Issue - meetings

Report of the Cabinet Member for Finance and Capital Assets detailing the Revenue Budget 2022/23, Medium Term Financial Forecast (MTFS) for the period 2022/23 to 2025/26. It provides detail to inform Council in setting Council Tax and rents for 2022/23.  The report also details the General Fund and Housing Revenue Account (HRA) Capital Strategy and Programme for the period 2021/22 to 2026/27.

Report of the Cabinet Member for Finance and Capital Assets detailing the Revenue Budget 2022/23, Medium Term Financial Strategy and Capital Programme.  The report also detailed the General Fund and Housing Revenue Account Capital Strategy and Programme for the period 2021/22 to 2026/27.

The report identifies how the 2022/23 budget has been balanced since the shortfall report at Cabinet in December, which was £9.01M.  It outlines how additional funds arising from the local government finance settlement and also applying a further £6.8M allocation (to make £8.5M in total) of funds from a one off surplus from the 2020/21 outturn position have helped both balance the budget and meet new pressures arising since December.

Details of the budget and capital programme are included in the following appendices to the report:

Appendix 1 The Revenue Budget 2022/23 and Medium Term Financial Strategy 2022/23 to 2025/26

Appendix 2 The Capital Strategy & General Fund Programme 2021/22 to 2026/27

Appendix 3 The HRA Budget 2022/23 and Capital Programme 2021/22 to 2026/27

There are 3 very minor changes to the figures within the report at Annex 2 of Appendix 2 (the Capital Programme for the General Fund) where 2 overall spending totals on the line by line figures on particular capital projects and also 1 funding total were incorrectly shown. These did not impact on anything within the recommendations or the overall total of the Capital Programme proposed.

The recommendations therein were moved by Councillor Hannides and seconded by Councillor Fitzhenry.

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

Other Speakers - 4 minutes

Right of Reply (Executive only) – 10 minutes

Amendment moved by Councillor Chaloner and seconded by Councillor Kaur, attached as Appendix 1 to these minutes. 

UPON BEING PUT TO THE VOTE THE AMENDMENT WAS DECLARED LOST

NOTE – FOR THE AMENDMENT: Councillors Bogle, Bunday, Chaloner, Coombs, Cooper, Denness, Fielker, Hammond, Kataria, Kaur, Leggett, Margetts, McEwing, Mitchell, Noon, Paffey, W Payne, Rayment, Renyard, Savage, Shields, Spicer and Windle.

NOTE – AGAINST THE AMENDMENT: Councillors J Baillie, P Baillie, Bell, Fitzhenry, Fuller, D Galton, G Galton, S Galton, Guest, Hannides, B Harris, L Harris, Harwood, Houghton, Laurent, Magee, Moulton, J Payne, Prior, Stead, Streets, Vassiliou and White.

The Mayor used his casting vote against the Amendment.

UPON BEING PUT TO THE VOTE THE SUBSTANTIVE MOTION WAS DECLARED CARRIED

RESOLVED that the Revenue Budget 2022/23, Medium Term Financial Strategy, and Capital Programme be adopted as detailed in the report recommendations. 

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

NOTE – FOR THE SUBSTANTIVE MOTION: Councillors  ...  view the full minutes text for item 60

Report of the Cabinet Member for Finance and Capital Assets detailing the Revenue Budget 2022/23, Medium Term Financial Strategy and Capital Programme.

DECISION MADE: (CAB 21/22 33092)

On consideration of the report of the Cabinet Member for Education, Cabinet agreed the following:

Cabinet is recommended to:

General Fund

i)  Note the forecast outturn position for 2021/22 as set out in paragraphs 25 to 30 of Appendix 1.

ii)  Note the revised Medium Term Financial Strategy 2022/23 to 2025/26 as detailed in paragraphs 69 to 75 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 23 February 2022 as set out in paragraph 32 of Appendix 1.

iv)  Note that the Equality and Safety Impact Assessment process that was followed as set out in paragraphs 40 to 43. The updated ESIAs and Cumulative Impact Assessment are available documents in the Members’ Room.

v)  Note that a consultation on the discontinuation of leisure services at St Mary’s Leisure Centre is the subject of a separate report to Cabinet on 21 February 2022, as noted in paragraph 39.

vi)  Note that the Executive’s budget proposals are based on the assumptions detailed within the MTFS and that this includes no increase in the ‘core’ council tax or Adult Social Care precept for 2022/23.

vii)  Note that Executive Commitments totalling £4.93M are included in the 2022/23 General Fund Revenue Budget, reducing to £4.50M in 2025/26, as detailed in paragraph 51 of Appendix 1.

viii)  Note that the report identifies general fund pressures totalling £14.83M in 2022/23, rising to £18.01M in 2025/26, as detailed in paragraph 54 of Appendix 1.

ix)  Note that savings proposals totalling £10.87M are included in the 2022/23 General Fund Revenue Budget, rising to £23.52M in 2025/26, as detailed in paragraph 59 of Appendix 1.

x)  Note that the budget sets the Band D Council Tax for Southampton City Council at £1,644.39 for 2022/23, a Net Budget Requirement of £193.05M and the Council Tax Requirement for 2022/23 at £108.77M as per Annex 1.2.

xi)  Note that further proposals will need to be considered to address the 2023/24 and future years budget shortfall.

xii)  Note and recommend to council where appropriate, the MTFS and General Fund Revenue Budget changes as set out in Council recommendations i) to xiv).

xiii)  Notes the Code of practice on financial management introduced by CIPFA and set out in paragraphs 33 to 36 and that good financial management is assigned to all senior management levels in the council as well as councillors.

General Fund Capital Programme

xiv)  Note the revised General Fund Capital Programme, which totals £426.20M (as detailed in paragraphs 2 to 6 of Appendix 2) and the associated use of resources.

xv)  Note that £30.35M has been added to the General Fund programme, with approval to spend. These additions are detailed in paragraphs 13 to 38 of Appendix 2 and Annex 2.1.

xvi)  Note that a further £58.44M has been added to the General Fund programme, requiring approval to spend by Cabinet/Council subject to the relevant financial limits. These  ...  view the full minutes text for item 58