A maximum of 15 minutes will be allocated to public questions submitted in writing to Democratic Services (democratic.services@trafford.gov.uk) by 4 p.m. on the working day prior to the meeting. Questions must be relevant to items appearing on the agenda and will be submitted in the order in which they were received.

The Head of Legal and Governance read out four questions which had been received from a member of the public and the Executive Member for Finance Change and Governance provided responses at the meeting which would be provided in writing to the member of the public and captured below.

Question 1 - On page 52 of the report in the following paragraph

“The Council has a budget from Business Rates income of approximately £80m and due to the complexities in the system such as the uncertainty surrounding a potential downturn in the general economy along with the forthcoming business rate reset, the importance of maintaining a suitable balance in this reserve cannot be underestimated. The underlying balance of £5.66m will be used to mitigate against these significant risks."

Should the word underestimated read overestimated?

The Executive Member Executive Member for Finance Change and Governance responded.

“The use of the term is to emphasise the importance of maintaining the reserve at a prudent level sufficient to mitigate the risk of a shortfall in this significant income stream.  In comparison with other reserves, the estimated balance of £5.66m although material, is considered to be the lowest required balance given the significance of the income derived from business rates.”

Question 2 - Given the perceived current difficulties of the Government to bring down the various measures of the Rate of Inflation, despite the projections made by the ONS please could the Executive Member for Finance give an opinion of the level of confidence being placed on the assumption for General Inflation as applicable to 2024 – 2025?

The Executive Member Executive Member for Finance Change and Governance responded.

“The assumptions underpinning the rates of inflation in these budget figures for general and contractual inflation range between 3 and 7% and reflect the range of increases dependant on the type of contract and the agreed contractual terms specific to each contract. Some contracts contain increases measured at CPI/RPI using specific times (eg Sept CPI) whilst others are based on estimates of forecast inflation. The Bank of England forecast assumes their target of 2% will be reached by late 2024. The assumptions in the draft budget will be updated based on latest forecasts during the preparation of the final budget report.”

Question 3 - Turning to Pay Inflation given the continuing pressure on Public Sector Pay by the awards being made in the Private Sector coupled with the re-emergence of significant action by the unions could the Executive Member for Finance give an opinion of the level of confidence being placed on the assumption for Pay Inflation as applicable to 2024 – 2025.

The Executive Member Executive Member for Finance Change and Governance responded.

“Estimating the level of pay inflation has been recognised as a risk in the preparation of the draft budget. Average pay awards over the previous two years were in the region of 6%, largely reflecting the increases in the national and real living wage rates. The current assumption for 2024/25 is 3% and reflecting the downward trajectory in the inflation rate. The assumptions on the pay award have also been benchmarked against GM authorities and are aligned with the assumptions being made by the other districts. Estimates will be updated in preparation of the final budget report and will take into account latest forecasts and possible announcements released as part of the Autumn Statement."

Question 4 - Given the statement at 7.6.5 of the report i.e. "There appears to be little headroom for any further substantial release of resources to support the budget gap and at the same time provide sufficient robustness to absorb the major financial risks over the short term. However, as in previous years and in line with good practice a detailed analysis of all reserves and adequacy of balances will be concluded and reported on as part of the final budget report." Could the Executive publish their final budget report in a sufficiently timely manner to allow property scrutiny by any residents wishing to do so. Indeed, please could they now indicate an appropriate latest date for publication.

The Executive Member Executive Member for Finance Change and Governance responded.

“It is acknowledged that there had been several points raised around the timing of Budget Exec/Council meetings – generally those points linked to a request for more time to consider the proposed budget ahead of the deadline for submission of amendments.

Based on that feedback, we have agreed the following change in the approach to Budget Exec/Council:

• We will keep both the Exec and Council meetings scheduled for the same evening – 21^st February 2024

·         We will bring forward the agenda send out (for budget related items) for 7^{th or} 8^th February.

The subtle but important change will provide members with additional time to consider the proposed budget, to consider an alternative budget proposal should they wish to and to liaise with the Council’s S151 Officer prior to the Executive and Council meetings.”