Agenda item

Council will be asked to approve the budget for 2022/23 and the Medium Term Financial Plan for 2022/23 to 2026/27.

Cllr Maguire moved, and Councillor Caliskan seconded, the report. 

 

Cllr Maguire introduced the report and noted the following points:

• The report was to set the Revenue Budget and Council Tax for the 2022/23 financial year and updated the Council’s Medium Term Financial Plan (MTFP) in the light of those decisions.
• The proposals were the culmination of the 2022/23 budget planning process.

·         A balanced budget was a legal requirement.

 

Cllr Laban, on behalf of the majority opposition group moved and Cllr Hockney seconded an alternative budget which would give additional savings of £16.389m.

 

The majority opposition made the following points:

• The alternative budget proposed to agree the recommendations subject to an additional investment of £2.689m to ensure the Borough was cleaner, safer and supported residents with the cost-of-living crisis, which would be financed by savings of an equivalent amount.
• The sustainable budget would provide an action plan to implement the following:

ØCleaner – restore weekly bin collections from September and increase fly tip CCTV cameras providing an additional 100 cameras.

ØGreener – additional planting of 3,000 street trees; electric charging points; air pollution monitors and investment in parks, buildings and maintenance.

ØSafer – Reinstatement of school crossing patrols; increase in road safety fund; expansion of CCTV coverage, additional Police Officers recharged to the Housing Revenue Account. In addition to a reduction to the build to change project.

ØCost-of-living – provide low-income households with energy efficient lightbulbs, freeze costs to residents and groups on fees and charges.

 

The administration, in response to the proposed alternative budget, made the following points:

• Efficiencies would be reduced.

• The budget was robust and resilient, one which allowed investment in the Borough.
• It was misleading to residents to state that the cost of living would reduce.
• The alternative budget would lead to privatisation of the Council services.

 

On being put the vote the amendment was lost.

 

The administration spoke to the substantive budget proposed and made following points:

• Councils across the country had faced severe cuts to their budgets in the last 12 months.
• The Covid-19 pandemic had added more to this challenge.
• An additional investment in social services and adult social care means that the Council is committed to provide services for the most vulnerable residents in the Borough.
• A Council tax freeze has been introduced, whilst the Council Tax Support Scheme continues.
• The temporary accommodation rents had been increased for the first time in a long time.  This accommodation protected the most vulnerable residents of the Borough.
• There were revenue savings of £500k.

·         For the capital programme to remain affordable the Council must keep within the self-imposed borrowing cap.

·         A treasury management strategy has been introduced to provide finances which are well planned and executed.

·         The Council was a statutory authority and as such had to implement the Local Plan.

·         Whitewebbs had been leased, not sold.

 

The majority opposition made the following points regarding the substantive budget:

• Supportive of the Council Tax freeze.
• There were lower grants available compared to previous years.
• The audits for 2019/20 had not been completed.
• There was an increase in the cost of funerals.
• There was a direct link to the life expectancy of the residents of the Borough in relation to the quality of the Council’s housing stock.
• Low Traffic Neighbourhoods would see a build-up of traffic in surrounding areas and adversely affect the lives of residents on low incomes.

 

 The minority opposition made the following points:

• The administration had used the Council’s reserves.
• Many of the Council’s projects and scrutiny processes had failed, which had resulted in the need for increased borrowing.
• Discussion with residents about Lower Traffic Neighbourhoods had been blocked.
• There had been insufficient investment in housing which had resulted in overcrowding in properties. 
• The administration had misunderstood the housing issues experienced in Enfield.
• There had been poor rates of recycling.
• Small businesses were not supported by the Council.
• The Council was not interested in investment in the high streets or small businesses in the Borough.
• There had been increases in the Special Responsibility Allowances.

 

The budget report was then agreed following a roll call vote detailed below:

 

In accordance with standing order regulations 2014, the vote was recorded in relation to the above decisions.

 

For:

Councillor Huseyin Akpinar

Councillor Mahmut Aksanoglu

Councillor Kate Anolue

Councillor Chinelo Anyanwu

Councillor Guner Aydin

Councillor Ian Barnes

Councillor Mahym Bedekova

Councillor Sinan Boztas

Councillor Nesil Caliskan

Councillor Alev Cazimoglu

Councillor Mustafa Cetinkaya

Councillor Katherine Chibah

Councillor Birsen Demirel

Councillor Guney Dogan

Councillor Elif Erbil

Councillor Susan Erbil

Councillor Achilleas Georgiou

Councillor Margaret Greer

Councillor Christine Hamilton

Councillor Ahmet Hasan

Councillor Rick Jewell

Councillor Nneka Keazor

Councillor Tim Leaver

Councillor Mary Maguire

Councillor Gina Needs

Councillor Ahmet Oykener

Councillor Sabri Ozaydin

Councillor George Savva

Councillor Claire Stewart

Councillor Doug Taylor

Councillor Mahtab Uddin

Councillor Hass Yusuf

 

Against:

Councillor Maria Alexandrou

Councillor Lee David-Sanders

Councillor Clare De Silva

Councillor Chris Dey

Councillor Peter Fallart

Councillor Alessandro Georgiou

Councillor Elaine Hayward

Councillor James Hockney

Councillor Joanne Laban

Councillor Andy Milne

Councillor Terence Neville

Councillor Lindsay Rawlings

Councillor Michael Rye

Councillor Edward Smith

Councillor Jim Steven

Councillor Andrew Thorp

Councillor Glynis Vince

 

Abstentions:

Councillor Daniel Anderson

Councillor Dinah Barry

Councillor Anne Brown

Councillor Charith Gunawardena

Councillor Ayfer Orhan

 

AGREED:

 

1.    To note:

 

                     i.        The budget is in a balanced position for 2022/23, however, this had required the one-off use of reserves of £1.985m.

 

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

 

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

 

2.    To approve:

 

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

                       ii.     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.    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. (in 2022/23 Adults gross expenditure budget will be £140.0m, net £87.4m; Children’s Services gross expenditure budget will be £57.2m, net £46.4m; SEN Transport net budget will be £11.1m).

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.

 

                    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.

 

3.    To agree:

 

                    i.          The planned flexible use of capital receipts in 2021/22 being £1.501m and approve the planned flexible use of capital receipts in 2022/23, being £3.438m.

 

                   ii.          The Schools Budget for 2022/23.

 

                 iii.          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 delegate authority to Executive Directors and Directors to negotiate discounts and make in year amendments where appropriate.

 

                 iv.          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).

 

                  v.          To 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.

 

                 vi.          To agree that the New Homes Bonus funding of £0.172m is applied as a one-off contribution to the General Fund in 2022/23.

 

                vii.          To note the detailed feedback from the Budget Engagement, which is set out in Appendix 5a of the report.

 

               viii.          To note the minutes of the Overview and Scrutiny Committee Meeting on 12th January 2022 which are set out in Appendix 5b of the report.

 

                 ix.          To 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.

 

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

                                       i.       To note the risks and uncertainties inherent in the 2022/23 budget and the MTFP and agree the actions in hand to mitigate them;

 

                                     ii.       To note the advice of the Executive Director of Resources regarding the recommended levels of contingencies, balances and earmarked reserves and have regard to the comments of the Director of Finance) when making final decisions on the 2022/23 budget; and

 

                                    iii.       To agree the recommended levels of central contingency and general balances.