Decision details

To agree the budget strategy and timetable for 2023/24, the net savings requirements by year for the next 5 years, and the revised General Fund revenue, funding and reserves projections.

Matter for Decision

 

At this stage in the 2023/24 budget process the range of assumptions on which the Budget Setting Report (BSR) published in February 2022 was based need to be reviewed in light of the latest information available to determine whether any aspects of the strategy need to be revised further. This then provides the basis for updating the budget for 2023/24 and to provide indicative budgets to 2032/33. All references to the recommendations to Appendices, pages and sections relate to MTFS Version 1.0.

The recommended budget strategy is based on the outcome of the review undertaken together with financial modelling and projections of the council’s expenditure and resources in light of local policies and priorities, national policy and economic context. Service managers have identified financial and budget issues and pressures and this information has been used to inform the MTFS.

Decisions of the Executive Councillor for Finance, Resources and Transformation

 

The Executive Councillor recommended to council:

 

General Fund Revenue

·      To agree the budget process and timetable as outlined in Section 8 [page 25] of the MTFS document.

·      To agree the incorporation of changed assumptions as presented in Section 3 [pages 10 and 11], which provide an indication of the net savings requirement, by year for the next five years [page 13], and revised projections for General Fund (GF) revenue and funding as shown in Appendix A [page 26] and reserves, Section 6 [page 18].

·      To agree the 2022/23 revenue budget proposal as set out in Section 4 [page 12], for a £1,122k increase in pay budgets to reflect the current pay offer

 

 

Capital

 

·      To note the changes to the capital plan and funding as set out in Section 5 [pages 15 to 17] and Appendix B [pages 27 to 30] of the MTFS document.

·      To agree capital spending proposals as set out below.

 

Reserves

 

·      To agree changes to GF reserve levels, the prudent minimum balance being set at £6.854m and the target level at £8.225m as detailed in Section 6 [page 18].

·      To agree that the remaining balance of £213k on the Cambridge Live Development Fund is transferred to the GF reserve and the fund is closed [page 20].

 

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

The Committee received a report from the Head of Finance.

 

 

Members of the Committee made the following points:

 

Despite improvements in the presentation of the financial information for the public, the Council should do more to explain the Council’s financial position to improve public awareness. 

 

The Executive Councillor for Finance, Resources and Transformation said the following in response to Members’ questions:

 

·      The Council produces news releases at various stages of the budget process and explanatory films on the Council’s YouTube and social media content but is willing to discuss other ideas and options with Members.

·      Will look with the Head of Finance into Heads of Service’s providing information how they are managing their in-year budgets to share with Members of the Scrutiny Committee (in addition to the Q2 information due to be circulated in the next 2 weeks).

General Fund Revenue

 

The Committee unanimously resolved:

                        i.         To agree the budget process and timetable as outlined in Section 8 [page 25] of the MTFS document.

 

The Committee resolved 6-0 (with 2 abstentions):

                      ii.         To agree the incorporation of changed assumptions as presented in Section 3 [pages 10 and 11], which provide an indication of the net savings requirement, by year for the next five years [page 13], and revised projections for General Fund (GF) revenue and funding as shown in Appendix A [page 26] and reserves, Section 6 [page 18].

 

The Committee unanimously resolved:

                     iii.         To agree the 2022/23 revenue budget proposal as set out in Section 4 [page 12], for a £1,122k increase in pay budgets to reflect the current pay offer.

 

Capital

                    iv.         To note the changes to the capital plan and funding as set out in Section 5 [pages 15 to 17] and Appendix B [pages 27 to 30] of the MTFS document.

                      v.         To agree capital spending proposals as set out below.

 

Revenues

                    vi.         To agree changes to GF reserve levels, the prudent minimum balance being set at £6.854m and the target level at £8.225m as detailed in Section 6 [page 18].

                   vii.         To agree that the remaining balance of £213k on the Cambridge Live Development Fund is transferred to the GF reserve and the fund is closed [page 20].

 

The Executive Councillor approved the recommendations.