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Agenda item

Budget Proposals 2022/23 and Medium Term Financial Strategy

Minutes:

Councillor Gill moved the recommendations in the report. Councillor Comer-Schwartz seconded. Councillor Russell moved the amendment.

 

Councillors Heather, Bossman-Quarshie and Ismail contributed to the debate.

 

Councillor Russell exercised her right to reply on the amendment. Councillor Gill exercised his right to reply on the budget report.

 

The amendment was put to the vote. Voting was recorded as follows:

 

For: Councillor Russell

 

Against: Councillors Bossman-Quarshie, Champion, Chowdhury, Clarke, Comer-Schwartz, Gill, Gantly, Gallagher, Poole, Heather, Hyde, Jeapes, Lukes, Ngongo, O’Halloran, Turan, Ward and Wayne.

 

Abstention: Councillor Ismail

 

The motion was lost.   

 

The recommendations in the report were put to the vote. Voting was recorded as follows:

 

For: Councillors Bossman-Quarshie, Champion, Chowdhury, Clarke, Comer-Schwartz, Gill, Gantly, Gallagher, Poole, Heather, Hyde, Jeapes, Lukes, Ngongo, O’Halloran, Turan, Ward and Wayne.

 

Against: Councillor Ismail

 

Abstention: Councillor Russell

 

The recommendations in the report were CARRIED.

 

RESOLVED:

 

The General Fund Budget 2022/23 and MTFS (Section 3 of the report)

(i)           That the latest MTFS and balanced 2022/23 budget, including the underlying principles and assumptions, be agreed as recommended by the Executive (Paragraphs 3.1-3.36, Table 1 and Appendix A of the report).

(ii)        That the proposed 2022/23 net budgets by directorate be agreed as recommended by the Executive (Paragraph 3.3, Table 2 and Appendix A of the report).

(iii)       That the 2022/23 savings be agreed as recommended by the Executive, and it be noted that individual savings may be subject to individual consultation before they can be fully implemented. (Paragraphs 3.37-3.41, Table 5, and Appendix B of the report).

(iv)       That the Dedicated Schools Grant (DSG) settlement for 2022/23 and related funding assumptions be noted (Paragraphs 3.42-3.49 of the report).

(v)        That the fees and charges policy and the General Fund fees and charges for 2022/23, as approved by the Executive, be noted (Paragraphs 3.50-3.57 and Appendix C of the report).

(vi)       That the policy on General Fund contingency and reserves be agreed as recommended by the Executive, and the movements to/from earmarked reserves assumed as part of the 2022/23 revenue budget be agreed. (Paragraphs 3.58-3.67, Table 6 and Table 7 of the report).

(vii)      That the Section 151 Officer be delegated responsibility for any technical adjustments required for the 2022/23 budget (in line with the council’s Financial Regulations) be agreed as recommended by the Executive. 

(viii)    That centrally held gross demographic growth be allocated to service budgets only when the need materialises and as approved by the Section 151 Officer be agreed as recommended by the Executive (Paragraph 3.14 of the report).

The HRA Budget and MTFS (Section 4 of the report)

(ix)        That the balanced HRA 2022/23 budget be agreed as recommended by the Executive, and the latest estimates over the three-year MTFS period be noted (Paragraphs 4.1-4.3, Table 8 and Appendix D1 of the report).

(x)        That the HRA rents be noted, and following minor revisions to the version agreed by the Executive on 13 January 2022, the other HRA fees and charges for 2022/23 be agreed (Paragraphs 4.4-4.29, Tables 9-11 and Appendix D2 of the report).

(xi)       That the introduction of a points-based apportionment method from April 2022, to revise the way in which Housing Leaseholder Service Charges are calculated, be agreed (Paragraph 4.9, and Appendix D3 of the report).

(xii)     That it be noted that the HRA 30-year business plan will be updated to reflect the impact of the latest rent setting proposals as well as other agreed increases in expenditure not previously anticipated. (Paragraph 4.2 of the report).

