Issue - meetings

Report of the Cabinet Member for Finance and Change detailing the Revenue Budget 2023/24, Medium Term Financial Strategy and Capital Programme.

Report of the Cabinet Member for Finance and Change detailing the Revenue Budget 2023/24, Medium Term Financial Strategy for the period 2023/24 to 2026/27.  The report also sets out the Capital Strategy and Flexible Use of Capital Receipts Strategy and provides details of the capital programmes for the General Fund and Housing Revenue Account (HRA) for the period 2022/23 to 2027/28.

The report identifies how the 2023/24 budget has been balanced since the forecast shortfall reported to Cabinet on 8 November 2022, which was £28.9M.  It outlines how additional funds arising from the November 2022 Autumn Statement and confirmed in the local government finance settlement, including extra council tax flexibilities (£3.3M), together with further savings (£4.98M) and use of reserves (£22.0M) have helped both balance the budget and meet new pressures arising since November.

The following additional recommendation was tabled at the meeting:

Arts Council England has recently agreed in principle to offer Southampton City Council a grant of up to £2.23M in capital towards the cost of repairs to the Art Gallery roof.

There is a requirement for the Council to match fund this grant which has already been budgeted for within the Capital programme.  Given the urgent nature of this grant, which the Arts Council requires to begin by 15 May, it is resolved that

(i)  the above sum is applied to the Capital Programme as funding; and

(ii)  Executive Director for Growth, following consultation with the Executive Director, Corporate Services and the Leader be delegated authority to apply this grant as considered appropriate.

The recommendations therein, including the additional recommendations above, were moved by Councillor Leggett and seconded by Councillor Kaur.

The Council agreed to suspend Council Procedure Rules 14.2, 14.5, 14.6, 14.7, 14.8, 14.9 and 16.2:-

(i)  to enable any amendments to be proposed, seconded and considered at the same time;

(ii)  to enable any amendment to be re-introduced later into the meeting; and

(iii) to revise the time allowed for speakers as follows:-

Movers of motions - 20 minutes

Seconders - 10 minutes

Liberal Democrat/Independent Members – 10 minutes

Other Speakers - 4 minutes

Right of Reply (Executive only) – 10 minutes

RESOLVED that the Revenue Budget 2023/24, Medium Term Financial Strategy, and Capital Programme be adopted as detailed in the report recommendations, including additional recommendation detailed above.

NOTE: All Members of the Council declared a pecuniary interest in the above matter, as payers and setters of Council Tax, noted the dispensation granted by the Monitoring Officer and remained in the meeting during the consideration of the matter.

NOTE – FOR THE SUBSTANTIVE MOTION: Councillors Blatchford, Bogle, M Bunday, T Bunday, Coombs, Cooper, Denness, Fielker, Frampton, Furnell, Goodfellow, Kataria, Kaur, Keogh, Leggett, McEwing, Mitchell, Noon, Paffey, W Payne, Rayment, Renyard, Savage, Shields, Windle and Winning.

NOTE – AGAINST THE SUBSTANTIVE MOTION: Councillors J Baillie, P Baillie, Fitzhenry, Fuller, G Galton, Guest, Guthrie, Hannides, Harris, Houghton, Laurent, Magee, Margetts, Prior, Vassiliou, Vaughan and White.

NOTE – ABSTAINED THE SUBSTANTIVE MOTION: Councillor Blackman

To consider the report of the Cabinet Member for Finance and Change detailing the Revenue Budget 2023/24, Medium Term Financial Strategy and Capital Programme.

DECISION MADE: (CAB 22/23 36003)

On consideration of the report of the Cabinet Member for Finance and Change, Cabinet agreed the following:

Cabinet is recommended to:

General Fund Revenue

(i)  Note the forecast outturn position for 2022/23 as set out in paragraphs 26 to 28 of Appendix 1.

(ii)  Note the revised Medium Term Financial Strategy 2023/24 to 2026/27 as detailed in paragraphs 69 to 76 of Appendix 1 and Annex 1.1.

(iii)  Note the aims and objectives of the Medium Term Financial Strategy which will be presented to council for approval on 22 February 2023 as set out in paragraph 32 of Appendix 1.

(iv)  Note that formal budget consultation began on 9 November 2022 and ended on 10 January 2023, although comments submitted after this date will be considered where possible. The outcome of the consultation is outlined in paragraphs 54 to 60.

(v)  Note that the Equality and Safety Impact Assessment process that was followed as set out in paragraphs 61 to 64. The updated ESIAs and Cumulative Impact Assessment are available documents in the Members’ Room.

(vi)  Note that the Executive’s budget proposals are based on the assumptions detailed within the MTFS and that this includes for 2023/24 an increase in the ‘core’ council tax of 2.99% and an increase in the Adult Social Care precept of 2.00%, allowable under general powers to increase council tax without a referendum.

(vii)  Note that the report identifies General Fund pressures totalling £28.22M in 2023/24, falling to £26.52M in 2026/27, as detailed in paragraph 53 of Appendix 1.

(viii)  Note that savings proposals totalling £22.03M are included in the 2023/24 General Fund Revenue Budget, reducing to £19.27M in 2026/27, as detailed in paragraph 57 of Appendix 1.

(ix)  Delegate authority to the Head of Supplier Management, after consultation with the Cabinet Member for Transport and District Regeneration, to approve amendments to the Part-night Street Lighting Exemptions Scheme set out in Annex 1.7.

(x)  Note that the budget sets the Band D Council Tax for Southampton City Council at £1,726.47 for 2023/24, a Net Budget Requirement of £221.45M and the Council Tax Requirement for 2023/24 at £115.77M as per Annex 1.2.

(xi)  Notes and endorses the Statement of the S151 Officer as set out in paragraphs 20 to 45 on the robustness of the budget and the adequacy of the council’s reserves. In particular the precarious financial position of the authority, the high level of financial risk currently faced and the lack of adequacy of reserves in the light of these risks and that work must continue at pace to lower reliance on reserves as remaining unallocated reserves (estimated at £10.3M) will be exhausted in 2024/25 at the latest, and potentially earlier in 2023/24 should the risks identified in this report materialise.

(xii)  Note that work will continue to review opportunities and proposals to address the 2024/25 and future years budget shortfall and to help mitigate the high level of financial risk within the budget.

(xiii)  Note and recommend to  ...  view the full minutes text for item 62