To consider a report of the Executive Member for Finance and Governance.

(i)        That the 2023/26 proposed budget strategy, including the 2023/24 draft revenue budget and the 2023/27 MTFS, be approved.

(ii)       That the proposal to increase Council Tax by 2.99% in 2023/24 (comprising 1.0% adult social care precept and 1.99% general increase) and by similar levels for the remaining years of the MTFS 2023/26 be noted.

(iii)     That the assumptions made in setting the MTFP in section 3.2 and the degree of uncertainty be noted.

(iv)     That the remaining budget gap for the years 2023/24 to 2025/26 be noted.

(v)      That the commentary of the Director of Finance and Systems, the Council’s statutory S151 officer, regarding the financial sustainability of the Council in Section 1.6 be noted.

(vi)     It was noted that the draft proposals are subject to various consultation exercises, further analysis of reserves, savings and income including impact assessments, potential future movements in core funding and specific grants, revised costings and robustness assessments.

(vii)    It was noted that the review of the Capital Programme which is ongoing and agreed that no further contractual commitments are made on capital projects which are financed from either capital receipts or borrowing until the current review of the capital programme is completed.

(viii)   That the flexible use of capital receipts to support in part the cost of the Modernisation Team in developing the Council’s Finance and Change Programme for the next two years be noted.

The Executive Member for Finance and Governance introduced the report which contained the draft budget proposals for 2023/24.  The Executive Member for Finance and Governance informed the Committee that the gross budget gap for 2023/24 was estimated at £25.82M and the report set out how the Council planned to reduce that gap to £8.52M as of the draft stage. 

The Executive Member for Finance and Governance then went through the draft budget informing Members of what each section contained and drawing Members’ attention to key elements. Members were informed that section 1 contained the approach to the budget and section 2 set out the financial background. Members’ attention was drawn to section 2.2 which set out the impact of austerity measures since 2010 and section 3.2.3 which related to the governments mini budget announced 23^rd September 2022. Section 4 of the report set out the measures the Council had identified to reduce the budget gap and sections 5, 6, and 7 set out the robustness and risks associated with school budgets and the capital strategy programme for the years ahead. The Executive Member for Finance and Governance finished the introduction by assuring the Committee that the Council would deliver a balanced budget for 2022/23 and thanked all the staff members who had been involved in the work on the budget.

Following the introduction Councillor Morgan asked for details to be provided as to what the £3.85M saving listed as realignment of the treasury budget meant. The Head of Financial Management replied to Councillor Morgan informing him that the line in question referred to a bundle of measures related to the Councils debt and investment profile as well as funds held by the Council, which had been impacted by the increase in interest rates. Councillor Morgan was assured that the review of the plans would come back to the Executive later and the measures were in line with the CIPFA prudential code.

Councillor Morgan noted a number of assumptions around income and savings to be achieved within the report and the Councillor asked what the main areas of risk were. Councillor Ross stated that there were individual assumptions which would be picked up within the Scrutiny Process. In response the Executive Member for Finance and Governance informed the Committee that he was particularly concerned about the wide range of impacts caused by inflation, the cost of energy, and the amount the Council would receive through the government settlement. The Executive Member for Finance and Governance assured Members that the Council were looking at measures to close the remaining budget gap but added that he hoped some of the gap would be addressed through additional funding from the government.

Councillor Morgan asked the Executive Member for Finance and Governance whether the decisions being made within the budget would have any impacts upon public safety. The Executive Member for Finance and Governance provided a response stating that the risks which related to the cuts proposed within the budget had been noted but difficult decisions had to be made and welcomed input from all Council Members as well as any interested groups to aid in delivering a balanced budget.

Councillor Jerrome asked the Executive Member for Finance and Governance whether consultation with Members would continue beyond the planned Budget Scrutiny Process. The Executive Member for Finance and Governance expressed that he was more than happy to continue to consult with and involve Councillors in all considerations of the budget up to the point when the budget was agreed.

Councillor Jerrome noted the 50% reduction in parking fees for Council staff within the budget proposals and asked the Executive Member for Finance and Governance whether that was in keeping with the Council’s Carbon reduction targets and whether it was fair to all staff. The Executive Member for Finance and Governance thanked Councillor Jerrome for the question and assured the Councillor that his views had been noted. Members were informed by the Executive Member for Finance and Governance that the decision around staff parking fees had been taken to aid the workforce with the current cost of living crisis.

Councillor Blackburn asked the Executive Member for Finance and Governance what the possible changes to staff terms and conditions related to. The Executive Member for Finance and Governance responded that the proposals which were being considered at the time related to the management of staff vacancies across the Council rather than the terms and conditions of the workforce.

Councillor Whetton noted the difficulties the Council faced in producing a balanced budget and asked the Executive Member for Finance and Governance how confident he was that a balanced budget would be delivered given the large number of variables which were still unknown. The Executive Member for Finance and Governance thanked Councillor Whetton for his recognition of the difficulties faced and assured Members that despite those difficulties he was confident a balanced budget would be reached.

The Executive Member for Housing and Neighbourhoods noted section 2.2.5 of the report and welcomed Trafford Joining the F20 lobbying group.  The Executive Member for Housing and Neighbourhoods asked Members of the Conservative group to add their support to the planned lobbying efforts. The Leader added his support to the work of the F20 lobbying group and informed Members of the lobbying activity that was planned.

The Leader concluded the discussion of the report and added that the Council had identified savings which would have met and exceeded the original projected budget deficit for the year and that he was confident in the ability of the Council to find the additional funds to meet the outstanding budget gap.

RESOLVED:

1)    That the report be noted.

2)    That the 2023/26 proposed budget strategy, including the 2023/24 draft revenue budget and the 2023/27 MTFS be approved.

3)    That the proposal to increase Council Tax by 2.99% in 2023/24 (comprising 1.0% adult social care precept and 1.99% general increase) and by similar levels for the remaining years of the MTFS 2023/26 be noted.

4)    That the assumptions made in setting the MTFP in section 3.2 and the degree of uncertainty be noted.

5)    That the remaining budget gap for the years 2023/24 to 2025/26 be noted.

6)    That the commentary of the Director of Finance and Systems, the Council’s statutory S151 officer, regarding the financial sustainability of the Council in Section 1.6 be noted.

7)    That the draft proposals are subject to various consultation exercises, further analysis of reserves, savings and income including impact assessments, potential future movements in core funding and specific grants, revised costings and robustness assessments be noted.

8)    That the review of the Capital Programme which is ongoing and agrees that no further contractual commitments are made on capital projects which are financed from either capital receipts or borrowing until the current review of the capital programme is completed be noted.

9)    That the flexible use of capital receipts to support in part the cost of the Modernisation Team in developing the Council’s Finance and Change Programme for the next two years be noted.