Report of Executive Director (Finance and Resources) attached

The Council considered a report of the Executive Director (Finance and Resources) presenting the Cabinet's revenue budget and Council Tax for 2023/24 financial year, together with Minutes 613 and 614 of Cabinet held 12 January 2023 and Minutes 685, 686 and 687 of Cabinet held on 14 February 2023, and Policy and Resources Scrutiny Committee Minutes 671 and 672.

 

On consideration of the report the Council noted that there was a typographical error in Appendix 3(iv) (New or Amended Fees and Charges).  The first column Zone 1a (8am to 9pm), the up to 13 hours fee was £20 and should be £22.  The amended appendix was circulated at the meeting.                                            

 

In accordance with Council Procedure Rule 10.1(e) Councillor Woodley, had submitted four amendments to the Budget.

 

The amendments were voted on by way of a named vote as required by law.  The voting was as follows:

 

Amendment 1: Fees and Charges

 

For amendment 1:

 

Cllr Beggs, Cllr Boyd, Cllr Buck, Cllr Courtenay, Cllr Cowdrey, Cllr Cox, Cllr Davidson, Cllr Dear, Cllr F Evans, Cllr Folkard, Cllr Garston, Cllr Habermel, Cllr Jarvis, Cllr D Jones, Cllr Lamb, Cllr Moyies, Cllr Nelson, Cllr Salter, Cllr Stafford, Cllr Walker, Cllr Warren and Cllr Woodley (22)

 

Against amendment 1:

 

Cllr Berry, Cllr Borton, Cllr Burton, Cllr Collins, Cllr Cowan, Cllr Dent, Cllr George, Cllr Gilbert, Cllr Hooper, Cllr Hyde, Cllr A Jones, Cllr Kelly, Cllr Line, Cllr McMullan, Cllr Mitchell, Cllr Mulroney, Cllr Murphy, Cllr O’Connor, Cllr Sadza, Cllr Shead, Cllr Terry, Cllr Thompson, Cllr Wakefield, Cllr Ward (24)

 

Abstentions:

 

Cllr K Evans and Cllr Robinson (2)

 

Absent

 

Cllr Buckley, Cllr Harland, Cllr Wexham (3)

 

Amendment 1 was not carried.

 

Amendment 2: Expenditure

 

For amendment 2:

 

Cllr Beggs, Cllr Boyd, Cllr Buck, Cllr Courtenay, Cllr Cowdrey, Cllr Cox, Cllr Davidson, Cllr Dear, Cllr F Evans, Cllr Folkard, Cllr Garston, Cllr Habermel, Cllr Jarvis, Cllr D Jones, Cllr Lamb, Cllr Moyies, Cllr Nelson, Cllr Salter, Cllr Stafford, Cllr Walker, Cllr Warren and Cllr Woodley (22)

Against amendment 2:

 

Cllr Berry, Cllr Borton, Cllr Burton, Cllr Collins, Cllr Cowan, Cllr Dent, Cllr George, Cllr Gilbert, Cllr Hooper, Cllr Hyde, Cllr A Jones, Cllr Kelly, Cllr Line, Cllr McMullan, Cllr Mitchell, Cllr Mulroney, Cllr Murphy, Cllr O’Connor, Cllr Sadza, Cllr Shead, Cllr Terry, Cllr Thompson, Cllr Wakefield, Cllr Ward (24)

 

Abstentions:

 

Cllr K Evans and Cllr Robinson (2)

 

Absent

 

Cllr Buckley, Cllr Harland, Cllr Wexham (3)

 

Amendment 2 was not carried.

 

Amendment 3: Capital Investment Programme

 

For amendment 3

 

Cllr Beggs, Cllr Boyd, Cllr Buck, Cllr Courtenay, Cllr Cowdrey, Cllr Cox, Cllr Davidson, Cllr Dear, Cllr F Evans, Cllr K Evans, Cllr Folkard, Cllr Garston, Cllr Habermel, Cllr Jarvis, Cllr D Jones, Cllr Lamb, Cllr Moyies, Cllr Nelson, Cllr Salter, Cllr Stafford, Cllr Walker, Cllr Warren and Cllr Woodley (23)

 

Against amendment 3

 

Cllr Berry, Cllr Borton, Cllr Burton, Cllr Collins, Cllr Cowan, Cllr Dent, Cllr George, Cllr Gilbert, Cllr Hooper, Cllr Hyde, Cllr A Jones, Cllr Kelly, Cllr Line, Cllr McMullan, Cllr Mitchell, Cllr Mulroney, Cllr Murphy, Cllr O’Connor, Cllr Sadza, Cllr Shead, Cllr Terry, Cllr Thompson, Cllr Wakefield, Cllr Ward (24)

 

Abstentions

 

Cllr Robinson (1)

 

Absent

 

Cllr Buckley, Cllr Harland, Cllr Wexham (3)

 

Amendment 3 was not carried.

 

Amendment 4: 2024/25 Saving Proposals

 

For amendment 4

 

Cllr Beggs, Cllr Boyd, Cllr Buck, Cllr Courtenay, Cllr Cowdrey, Cllr Cox, Cllr Davidson, Cllr Dear, Cllr F Evans, Cllr K Evans, Cllr Folkard, Cllr Garston, Cllr Habermel, Cllr Jarvis, Cllr D Jones, Cllr Lamb, Cllr Moyies, Cllr Nelson, Cllr Salter, Cllr Stafford, Cllr Walker, Cllr Warren and Cllr Woodley (23)

 

Against amendment 4

 

Cllr Berry, Cllr Borton, Cllr Burton, Cllr Collins, Cllr Cowan, Cllr Dent, Cllr George, Cllr Gilbert, Cllr Hooper, Cllr Hyde, Cllr A Jones, Cllr Kelly, Cllr Line, Cllr McMullan, Cllr Mitchell, Cllr Mulroney, Cllr Murphy, Cllr O’Connor, Cllr Sadza, Cllr Shead, Cllr Terry, Cllr Thompson, Cllr Wakefield, Cllr Ward (24)

 

Abstentions

 

Cllr Robinson (1)

 

Absent

 

Cllr Buckley, Cllr Harland, Cllr Wexham (3)

 

Amendment 4 was not carried.

 

The substantive budget proposals were then voted on by way of a named vote as required by law.  The voting was as follows:

 

For the budget:

 

Cllr Berry, Cllr Borton, Cllr Burton, Cllr Collins, Cllr Cowan, Cllr Dent, Cllr George, Cllr Gilbert, Cllr Hooper, Cllr Hyde, Cllr A Jones, Cllr Kelly, Cllr Line, Cllr McMullan, Cllr Mitchell, Cllr Mulroney, Cllr Murphy, Cllr O’Connor, Cllr Sadza, Cllr Shead, Cllr Terry, Cllr Thompson, Cllr Wakefield, Cllr Ward (24)

 

Against the budget:

 

 

Cllr Beggs, Cllr Boyd, Cllr Buck, Cllr Courtenay, Cllr Cowdrey, Cllr Cox, Cllr Davidson, Cllr Dear, Cllr F Evans, Cllr Folkard, Cllr Garston, Cllr Habermel, Cllr Jarvis, Cllr D Jones, Cllr Lamb, Cllr Moyies, Cllr Nelson, Cllr Salter, Cllr Stafford, Cllr Walker, Cllr Warren and Cllr Woodley (22)

 

Abstentions:

 

Cllr K Evans, Cllr Robinson (2)

 

Absent:

 

Cllr Buckley, Cllr Harland, Cllr Wexham (3)

 

The Council Budget 2023/24 proposals were carried, as set out as follows:

 

Resolved:

 

With regard to the General Fund Revenue Budget 2022/24:

 

1. That the Medium-Term Financial Strategy for 2023/24 – 2027/28 (Appendix 1 to the submitted report to Cabinet held 14 February 2023) and the resulting Medium Term Financial Forecast and estimated Earmarked Reserves Balances up to 2027/28 (Annexes 1 and 2 to Appendix 1), and any final minor changes/updates of this strategy as required be delegated to the Executive Director (Finance & Resources), be approved. 

 

2. That the draft Section 151 Officer’s statement on the robustness of the proposed budget, the adequacy of the Council’s reserves and the Council’s Reserves Strategy (Appendix 2 to the report to Cabinet held 14 February 2023), be noted.  

 

3. That the appropriation of the sums to earmarked reserves totalling £0.706M (Appendix 3 to the report to Cabinet held 14 February 2023), be approved.  

 

4. That the appropriation of the sums from earmarked reserves totalling £2.468M (Appendix 3 to the report to Cabinet held 14 February 2023), be approved.  

 

5. That the use of £1M from the General Fund balances to support the core 2023/24 revenue budget which will be replenished over the life of the Medium-Term Financial Plan (Annex 1 to Appendix 1 to the report to Cabinet held 14 February 2023), be approved. 

 

6. That a General Fund Budget Requirement for 2023/24 of £143.875M and Council Tax Requirement of £97.499M (Appendix 4 to the report to Cabinet held 14 February 2023), be approved. 

 

7. That it be noted that the 2023/24 revenue budget has been prepared based on using £2M from accumulated Collection Fund surpluses to support the core budget and to allow for a smoothing of the budget gap. 

