Agenda item

Council is asked to agree the budget for 2023/24 and the Medium-Term Financial Plan.

Cllr Leaver moved, and Cllr Caliskan seconded, the report.

 

Cllr Leaver introduced the report and noted that this was the first budget of the new Administration and reflected its priorities and manifesto. The background challenges were highlighted, including reduced government funding, Covid-19 impacts, and inflationary and demographic pressures. Consultation in relation to setting the budget, including presentation to the Overview and Scrutiny Committee, was also noted. The comments of the Chief Finance Officer in respect of the robustness of the budget were included in the report and noted. The Council would be setting a balanced budget. It was prudent, well thought through, and resilient.

 

The Opposition expressed their concerns in respect of high borrowing by the Administration commenting that interest charges would need to be paid back and cuts would be made to frontline services. Despite a 20% core grant increase and other grants, the Administration proposed an increase in Council Tax, precept, fees and charges, and rents. Money was being spent on external consultants and solicitors, and on Civic Centre refurbishments, but there was no cost-of-living assistance for residents.

 

During the debate, Cllr Leaver moved, and Cllr Georgiou seconded, a procedural motion under paragraph 13.20 (ii) of the Council’s Procedure Rules that an amendment be made to the recommendations at paragraph 8 of the report so that the proposals in respect of a 2.99% general Council Tax increase, and of a 2.00% Adult Social Care Precept be separate recommendations and be voted on separately. This amendment to the report recommendations was AGREED.

 

The time for the end of the meeting having been reached, a procedural motion moved by Cllr Ozaydin and seconded by Cllr Ergin Erbil under paragraph 13.20 (viii) of the Council’s Procedure Rules to extend the debate for 10 minutes was AGREED.

 

The amended recommendation 8.ii: to set a 2.00% Adult Social Care Precept, was agreed following a recorded vote (as required by law) detailed below:

 

For:

Cllr Abdul Abdullahi

Cllr Josh Abey

Cllr Nicki Adeleke

Cllr Gunes Akbulut

Cllr Mahmut Aksanoglu

Cllr Maria Alexandrou

Cllr Nawshad Ali

Cllr Kate Anolue

Cllr Mahym Bedekova

Cllr Sinan Boztas

Cllr Nesil Caliskan

Cllr Alev Cazimoglu

Cllr Mustafa Cetinkaya

Cllr Lee Chamberlain

Cllr Hivran Dalkaya

Cllr Chris Dey

Cllr Guney Dogan

Cllr Hannah Dyson

Cllr Elif Erbil

Cllr Ergin Erbil

Cllr Susan Erbil

Cllr Peter Fallart

Cllr Thomas Fawns

Cllr Reece Fox

Cllr Alessandro Georgiou

Cllr Margaret Greer

Cllr Pat Gregory

Cllr Adrian Grumi

Cllr Ayten Guzel

Cllr Nelly Gyosheva

Cllr Ahmet Hasan

Cllr James Hockney

Cllr Suna Hurman

Cllr Chris James

Cllr Rick Jewell

Cllr Chris Joannides

Cllr Joanne Laban

Cllr Tim Leaver

Cllr Andy Milne

Cllr Elisa Morreale

Cllr Gina Needs

Cllr Tom O’Halloran

Cllr Ahmet Oykener

Cllr Sabri Ozaydin

Cllr Bektas Ozer

Cllr Paul Pratt

Cllr Michael Rye

Cllr Julian Sampson

Cllr George Savva

Cllr David Skelton

Cllr Jim Steven

Cllr Nia Stevens

Cllr Emma Supple

Cllr Doug Taylor

Cllr Andrew Thorp

Cllr Eylem Yuruk

 

The amended recommendation 8.iii: to set a 2.99% general Council Tax increase, was agreed following a recorded vote (as required by law) detailed below:

 

For:

Cllr Abdul Abdullahi

Cllr Josh Abey

Cllr Nicki Adeleke

Cllr Gunes Akbulut

Cllr Mahmut Aksanoglu

Cllr Nawshad Ali

Cllr Kate Anolue

Cllr Mahym Bedekova

Cllr Sinan Boztas

Cllr Nesil Caliskan

Cllr Alev Cazimoglu

Cllr Mustafa Cetinkaya

Cllr Hivran Dalkaya

Cllr Guney Dogan

Cllr Elif Erbil

Cllr Ergin Erbil

Cllr Susan Erbil

Cllr Thomas Fawns

Cllr Margaret Greer

Cllr Ayten Guzel

Cllr Nelly Gyosheva

Cllr Ahmet Hasan

Cllr Suna Hurman

Cllr Chris James

Cllr Rick Jewell

Cllr Tim Leaver

Cllr Gina Needs

Cllr Ahmet Oykener

Cllr Sabri Ozaydin

Cllr Bektas Ozer

Cllr George Savva

Cllr Nia Stevens

Cllr Doug Taylor

Cllr Eylem Yuruk

 

Against:

Cllr Maria Alexandrou

Cllr Lee Chamberlain

Cllr Chris Dey

Cllr Hannah Dyson

Cllr Peter Fallart

Cllr Reece Fox

Cllr Alessandro Georgiou

Cllr Pat Gregory

Cllr Adrian Grumi

Cllr James Hockney

Cllr Chris Joannides

Cllr Joanne Laban

Cllr Andy Milne

Cllr Elisa Morreale

Cllr Tom O’Halloran

Cllr Paul Pratt

Cllr Michael Rye

Cllr Julian Sampson

Cllr David Skelton

Cllr Jim Steven

Cllr Emma Supple

Cllr Andrew Thorp

 

The remainder of the report recommendations 7 through to 17 including 8i and 8iv were agreed following a recorded vote (as required by law) detailed below:

 

For:

Cllr Abdul Abdullahi

Cllr Josh Abey

Cllr Nicki Adeleke

Cllr Gunes Akbulut

Cllr Mahmut Aksanoglu

Cllr Nawshad Ali

Cllr Kate Anolue

Cllr Mahym Bedekova

Cllr Sinan Boztas

Cllr Nesil Caliskan

Cllr Alev Cazimoglu

Cllr Mustafa Cetinkaya

Cllr Hivran Dalkaya

Cllr Guney Dogan

Cllr Elif Erbil

Cllr Ergin Erbil

Cllr Susan Erbil

Cllr Thomas Fawns

Cllr Margaret Greer

Cllr Ayten Guzel

Cllr Nelly Gyosheva

Cllr Ahmet Hasan

Cllr Suna Hurman

Cllr Chris James

Cllr Rick Jewell

Cllr Tim Leaver

Cllr Gina Needs

Cllr Ahmet Oykener

Cllr Sabri Ozaydin

Cllr Bektas Ozer

Cllr George Savva

Cllr Nia Stevens

Cllr Doug Taylor

Cllr Eylem Yuruk

 

Abstain:

Cllr Maria Alexandrou

Cllr Lee Chamberlain

Cllr Chris Dey

Cllr Hannah Dyson

Cllr Peter Fallart

Cllr Reece Fox

Cllr Alessandro Georgiou

Cllr Pat Gregory

Cllr Adrian Grumi

Cllr James Hockney

Cllr Chris Joannides

Cllr Joanne Laban

Cllr Andy Milne

Cllr Elisa Morreale

Cllr Tom O’Halloran

Cllr Paul Pratt

Cllr Michael Rye

Cllr Julian Sampson

Cllr David Skelton

Cllr Jim Steven

Cllr Emma Supple

Cllr Andrew Thorp

 

AGREED:

 

1.  To note:

i. The budget is in a balanced position for 2023/24, however, this is in part achieved by around £3.7m use of one-off funding sources (made up of benefit from the Business Rates Pool and a Collection Fund surplus on Council Tax).

ii. Increased Government funding of £12m for social care in 2023/24; £1.23m reduction in other core Government grant funding (excluding business rates).

iii. For business rates related funding - with 2023/24 being the first year of a new ratings valuation cycle, a reduction in Government top-up grant of £2.75m, coupled with an increase in locally generated and retained business rates income of £8.3m; an increase in business rates s31 grant funding of £4.53m (primarily inflation linked).

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

v. As was the case for 2022/23 Enfield will be joining a smaller pool of 8 authorities to pool business rates for 2023/24. The potential one-off benefits from the Pool are estimated at £1.5m which has been built into the MTFP position for 2023/24.

vi. The considerable impact that the current high inflation environment has had on the budget setting process for 2023/24, with an estimated pressure of £22m, around three times the amount that has been accounted for annually over the past decade.

 

2.  To agree:

i. With regard to the Revenue Budget for 2023/24 to set the Council Tax Requirement for Enfield at £146.963m in 2023/24;

ii. To set a 2.00% Adult Social Care Precept; and

iii.  To set the Council Tax at Band D for Enfield’s services for 2023/24 at £1,518.30, being a 2.99% general Council Tax increase.

 

3.  To agree the Medium-Term Financial Plan, including:

i. The pressures set out in Appendix 1a totalling £45.926m in 2023/24, which include:

a. £6.827m for Demographic pressures within Adults and Children’s Social Care and SEN Transport to reflect growing demand in these areas.

b. £23.324m of Inflation and pay award funding

ii. £2.201m investment in transformation funded by the flexible use of capital receipts.

iii. full year effects of prior year savings and income totalling £1.538m set out in Appendix 2a.

iv. the new savings of £11.694m and income proposals of £2.524m in 2023/24 set out in Appendix 2b.

v. adopt the key principles set out in the Medium-Term Financial Plan section below (paragraphs 211 to 216).

vi. note the £5.000m increase in Capital Financing included within the pressures figure to invest in proposals to deliver long term benefits to the Borough. £25.000m is set aside for Capital Financing over the lifetime of the current MTFP.

 

4.  To agree the planned flexible use of capital receipts in 2022/23 being £2.604m and approve the planned flexible use of capital receipts in 2023/24, being £2.201m (paragraphs 172 to 173 and Appendix 3).

 

5.  To agree the Schools Budget for 2023/24 (paragraphs 174 to 197 and Appendix 4).

 

6.  To agree the changes in Fees and Charges for 2023/24 as set out in Appendices 11 to 14 and to delegate authority to Executive Directors and Directors to negotiate discounts and make in year amendments where appropriate.

 

7.  To note the gap remaining in the MTFP for 2024/25 of £15.807m; and of £76.518m for the period 2024/25 to 2027/28 and the actions being taken to address this challenging position.

 

8.  To agree that the New Homes Bonus funding of £0.723m is applied as a one-off contribution to the General Fund in 2023/24.

 

9.  To note the feedback from the Budget Consultation at Appendix 5a.

 

10.  To note the minutes of the Overview and Scrutiny Committee Meeting on 16 January 2023 which are set out in Appendix 5b of the report.

 

11.  With regard to the robustness of the 2023/24 budget and the adequacy of the Council’s earmarked reserves and balances to:

i. note the risks and uncertainties inherent in the 2023/24 budget and the MTFP (paragraphs 217 to 221) 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 222 to 228 and Appendix 8a) and have regard to the comments of the Director of Finance (paragraphs 247 to 249) when making final decisions on the 2023/24 budget; and

iii. agree the recommended levels of central contingency and general balances (paragraphs 222 to 228). It should be noted that the Section 151 officer has recommended an increase to the minimum level of General Balances in 2023/24 from £14m to £14.5m.

 

The time for the end of the meeting having been reached, a procedural motion was moved by Cllr Ozaydin and seconded by Cllr Ergin Erbil under paragraph 13.20 (viii) of the Council’s Procedure Rules to extend the meeting for 30 minutes and was AGREED.

 

A further procedural motion was moved by Cllr Ozaydin and seconded by Cllr Caliskan under paragraph 13.20 (iii) of the Council’s Procedure Rules to defer Item 8 – The Council Plan 2023-26 to the future meeting of the Council in June 2023 and was AGREED.