Capital Investment and Treasury and Investment Management (Section 5 of the report)

(xiii)      That the proposed 2022/23 to 2024/25 capital programme be agreed as recommended by the Executive, and the indicative long-term capital programme for 2025/26 to 2031/32 be noted (Paragraphs 5.3, Table 12 and Appendix E1 of the report).

(xiv)    That the estimated funding of the 2022/23 to 2024/25 capital programme be noted; and authority be delegated to the Section 151 Officer, where necessary, to apply capital resources to fund the capital programme in the most cost-effective way for the council. (Paragraph 5.10 and Table 13 of the report).

(xv)      That the Capital Strategy, Minimum Revenue Provision (MRP) Policy Statement, Treasury Management Strategy, and Investment Strategy be agreed as recommended by the Executive (Paragraph 5.12 and Appendices E2-E5 of the report).

Council Tax and Retained Business Rates (Section 6 of the report)

(xvi)      That the 2021/22 council tax and business rates forecasts and budgetary impact over the medium term be noted (Paragraph 6.1-6.3 of the report).

(xvii)   That the calculations required for the determination of the 2022/23 council tax requirement, and the level of council tax as detailed in Section 6 of the report and summarised below, be agreed as recommended by the Executive: 

1.   The 2022/23 council tax requirement of £105,425,368.21 (Paragraph 6.8 and Table 15 of the report)

2.   The relevant basic amount of Islington Band D council tax of £1,314.89, a 2.99% increase compared to 2021/22 (comprising 1% specifically for expenditure on adult social care and 1.99% for all expenditure), and that this is not ‘excessive’ in accordance with the council tax referendum principles for 2022/23. (Paragraph 6.9 and Table 16 of the report)

3.   The basic amount of Islington Band D council tax for dwellings to which no special item relates (i.e. outside of the Lloyd Square Garden Committee area) of £1,314.65. (Paragraph 6.11 and Table 17 of the report)

4.   The amount of 2021/22 council tax (excluding the GLA precept) for each valuation band over each of the council’s areas. (Paragraph 6.13 and Table 18 and Table 19 of the report)

5.   The total amount of 2021/22 council tax (including the GLA precept) for each valuation band over each of the council’s areas. (Paragraph 6.15 and Table 21 and Table 22 of the report)

(xviii)That the council’s estimated retained business rates funding in 2022/23, as per the 2022/23 NNDR1 return estimate, be noted (Paragraph 6.17 and Table 23 of the report).

(xix)    That the council’s forecast NNDR surplus/(deficit) in 2022/23 be noted (Paragraph 6.18 and Table 24 of the report).


 

Matter to Consider in Setting the Budget (Section 7 of the report)

(xx)       To have regard to the Section 151 Officer’s report on the robustness of the estimates included in the budget and the adequacy of the proposed financial reserves when making decisions about the budget and the level of council tax, as required under Section 25(2) of the Local Government Act 2003. (Paragraphs 7.1-7.7 of the report).

(xxi)    That the initial assessment of compliance against the CIPFA Financial Management Code, and that this will be re-visited at least annually as part of the budget process, with any actions or recommendations implemented on an ongoing basis, be noted (Paragraph 7.5 and Appendix F of the report).

(xxii)   That the Monitoring Officer comments be noted (Paragraphs 7.8-7.12 of the report).

(xxiii)That the Equality Impact Assessment (Paragraphs 7.13-7.15 and Appendix G of the report) and the requirement to consider it fully in approving the overall budget and related proposals be noted.

(xxiv)That it be noted that the council invited business rate payers or representatives of business rate payers in Islington to comment on the draft 2022/23 budget proposals, as required under Section 65 of the Local Government Finance Act 1992, and that no responses were received (Paragraphs 7.16-7.18 of the report).

(xxv)   That the Annual Pay Policy Statement 2022/23 be agreed as recommended by the Executive (Paragraph 7.19 and Appendix H of the report).

 

Supporting documents: