Report of the Chief Finance Officer and the Cabinet Member for Finance and Assets on behalf of the Cabinet. Referred from Cabinet on 2 February 2023, incorporating the recommendations from the Cabinet reports on:

 

·         General Fund Revenue Budget 2023/24 and Capital Programme.

·         Treasury Management and Prudential Indicators 2023/24, Capital Strategy and Investment Strategy.

·         Housing Revenue Account (HRA) Revenue Budget and Rent Setting 2023/24 and HRA Capital Programme 2023-26.

 

Please note that the Local Authorities (Standing Orders) (England) Amendment) Regulations 2014 requires named votes to be taken and recorded when setting the annual budget and council tax, including on substantive motions and any amendments.

Councillor Nicholson moved and Councillor MacCleary seconded the recommendations set out in the agenda and agenda supplement, in relation to the Council Budget and setting of the Council Tax for 2023/24.  This incorporated recommendations from Cabinet on 2 February 2023 regarding the General Fund Revenue Budget 2023/24 and Capital Programme, Treasury Management and Prudential Indicators 2023/24, Capital Strategy and Investment Strategy and Housing Revenue Account (HRA) Revenue Budget and Rent Setting 2023/24 and HRA Capital Programme 2023-26.  The addendum included a minor amendment to the Fire Authority precept figure, and proposed additional fees related to the Port Health Authority.

 

Councillor Peterson moved and Councillor Linington seconded the following amendment as set out in an addendum tabled at the meeting:

 

            To amend Recommendation 1 to read:  “To approve the General Fund budget for 2022/23 (Revised) and 2023/24 (Revised), subject to a 0% increase in the Council Tax for Lewes District Council (per annum) resulting in a Band D charge for general expenses of £202.08 for 2023/24.”

 

The cost of not increasing the Council Tax in 2023/24 (circa £85k), would be offset by not proceeding with the increase to the waste budget in 2023/24 (circa £174k) which would be to fund the use of HVO fuel rather than diesel in the waste vehicle fleet.

 

Councillor Nicholson then spoke to the budget proposals and advised that these proposals arose from four years’ worth of focus from the alliance groups. Councillor Nicholson advised that it was based on the shared values of fairness and resilience, and the goals of making the Council more responsive to people’s needs, taking action on the climate crisis, a commitment to building more Council homes, using the Council’s resources wisely, and addressing those matters where there were areas for improvement.  The budget included a proposal for a 1% Council tax rise.

 

Councillor Peterson presented his proposed amendment for a 0% Council Tax rise, which he advised was made in the context of the current cost of living crisis, and its impact on residents.  He advised that the most straight forward way to pay for this was by postponing the investment in renewable fuel for the waste vehicles, but if this was not supported, there were other areas in the budget which could be reduced to fund this proposal.   

 

The Council debated the budget and amendment together. 

 

Prior to the Council was moving the vote, Councillor Nicholson was given the opportunity to sum up.

 

The Chair highlighted that it was required by legislation that all votes on the budget were recorded votes.

 

The amendment was put to a vote first and was lost, with the following votes recorded:

 

For: Councillors Bikson, Boorman, Burman, Davy, Duhigg, Linington, J Lord, S Lord, Maskell, Papanicolaou, Peterson, Rutland, Saunders, Turner and Wallraven (15)

Against: Councillors Amy, Banks, Bird, Brett, Clarkson, Clay, Collier, Denis, Gauntlett, MacCleary, Macleod, Makepeace, Manley, Nicholson, O’Brien, O’Connor, O’Keeffe, Robinson and Ross (19).

Abstentions:  None

 

The original proposals on the budget were then put to a vote and were carried, with the following votes recorded:

 

For: Councillors Amy, Banks, Bird, Brett, Clarkson, Clay, Collier, Denis, Gauntlett, MacCleary, Macleod, Makepeace, Manley, Nicholson, O’Brien, O’Connor, O’Keeffe, Robinson and Ross (19).

Against: Councillors Bikson, Boorman, Burman, Davy, Duhigg, Linington, J Lord, S Lord, Maskell, Papanicolaou, Peterson, Rutland, Turner and Wallraven (14)

Abstentions:  Councillor Saunders (1).

 

RESOLVED –

 

1.        To approve the recommendations as detailed in the reports from the Chief Finance Officer to Cabinet on 2 February 2023 as summarised below:

 

(i)        To approve the General Fund budget for 2022/23 (Revised) and 2023/24 (Original).  An increase in the Council Tax for Lewes District Council of 1% (per annum) resulting in a Band D charge for general expenses of £204.10 for 2023/24.

 

(ii)       To approve the revised General Fund capital programme 2023/24.

 

(iii)      To note the Section 151 Officer’s sign off as outlined in the Cabinet Report and at Report Appendix 1.

 

(iv)     To approve the Treasury Management Strategy and Annual Investment Strategy for 2023/24.

 

(v)      To approve the Minimum Revenue Provision Policy Statement for 2023/24.

 

(vi)     To approve the Prudential and Treasury Indicators for 2023/24 to 2025/26.

 

(vii)    To approve the Capital Strategy.

 

(viii)   To endorse the continuation of the Flexible use of Capital Receipts.

 

(ix)     The Council introduce from 1 April 2024 a new discretionary council tax premium on second homes of up to 100% and apply a premium of up to 100% on homes which have been empty for longer than 1 year following the Levelling Up and Regeneration Bill becoming law.

 

(x)      To approve the Housing Revenue Account (HRA) income and expenditure proposals, including revised HRA budget for 2022/23 and the budget for 2023/24, rents and service charges and the HRA Capital Programme, including:

 

§     That social and affordable rents (including Shared Ownership) be increased by 7% in line with Government policy;

 

§     That private sector leased property rents are increased by 7% (mirroring the approach to social and affordable rents);

 

§     That garage rents are increased by 7%.

 

(xi)     To approve the proposed fees and charges for the Port Health Authorities as set out below:

 

Number of certificates	High Risk 3rd (RoW) country	Low Risk EEA/EFTA countries / Bilateral Agreements
1-5	£45.70	£22.80
6-10	£68.50	£40.00
11-20	£80.00	£51.30
21+	£91.30	£62.80

 

2.        That delegated authority is given to the Chief Finance Officer to amend the budget for any presentational changes ensuring the Council Tax Requirement remains unchanged.

 

3.        That it be noted, that since the Cabinet meeting on 2 February the Business Rates return to the Government (NNDR1) has been finalised with no changes to the previous net budget assumptions.

 

4.        That the expenses incurred by the Council set out below be approved as Special Expenses chargeable to the residents of each of the Town/Parish areas indicated and that any other expenses (excluding local precepts) incurred by the Council be approved as general expenditure for the purposes of Section 35 of the Local Government Finance Act 1992.

 

 

Town/Parish Area	Special Expenses 2023/24 £
Lewes	353,377
Newhaven	139,035
Telscombe	59,480
Seaford	60,396
Peacehaven	42,360
Chailey	1,149
Ringmer	4,548
Total Special Expenses	660,346

 

5.            That consequent upon a General Fund budget of £8,383,397 and other matters, the basic amount (Band D) of Council Tax for the District Council's functions will be £221.55 calculated as follows:

 

Gross Expenditure	£	£
District Gross Expenditure		53,941,503
Special Expenses		660,346
Parish Precepts		4,863,707
Total		59,465,555
Less Income:
Service Income	(38,998,754)
Business Rate Income	(4,899,754)
Other Government Grants	(1,642,734)
Collection Fund Surplus (Council Tax)	(448,000)
Contributions To/ (From) Reserves	(229,209)
Total		(46,218,451)
Total Council Tax Requirement (Including Parish Precepts)		13,247,104
Total Council Tax Requirement		8,383,397
Band D Council Tax (Including Parish Precept)		£350.09
Band D Council Tax (including Special Expenses)		£221.55
Band D Council Tax (no special items)		£204.10

 

The statutory resolutions relating to this matter are given at paragraphs 6 and 7 below.

 

6.            That it be noted that at its meeting on 2 February 2023 Cabinet approved the following calculations for the year 2023/24, being made in accordance with regulations made under Sections 31(B)(4) and 34(4) of the Local Government Act 1992, as amended:

 

a)    37,839.4 being the amount calculated by the Council, in accordance with regulation 3 of the Local Authorities (Calculation of the Council Tax Base) Regulations 1992, as amended, as its Council Tax Base for the year) Item T in the formula in Section 31B of the Local Government Finance Act 1992).

 

b)    The amounts calculated by the Council, in accordance with regulation 6 of the Regulations, as amended, as the amounts of its Council Tax base for the year for dwellings in those parts of its area to which one or more special items relate can be found in Report Appendix 2– Table A.

 

7.            That the following amounts be now calculated by the Council for the year 2023/24 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended:

 

A	£59,465,555	being the aggregate of the amounts which the Council estimates for the items set out in Section 31 A (2) of the Act.
B	£46,218,451	being the aggregate of the amounts which the Council estimates for the items set out in Section 31 A (3) of the Act.
C	£13,247,104	being the amount by which the aggregate at 5 (A) above exceeds the aggregate at 5 (B) above, calculated by the Council, in accordance with Section 31 A (4) of the Act as its Council Tax requirement for the year.
D	£350.09	being the amount at 5 (C) above, all divided by the taxbase of 35,294.8, calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of Council Tax for the year (including local precepts).
E	£5,524,053	being the aggregate amount of all special items referred to in Section 43 (1) of the Act.
F	£204.10	being the amount at 6(d) above less the result given by dividing the amount at 6 (e) above by the amount at 4 (a) above (item T), calculated by the Council, in accordance with Section 34 (2) of the Act, as the basic amount of its Council Tax for the dwellings of those parts of its area to which no special items relate.

 

G

Table C in Report Appendix 2 being the amounts given by adding the amount at 7(c) above, the amounts of the special items or items relating to dwelling in those parts of the Council’s area mentioned above divided in each case by the amount at Table A (Appendix 2) for each area, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which one or more special items relate.

H

Table D in Report Appendix 2 being the amounts given by multiplying the amounts at 7(g) (Appendix 2 – Table C) by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

8.            To note that East Sussex County Council, East Sussex Fire Authority and Sussex Police and Crime Commissioner have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992, as amended, for each category of dwellings in the Council’s area as indicated in Table E in Report Appendix 2.

 

9.            That having calculated the aggregate in each case of the amounts at 6 and 7 above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the amounts as set out in Table F in Report Appendix 2 the amounts of Council Tax for the year 2023/24 for each of the categories of dwellings as shown in Table F (Report Appendix 2).

 

10.         To determine that the Council’s basic amount of Council Tax for 2023/24 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992, as amended.

 

11.         As the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount (and increase) of Council Tax for 2023/24 is excessive (as set out in Table G – Appendix to the Minutes) and that the billing authority is not required to hold a referendum in accordance with Section 52ZK Local Government Finance Act 1992, as amended.