Issue - meetings
Revenue And Capital Budget And Proposed Council Tax Levels For 2022/23
Meeting: 27/02/2023 - City Council (Item 57)
57 Revenue and Capital Budget and Proposed Council Tax Levels for 2023/24 PDF 1 MB
Councillor Mrs Bridgeman arrived at 2.31 pm
Councillor Allen arrived at 2.45 pm
Councillor Richard Bingley, Leader of the Council introduced the item and highlighted:-
To balance a local authority budget totalling around half a billion
pounds was never an easy task and the challenge, this time, was on
a scale not previously experienced;
b) National factors had impacted the Council like never before with rocketing inflation, the impact of the war in Ukraine on energy bills and the impact of the COVID19 pandemic, which added to a rise in demand pressures and costs, particularly in social care services;
c) The challenge had been to close a £37.6 million gap in resources to set a balanced budget for 2023/24, whilst tackling the In-year shortfall;
It was treated as an emergency crisis and was acted on quickly and
proactively with spending reviews undertaken to look at every line
in every department;
e) A budget recovery programme had been instigated, focusing on modernisation and investment, generating?income, reviewing the efficiency and effectiveness of everything the Council did and making difficult decisions to change, pause or stop activities, whilst protecting statutory services;
f) Officers and members had worked extremely hard to identify ways to reduce costs, whilst delivering on the administrations ambitions for Plymouth;
g) The Leader thanked all Cabinet members and members of the council for their ideas and Plymouth residents for their contribution to the public consultation in November and December;
The Leader also expressed thanks to the three-day scrutiny panel
Chaired by Councillor Lee Finn and organised by Councillor Chris
Penberthy and Councillor Mark Shayer, who had worked extremely hard
with the finance and economy in his Cabinet portfolio;
Over £20 million of savings had been identified that had to
be delivered, with the understanding that the same financial
pressures the Council was facing with rising bills, was also being
faced by every household in Plymouth;
There is pride that a balanced budget could be proposed when other
Councils had effectively gone bankrupt, had required Government
intervention, resulting in large Council Tax increases;
Work had been conducted cross-party to ensure sustainable
improvements and stability that result from the 2023/24 budget for
whoever comes next;
The ambition throughout had been – and would continue to be
– to ensure both the Council and city emerged
from the latest economic situation stronger, greener and more
resilient for the future;
Despite the huge financial challenge, the administration had
continued to deliver upon core priorities for Plymouth they set out
in their strategic delivery plan in June 2022, which was described
by a global government review as an example of excellent strategic
practice which other local authorities could and should learn from
namely to deliver
higher value jobs, affordable green homes, better education and
access to good health care;
n) They had mobilised the Plymouth and South West Devon Freeport – which was expected to bring more than 1,000 new jobs in the following two years, ... view the full minutes text for item 57
Meeting: 28/02/2022 - City Council (Item 40)
40 Revenue And Capital Budget And Proposed Council Tax Levels For 2022/23 PDF 2 MB
Councillor Kelly, Leader, advised Members of an alteration to appendix 9 to the report relating to the council tax for the forthcoming year as follows:
“The budget papers published for this meeting of Full Council 28 February 2022 set out estimated revenue resources from Business Rates and assumed modelling of Council Tax to reflect a rise of 1.99% for council tax in 2022/23 and 1.00% for the Adult Social Care precept.
The Leader proposes an amendment to Recommendation 2 of the Revenue and Capital Budget 2022/23 report:
2. To approve an increase to the council tax levels for 2022/23 by one point seven four percent (1.74%)
2a. To approve an increase to the Adult Social Care precept for 2022/23 by one percent (1.00%)
The result from this amendment is:
- An increase in overall revenue resources of £3.345m comprising an increase of £2.124m for Council Tax and £1.221m for the Adult Social Care precept.
- Final total resources for 2022/23 of £199.874m comprising Council Tax of £125.411m; Business Rates £65.130m; Revenue Support Grant £10.045m.
- Reduce the 2022/23 general contingency by £0.305m.
- A total net revenue budget for 2022/23 of £199.874m.
Members agreed to adjourn for 30 minutes to consider the amendment.
Councillor Kelly, Leader, introduced the Revenue and Capital Budget and Proposed Council Tax Levels for 2022/23 report as amended, this was seconded by Councillor Nicholson, Deputy Leader.
Councillor Evans OBE (Leader of the Opposition) spoke to the motion and proposed an amendment, this was seconded by Councillor Lowry, and was as follows:
Labour Amendment to the Leader’s Recommendation 2:
Revenue Resources and Council Tax 2022/23 and Recommendation 3 to approve the Capital Budget
The budget papers published for this meeting of Full Council 28 February 2022 including the Leader’s Alteration set out estimated revenue resources from Business Rates and assumed modelling of Council Tax to reflect a rise of 1.00% for the Adult Social Care precept and 1.74% for council tax in 2022/23.
The Leader of the Labour Group proposes an amendment to Recommendation 2 of the Revenue and Capital Budget 2022/23 report:
2. To approve a Council Tax freeze at the 2021/22 levels for 2022/23 (0% increase)
To note: This is in addition to the 1% Adult Social Care Precept as set out in the Leader’s Alteration
The result from this amendment is:
- Final total resources for 2022/23 of £197.750m comprising Council Tax of £122.575m; Business Rates £65.130m; Revenue Support Grant £10.045m.
- A total net revenue budget for 2022/23 of £197.750m.
- We propose to fund the resultant budget shortfall of £2.124m:
Re-phasing the proposed Capital Budget will see re-timing of investments to ensure the interest rate charges will reflect the approval of the subsequent Business Cases by the Leader of the Council
Working Balance Top Up to move to a target 5% value – a contribution holiday for 2022/23 only; contributions will continue again in 2023/24
Decisions of the Incoming Administration - delete the allocation
Cost reduction target
This amendment proposes ... view the full minutes text for item 40