Agenda item

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 Medway;

4)  £300,000 additional homelessness grant;

5)  £100,000 to reflect existing bulky waste income in the budget.

 

Together with the 3.896million deficit reflected in Appendix 1 to the report, these represent a total call on reserves of £4,852,683.

 

d)   Approve the additions to the capital programme set out in Table 7 of the original report plus the following additions:

 

1)  £10.348 million to fund the Pentagon Healthy Living Centre to be met initially from borrowing in advance of NHS grant funding on delivery;

2)  £500,000 addition to the Highways programme to be met from reserves;

3)  £250,000 to continue the Community Hub Programme to be met from reserves;

4)  £60,000 for the replacement of polling booths and other elections equipment to be funded from capital receipts.

 

e)      Approve the removal of the balance of the SEN School scheme of £2,467,626 from the capital programme as set out in paragraph 13.5 of the original report;

 

f)       Approve the removal from the capital programme and addition to the revenue budget for 2021/22 the following schemes funded through the Flexible Use of Capital Receipts, as set out in paragraph 8.2 of the original report:

 

1)      9X576 Children’s Improvement Programme – £612,351,

2)      9C077 Transformation Flexible Use of Capital Receipts – £2,371,602, and

3)      9C779 Feasibility Studies Flexible Use of Capital Receipts – £500,000.

 

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

 

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

 

i)        Note the parish council precept requirements of £561,258 as detailed in paragraph 15.4 of the original report and at Amended Appendix 6 to the report;

 

j)        Approve the basic rate of Council Tax at band D for 2022/23, before adding the police, fire and parish precepts, at £1,591.74, an increase of 2.994% as set out in paragraph 16.1 of the report;

 

k)      Approve the adoption of a 300% Council Tax premium for properties that have remained empty and unfurnished for more than two years, in line with the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 as set out in paragraph 3.14 of the original report;

 

l)        As part of the budget proposals, approve fees and charges, as recommended by Cabinet and set out in the booklet 'Medway Council - Fees and Charges April 2022' as set out in Appendix 8 to the report;

 

m)    Approve the Flexible Use of Capital Receipts Strategy set out at Appendix 9 to the report;

 

n)      Agree the recommendations set out at 14.3 to 14.11 of the original report with regard to the Housing Revenue Account and detailed in the following appendices:

 

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

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

3)  The budget proposed as summarised at Appendix 5D;

4)  The 30 year business plan projections at Appendix 5E.

 

o)      Adopt the formal resolution for the Council Tax requirement and schedule of Council Tax charges for 2022/23 as set out in Amended Appendix 7A and the Council Tax Bandings at Amended Appendix 7B to the report as amended by the changes at paragraph 24.4 above;

 

p)      Approve the revised Senior Management Structure set out at Appendix 10.

 

q)      Approve the creation of a new band within the pay structure as set out in Appendix 11, and to note that Directors will undertake reorganisations for their respective Directorates as set out in paragraph 9.3 of the original report. This range will attract the same special allowance as the current Head of Service.

 

r)       Note the findings of the Diversity Impact Assessment as set out in Appendix 12 to the report, and the proposal to continue, where necessary, to report through quarterly monitoring any further unidentified or unintentional impact.

 

 

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

 

For – Councillors Ahmed, Aldous, Barrett, Brake, Buckwell, Mrs Diane Chambers, Rodney Chambers OBE, Chitty, Clarke, Doe, Etheridge, Fearn, Filmer, Griffin, Gulvin, Hackwell, Mrs Josie Iles, Jarrett, Kemp, Lammas, Opara, Potter, Purdy, Tejan, Thorne, Tranter, Elizabeth Turpin, Rupert Turpin, Wildey and Williams. (30)

 

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

 

Abstain – Councillor Pendergast (1)

 

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

 

Decision:

 

The Council:

 

a)      Approved 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 agreed:

 

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

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

3)  Agreed 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)      Agreed to delegate authority 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)      Approved 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 Medway

4)  £300,000 additional homelessness grant;

5)  £100,000 to reflect existing bulky waste income in the budget.

 

Together with the 3.896million deficit reflected in Appendix 1 to the report, these represent a total call on reserves of £4,852,683.

 

d)      Approved the additions to the capital programme set out in Table 7 of the original report plus the following additions:

 

1)  £10.348 million to fund the Pentagon Healthy Living Centre to be met initially from borrowing in advance of NHS grant funding on delivery;

2)  £500,000 addition to the Highways programme to be met from reserves;

3)  £250,000 to continue the Community Hub Programme to be met from reserves;

4)  £60,000 for the replacement of polling booths and other elections equipment to be funded from capital receipts.

 

e)      Approved the removal of the balance of the SEN School scheme of £2,467,626 from the capital programme as set out in paragraph 13.5 of the original report;

 

f)       Approved the removal from the capital programme and addition to the revenue budget for 2021/22 the following schemes funded through the Flexible Use of Capital Receipts, as set out in paragraph 8.2 of the original report:

 

1)    9X576 Children’s Improvement Programme – £612,351,

2)    9C077 Transformation Flexible Use of Capital Receipts – £2,371,602, and:

3)    9C779 Feasibility Studies Flexible Use of Capital Receipts – £500,000.

 

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

 

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

 

i)        Noted the parish council precept requirements of £561,258 as detailed in paragraph 15.4 of the original report and at Amended Appendix 6 to the report;

 

j)        Approved the basic rate of Council Tax at band D for 2022/23, before adding the police, fire and parish precepts, at £1,591.74, an increase of 2.994% as set out in paragraph 16.1 of the report;

 

k)      Approved the adoption of a 300% Council Tax premium for properties that have remained empty and unfurnished for more than two years, in line with the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 as set out in paragraph 3.14 of the original report;

 

l)        As part of the budget proposals, approved fees and charges, as recommended by Cabinet and set out in the booklet 'Medway Council - Fees and Charges April 2022' as set out in Appendix 8 to the report;

 

m)    Approved the Flexible Use of Capital Receipts Strategy set out at Appendix 9 to the report;

 

n)      Agreed the recommendations set out at 14.3 to 14.11 of the original report with regard to the Housing Revenue Account and detailed in the following appendices:

 

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

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

3)    The budget proposed as summarised at Appendix 5D;

4)    The 30 year business plan projections at Appendix 5E.

 

o)      Adopted the formal resolution for the Council Tax requirement and schedule of Council Tax charges for 2022/23 as set out in Amended Appendix 7A and the Council Tax Bandings at Amended Appendix 7B to the report as amended by the changes at paragraph d above;

 

p)      Approved the revised Senior Management Structure set out at Appendix 10.

 

q)      Approved the creation of a new band within the pay structure as set out in Appendix 11, and to note that Directors will undertake reorganisations for their respective Directorates as set out in paragraph 9.3 of the original report. This range will attract the same special allowance as the current Head of Service.

 

r)       Noted the findings of the Diversity Impact Assessment as set out in Appendix 12 to the report, and the proposal to continue, where necessary, to report through quarterly monitoring any further unidentified or unintentional impact.