised the increase was to mitigate the risk created by the funding reductions which were anticipated in the later years of the Medium Term Financial Plan.

Councillor Craig asked whether competitive quotes for the Ubico contract were sought. The Strategic Director of Resources advised that as they were a shareholder they did not seek competitive quotes but would carry out a value for money check when the contract was due for renewal.

Proposed by Councillor Braun and seconded by Councillor Turner.

Councillor Turner referenced other Councils who were having to make tough decisions regarding their finances and thanked Officers for the careful financial management at the Council that allowed them to invest in the Councils priorities and maintain Council Tax Support for residents.

Councillor Davies asked the Committee to acknowledge the good settlement they had received from Central Government and was happy to see that car parking charges had been frozen. He advised that Members of the Conservative Group would be abstaining as they had not yet discussed the contents of the budget at their group meeting.

Councillor Hurst welcomed the report to council regarding the proposed heating system at the leisure centre and Museum and asked whether there was an opportunity to look at the insulating qualities of the building.

Councillor Cornell was pleased to see the additional investment into play areas and Kingshill House.

The Chair, Councillor Braun, advised that it was a challenging time due to inflationary pressures on the Council and that although they were not facing some of the cuts like other Local Authorities they would need to be careful because of the threats to their longer term funding.

On being put to the vote, the Motion was passed with 8 votes in favour, 0 against and 4 abstentions.