Issue - meetings

RESOLVED:

1.     That the Cabinet notes:-

a.     the latest budget forecasts of the General Fund (section 6), Capital (section 7), and HRA (section 8) of the Cabinet report.

b.     the impact that utility and general inflation is forecast to have on the Council’s budgets, and the need to identify mitigating actions to address these largely unavoidable cost pressures, including a review of Service Charges within the HRA.

2.     That the Cabinet recommends to Council:-

a.     that financial support be given to Freedom Leisure through an ‘open-book’ arrangement relating to utilities spend (up to £400,000) and the granting of a year 2 rent waiver (£354,000), noting the resultant financial implication above the current set budget gives rise to a supplementary budget request of £279,000.

b.     in recognition of the pay offer made by the National Employers for Local Government services on the 25th July 2022, an increase to the Council’s salary budget for 2022/23 be approved, at a total forecast additional cost of £1,200,000, noting that the retained pension fund deficit budget will be used to cover the General Fund cost at £900,000, and that the Acquisition and Development Reserve will be used to cover the HRA cost at £300,000.

REASONS FOR DECISION:

As set out in the report.

KEY DECISION:

Report to Cabinet and Full Council.

PORTFOLIO:

Finance, Investment and Corporate Services / All.

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST(S):

None.

DISCUSSION:

The Portfolio Holder introduced the report and highlighted the significant changes in the global economy that were impacting upon the Council’s financial planning and position.  Particularly the increased cost of energy, which presented challenges for both the Council and its partners.

With regard to the proposed support to Freedom Leisure, the Portfolio Holder highlighted this as an example of the partnership approach adopted by the Council, with a not for profit organisation.  The priority remained to maintain services for residents.  He commented that had it not been for the new arrangements for leisure services, the financial burden on the Council would have been at least double the amount of proposed financial support, and potentially as much as £2m to the Council when also taking into account the proposed local government pay award for this financial year.

The further variations in the report were highlighted, including the example of Hardley Depot, which had been reprofiled across 2023/24.

The Portfolio Holder went on to highlight paragraph 6.2 of the report, which confirmed that the Council had budgeted for a 2% pay award within its original budgets for 2022/23.  This level of increase was consistently applied by local authorities across the country.  On 25 July 2022, the National Employers for Local Government Services met, being the body that determine the employer pay award for local government, and subsequently put their final award proposal to the unions.  It was agreed to put a final offer to the unions to reflect a fixed uplift to all pay points of £1,925 from 1 April 2022.  This created a  ...  view the full minutes text for item 26