Agenda item

Report of the Chief Finance Officer and Councillor Nicholson on behalf of the Cabinet.  Referred from Cabinet on 3 February 2022, incorporating the recommendations from the Cabinet reports on:

 

·         General Fund Revenue Budget 2022/23 and Capital Programme

·         Treasury Management and Prudential Indicators 2022/23, Capital Strategy and Investment Strategy.

·         Housing Revenue Account (HRA) Revenue Budget and Rent Setting 2022/23 and HRA Capital Programme 2021-25

 

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, in relation to the Council Budget and setting of the Council Tax for 2022/23.  This incorporated recommendations from Cabinet on 3 February 2022 regarding the General Fund Revenue Budget 2022/23 and Capital Programme, Treasury Management and Prudential Indicators 2022/23, Capital Strategy and Investment Strategy and Housing Revenue Account (HRA) Revenue Budget and Rent Setting 2022/23 and HRA Capital Programme 2021-25.

 

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

 

“To allocate funds from the Regeneration and Planning budget to employ an additional Enforcement Officer.  The post to be initially for two years with a view to making it a permanent post, subject to a review of effectiveness and availability of funding.  The timing of appointment and source of funding to be at the discretion of the Director of Regeneration and Planning in consultation with the Chief Finance Officer.”

 

Councillor Nicholson then spoke to the budget proposals.  She reflected on the impact on the impact of Covid 19, the energy crisis, and the cost of living crisis on the community and on the Council.  She thanked Council directors and managers for their hard work in delivering on savings plans and continuing to provide excellent services to residents in extraordinary times and confirmed that this was a balanced budget.  Councillor Nicholson highlighted how the budget was focused on supporting the most vulnerable in the community, on community wellbeing, on improving green spaces and play spaces, improving biodiversity, and on a green recovery.  She confirmed that she was happy to support the opposition amendment for the employment of an additional enforcement officer.

 

Councillor Linington responded on behalf of the opposition to the budget and her amendment.  She highlighted the importance of funding an additional enforcement officer.  She highlighted that although there was a lot in the budget the opposition group could support, there was much that they could not.  In particular, it was felt that it would be better to have had a zero Council Tax rise which would be to the benefit of all, rather than supporting a smaller number of people through the Council Tax Reduction Scheme. 

 

The Council then debated the budget and amendment together.  The Council received advice from the Council Solicitor that the first vote would be on the budget with the amendment and would be a named vote in accordance with legislation, and if carried there was no need for a further vote in accordance with the Council Procedure Rules.

 

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

 

The motion with the amendment was then put to a recorded vote and declared carried by 20 votes to 0 with 16 abstentions.

 

RESOLVED:

 

1.          To approve the recommendations as detailed in the reports from the Chief Finance Officer to Cabinet on 3 February 2022 as summarised below:

 

(i)          To approve the General Fund budget for 2021/22 (Revised) and 2022/23 (Original).  An increase in the Council Tax for Lewes District Council of £5 resulting in a Band D charge for general expenses of £202.08 for 2022/23.

(ii)        To approve the revised General Fund capital programme 2022/23.

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

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

(v)        To endorse Cabinet’s agreement for £350k being earmarked from General Fund reserves to create a Hardship Fund to support households with the energy and cost of living pressures.

(vi)       To approve the Treasury Management Strategy and Annual Investment Strategy for 2022/23.

(vii)     To approve the Minimum Revenue Provision Policy Statement for 2022/23.

(viii)    To approve the Prudential and Treasury Indicators for 2022/23 to 2024/25.

(ix)       To approve the Capital Strategy.

(x)        To approve the Housing Revenue Account (HRA) income and expenditure proposals, including revised HRA budget for 2021/22 and the budget for 2022/23, rents and service charges and the HRA Capital Programme, including:

 

§    That social and affordable rents (including Shared Ownership) be increased by 4.1% in line with Government policy;

§    That private sector leased property rents are increased by 4.1% (CPI+1%);

§    That garage rents are increased by 4.86% (RPI); and

§    That £150k be earmarked from the HRA reserve to create a Hardship fund to support households with their energy and cost of living pressures.

 

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 3 February the Business Rates return to the Government (NNDR1) has been finalised.  As a result of the latest Business Rates position, it has been possible to add £384K to the General Fund reserve.  This will subsequently be allocated to the specific reserves set out below, which were identified in the budget report, once the exact allocations have been determined.

 

§    The creation of a capital programme acceleration reserve.

§    The creation of a commercial asset resilience planning reserve.

§    To top up those reserves used to fund Covid-19 reserve.

 

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 Expense 2022/23 £
Lewes	343,000
Newhaven	134,940
Telscombe	57,720
Seaford	58,590
Peacehaven	41,100
Chailey	1,120
Ringmer	4,410
Total	640,880

 

5.          That consequent upon a General Fund budget of £8,062,598 and other matters, the basic amount (Band D) of Council Tax for the Borough Council's functions will be £219.53 calculated as follows:

 

	General Expenses only	Total including special items
	£000's	£000's
Gross Expenditure:
General Fund	56,437
HRA	18,090
Business Rates payable to Government	7,805
Contributions to Reserves	80
	82,412	82,412
Special expenses		641
Less Income:
Service Income	(59,147)
Other Government Grants	(3,378)
Business Rates income	(12,017)
Collection Fund Surplus (Council Tax)	(448)
	(74,990)	(74,990)
COUNCIL TAX REQUIREMENT	7,422	8,063
Band D Council Tax	£202.08	£219.53

 

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 3 February 2022 Cabinet approved the following calculations for the year 2022/23, being made in accordance with regulations made under Sections 31(B)(4) and 34(4) of the Local Government Act 1992, as amended:

 

(a)               36,726.6 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)                

Part of the Council's Area	Tax Base
Parish of Barcombe	634.40
Parish of Beddingham and Glynde	182.30
Parish of Chailey	1,385.10
Parish of Ditchling	1120.20
Parish of East Chiltington	196.50
Parish of Falmer	67.60
Parish of Firle	124.30
Parish of Hamsey	279.10
Parish of Iford	89.60
Parish of Kingston	424.60
Town of Lewes	6049.60
Town of Newhaven	3638.40
Parish of Newick	1103.60
Town of Peacehaven	4752.60
Parish of Piddinghoe	126.10
Parish of Plumpton	677.70
Parish of Ringmer	1950.40
Parish of Rodmell	214.20
Parish of St Ann Without	39.60
Parish of St John Without	27.10
Town of Seaford	9406.70
Parish of Southease	22.90
Parish of South Heighton	255.40
Parish of Streat	80.20
Parish of Tarring Neville	9.70
Town of Telscombe	2498.80
Parish of Westmeston	160.50
Parish of Wivelsfield	1,209.40

 

Being 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 dwelling in those parts of its area to which one or more special items relate.

 

7.          That the following amounts be now calculated by the Council for the year 2022/23 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended:

 

(a)               £87,617,418 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

(b)               £74,990,302 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

(c)               £12,627,116 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 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).

(d)               £343.81 being the amount at 6(c) above (Item R), all divided by Item T (5 above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including local precepts).

(e)               £5,205,398 being the aggregate amount of all special items referred to in Section 34(1) of the Act.

(f)                 £202.08 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 year for dwellings in those parts of its area to which no special item relates,

 

(g)           Parts of the Council area:

Barcombe	252.82	Piddinghoe	289.05
Beddingham and Glynde	267.10	Plumpton	296.35
Chailey	252.26	Ringmer	271.47
Ditchling	300.42	Rodmell	271.17
East Chiltington	242.39	St Ann Without	202.08
Falmer	209.48	St John Without	202.08
Firle	286.55	Seaford	319.40
Hamsey	267.34	Southease	202.08
Iford	204.87	South Heighton	255.51
Kingston	319.84	Streat	269.60
Lewes	467.02	Tarring Neville	202.08
Newhaven	398.37	Telscombe	329.82
Newick	263.87	Westmeston	283.08
Peacehaven	355.30	Wivelsfield	285.72

 

Being the amounts given by adding the amount at 5(f) 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 5(B) above, 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)           Parts of the Council area:

 

