Agenda item

A report from the Executive Director of Resources is attached.  (Key decision – reference number 5484)

Cllr Tim Leaver (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director Resources, setting the Revenue Budget and Council Tax for the 2023/24 financial year, and updating the Council’s Medium Term Financial Plan (MTFP) in the light of those decisions, and recommending approval by Council.

This was the first budget of the new administration, since May 2022, and reflected the manifesto priorities, and delivery of the new Council Plan. The benefits of having long-term plans were highlighted. The Council had a commitment to meet the needs of residents, including a Council Tax support scheme. Consultation in relation to setting the budget was also noted. It was confirmed that the comments of the Chief Finance Officer in respect of the robustness of the estimates and the adequacy of the proposed financial reserves were included in the report appendices. It was pleasing to present a robust budget in a challenging year.

Officers and Members were thanked for all their work on the budget.

DECISION:  The Cabinet 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 recommend to Council to set the Council Tax Requirement for Enfield at £146.963m in 2023/24; and

ii. To recommend to Council 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 and a 2.00% Adult Social Care Precept.

3.  To recommend to Council 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. £21.874m 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 £3.058m set out in Appendix 2a.

iv. the new savings of £10.224m 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 209 to 214).

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 recommend that Council agrees the planned flexible use of capital receipts in 2022/23 being £2.604m and approves the planned flexible use of capital receipts in 2023/24, being £2.201m (paragraphs 170 to 171 and Appendix 3).

5.  To recommend that Council agrees the Schools Budget for 2023/24 (paragraphs 172 to 195 and Appendix 4).

6.  To recommend to Council to agree the changes in Fees and Charges for 2023/24 as set out in paragraph 169 and Appendices 11 to 15 and to note the MTFP Update report to Cabinet in January recommended to Council 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 £14.487m; and of £72.848m for the period 2024/25 to 2027/28 and the actions being taken to address this challenging position.

8.  To recommend that Council agrees 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 215 to 219) 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 220 to 226 and Appendix 8a) and have regard to the comments of the Director of Finance (paragraphs 245 to 247) when making final decisions on the 2023/24 budget; and

iii. agree the recommended levels of central contingency and general balances (paragraphs 220 to 226). 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 report sets out the options considered, if any, and the reasons for the recommendations and the decision.

(Key decision – reference number 5484)