Agenda item

This report sets out Cabinet’s proposals for the Capital and Revenue Budget for 2023/24. In accordance with the Constitution, Council is required to approve the Capital and Revenue Budget, rent increases and Council Tax for 2023/24.

Background:

 

This report provided details of the revenue and capital budget proposals for 2023/24.

 

The Cabinet had considered initial budget proposals on 15 November 2022. On 19 December 2022 the Government had published the provisional local government settlement, with details of the funding announcements and their impact on Medway Council’s budget being set out in a report considered by the Cabinet on 10 January 2023.

 

In accordance with the budget and policy framework rules within the Constitution, the Overview and Scrutiny Committees had then considered the Cabinet’s proposals prior to Cabinet’s consideration of the draft budget on 7 February 2023.

 

It was noted that an overarching Diversity Impact Assessment, as set out in Appendix 11 to the report, summarised the results of Diversity Impact Assessments. These had been completed for each of the services affected by the proposed budget changes.

 

The Leader of the Council, Councillor Jarrett, supported by the Deputy Leader and Portfolio Holder for Housing and Community Services, Councillor Doe, proposed the following recommendations, as amended from those set out in section 24 of the report:

 

24.             “Revised recommendations

 

24.1.        The Council is asked to approve the following recommendations with the revisions highlighted in bold text as set out below:

 

24.2.        Agree the recommendations of the Employment Matters Committee on 24 January 2023 as set out in Section 9:

 

·       a general cost of living increase of £1,000 (pro-rata) for all staff,

·       creation of a gap in pay ranges 1-4 through the introduction of a £500 gap, as detailed in paragraphs 7.6-7.8 of that report, and

·       Full Council delegate to the Chief Executive the authority to agree the competency-based awards for staff assessed under MedPay at Levels 1A and 1B.

 

24.3          Approve the general fund gross, income and net revenue estimates as summarised in Appendix 1 to the report in the sum of £388.269million incorporating the following savings and additions:

 

Savings to bridge the budget gap	£
Medway Norse movement in uplift and rebate improvements	200,000
Community Hub review and property rationalisation	200,000
Adult Social Care residential placement reductions	600,000
Moving traffic offences income	200,000
Energy uplift savings	737,000
Vacancy factor	350,000
Staff restructuring	345,000
TOTAL	2,632,000

Additions:

 

Initiative	Cost £	Funding
King Charles Coronation	50,000	Vacancy Factor
Free bulky waste collection	345,000	Staff restructuring
Monday free parking at the following car parks:   Chatham – The Brook and St. John’s Rochester – Blue Boar Lane and Cathedral Gillingham – Littlewoods and Balmoral Gardens Rainham – Longley Road and Cricketers Strood – Temple Street and Commercial Road	300,000	Vacancy Factor

 

 

 

24.4          Approve the additions to the capital programme set out in Table 7 of the report.

 

24.5          Note the Kent Police and Crime Commissioner’s precept requirement, as set out in paragraph 15.2 of the report;

 

24.6          Note the proposed Kent Fire and Rescue Service precept requirement, as set out in paragraph 15.3 of the report;

 

24.7          Note the parish council precept requirements of £614,994 as detailed in paragraph 15.4 of the report and at Appendix 6 to the report;

 

24.8          Approve the basic rate of Council Tax at band D for 2023/24, before adding the police, fire and parish precepts, at £1,671.23, an increase of 4.994% as set out in paragraph 16.1 of the report;

 

24.9          Approve, in principle, the following changes to Council premia in line with the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018, as set out in paragraph 3.4.4 of this report:

 

·       the 100% premium for long-term empty properties may be brought forward so that it can commence after being empty for one year rather than two; and

·       a 100% premium may be charged for properties that are unoccupied but furnished (referred to as second homes).

 

24.10.   Approve the transfer of £3million from general reserves to a new earmarked reserve, to be used in the event the Deficit Recovery Plan does not reduce the DSG Deficit in line with the agreement with the Safety Valve Intervention Programme, as set out in Section 3.8.3 of the report.

 

24.11.   Approve the Flexible Use of Capital Receipts Strategy set out at Appendix 8 to this report;

 

24.12.   Approve fees and charges, as recommended by Cabinet as part of the budget proposals, in the booklet 'Medway Council - Fees and Charges April 2023', as set out in Appendix 8 to the report;

 

24.13    Approve the recommendations set out at 14.2 to 14.15 of the report with regard to the Housing Revenue Account and detailed in the following appendices:

 

·       The proposed increase in rents as set out at Appendices 5A and 5B;

·       The proposed service charges as set out at Appendix 5C;

·       The budget proposed as summarised at Appendix 5D;

·       The 30 year business plan projections at Appendix 5E.

 

24.14       Adopt the formal resolution for the Council Tax requirement and schedule of Council Tax charges for 2023/24 as set out in Appendix 7A to the report subject to incorporating the following amendments arising from this meeting:

 

1)         Amount in paragraph 3(a), Appendix 7A becomes  £547,629,752.

 

2)         Amount in paragraph 3(b), Appendix 7A becomes £397,712,668.

 

24.15       Note the findings of the Diversity Impact Assessment as set out in Appendix 11 to the report, and the proposal to continue, where necessary, to report through quarterly monitoring any further unidentified or unintentional impact.”

 

Councillor Maple, supported by Councillor Murray, proposed the following amendment:

 

“Add new recommendation 24.16:

 

Delete Members Priorities funding of £338,000

 

Reallocate £338,000 to the following schemes:

 

Creation of Medway Life Savers Fund                                             £45,000

 

Allocation of £30,000 to Five Town Centre Forums                          £150,000

 

Allocation of £3,000 to each “Friends of” Group                               £45,000

 

Selective Licensing Pilot                                                                  £28,000

 

Creation of Gravel Walk Pocket Park                                               £25,000

 

Consultation and creation of Covid Memorial                                   £20,000

 

Greening of Strood Waterside                                                         £25,000”

 

In accordance with Rule 12.5 of the Council Rules, a recorded vote on the

amended proposal was taken.

 

For - Councillors Browne, Crozer, Curry, Edwards, Howcroft-Scott, Hubbard, Johnson, Khan, Lloyd, Mahil, Maple, McDonald,Murray, Osborne, Price, Sands, Andy Stamp, Chrissy Stamp and Van Dyke. (19)

 

Against - Councillors Ahmed, Aldous, Barrett, Brake, Buckwell, Carr, Mrs Diane Chambers, Rodney Chambers OBE, Chitty, Clarke, Doe, Fearn, Filmer, Griffin, Gulvin, Hackwell, Mrs Josie Iles, Jarrett, Kemp, Lammas, Potter, Purdy, Tejan, Thorne, Mrs Elizabeth Turpin, Wildey and Williams. (27)

 

Abstain – None.

 

The amendment was lost.

 

In accordance with Rule 12.5 of the Council Rules, a recorded vote on the Leader of the Council’s proposal was taken.

 

For – Councillors Ahmed, Aldous, Barrett, Brake, Buckwell, Carr, Mrs Diane Chambers, Rodney Chambers OBE, Chitty, Clarke, Doe, Fearn, Filmer, Griffin, Gulvin, Hackwell, Mrs Josie Iles, Jarrett, Kemp, Lammas, Potter, Purdy, Tejan, Thorne, Mrs Elizabeth Turpin, Wildey and Williams. (27)

 

Against – Councillors Browne, Crozer, Curry, Edwards, Howcroft-Scott, Hubbard, Johnson, Khan, Lloyd, Mahil, Maple, McDonald, Murray, Osborne, Price, Sands, Andy Stamp, Chrissy Stamp and Van Dyke. (19)

 

Abstain – None.

 

On being put to the vote, the proposal was agreed.

 

Decision:

 

The Council:

 

a)       Agreed the recommendations of the Employment Matters Committee on 24 January 2023, as set out in Section 9 of the report:

 

·       a general cost of living increase of £1,000 (pro-rata) for all staff,

·       creation of a gap in pay ranges 1-4 through the introduction of a £500 gap, as detailed in paragraphs 7.6-7.8 of that report, and

·       Full Council delegate to the Chief Executive the authority to agree the competency-based awards for staff assessed under MedPay at Levels 1A and 1B.

 

b)   Approved the general fund gross, income and net revenue estimates as summarised in Appendix 1 to the report in the sum of £388.269million incorporating the following savings and additions:

 

Savings to bridge the budget gap	£
Medway Norse movement in uplift and rebate improvements	200,000
Community Hub review and property rationalisation	200,000
Adult Social Care residential placement reductions	600,000
Moving traffic offences income	200,000
Energy uplift savings	737,000
Vacancy factor	350,000
Staff restructuring	345,000
TOTAL	2,632,000

 

Additions:

 

Initiative	Cost £	Funding
King Charles Coronation	50,000	Vacancy Factor
Free bulky waste collection	345,000	Staff restructuring
Monday free parking at the following car parks:   Chatham – The Brook and St. John’s Rochester – Blue Boar Lane and Cathedral Gillingham – Littlewoods and Balmoral Gardens Rainham – Longley Road and Cricketers Strood – Temple Street and Commercial Road	300,000	Vacancy Factor

 

c)   Approved the additions to the capital programme set out in Table 7 of the report.

 

d)      Noted the Kent Police and Crime Commissioner’s precept requirement, as set out in paragraph 15.2 of the report.

 

e)      Noted the proposed Kent Fire and Rescue Service precept requirement, as set out in paragraph 15.3 of the report.

 

f)       Noted the parish council precept requirements of £614,994 as detailed in paragraph 15.4 of the report and at Appendix 6 to the report.

 

g)      Approved the basic rate of Council Tax at band D for 2023/24, before adding the police, fire and parish precepts, at £1,671.23, an increase of 4.994% as set out in paragraph 16.1 of the report.

 

h)      Approved, in principle, the following changes to Council premia in line with the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018, as set out in paragraph 3.4.4 of the report:

 

·       the 100% premium for long-term empty properties may be brought forward so that it can commence after being empty for one year rather than two; and

·       a 100% premium may be charged for properties that are unoccupied but furnished (referred to as second homes).

 

i)        Approved the transfer of £3million from general reserves to a new earmarked reserve, to be used in the event the Deficit Recovery Plan does not reduce the DSG Deficit in line with the agreement with the Safety Valve Intervention Programme, as set out in Section 3.8.3 of the report.

 

j)        Approved the Flexible Use of Capital Receipts Strategy set out at Appendix 9 to this report.

 

k)      Approved fees and charges, as recommended by Cabinet as part of the budget proposals, in the booklet 'Medway Council - Fees and Charges April 2023', as set out in Appendix 8 to the report.

 

l)        Approved the recommendations set out at 14.2 to 14.15 of the report with regard to the Housing Revenue Account and detailed in the following appendices:

 

·       The proposed increase in rents as set out at Appendices 5A and 5B;

·       The proposed service charges as set out at Appendix 5C;

·       The budget proposed as summarised at Appendix 5D;

·       The 30 year business plan projections at Appendix 5E.

 

m)    Adopted the formal resolution for the Council Tax requirement and schedule of Council Tax charges for 2023/24 as set out in Appendix 7A to the report subject to incorporating the following amendments arising from the Full Council meeting:

 

i)    Amount in paragraph 3(a), Appendix 7A becomes  £547,629,752.

 

ii)   Amount in paragraph 3(b), Appendix 7A becomes £397,712,668.

 

n)      Noted the findings of the Diversity Impact Assessment as set out in Appendix 11 to the report, and the proposal to continue, where necessary, to report through quarterly monitoring any further unidentified or unintentional impact.