Agenda item

A report from the Executive Director Resources is attached.  (Key decision – reference number 5352)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director Resources setting out the Revenue Budget and Council Tax for the 2022/23 financial year, and updating the Council’s Medium Term Financial Plan (MTFP) in the light of those decisions.

NOTED

1.    This was a balanced and resilient net revenue budget of £259.825m for the coming financial year, a 0.18% decrease when compared with 2021/22. It contained additional investment in priority services.

2.    Residents were facing raised costs of living currently and the Council was doing what it could to help and recommending a freeze on core Council Tax.

3.    The national context, inflationary pressures, and local demographic pressures in demand-led services were highlighted.

4.    Grant funding was detailed. No further resources to help manage the cost pressures arising from Covid-19 were expected beyond this year.

5.    Table 18 in the report gave a summary of forecast reserves.

6.    The report also contained information in respect of the Dedicated Schools Grant and of review of fees and charges.

7.    The budget enabled delivery on the commitments made in the Fairer Enfield Policy 2021.

8.    Budget engagement had been open until 11 February and detailed analysis would be reported to Council.

9.    Attention was drawn to the statement of the Council’s Section 151 Officer on the robustness of budget estimates and adequacy of the reserves.

10. Councillor Barnes raised the green and climate action aspects of the budget, with investment in programmes to deliver reductions in carbon emissions and improve resilience to climate change.

11. Councillor Uddin provided an update in respect of children’s services, confirming an increase in resources to meet increased demand. Adults’ social care was similarly noted as demand-led and facing a high amount of pressure.

12. The support of the Executive Director – Resources as Section 151 Officer, having undertaken a review, that the budget was resilient and robust and the level of reserves appropriate to meet risks.

13. The Chair’s comments on the administration’s approach that budget setting should be resilient and fair, with investment for future generations, and protection of the most vulnerable residents. There would be investment in services which residents valued.

14. Everyone involved in the budget process, particularly officers in Resources and Cabinet members, were thanked for their hard work.

Alternative Options Considered:

The Council operates a budget planning and consultation process during which a wide range of options are considered in detail before recommendations are made. Issues raised and discussed have greatly contributed to the report including information from the Budget Engagement exercise set out in the report. As part of its planning for both 2022/23 and future years the Council has considered future levels of Council Tax.

DECISION:  The Cabinet agreed to:

1.    Note that

i. The budget is in a balanced position for 2022/23, however, this has required the one off use of reserves of £2.000m.

ii. The total costs of Covid-19 in 2022/23 are estimated to be £6.339m; this will be funded from the £10m reserve which has been created to fund ongoing Covid-19 costs. At this stage the sector is not anticipating any further funding from the Government in respect of Covid-19.

iii. Government funding assumptions continue to rely on Council Tax as a key source of funding for Adult Social Care through the Precept.

iv. The wider London Business Rate pool is not going ahead for 2022/23 due to uncertainty over whether participation would be financially beneficial for members. Enfield will however be joining a smaller pool of 8 authorities to pool business rates for 2022/23. This decision was approved by Cabinet on 13 October 2021. Members of the pool are: City of London, Barnet, Brent, Enfield, Hackney, Haringey, Tower Hamlets and Waltham Forest. The potential one-off benefits from the Pool will be realisable circa August 2023 and nothing is built into the MTFP at this stage.

2.    Recommend to Council

i. With regard to the Revenue Budget for 2022/23 to recommend to Council to set the Council Tax Requirement for Enfield at £139.361m in 2022/23; and

ii. Recommend to Council to set the Council Tax at Band D for Enfield’s services for 2022/23 at £1,446.12, being a 0.00% general Council Tax increase and a 1.00% Adult Social Care Precept.

3.    Recommend to Council to agree the Medium Term Financial Plan, including:

i. The pressures set out in Appendix 1a of the report totalling £22.009m in 2022/23 (excluding the Covid-19 reversals of 13.894m), which include:

a. £3.188m for Demographic pressures within Adults and Children’s Social Care and SEN Transport to reflect growing demand in these areas.

b. £8.024m of Inflation and pay award funding

ii. £3.438m investment in transformation funded by the flexible use of capital receipts.

iii. full year effects of reversals of one-off prior year savings and income totalling £0.705m set out in Appendix 2a of the report.

iv. the savings of £5.856m and income proposals of £2.840m in 2022/23 set out in Appendix 2b of the report.

v. adopt the key principles set out in the Medium Term Financial Plan section of the report (paragraphs 219 to 224).

vi. note the £1.020m for Capital Financing included within the pressures figure to invest in proposals to deliver long term benefits to the Borough. £10.111m is set aside for Capital Financing over the lifetime of the MTFP.

4.    Recommend that Council agrees the planned flexible use of capital receipts in 2021/22 being £1.501m and approves the planned flexible use of capital receipts in 2022/23, being £3.438m (paragraphs 181 to 182 and Appendix 3 of the report).

5.    Recommend that Council agrees the Schools Budget for 2022/23 (paragraphs 183 to 205 and Appendix 4 of the report).

6.    Recommend to Council to agree the changes in Fees and Charges for 2022/23 as set out in paragraph 178 and Appendices 11 to 14 of the report and to note the Leader Decision report in January recommended to Council to delegate authority to Executive Directors and Directors to negotiate discounts and make in year amendments where appropriate.

7.    Recommend to Council to delegate authority to the Executive Director of Resources in consultation with the Lead Member for Finance & Procurement in respect of any actions arising from the Government’s recent announcement regarding the award of £150 Council Tax rebates and discretionary support (see paragraphs 70 to 73 of the report).

8.    Note the gap remaining in the MTFP for 2023/24 of £13.295m; and of £45.600m for the period 2023/24 to 2026/27 and the actions being taken to address this challenging position.

9.    Recommend that Council agrees that the New Homes Bonus funding of £0.172m is applied as a one-off contribution to the General Fund in 2022/23.

10.Note Council will be provided with full feedback from the Budget Engagement at Appendix 5a of the report.

11.Note the minutes of the Overview and Scrutiny Committee Meeting on 12 January 2022 which are set out in Appendix 5b of the report.

12.Note that the delivery of the saving for digitalisation/decentralisation of MEQ & Complaints Team responsibilities will require members to utilise the new digital self-serve MEQ reporting system.

13. With regard to the robustness of the 2022/23 budget and the adequacy of the Council’s earmarked reserves and balances to:

i. note the risks and uncertainties inherent in the 2022/23 budget and the MTFP (paragraphs 225 to 229) and agree the actions in hand to mitigate them;

ii. note the advice of the Executive Director of Resources regarding the recommended levels of contingencies, balances and earmarked reserves (paragraphs 230 to 236 and Appendix 8a) and have regard to the comments of the Director of Finance (paragraphs 256 to 258) when making final decisions on the 2022/23 budget; and

iii. agree the recommended levels of central contingency and general balances (paragraphs 230 to 236).

Reason:

To set the Council’s Budget Requirement and level of Council Tax for 2022/23 within the timescales set out in legislation. The Council has a statutory duty to approve a balanced budget for 2022/23 along with consideration of the finances over the medium term and the Council’s reserves and balances. It is essential that there is a clear understanding of the anticipated income and expenditure flows for the Council, despite the uncertainties, and for savings proposals to ensure full delivery from 1 April 2022 wherever possible to maximise their contribution to addressing the financial pressures in 2022/23 and beyond.

(Key decision – reference number 5352)