Issue - meetings

Cabinet Member: Finance

Forward Plan Ref: 2021/136

Contact: Kathy Wilcox, Head of Financial Strategy Tel: 07788 302163

Report by Director of Finance (CA6).

Cabinet proposes 2022/23 revenue budget, MTFP and capital programme for recommendation to Council in light of comments from the Performance & Corporate Services Overview & Scrutiny Committee and consultation feedback. Includes the Review of Charges.

NB Annex C and Section 2.1 to follow

RECOMMENDATIONS

1.            In relation to the draft strategic plan (Section 2);

Cabinet is RECOMMENDED to RECOMMEND Council to:

a)    adopt the strategic plan.

2. In relation to the Revenue Budget and Medium Term Financial Strategy (Section 4);

Cabinet is RECOMMENDED to:

b)   approve the Review of Charges for 2022/23 and in relation to the Registration Service, charges also for 2023/24 (Annex A);

c)    approve the final schools funding formula for 2022/23 subject to the decision by the Secretary of State for Education regarding permission to transfer 0.5% (£2.2m) from the Schools block to support High Needs expenditure (Annex B)

d)   Receive and thank the Performance and Corporate Services Overview and Scrutiny Committee for their Budget Scrutiny report and note the response as set out in Annex C (to follow);

e)    approve the Financial Strategy for 2022/23 (Section 4.5);

f)     approve the Earmarked Reserves and General Balances Policy Statement 2022/23 (Section 4.6);

g)   and to note that the Leader of the Council will, following consultation with the Director of Finance and the Cabinet Member for Finance,

make any appropriate changes to the proposed budget following receipt of information relating to the outstanding matters at paragraph 9 of this report

Cabinet is RECOMMENDED to RECOMMEND Council to:

h)   approve a Medium Term Financial Strategy for 2022/23 to 2025/26 as set out in Section 4.1 (which incorporates changes to the existing Medium Term Financial Strategy as set out in Section 4.2);

i)     agree the council tax and precept calculations for 2022/23 set out in Section 4.3 and in particular:

                                                       (i)    a precept of £435,816,475;

                                                      (ii)    a council tax for band D equivalent properties of £1,651.61.

                                                    (iii)    approve a revenue budget for 2022/23 as set out in Section 4.4

3. In relation to the Capital and Investment Strategy and Capital Programme (Section 5);

Cabinet is RECOMMENDED to recommend Council to:

j)     approve the Capital and Investment Strategy for 2021/22 - 2031/32 (Section 5.1) including;

                                                       (i)    the Minimum Revenue Provision Methodology Statement (Section 5.1 Annex 1);

                                                      (ii)    the Prudential Indicators (Section 5.1 Annex 2)

                                                    (iii)    the updated Pupil Place Plan (Section 5.1 Annex 3) and

k)    approve the Treasury Management Strategy Statement and Annual Investment Strategy for 2022/23 (Section 5.2); and

                                                       (i)    continue to delegate the authority to withdraw or advance additional funds to/from external fund managers to the Director of Finance;

                                                      (ii)    approve that any further changes required to the 2022/23 Treasury Management Strategy be delegated to the Director of Finance in consultation with the Leader of the Council and the Cabinet Member for Finance;

                                                    (iii)    approve the Treasury Management Prudential Indicators; and

                                                    (iv)    approve the Specified  ...  view the full agenda text for item 6

Recommendations agreed as amended:

1.            In relation to the draft strategic plan (Section 2);

a)    agree the draft strategic plan and RECOMMEND to Council to adopt the final version at its meeting on 8 February 2022.

2. In relation to the Revenue Budget and Medium Term Financial Strategy (Section 4);

b)    approve the Review of Charges for 2022/23 and in relation to the Registration Service, charges also for 2023/24 (Annex A); with an amendment on Agenda Page 63, under “Oxford City Centre – central area”, the second proposed charge for ‘1 hour’ to be £5 and on the next line for ‘3 hours’ to be £15 with consequential amendments in the “Change” column;

c)    approve the final schools funding formula for 2022/23 subject to the decision by the Secretary of State for Education regarding permission to transfer 0.5% (£2.2m) from the Schools block to support High Needs expenditure (Annex B)

d)    Receive and thank the Performance and Corporate Services Overview and Scrutiny Committee for their Budget Scrutiny report and note the response as set out in Annex C (to follow);

e)    approve the Financial Strategy for 2022/23 (Section 4.5);

f)     approve the Earmarked Reserves and General Balances Policy Statement 2022/23 (Section 4.6);

g)    and to note that the Leader of the Council will, following consultation with the Director of Finance and the Cabinet Member for Finance, make any appropriate changes to the proposed budget following receipt of information relating to the outstanding matters at paragraph 9 of this report

RECOMMEND Council to:

h)    approve a Medium Term Financial Strategy for 2022/23 to 2025/26 as set out in Section 4.1 (which incorporates changes to the existing Medium Term Financial Strategy as set out in Section 4.2);

i)     agree the council tax and precept calculations for 2022/23 set out in Section 4.3 and in particular:

                                           (i)   a precept of £435,816,475;

                                          (ii)   a council tax for band D equivalent properties of £1,651.61.

                                         (iii)   approve a revenue budget for 2022/23 as set out in Section 4.4

3. In relation to the Capital and Investment Strategy and Capital Programme (Section 5);

Recommend Council to:

j)     approve the Capital and Investment Strategy for 2021/22 - 2031/32 (Section 5.1) including;

                                           (i)   the Minimum Revenue Provision Methodology Statement (Section 5.1 Annex 1);

                                          (ii)   the Prudential Indicators (Section 5.1 Annex 2)

                                         (iii)   the updated Pupil Place Plan (Section 5.1 Annex 3) and

k)    approve the Treasury Management Strategy Statement and Annual Investment Strategy for 2022/23 (Section 5.2); and

                                           (i)   continue to delegate the authority to withdraw or advance additional funds to/from external fund managers to the Director of Finance;

                                          (ii)   approve that any further changes required to the 2022/23 Treasury Management Strategy be delegated to the Director of Finance in consultation with the Leader of the Council and the Cabinet Member for Finance;

                                         (iii)   approve the Treasury Management Prudential Indicators; and

                                        (iv)   approve the Specified Investment and Non Specified Investment instruments as set out in Section 5.2 paragraphs 55 to  ...  view the full decision text for item 6

Cabinet had before it proposals for the Strategic Plan and related revenue budget for 2022/23, medium term financial strategy to 2025/26 capital programme to 2031/32 plus supporting policies, strategies and information.  Before discussing the report, the Chair had agreed to hear a number of speakers.

Councillor Eddie Reeves, Chair of the Performance & Corporate Services Overview & Scrutiny Committee, reported the views of the scrutiny committee’s discussions over two meetings.  The points were agreed cross-party.

Their meeting on 10 December agreed recommendations which were outlined in the supplementary document attached to the Agenda.  These included:

·         the administration’s priorities should be more clearly defined

·         there should be Key Performance Indicators to ensure ongoing monitoring.

·         the Corporate Plan should provide greater clarity around its environmental ambitions at strategic and measurable levels

It was unfortunate that the Committee’s discussion on the capital programme had only taken place the day before this meeting however he summarised the nine main points agreed by that meeting:

·         Climate Change and decarbonisation needed to be mainstreamed in the Capital Programme;

·         Maximising social value should be part of the procurement policy;

·         More to tackle economic and gender inequalities and possibly a future generations policy

·         Consider allocation of unused borrowing and use of capital resources to improve SEND provision.

·         Assess deliverability of capital projects before committing to them.

Councillor Michael O’Connor, Deputy Chair of the Performance & Corporate Services Overview & Scrutiny Committee, added that there would be a written report produced on the Committee’s views on the Strategic Plan.

The Chair agreed that Cabinet would consider that report before finalising the proposals for Council on 8 February.

Councillor David Bartholomew, Shadow Cabinet Member for Finance, expressed disappointment that the papers for this item included a report from the Cabinet Member for Finance in the same standard format as officer reports which he described as a political and subjective document that should be clearly identified as such.

Councillor Bartholomew in particular noted the comment that the administration had ‘inherited underfunding’.  He stated that the universal expectation at the time of his administration had been that the pandemic would result in deflation and unemployment whereas the opposite had been the case.

He stated that he had a long record of drawing attention to financial concerns around the Kennington Bridge project. He welcomed the proposed re-assessment of major projects and hoped that the Cabinet would be consistent in its approach between its own projects and those it had inherited.  Councillor Bartholomew also asked where the costs in unpicking the partnership with Cherwell District Council were taken account of in the budget.

Councillor Yvonne Constance stated that she wanted to correct the record in relation to comments in the report from the Cabinet Member for Finance on the previous administration in which she was Cabinet Member for Environment (including Transport) and which she believed implied incompetence.

Councillor Constance described the way in which costs on Kennington Bridge escalated as significant changes were made to the bridge design and the funding arrangements.  An outline business  ...  view the full minutes text for item 6