Agenda item

Report of Councillor Holt on behalf of the Cabinet. Referred from Cabinet on 8 February 2022. To include decisions in respect of:

 

·         General Fund 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, this to include votes on any amendments and substantive motions.

Councillor Holt moved and Councillor Tutt seconded the recommendations set out in the agenda in relation to the Council Budget and setting of the Council Tax for 2023/24.  This incorporated recommendations from Cabinet on 8 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. 

 

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

 

“That the budget and council tax recommendations for 2023/24 are as set out in the report subject to the following amendment:

 

To reduce external debt through receipts from a more realistic approach to capital disposals as recommended by the CIPFA External Financial Review.”

 

Councillor Holt then presented the budget proposals which included a recommended 2.99% increase and set the context for these proposals in terms of funding and priorities, as well as the help that was available to those who were struggling with the cost of living.

 

Councillor Smart then spoke to his amendment and on behalf of the opposition in response to the budget and set out why he considered that additional focus on capital disposals was required.

 

The Council debated the budget and amendment together. 

 

Prior to the Council was moving the vote, Councillor Smart and then Councillor Holt were given the opportunity to sum up.

 

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

 

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

 

For: Councillors Belsey, di Cara, Lamb, Murdoch, Shore, Smart and Taylor (7)

Against: Councillors Babarinde, Bannister, Diplock, Dow, Freebody, Holt, Maxted, Morris, Murray, Parker, Rodohan, Shuttleworth, Swansborough, Tutt, and Wallis (15).

Abstentions:  None

 

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

 

For: Councillors Babarinde, Bannister, Diplock, Dow, Holt, Maxted, Morris, Murray, Parker, Rodohan, Shuttleworth, Swansborough, Tutt, and Wallis. (14)

Against: Councillors Belsey, di Cara, Lamb, Murdoch, Shore, Smart and Taylor (7)

Abstentions:  Councillor Freebody (1).

 

RESOLVED (by 14 votes to 7, with 1 abstention)–

 

1.         The recommendations as detailed in the reports from the Chief Finance Officer to Cabinet on 8 February 2023:

 

            (i)         To approve the General Fund budget for 2022/23 (Revised) and 2023/24 (Original).

 

            (ii)        To approve an increase in the Council Tax for Eastbourne Borough Council of 2.99% resulting in a Band D charge of £269.68 (per annum) for 2023/24.

 

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

 

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

 

            (vi)       To approve the Minimum Revenue Provision (MRP) Policy Statement 2023/24.

 

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

 

          (viii)       To approve the Capital Strategy.

 

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

 

          (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, HRA Capital Programme 2022-26, rents and service charges and the arrangements for finalising Eastbourne Homes’ management fee, including:

·         That social and affordable rents (including Shared Ownership) are increased by 7% in line with Government policy.

·         That the average General Needs Housing Benefit (HB) Eligible service charge will be £5.39 per week.

·         That the average HB Eligible service charge for Retirement Housing will be £38.36 per week.

·         That the Support charge for Retirement Housing will be £5.82 per unit.

·         That the average Non-HB Eligible heating charges will be £3.73 per week.

·         That the average non-HB Eligible water charges will be £3.56.

·         That Garage rents are increased by 7%.

 

          (xi)         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.

 

          (xii)        To grant delegated authority to the Chief Executive, in consultation with the Cabinet Portfolio holders for Financial Services and Direct Assistance Service and the Chief Finance Officer to finalise Eastbourne Homes’ Management Fee and Delivery Plan.

 

2.         That delegated authority is given to the Chief Finance Officer to amend the budget for any presentational changes ensuring the Council Tax Requirement at 6 below remains unchanged.

 

3.         That it be noted, that since the Cabinet meeting on 8 February the Business Rates return to the Government (NNDR1) has been finalised with no changes to the previous net budget assumptions.

 

4.         That consequent upon a General Fund budget of £9,518,253 and other matters, the basic amount (Band D) of Council Tax for the Borough Council's functions will be £269.68 (representing an increase of 2.99%) calculated as follows:

 

Gross Expenditure	£	£
Borough Gross Expenditure		93,594,526
Surplus Income over Expenditure		0
Total		93,594,526
Less Income:
Service Income	(75,621,658)
Business Rate Income	(5,144,044)
Other Government Grants	(1,927,032)
Collection Fund Surplus (Council Tax)	(121,000)
Contributions To/ (From) Reserves	(1,262,539)
Total		(84,076,272)
Total Council Tax Requirement		9,518,253
Band D Council Tax		£269.68

 

The statutory resolutions relating to this matter are given at paragraphs 5 and 6 below.

 

5.         That it be noted that at its meeting on 14 December 2022 the Cabinet agreed the Council Tax Base of 35,294.8 for Band ‘D’ equivalent properties for the year 2023/24 (Item T in the formula in section 31B of the Local Government Finance Act 1992, as amended).

 

6.         Calculate that the Council Tax requirement for the Council’s own purposes for 2023/24 as £9,518,253.

 

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	£93,594,526	being the aggregate of the amounts which the Council estimates for the items set out in Section 31 A (2) of the Act.
B	£84,076,272	being the aggregate of the amounts which the Council estimates for the items set out in Section 31 A (3) of the Act.
C	£9,518,253	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	£269.68	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 its Council Tax for the year.

 

8.         To note that East Sussex County Council, the Sussex Police and Crime Commissioner and the East Sussex Fire Authority 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.  

 

9.         That the Council, in accordance with Sections 30 to 36 of the Local Government Finance Act 1992, as amended, hereby sets the aggregate amounts shown in the table below as the amounts of Council Tax for 2023/24 for each of the categories of dwellings.

 

MAJOR PRECEPTOR	BAND A	BAND B	BAND C	BAND D	BAND E	BAND F	BAND G	BAND H
	£    p	£    p	£    p	£    p	£    p	£    p	£    p	£    p
East Sussex Fire Authority (ESFA)	69.58	81.18	92.77	104.37	127.56	150.76	173.95	208.74
Sussex Police and Crime Commissioner (SPCC)	159.94	186.60	213.25	239.91	293.22	346.54	399.85	479.82
East Sussex County Council (ESCC)	1,129.20	1,317.40	1,505.60	1,693.80	2,070.20	2,446.60	2,823.00	3,387.60
Eastbourne Borough Council	179.79	209.75	239.71	269.68	329.61	389.54	449.46	539.36
Total Council Tax Requirement	1,538.51	1,794.92	2,051.34	2,307.76	2,820.59	3,333.43	3,846.26	4,615.52

 

10.      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 of Council Tax for 2023/24 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.

 

(At the end of this agenda item at 8.30 pm, the Council took at 10 minute recess).