Agenda item

*O&S 49/22      

The Leader of the Council introduced the Draft Budget Proposals.

In so doing, particular reference was made to:         

1.      The  changes as a result of the Local Government Finance Settlement announcement by the Government is as described in section 1.9 of the report;

2.      The report set out the proposals for the council to set a balanced budget in 2023/24;

3.      The forecast budget deficit in the MTFS of £234k in 2024/25 and £480K in 2025/26.

In response to Member questions, it was reported that:

·           It was felt that a target for the council tax collection rate of 98.25% was achievable and comparable with other Devon authorities;

·           The garden waste collection subscription charge has not been increased for some time. Residents have a choice – only those that want the service pay for it, meaning reduced cross subsidisation by council tax payers.  The increase was comparable with similar services across the region;

·           It was debated whether the garden waste collection should be increased to £49 or £52 per annum, to cover the costs of people dropping out and to cover revenue costs;

·           The issues of paying for the garden waste collection on-line had now been resolved;

·           The advertising of the garden waste collection would be included on the council tax envelope.  Other forms of advertising such as on the refuse lorries could be explored;

·           The proposals to include a 100% premium on the council tax of second homes/holiday homes is included with the report at section 3.36.  The Council will lobby Government to ensure there is no delay with the Bill passing through the legislative timetable and to implement from 1 April 2024 if there are no delays to the Bill receiving Royal Assent in Spring 2023; This is the earliest that this part of the Bill can come into force.

·           The use of £150,000 of New Homes Bonus funding in 2023/24 to fund the Revenue Base Budget.                              

It was then RESOLVED:

The Overview and Scrutiny Committee recommended a change to:

v)      Increasing the garden waste subscription charge from £49 to £52 per year from April 2023, and to increase the uptake of this service.

The Committee then NOTED the content of the Revenue Budget Proposals report for 2023/24:

i)       An increase in Council Tax for 2023/24 of £7.37 (a 2.99% increase) (This would equate to a Band D council tax of £254.00 for 2023/24, which is an increase of 14 pence per week or £7.37 per year);

ii)           The financial pressures shown in Appendix A of £1,928,800;

iii)     The net contributions to/(from) Earmarked Reserves of £(45,567) as shown in Appendix A, including the proposed use of £150,000 from the Business Rates Retention Earmarked Reserve as set out in 3.17 of the report;

iv)     The use of £150,000 of New Homes Bonus funding in 2023/24 to fund the Revenue Base Budget as set out in 3.23 of the report, v) The savings of £1,110,500 as shown in Appendix A;

v)      Increasing the garden waste subscription charge to £49 per year from April 2023, as set out in Appendix F (see above).

vi)     The proposed Capital Programme Proposals for 2023/24 of £910,000 and the proposed financing of the Capital Programme as set out in Appendix D (being £700,000 from the Better Care Fund funding from Devon County Council, £160,000 from NHB funding and £50,000 revenue funding from the Vehicles and Plant Earmarked Reserve).

vii)   That Unearmarked Reserves should continue to have a minimum level of £900,000 (as set in the Medium Term Financial Strategy in September 2022), but an operating level of a minimum of £1.25million.