 

8. That a Council Tax increase of 4.99% for the Southend-on-Sea element of the Council Tax for 2023/24, being 2.99% for general use and 2.00% for Adult Social Care, be approved. 

 

9. That the position of the Council’s preceptors, be noted: 

 

·       Essex Police – proposed Council Tax position increase of 6.84%

·       Essex Fire & Rescue Services – proposed Council Tax increase of 6.57%

·       Leigh-on-Sea Town Council – confirmed Band D precept decrease of 0.71%

 

10. That no Special Expenses be charged other than Leigh-on-Sea Town Council precept for 2023/24.  

 

11. That the proposed General Fund revenue budget investment of £23.473M (Appendix 5 to the report to Cabinet held 14 February 2023), be approved.

 

12. That the proposed General Fund revenue budget savings and income generation initiatives for 2023/24 of £9.215M (Appendix 6a to the report to Cabinet held 14 February 2023), be approved.  

 

13. That the proposed General Fund revenue cost avoidance and overspend reduction initiatives for 2023/24 of £1.603M (Appendix 6b to the report to Cabinet held 14 February 2023), be approved.  

 

14. That the approach proposed for the development and implementation of a new transformation blueprint for the Council and to confirm the use of £1.5m from existing earmarked reserves over the next three years to support this programme of activity, be approved. 

 

15. That the implementation of the new Adult Social Care Charging Policy from 1 April 2023 (Appendix 7 to the report to Cabinet held 14 February 2023), be approved. 

 

16. That the proposed range of fees and charges for 2023/24 (Appendix 8 to the report to Cabinet held 14 February 2023), as amended, be approved.  

 

17. That the Dedicated Schools Grant budget and its relevant distribution, as recommended by the Education Board (Appendix 9 to the report to Cabinet held 14 February 2023), be approved.  

 

18. That the Capital Investment Strategy for 2023/24 to 2027/28 (Appendix 10 to the report) and the Capital Investment Policy (Annex 1 to Appendix 10 to the report to Cabinet held 14 February 2023), be approved. 

 

19. That the following be approved:

 

(i) new schemes and additions to the Capital Investment Programme for the period 2023/24 to 2027/28 totalling £16.1M (£3.6M for the General Fund and £12.5M for the Housing Revenue Account) (Appendix 11 to the report to Cabinet held 14 February 2023).

 

(ii) new schemes subject to viable business cases totalling £5.6M for the General Fund (Appendix 11 to the report to Cabinet held 14 February 2023).

 

20. That the proposed changes to the current Capital Investment Programme (Appendix 12 to the report to Cabinet held 14 February 2023), be approved.

 

21. That the proposed Capital Investment Programme for 2023/24 to 2027/28 of £116.0M to be delivered by the Council and £53.1M to be delivered by Subsidiary Companies, Partners and Joint Ventures (Appendix 13 to the report to Cabinet held 14 February 2023) of which £57.8M is supported by external funding, be approved.

 

22. That the Minimum Revenue Provision (MRP) Policy for 2023/24 (Appendix 14 to the report to Cabinet held 14 February 2023) and the prudential indicators (Appendix 15 to the report to Cabinet held 14 February 2023), be approved.

 

23. That the operational boundary and authorised limits for borrowing for 2023/24 which are set at £390M and £400M respectively (Appendix 15 to the report to Cabinet held 14 February 2023), be approved.

 

24. That the summary of changes included in this proposed Final Budget Package in response to the feedback that has been received since the draft budget was launched on 5 January 2023, be noted.

 

25. That the summary status of Equality Analysis supporting the budget proposals for 2023/24 to 2025/26 (Appendix 16a to the report to Cabinet held 14 February 2023) and the new items proposed in response to the feedback that has been received since the draft budget was launched on 5 January 2023 (Appendix 16b to the report to Cabinet held 14 February 2023), be noted.  

With regard to the Housing Revenue Account Budget 2023/24 and rent setting:

26. That an average rent increase of 7% on all tenancies, be approved.

27. That an average rent increase of 7% on shared ownership properties, be approved.

28. That an increase of 10.1% for garage rents to £13.98 per week for tenants and £16.77 for non-tenants (being £13.98 plus VAT), a rise consistent with the standard approach taken across the council’s fees and charges, be approved.  All variants on a standard garage will receive a proportionate increase.

29. That South Essex Homes core management fee be agreed at £7,192,000 for 2023/24.

30. That South Essex Homes proposals for average increases of 44.29% in service charges to reflect the estimated costs incurred for 2023/24, be approved.

31. That South Essex Homes proposals for an average 104% increase in heating charges for sheltered housing tenants and for hostel tenants to reflect the estimated costs incurred for 2023/24, be approved.

