Meeting documents

To consider a report with recommendations from the Leader of the Council, arising from the Cabinet meeting on 14 February 2022.

The recommendations relate to:

·       MTFP (Medium Term Financial Plan) 2022/23  Budget and Council Tax setting (Paper A)

·       Treasury Management Strategy 2022/23 (Paper B)

The Medium-Term Financial Plan 2022/23 (including the Revenue and Capital Budgets and Council Tax Setting etc as set out in Paper A and its appendices).

The Council RESOLVED to

Approve the General Fund net revenue budget for 2022/23 of £378,646,000 and the individual service budgets for 2022/23 as outlined in Appendix 1 including:

a) The transformation, savings and income generation plans outlined in Appendix 2, noting the savings did not require detailed Equalities Impact Assessments.

b) The additional funding requirements set out in Appendix 3.

c) The Finance and Assets Protocol as part of Local Government Reorganisation implementation as attached at Appendix 11.

d) An increase in Council Tax of 1.99% in 2022/23 (an increase of £26.94 per Band D property).

e) An increase of 1.00% to Council Tax for the Adult Social Care Precept is approved in recognition of the current demands and financialpressures on this service. This is equivalent to an increase of £13.54 on a Band D property.

f) Agree to continue the Council Tax precept of £12.84 within the base budget for the shadow Somerset Rivers Authority (representing no increase). This results in a Council Tax Requirement of £2,577,594. Page 80

g) Agree the precept requirement of £279,841,541 and set the County Council precept for Band D council tax charge at £1,394.00 for 2022/23.

h) The use of reserves for once-off spend and the overall estimated position of Earmarked Reserves outlined in Appendix 4.

i) Note the adequacy of General Reserves at £23.0m within a risk assessed range requirement of £20m - £30m.

j) The Capital & Investment Strategy attached at Appendix 6.

k) The Efficiency Strategy attached at Appendix 7.

l) The Capital Programme for 2022/23 of £110.2m including new capital bids of £48.4m outlined in Appendix 8, planned sources of funding, and notes the overall programme of £180.3m for 2023/24 to 2024/25 as outlined in Appendix 9.

m) The MRP Policy attached at Appendix 10.

n) The Capital Prudential Indicators outlined in tables 16-22.

o) To opt into the national procurement scheme for External Auditor Appointments administered through Public Sector Audit Appointments Limited (PSAA).

p) Delegate any final Business Rates amendments to the Director of Finance and Governance in consultation with the Leader of the Council.

And to delegate any amendments within the final Government Financial Settlement and the final Business Rates amendments to the Director of Finance and Governance in consultation with the Leader of the Council.

Treasury Management Strategy Statement 2022-23 (as set out in Paper B and its appendices).

The Council RESOLVED to:

1. adopt the Treasury Borrowing Strategy (as shown in Section 2 of the report).

2. approve the Treasury Investment Strategy (as shown in Section 3 of the report) and proposed Lending Counterparty Criteria (attached at Appendix B to the report).

3. adopt the Prudential Treasury Indicators in section 4.

4. note Appendix A, that is adopted as part of the Councils Financial regulations.

5. note the current Treasury Management Practices (TMPs) attached at Appendix D to the report.

This report sets out the Leader’s and Cabinet’s recommendations to Council arising from their consideration of reports at the Cabinet meetings on 15 December 2021, 19 January and 14 February 2022. The report was introduced by the Leader of Council who welcomed this positive and sustainable budget. This would be the last budget of Somerset County Council as the next would be set by the new Unitary Council (Somerset Council). The leader highlighted the increase expenditure on Adult Social Care (up £18m), the increase spend on Children (up £12m) and a £8.4 m increase in spending on schools. What was proposed was a balanced budget and did not rely on the use of reserves. All Somerset Local Authorities have agreed to a spending protocol, this ensured the new authority would start from a strong budget position.

