Councillor Nick Kelly (Leader) and Brendan Arnold (Service Director for Finance) introduced the Proposed Budget 2022 – 2023 –

(a)     Summarised the impact of the provisional Local Government Finance Settlement on the 2022/23 budget;

(b)    Sets out revenue budget planning assumptions in respect of funding, approved savings plans and resource requirements for 2022/23 (see Section 1);

(c)     Sets out capital budget planning assumptions for 2022/23 (see Section 2)

(d)    Summarised cost pressures;

(e)    Highlighted the delivery of the Corporate Plan priorities (see Section 3)

(f)      set out the Capital Financing Strategy and the Treasury Management Strategy for 2022/23 (see Section 4)

(g)     Cabinet considered the Draft Budget for 2022/23 at its meeting on 21 December 2021 and the Budget Scrutiny Select Committee considered the budget proposals on 20 January 2022.

(h)    Under the Council’s Constitution, Cabinet is required to recommend the Budget to City Council, which would meet on 28 February 2022.

(i)      As is usual in local government there were constraints within which the City needs to plan, but this was an aspirational budget where:

·     There was a clear commitment to make the City Carbon Zero by 2030 and to continue this journey by establishing a £2m Climate Emergency Investment Fund where savings from investment in climate friendly projects and initiatives will be recycled to provide additional projects of this kind.

·     We had been able to invest in services to protect Children and £7.6m had been invested in Children’s social care.

·     Additional resources were also provided to care for the elderly and vulnerable in our society including investment of £7.6m in the services people need in Adult Social Care.

·     There was an extra £500,000 is for Homelessness.

·     Importantly we had provided funding (£0.050m) for the work of the VAWG Commission as it works to bring forward its recommendations and look forward to working closely with partners on that agenda when that Commission had concluded its work

·     We continued to invest in Street Services and in preserving service standards with an additional £0.8m for services that our very important to all of our residents.

·     There was investment in an ambitious and innovative Capital Programme to bring new investment to the City and to improve the maintenance of buildings the Council uses for service delivery. 

·     In addition, we had further ambitious plans that we were developing which include the creation of a Freeport with Devon County Council and South Hams which will generate jobs for the City and we would come forward with plans for the Fish Quay and the Airport.

·     We commit to a suite of efficiency savings worth £6.2m to ensure that every £1 spent in Plymouth is spent well.

(j)      We have had a detailed examination of the Council’s budget by the Budget Scrutiny Select Committee on 20 January.  I am grateful for all the hard work Members undertook in that meeting and for the range of questions raised and issues discussed which have helped us formulate the final budget proposals.  I also hope that we can be able to accept all of the Scrutiny recommendations that appear on our agenda today.

(k)    Of course, looking forward we should be unable to do everything we would like but I’m clear that we should support the vulnerable in our communities as well as investing in infrastructure and drawing investment into our City.  In summary, the things that people in our City value, including refuse collection and improving our public facilities and environmental services will be key priorities.

(l)      During the Pandemic, our City had been supported from Government by well over  £100m of Business Grants, including the 2 new schemes launched in December, which to date has supported almost 6,000 local businesses. In addition, we had received £38m of direct support received by the Council.  Council Tax and Business Rates funding – partly because of this support – has held up well, which was a positive foundation for the future. Our Public health team had worked tirelessly to distribute support monies to the most vulnerable and adult social care has provided financial support to care providers. In total, this Council has received over £175m of additional grants to support the City.

(m)          Cabinet were determined that moving forward Plymouth would continue to develop as the premier regional centre in the SW and to insist that our voice is heard on the national stage.

·       We had been at the forefront of responding to the pandemic which – working with partners - has entailed seeking to ensure the safety of our residents and visitors. 

·       The pandemic had also placed pressure on our social care market and we are determined to work with Government reforms to assure services for vulnerable adults moving forward.

·       We had seen rises in the number of people approaching the Local Authority who were homeless or threatened with homelessness.  I had already referred the additional resources we were making available the budget proposals.

·       Our Children’s Services work with partners to ensure that children and young people were safe and protected from the risk of harm at home and in their communities.  Our budget proposed additional investment to ensure that we had the right number of colleagues in the children’s social work team to deal with the additional care costs that have arisen during from pandemic.

·       Business change would be important moving forward and all services have undertaken work to review their operations.  For 2022/23 the Corporate Services Review would be launched to deliver a package of operating improvements and efficiencies to deliver savings of £0.8m in 2022/23 and a further £1.6m in 2023/24.  Related initiatives in other services will be helping the Council make better use of the available resources for 2022/23.

(n)           I would like to thank all of our staff for the many challenges they have surmounted throughout the last 12 months.   The communities in our City had shown enormous compassion, determination and resilience in facing some of the most difficult times any of us will remember.   Our people have been sorely tested and as a City and a Council we had not been found wanting; accordingly we can step forward with confidence.

Cabinet agreed to recommend the following to City Council, subject to amendments by the Section 151 Officer in consultation with the Leader:

1. The Revenue Budget 2022/23;

2. The Capital Budget 2022/23;

3. The Capital Financing Strategy 2022/23;

4. The Treasury Management Strategy 2022/23.