Agenda item

Report of the Chief Finance Officer

Homira Javadi, Director of Finance and Performance, presented the report which detailed the General Fund Budget 2023/24. and updated Medium Term Financial Strategy, together with the updated Capital Programme and Treasury Management position. During discission, the following points were highlighted:

·       The work on the revised policy for the introduction of a council tax premium on second homes for 2024 would include consultation. There were approximately 843 second homes, the majority of which were concentrated in the Meads area and Sovereign Harbour.

·       The Council had a statutory duty to balance its budget and there was a significant gap between expenditure and sources of income, with pre-covid levels of income not yet reached. Efficiencies and savings would be achieved through areas such as improving IT procurement and using. digitalisation to improve service delivery and reduce service delivery costs. Further work on how best to utilise the Council’s under-performing assets would also be done. The Council was also looking at reducing its reliance on tourism income and its provision being independent from the level of Council subsidy currently provided. Partnership working to reduce the number of people in emergency accommodation would also produce savings.

·       The pay award for the current financial year had only recently been agreed. The 2021/2022 pay award had been provided as a flat rate, benefiting officers at the lower scale of pay. A 4% increase had been assumed for 23/24 but this could be subject to change.

·       Members expressed concern that the rise in council tax would impact heavily on individuals and households who were already experiencing financial difficulties through the cost-of-living crisis.

·       The budget included an additional allocation of £100,000 for the Cost-of-living Crisis Fund. There was a broad package of support that would be targeted through the use of in-house data and widely advertised.

Resolved to note the report.