Agenda item

To consider the Medium Term Financial Strategy and Budget Proposals 2022/23.

RESOLVED to recommend the budget strategies and reports for 2022/23 as set out in Appendices A to H of this report and the associated Annexes for approval by Council.

The meeting was reconvened at 3.00pm on Monday, 14 February. Councillor Hargreaves gave his apologies as he could not attend the Council Chamber in-person but he did participate remotely.

Councillor Hargreaves presented the report regarding Medium Term Financial Strategy (MTFS) and Budget Proposals 2022/23 via Zoom. He highlighted a number of changes from the papers considered by Scrutiny, including an additional risk relating to the possibility of a Government set borrowing cap and the publication of an Equalities and Health Impact Assessment (EQHIA) regarding the increase in council rents. He said the recent announcement regarding the Council’s planning department being placed in special designation could result in the loss of major planning applications and therefore a reduction in revenue. This had led to a deficit of £214,000 which would be taken from MTFS reserves in order to balance the budget.

He highlighted the following areas in the report and appendices:

• Council Tax would be increased – for Band D tax payers, this would result in an increase of £5.00 per year.
• The 5 year MTFS forecast showed a deficit position from 2023-24. He said the Government had not announced what the outcome would be of the Government’s Fair Funding Review for Local Authorities, which put the Council in a difficult medium term position.
• There had not been a high response rate to the Budget Consultation, which followed the trend of previous years. Positive feedback had been received on corporate priorities and the emphasis on achieving best value for residents.
• Housing Revenue Account – there would be an increase to council rents of 4.9%, in line with Government guidance. This was less than the rate of inflation, and the proposal had been endorsed by the Tenants Forum and Housing Board. For those residents in financial difficulty, he highlighted the Local Council Tax Support Scheme and the availability of a hardship fund.

In response to a question from Councillor Freeman regarding the Day Centres budget, Councillor Hargreaves said £95,000 per year had been retained in the MTFS.

In response to a question from Councillor Armstrong, Councillor Hargreaves confirmed that a robust estimate of Local Plan costs were fully funded. If additional costs arose, they would need to be factored in.

Councillor Reeve said the Commercial Strategy had been endorsed by the Investment Board although there had been one abstention. He asked how had the estimated reduction in income from major planning applications been calculated.

In response, the Director - Finance and Corporate Services said it had been estimated that 50% of applications would still be determined by Uttlesford but this would need to be closely monitored as the year progressed. The shortfall in income would be drawn down from MTFS reserves.

In response to a question relating to the Council’s ability to reduce Council Tax, Councillor Hargreaves said this would have resulted in a further deficit and it was the Administration’s intention to reduce the said deficit. He said there was little choice if the Council wished to continue to fund services.

Councillor Pepper said grants for energy efficient home works would be advertised to residents to shortly.     

The Leader and Councillor Hargreaves thanked the Assistant Director – Resources and her team for producing the budget reports.

The Leader proposed approval of the recommendation setout in the report; this was duly seconded by Councillor Armstrong.

RESOLVED to recommend the budget strategies and reports for 2022/23 as set out in Appendices A to H of this report and the associated Annexes for approval by Council.

The meeting was closed at 3.45pm.