	Council Tax Valuation Bands
	A	B	C	D	E	F	G	H
	6/9	7/9	8/9	9/9	11/9	13/9	15/9	18/9
	£	£	£	£	£	£	£	£
Barcombe	168.55	196.64	224.73	252.82	309.00	365.18	421.37	505.64
Beddingham and Glynde	178.07	207.74	237.42	267.10	326.46	385.81	445.17	534.20
Chailey	168.17	196.20	224.23	252.26	308.32	364.38	420.43	504.52
Ditchling	200.28	233.66	267.04	300.42	367.18	433.94	500.70	600.84
East Chiltington	161.59	188.53	215.46	242.39	296.25	350.12	403.98	484.78
Falmer	139.65	162.93	186.20	209.48	256.03	302.58	349.13	418.96
Firle	191.03	222.87	254.71	286.55	350.23	413.91	477.58	573.10
Hamsey	178.23	207.93	237.64	267.34	326.75	386.16	445.57	534.68
Iford	136.58	159.34	182.11	204.87	250.40	295.92	341.45	409.74
Kingston	213.23	248.76	284.30	319.84	390.92	461.99	533.07	639.68
Lewes	311.35	363.24	415.13	467.02	570.80	674.58	778.37	934.04
Newhaven	265.58	309.84	354.11	398.37	486.90	575.42	663.95	796.74
Newick	175.91	205.23	234.55	263.87	322.51	381.15	439.78	527.74
Peacehaven	236.87	276.34	315.82	355.30	434.26	513.21	592.17	710.60
Piddinghoe	192.70	224.82	256.93	289.05	353.28	417.52	481.75	578.10
Plumpton	197.57	230.49	263.42	296.35	362.21	428.06	493.92	592.70
Ringmer	180.98	211.14	241.31	271.47	331.80	392.12	452.45	542.94
Rodmell	180.78	210.91	241.04	271.17	331.43	391.69	451.95	542.34
St Ann Without	134.72	157.17	179.63	202.08	246.99	291.89	336.80	404.16
St John Without	134.72	157.17	179.63	202.08	246.99	291.89	336.80	404.16
Seaford	212.93	248.42	283.91	319.40	390.38	461.36	532.33	638.80
Southease	134.72	157.17	179.63	202.08	246.99	291.89	336.80	404.16
South Heighton	170.34	198.73	227.12	255.51	312.29	369.07	425.85	511.02
Streat	179.73	209.69	239.64	269.60	329.51	389.42	449.33	539.20
Tarring Neville	134.72	157.17	179.63	202.08	246.99	291.89	336.80	404.16
Telscombe	219.88	256.53	293.17	329.82	403.11	476.41	549.70	659.64
Westmeston	188.72	220.17	251.63	283.08	345.99	408.89	471.80	566.16
Wivelsfield	190.48	222.23	253.97	285.72	349.21	412.71	476.20	571.44

 

Being the amounts given by multiplying the amounts at 6(g) above 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 and Rescue Authority and Police and Crime Commissioner for Sussex 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 the table below.

 

2022-23 Council Tax Valuation Bands   A B C D E F G H   6/9 7/9 8/9 9/9 11/9 13/9 15/9 18/9   £ £ £ £ £ £ £ £ Precepting Authorities   East Sussex County Council 1,075.56 1,254.82 1,434.08 1,613.34 1,971.86 2,330.38 2,688.90 3,226.68 Sussex Police Authority 149.94 174.93 199.92 224.91 274.89 324.87 374.85 449.82 East Sussex Fire Authority 66.25 77.29 88.33 99.37 121.45 143.53 165.62 198.74     Aggregate of Council Tax Requirements 1,291.75 1,507.04 1,722.33 1,937.62 2,368.20 2,798.77 3,229.38 3,875.24

9.     That having calculated the aggregate in each case of the amounts at 6(h) and 7 above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2021/22 for each of the categories of dwellings shown below:

 

	Council Tax Valuation Bands
	A	B	C	D	E	F	G	H
	6/9	7/9	8/9	9/9	11/9	13/9	15/9	18/9
	£	£	£	£	£	£	£	£
Barcombe	1,460.30	1,703.68	1,947.06	2,190.44	2,677.20	3,163.96	3,650.74	4,380.88
Beddingham and Glynde	1,469.82	1,714.78	1,959.75	2,204.72	2,694.66	3,184.59	3,674.54	4,409.44
Chailey	1,459.92	1,703.24	1,946.56	2,189.88	2,676.52	3,163.16	3,649.80	4,379.76
Ditchling	1,492.03	1,740.70	1,989.37	2,238.04	2,735.38	3,232.72	3,730.07	4,476.08
East Chiltington	1,453.34	1,695.57	1,937.79	2,180.01	2,664.45	3,148.90	3,633.35	4,360.02
Falmer	1,431.40	1,669.97	1,908.53	2,147.10	2,624.23	3,101.36	3,578.50	4,294.20
Firle	1,482.78	1,729.91	1,977.04	2,224.17	2,718.43	3,212.69	3,706.95	4,448.34
Hamsey	1,469.98	1,714.97	1,959.97	2,204.96	2,694.95	3,184.94	3,674.94	4,409.92
Iford	1,428.33	1,666.38	1,904.44	2,142.49	2,618.60	3,094.70	3,570.82	4,284.98
Kingston	1,504.98	1,755.80	2,006.63	2,257.46	2,759.12	3,260.77	3,762.44	4,514.92
Lewes	1,603.10	1,870.28	2,137.46	2,404.64	2,939.00	3,473.36	4,007.74	4,809.28
Newhaven	1,557.33	1,816.88	2,076.44	2,335.99	2,855.10	3,374.20	3,893.32	4,671.98
Newick	1,467.66	1,712.27	1,956.88	2,201.49	2,690.71	3,179.93	3,669.15	4,402.98
Peacehaven	1,528.62	1,783.38	2,038.15	2,292.92	2,802.46	3,311.99	3,821.54	4,585.84
Piddinghoe	1,484.45	1,731.86	1,979.26	2,226.67	2,721.48	3,216.30	3,711.12	4,453.34
Plumpton	1,489.32	1,737.53	1,985.75	2,233.97	2,730.41	3,226.84	3,723.29	4,467.94
Ringmer	1,472.73	1,718.18	1,963.64	2,209.09	2,700.00	3,190.90	3,681.82	4,418.18
Rodmell	1,472.53	1,717.95	1,963.37	2,208.79	2,699.63	3,190.47	3,681.32	4,417.58
St Ann Without	1,426.47	1,664.21	1,901.96	2,139.70	2,615.19	3,090.67	3,566.17	4,279.40
St John Without	1,426.47	1,664.21	1,901.96	2,139.70	2,615.19	3,090.67	3,566.17	4,279.40
Seaford	1,504.68	1,755.46	2,006.24	2,257.02	2,758.58	3,260.14	3,761.70	4,514.04
Southease	1,426.47	1,664.21	1,901.96	2,139.70	2,615.19	3,090.67	3,566.17	4,279.40
South Heighton	1,462.09	1,705.77	1,949.45	2,193.13	2,680.49	3,167.85	3,655.22	4,386.26
Streat	1,471.48	1,716.73	1,961.97	2,207.22	2,697.71	3,188.20	3,678.70	4,414.44
Tarring Neville	1,426.47	1,664.21	1,901.96	2,139.70	2,615.19	3,090.67	3,566.17	4,279.40
Telscombe	1,511.63	1,763.57	2,015.50	2,267.44	2,771.31	3,275.19	3,779.07	4,534.88
Westmeston	1,480.47	1,727.21	1,973.96	2,220.70	2,714.19	3,207.67	3,701.17	4,441.40
Wivelsfield	1,482.23	1,729.27	1,976.30	2,223.34	2,717.41	3,211.49	3,705.57	4,446.68

 

10.   To determine that the Council’s basic amount of Council Tax for 2022/23 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992, as amended.

 

        As the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2021/22 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK Local Government Finance Act 1992, as amended.

 

11.   To allocate funds from the Regeneration and Planning budget to employ an additional Enforcement Officer.  The post to be initially for two years with a view to making it a permanent post, subject to a review of effectiveness and availability of funding.  The timing of appointment and source of funding to be at the discretion of the Director of Regeneration and Planning in consultation with the Chief Finance Officer.

 

Recorded vote:

For: Councillors Amy, Banks, Bird, Brett, Clay, Collier, Denis, Gauntlett, Von Kurthy, MacCleary, Macleod, Makepeace, Manley, Meyer, Nicholson, O’Brien, O’Connor, Robinson, Ross and Saunders (20)

Against: None

Abstain: Councillor Adeniji, Bikson, Boorman, Burman, Davy, Duhigg, Linington, S. Lord, J. Lord, Maskell, Miller, Papanicolaou, Peterson, Rigden, Turner and Wallraven (16).

 

(Note: Councillor Adeniji arrived in the meeting at the start of this item and was therefore able to participate in the vote.  Councillor Carr and O’Keeffe arrived at 18.52 and 18.59 respectively the end of the discussion and did not take part in the discussion or vote.)