Report of the Cabinet Member for Finance and Corporate/Chief Finance Officer

Cabinet considered a report of the Cabinet Member for Finance and Corporate which sought to inform of the proposed Revenue Budget, Capital Programme and Council Tax 2022/23 for recommendation to Budget Council on 23rd February 2022. The information contained in the report was subject to the approval of the Mayor of Greater Manchester Council Tax precepts for 2022/23.

The report also outlined the Medium Term Financial Strategy 2022/23 to 2026/27. The Medium Term Financial Strategy provided the latest budget position for the Council, set out the key financial challenges and issues which would be faced over the period, and provided details of the assumptions and estimates which underpinned the budget. The strategy also took account of the latest known developments both regional and at a local level.

Alternatives considered:

No alternatives were presented.

RESOLVED:

1.    That the proposed revenue budgets outlined in Appendix 1 of the report, based on a budget requirement of £248.947m for 2022/23 be considered and recommended to Budget Council for approval;

2.    That, subject to confirmation of the Mayor of Greater Manchester precepts:

a.    A Council Tax for district purposes of £1,779.01 for Band D properties (2.99% increase) for 2022/23 be considered and recommended to Budget Council for approval;

b.    A Council Tax (including precepts) of £2,110.26 for Band D properties (3.62% increase) be considered and recommended to Budget Council for approval;

3.    That the position in relation to Education Services Grant and Schools Funding be noted and Cabinet delegate the decision regarding any changes to the final allocations for the Dedicated Schools Grant to the Director of Children’s Services in consultation with the Chief Finance Officer, the Cabinet Members for Children’s Services and Finance and Corporate, and the Leader of the Council;

4.    That it be noted that any final balance on the 2021/22 budget would be transferred to the Equalisation Reserve;

5.    That the establishment of a targeted Council Tax reduction scheme for 2022/23 with an estimated cost of £3m to be funded from one off funds as detailed in paragraph 4.3.9 of the report be considered and recommended to Budget Council for approval;

6.    That it be noted that the proposed revenue budget includes a £1M transfer to the Equalisation Reserve from the Collection Fund Surplus to smooth future losses linked to the pandemic as detailed in paragraph 6.1.5 of the report;

7.    That a contribution of £0.4m towards the Discretionary Crisis Fund from the Collection Fund Surplus to support vulnerable residents as detailed in paragraph 6.1.5 of the report be considered and recommended to Budget Council for approval;

8.    That the updated Budget Carry Forward policy, as detailed in Appendix 3 of the report be considered and recommended to Budget Council for approval;

9.    That the updated Reserves policy, as detailed in Appendix 8 of the report be considered and recommended to Budget Council for approval;

10.That it be considered and recommended to Budget Council for approval that the proposed Capital Programme for 2022/23 to 2026/27 as detailed at Appendix 4  ...  view the full minutes text for item 103

To scrutinise the proposed Revenue Budget, Capital Programme and Council Tax 2022/23.

Consideration was given to a report that set out the proposed Revenue Budget, Capital Programme and Council Tax 2022/2023 for approval at Budget Council on 23^rd February 2022. 

It was noted that the information contained within the report was subject to approval of the Mayor of Greater Manchester Council Tax precepts for 2022/23.

Members were informed that the report also outlined the Medium Term Financial Strategy 2022/23 to 2026/27 which provided the latest budget position for the Council, set out the key financial challenges and issues that would be faced over the period and provided details of the assumptions and estimates which underpinned the budget.

The Chair then invited comments and questions from Members.

During the course of the discussion, the following points were raised:

• In response to a question regarding the expected final balance on the 2021/22 budget transfer to the Equalisation Reserve - it was explained that the Quarter 3 update report was currently being prepared and based on current proposals it was anticipated that there would be an underspend.  However, if all carry forward requests submitted were approved this would create a balance deficit.
• It was noted that a Council Tax reduction scheme for 2022/23 was proposed, which would offer targeted support to working-age households in receipt of Local Council Tax Support facing financial difficulties.  The scheme would provide a credit of up to £150 on account. If the amount of Council Tax to pay was less than £150 the bill would be reduced to £0.
• In response to questions, the Chief Finance Officer explained that the Government had announced measures to help with rising energy bills, one of which was a £150 ‘council tax energy rebate’ for all households in Bands A to D. The proposed Council Tax reduction scheme was separate to the Government’s council tax rebate.  It was explained that the details of the rebate scheme were awaited; however, it was anticipated that the Council would administer the scheme on behalf of the Government and Council Tax data would be used to issue payments directly to households that paid Council Tax by Direct Debit.  It was agreed that an easy to understand guide would be circulated to all councillors, which explained the details of the Government’s council tax energy rebate scheme and the authority’s Council Tax reduction scheme.
• In responding to a query, the Chief Finance Officer agreed to provide the Committee with information regarding the number of households that would be receiving a Council Tax bill of £0 - £50.
• It was requested that details of the Mayor of Greater Manchester Council Tax precepts and budget setting process be circulated to the Committee.
• Councillor Wraighte wished to place on record her support for social care workers being paid the real living wage.
• Concerns were raised regarding the proposed increase of Council Tax, in light of rising energy bills and inflation, and it was suggested that a freeze on Council Tax to benefit all residents should be considered.
• In addition, it was suggested  ...  view the full minutes text for item 71

Report of the Cabinet Member for Finance and Corporate/Chief Finance Officer

To scrutinise the proposed Revenue Budget, Capital Programme and Council Tax 2022/23.