Decision details

RESOLVED:

That Cabinet makes the following recommendations to Council on 8 February 2022.

Cabinet recommends that Council:

1. Approves the net revenue budget requirement be set at £1,042.0 million (net cost of services after service specific government grants) for 2022/23 (Annex B), subject to confirmation of the Final Local Government Financial Settlement.
2. Subject to finalisation of the tax base, approves the total Council Tax Funding Requirement be set at £831.0 million for 2022/23, subject to final confirmation of District and Borough tax base. This is based on a council tax increase of 4.99%, made up of an increase in the level of core council tax of 1.99% to cover core Council services, including 1% for mental health, and an increase of 3% in the precept proposed by Central Government to cover the growing cost of Adult Social Care (Annex E).
3. Notes that for the purpose of section 52ZB of the Local Government Finance Act 1992, the Council formally determines that the increase in core council tax is not such as to trigger a referendum (i.e., not greater than 2%).
4. Sets the Surrey County Council precept for Band D Council Tax at £1,626.39, which represents a 4.99% uplift. This is a rise of £1.48 a week from the 2021/22 precept of £1,549.08. This includes £185.48 for the Adult Social Care precept, which has increased by £46.47. A full list of bands is as follows:

5. Notes that the 4.99% increase in Council Tax will be deployed as follows:

·           0.99% increase to fund the increased cost of delivering services

·           3.00% increase to fund additional spend in adult and children’s social care

·           1.00% increase to fund additional investment in mental health.

Across this investment, the 3% increase in Adult Social Care Precept will be directed entirely to Adult Social Care.

6. Notes that underlying General Fund Balances are projected to remain at £28.0 million as of 1 April 2022.
7. Approves the Total Schools Budget of £575.2 million to meet the Council’s statutory requirement on schools funding (as set out in Section 9 of the 2022/23 Final Budget and Medium-Term Financial Strategy to 2026/27).
8. Approves the overall indicative Budget Envelopes for Executive Directorates and individual services for the 2022/23 budget (Annex B).
9. Approves the total £1,909.6 million proposed five-year Capital Programme (comprising £1,031.2m of budget and £878.4.9m pipeline) and approves the £212.1 million Capital Budget in 2022/23 (Annex C).
10. Approves the Capital and Investment Strategy (Sections 1 to 3), which provides an overview of how risks associated with capital expenditure, financing and treasury will be managed as well as how they contribute towards the delivery of services.
11. Approves the policy for making a prudent level of revenue provision for the repayment of debt (the Minimum Revenue Provision (MRP) Policy) (Annex G).
12. Agrees the Council’s refreshed Transformation Programme (as set out in section 3 of 2022/23 Final Budget Report and Medium-Term Financial Strategy to 2026/27)
13. Note that the investment in Transformation required to deliver improved outcomes and financial benefits is built into the proposed Medium-Term Financial Strategy (as set out in section 3 of 2022/23 Final Budget Report and Medium-Term Financial Strategy to 2026/27.
14. That Cabinet approves the £15m transfer from the Budget Equalisation Reserve to the Transformation Reserve set out in paragraph 10.
15. That Cabinet notes that the Audit & Governance Committee has approved the Treasury Management Strategy and Prudential Indicators (Annex F – Section 4) which set a framework for the Council’s treasury function to manage risks, source borrowing and invest surplus cash on 24 January 2022.

Reason for decision:

Council will meet on 8 February 2022 to agree a budget and to set the Council Tax Precept for 2022/23. Cabinet is required to recommend a budget to Council for consideration at this meeting. The budget directs available resources to support the achievement of the Council’s ambitions and priorities in the 2030 Vision and the Refreshed Organisation Strategy.

The budget will also support the delivery of the continuing transformational changes that are required to ensure that the Council can improve priority outcomes for residents, while managing growing demand for services and ensuring future financial sustainability.