The County Council discussed the proposed budget, and the following points were raised. There is still a budget gap from both the District Councils and Somerset County Council that will need to be addressed by the new authority. The cost of setting up the new authority were not known in their entirety and there was still a risk they could be higher than planned. Should the ‘unitary dividend’ materialise it was not up to Somerset County Council to decide how to spend it; that decision lay with the new authority and the Councillors elected in May to deliver. Parish Councils have contributed to support many of the services in their areas when the budget from the County Council had been cut.

The level of funding for the Climate Change Emergency had not been projected as the same level as now and that was because things like electric vehicles and decarbonisation of some buildings will have happened, this is not an annual demand.

The potential loss of Covid 19 funding from central government was also raised as a concern.

The Medium-Term Financial Plan 2022/23 (including the Revenue and Capital Budgets and Council Tax Setting etc as set out in Paper A and its appendices). Proposed by Cllr Fothergill and seconded by Cllr Chilcott.

Cllr David Fothergill, seconded by Cllr Mandy Chilcott, moved and the Council

RESOLVED to:

Approve the General Fund net revenue budget for 2022/23 of £378,646,000 and the individual service budgets for 2022/23 as outlined in Appendix 1 including:

a) The transformation, savings and income generation plans outlined in Appendix 2, noting the savings did not require detailed Equalities Impact Assessments.

b) The additional funding requirements set out in Appendix 3.

c) The Finance and Assets Protocol as part of Local Government Reorganisation implementation as attached at Appendix 11.

d) An increase in Council Tax of 1.99% in 2022/23 (an increase of £26.94 per Band D property).

e) An increase of 1.00% to Council Tax for the Adult Social Care Precept is approved in recognition of the current demands and financialpressures on this service. This is equivalent to an increase of £13.54 on a Band D property.

f) Agree to continue the Council Tax precept of £12.84 within the base budget for the shadow Somerset Rivers Authority (representing no increase). This results in a Council Tax Requirement of £2,577,594. Page 80

g) Agree the precept requirement of £279,841,541 and set the County Council precept for Band D council tax charge at £1,394.00 for 2022/23.

h) The use of reserves for once-off spend and the overall estimated position of Earmarked Reserves outlined in Appendix 4.

i) Note the adequacy of General Reserves at £23.0m within a risk assessed range requirement of £20m - £30m.

j) The Capital & Investment Strategy attached at Appendix 6.

k) The Efficiency Strategy attached at Appendix 7.

l) The Capital Programme for 2022/23 of £110.2m including new capital bids of £48.4m outlined in Appendix 8, planned sources of funding, and notes the overall programme of £180.3m for 2023/24 to 2024/25 as outlined in Appendix 9.

m) The MRP Policy attached at Appendix 10.

n) The Capital Prudential Indicators outlined in tables 16-22.

o) To opt into the national procurement scheme for External Auditor Appointments administered through Public Sector Audit Appointments Limited (PSAA).

p) Delegate any final Business Rates amendments to the Director of Finance and Governance in consultation with the Leader of the Council.

And to delegate any amendments within the final Government Financial Settlement and the final Business Rates amendments to the Director of Finance and Governance in consultation with the Leader of the Council.

A named vote was taken on the motion, with votes being cast 27 for and 13 against, as follows:

Treasury Management Strategy Statement 2022-23 (as set out in Paper B and its appendices).

The report was proposed by Cllr Chilcott and seconded by Cllr Lewis. The Council RESOLVED by majority to:

1. adopt the Treasury Borrowing Strategy (as shown in Section 2 of the report).

2. approve the Treasury Investment Strategy (as shown in Section 3 of the report) and proposed Lending Counterparty Criteria (attached at Appendix B to the report).

3. adopt the Prudential Treasury Indicators in section 4.

4. note Appendix A, that is adopted as part of the Councils Financial regulations.

5. note the current Treasury Management Practices (TMPs) attached at Appendix D to the report.

A named vote was taken on the motion, with votes being cast 27 for and 13 abstentions, as follows: