Agenda item

E.79/21

The Executive was presented with a report that outlined a series of draft revenue and capital budget proposals for 2022/23 to 2024/25.

In discussion, the following points were raised:-

(a)   Members considered the following two recommendations from the Overview and Scrutiny Committee that were initially generated from the informal joint meeting of Members of the Overview and Scrutiny and Development Management Committees that was held on 13 January 2022:

1.      recognising that the Council has declared both a Climate Change and Biodiversity Emergency and Housing Emergency, the Executive be urged to give priority to the development and execution of projects in respect of both in 2022/23;

2.      the sum of £3.5 million allocated out of the Business Retention Reserve to employment in 2018/19 remains unspent. It is proposed that out of this sum £1.0 million be reallocated to the proposed Affordable Housing Reserve Fund and £250,000 be reallocated to the Climate Change & Biodiversity Reserve;

With regard to recommendation 1, the Executive felt that this was more of a policy issue than a budget matter and it was therefore felt inappropriate to include this as part of the Revenue and Capital Budget recommendations to Council.  In respect of recommendation 2, the Executive was sympathetic to the spirit of this intention, but was also of the view that monies still remained within the Climate Change & Biodiversity Reserve and further monies could be vired into the Reserve should the need arise.  In respect of Affordable Housing, the Executive made reference to the recent St Anns Chapel Housing project decision and felt that the Council would also look to externally borrow the money to undertake future schemes.

(b)   An alternative Part 4 to the recommendation that was set out in the presented agenda report was PROPOSED and SECONDED as follows:

‘That £407,557 of the New Homes Bonus Grant allocation for 2022/23 be allocated to an Affordable Housing Earmarked Reserve as a one off contribution for 2022/23 (as set out in sections 3.30 to 3.31 of the presented agenda report).  (NB. an amount of £60,000 from the £407,557 is to be allocated to the Step On Deposit scheme pilot).’

In support of the alternative wording, Members reiterated that this was a demonstrable example of the Council acting upon its recent decision to declare a Housing Crisis in the South Hams.  When put to the vote, this recommendation was declared CARRIED;

(c)   A Member advised that he would not be voting in favour of the recommendations for the following reasons:

-        He was not in support of a minimum operating level of Unearmarked Reserves of £2 million and felt that £1.5 million was adequate; and

-        In the current economic climate, a number of residents were facing serious financial challenges and he therefore could not support any proposed increase in Council Tax.

In contrast, other Members expressed their support for the recommendations and were of the view that the proposals in relation to Unearmarked Reserves were a prudent approach to budgeting.  With regard to the proposed increase in Council Tax, the majority of the Executive recognised the difficulties being faced by residents but also highlighted the need to maintain the Council’s base budget and continuing to deliver core services, especially in light of the anticipated future budgetary pressures facing local authorities.  

It was then: