Issue - meetings

This report sets out Cabinet’s proposals for the capital and revenue budgets for 2022/23. In accordance with the Constitution, Council is required to approve the capital and revenue budgets, rent increases and council tax for 2022/23.

Background:

Ahead of discussion of the agenda item, the Council held a minute’s silence in memory of all those in Medway who had lost their lives as a result of Covid-19.

This report provided details of the revenue and capital budget proposals for 2022/23.

The Cabinet had considered initial budget proposals on 16 November 2021. On 15 December 2021 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 11 January 2022.

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 8 February 2022.

An addendum report which provided details of a change to the schedule of Parish Council precepts, and associated changes to the Council Tax resolution and bandings, had been circulated separately to the main agenda.

It was noted that an overarching Diversity Impact Assessment, as set out in Appendix 12 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:

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

a)      Approve the recommendations of Employment Matters Committee on 2 February 2022 as set out in paragraphs 9.4 and 9.5 of the original report and agree:

1)  That £1,090,850 is allocated for pay awards;

2)  To delegate to the Head of Paid Service the authority to agree the competency-based awards for staff assessed under MedPay at Levels 1A, 1B and 2; and

3)  To delegate authority to the Head of Paid Service in consultation with the Leader, to agree a mechanism to distribute the pay award so that lower paid staff receive a higher proportion of the award.

b)      Delegate to the Head of Paid Service in consultation with the Leader the authority to agree how the 2022/23 pay award for colleagues is allocated including determining the proportions of the 2% pay award to be paid in respect of the Cost of Living increase / MedPay performance related pay as set out in paragraphs 9.4 and 24.4 of the original report and increase the minimum rate for Medway Council staff to £10 per hour.

c)   Approve the general fund gross, income and net revenue estimates as summarised in Appendix 1, to the report in the sum of £351,025.million plus the following additions and savings:

1)  £1,140,683 to fund the additional 1% uplift and the impact of setting the minimum hourly rate at £10 per hour;

2)  £95,000 to celebrate the Queen’s Jubilee;

3)  £121,000 for Child Friendly  ...  view the full minutes text for item 707

Background:

The Cabinet accepted the report as urgent to enable consideration of the matter at the earliest opportunity given that the final budget was due to be submitted to the next scheduled Council meeting on 24 February 2022.

This report presented proposals for the capital and revenue budgets for 2022/2023. It was noted that the Cabinet had considered initial budget proposals on 16 November 2021, which had identified a potential revenue shortfall of £18.176million in 2022/2023.

The report stated that at time of writing, there was still a deficit of £1.609 million to resolve. Options were being considered to address this prior to the Council’s budget setting meeting on 24 February 2022 and if measures to address the deficit were not identified, then it would need to be met from the Council’s reserves.

The current capital programme for 2022/2023 was £483.791million, with a further £17.350million estimated for proposed additions to the programme for the next financial year, as detailed at section 13 of the report. It was also proposed to add £2.030 million to the revenue budget through the Flexible Use of Capital Receipts.

It was noted that budget proposals had been referred to all the Overview and Scrutiny Committees for consideration. The Overview and Scrutiny Committees’ views together with the recommendations of the Business Support Overview and Scrutiny Committee (25 January 2022) were set out for Cabinet at Appendix 1 to the report.

The report set out the requirements under equality legislation and it was noted that an overarching Diversity Impact Assessment would be included in the budget report to Full Council on 24 February 2022.