Agenda and minutes

The following Executive Appointment was made:-

Councillor Keogh appointed to PATROL AJC (Parking and Traffic Regulations Outside London Joint Committee)

To consider the report of the Cabinet Member for Transport and District Regeneration on a proposed increase in the Itchen Bridge Toll and the proposed removal of the Itchen Bridge Electric Concession.

DECISION MADE: (CAB 22/23 35971)

On consideration of the report of the Cabinet Member for Transport and District Regeneration, Cabinet agreed the following:

(i)  To implement the proposed Itchen Bridge toll increase for Class 2 vehicles from £0.80 to £1.00 during peak periods and £0.70 to £0.80 during off peak periods.

(ii)  To remove the Electric Vehicle concession.

To consider the report of the Cabinet Member for Finance and Change setting out the financial monitoring for the period to the end of December 2022.

DECISION MADE: (CAB 22/23 35995)

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

General Revenue Fund

Cabinet is recommended to:

(i)  Note the forecast outturn position is a £10.34M deficit, after taking account of £4.70M agreed in-year savings, as outlined in paragraph 4 and in paragraph 1 of appendix 1. 

(ii)  Note that failing any further improvement in the 2022/23 financial position the £10.34M deficit will need to be met from the Medium Term Financial Risk Reserve, as set out in paragraph 4 and in paragraph 3 of appendix 1.

(iii)  Note the performance of treasury management, and financial outlook in paragraphs 5 to 8 of appendix 1.

(iv)  Note the forecast year end position for reserves and balances as detailed in paragraphs 9 and 10 of appendix 1.

(v)  Note the Key Financial Risk Register as detailed in paragraph 11 of appendix 1.

(vi)  Note the performance against the financial health indicators detailed in paragraphs 15 and 16 of appendix 1.

(vii)  Note the forecast outturn position outlined in the Collection Fund Statement detailed in paragraphs 19 to 22 of appendix 1.

Housing Revenue Account

Cabinet is recommended to:

(viii)  Note the forecast outturn position is a nil variance against budget as outlined in paragraph 5 and paragraph 17 of appendix 1.

Capital Programme

Cabinet is recommended to:

(ix)  Note the revised General Fund Capital Programme, which totals £356.25M as detailed in paragraph 1 of appendix 2.

(x)  Note the HRA Capital Programme is £267.12M as detailed in paragraph 1 of appendix 2.

(xi)  Note that the overall forecast position for 2022/23 at quarter 3 is £144.78M, resulting in a potential surplus of £2.43M, as detailed in paragraphs 5 and 6 of appendix 2.

(xii)  Note that the capital programme remains fully funded up to 2026/27 based on the latest forecast of available resources although the forecast can be subject to change; most notably regarding the value and timing of anticipated capital receipts and the use of prudent assumptions of future government grants to be received.

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.