32. That the following appropriations be approved:

·       £60,000 to the Repairs Contract Pensions Reserve. 

·       £4,047,000 to the Capital Investment Reserve.

·       £7,384,000 from the Capital Investment Reserve.

33. That, subject to the approval of resolutions 1 to 7 above, the HRA budget for 2023/24, as set out in Appendix 1 to the submitted report, be approved.

34. That the value of the Council’s capital allowance from 2023/24 be declared as £49,297,000 as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

 

 

With regard to Treasury Management 2023/24:

 

35. That the Treasury Management Policy Statement 2023/24, (appendix 1 to the report to Cabinet held 14 February 2023), be approved.

 

36. That the Treasury Management Strategy 2023/24, (appendix 2 to the report to Cabinet held 14 February 2023, be approved.

 

37. That the Annual Treasury Management Investment Strategy 2023/24 (appendix 3 to the report to Cabinet held 14 February 2023, be approved.

 

With regard to the Council Tax for 2023/24:

 

38. That it be noted that on 12 January 2023 the Cabinet calculated the Council Tax Base 2023/24:

(a) for the whole Council area as 59,746.14

 

(b) for dwellings in those parts of its area to which a Parish precept relates (Leigh-on-Sea Town Council) as 9,135.15

 

39. That the Council Tax requirement for the Council’s own purposes for 2023/24 (excluding town/parish precepts) be determined as £97,498,531.

 

40. That the following amounts be calculated for the year 2023/24 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended (the Act):

 

(a) £406,226,056 – Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by town/parish councils.

 

(b) -£308,265,469 – Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

 

(c) £97,960,587 – Being the amount by which the aggregate of 40(a) above exceeds the aggregate at 40(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year (including town/parish precepts).

 

(d) £1,639.61 – Being the amount at 40(c) above, divided by the Council Tax Base shown at 38(a) above, as the basis amount of its Council Tax for the year (including town/parish precepts).

 

(e) £462,056 – Being the aggregate amount of all special items (town/parish precepts) referred to in Section 34(1) of the Act and set out below:

Band A: 33.72; Band B: 39.34; Band C: 44.96; Band D: 50.58; Band E: 61.82; Band F: 73.06; Band G: 84.30; Band H: 101.16.

 

(f) £1,631.88 – Being the amount at 40(d) above less the result given by dividing the amount at 40(e) above by the Council Tax Base shown at 38(a) above, calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no town/parish precept relates.

 

41. That it be noted that the Essex Police and Crime Commissioner and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Act for each category of dwellings in the Council’s area as indicated below:

 

Essex Police Authority:

Band A: 155.64; Band B: 181.58; Band C: 207.52; Band D: 233.46; Band E: 285.34; Band F: 337.22; Band G: 389.10; Band H: 466.92.

 

Essex Fire Authority:

Band A: 53.52; Band B: 62.44; Band C: 71.36; Band D: 80.28; Band E: 98.12; Band F: 115.96; Band G: 133.80; Band H: 160.56.

 

42. That the Council, in accordance with Section 30 and 36 of the Act, hereby sets the aggregate amounts shown below as the amounts of Council Tax for 2023/24 for each part of its area and for each of the categories of dwellings:

Band A: 1,297.08; Band B: 1,513.26; Band C: 1,729.44; Band D: 1,945.62; Band E: 2,377.98; Band F: 2,810.34; Band G: 3,242.70; Band H: 3,891.24.

 

43. That the Council’s basic amount of Council Tax for 2023/24 be determined as not excessive in accordance with the principles approved under Section 52ZB of the Act, and as shown in the calculation below:

 

(a) Percentage increase defined by the Secretary of State as constituting an excessive increase for 2023/24: 5% (comprising 2% for the Adult Social Care Precept and 3% for other expenditure).

 

(b) Percentage increase in the Council’s basic amount of Council Tax:

2022/23 amount - £1,554.39

2023/24 amount - £1,631.88

Percentage increase: 4.99%

 

The figure at 43(b) is less than the figure at 43(a) above and therefore the Council’s basic amount of Council Tax for 2023/24 is not excessive and no referendum is required.

 

44. That the amounts payable in each town/parish at each band, comprising aggregate sums derived from all precepts, be as set out below:

 

Unparished Area: Band A: 1,297.08; Band B: 1,513.26; Band C: 1,729.44; Band D: 1,996.20; Band E: 2,377.98; Band F: 2,810.34; Band G: 3,242.70; Band H: 3,891.24

 

Parished Area: Band A: 1,330.80; Band B: 1,552.60; Band C: 1,774.40; Band D: 1,996.20; Band E: 2,439.80; Band F: 2,883.40; Band G: 3,327.00; Band H: 3,992.40.