Agenda item

RESOLVED:

That Cabinet makes the following recommendations to Council on 7 February 2023.

Cabinet recommends that Council:

1. Approves the net revenue budget requirement be set at £1,101.5 million (net cost of services after service specific government grants) for 2023/24 (Annex B), subject to confirmation of the Final Local Government Financial Settlement.
2. Approves the total Council Tax Funding Requirement be set at £866.0 million for 2023/24. This is based on a council tax increase of 2.99%, made up of an increase in the level of core council tax of 0.99% and an increase of 2% 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 3%).
4. Sets the Surrey County Council precept for Band D Council Tax at £1,675.08, which represents a 2.99% uplift. This is a rise of £0.94 a week from the 2022/23 precept of £1,626.39. This includes £217.94 for the Adult Social Care precept, which has increased by £32.46. A full list of bands is as follows:

5. Notes that underlying General Fund Balances are projected to remain at £48 million as of 1 April 2023.
6. Approves the Total Schools Budget of £599.3 million to meet the Council’s statutory requirement on schools funding (as set out in Section 9 of the 2023/24 Final Budget and Medium-Term Financial Strategy to 2027/28).
7. Approves the overall indicative Budget Envelopes for Directorates and individual services for the 2023/24 budget (Annex B).
8. Approves the total £1,950.4 million proposed five-year Capital Programme (comprising £1,202.4 m of budget and £748.0m pipeline) and approves the £308.7 million Capital Budget in 2023/24 (Annex C).
9. Approves the Capital and Investment Strategy (Annex F - 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.
10. Approves the policy for making a prudent level of revenue provision for the repayment of debt (the Minimum Revenue Provision (MRP) Policy) (Annex G).
11. Agrees the Council’s refreshed Transformation and Cross Cutting Efficiency Programme (as set out in section 3 of 2023/24 Final Budget Report and Medium-Term Financial Strategy to 2027/28)
12. 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 2023/24 Final Budget Report and Medium-Term Financial Strategy to 2027/28.
13. Cabinet notes that the Audit & Governance Committee has approved 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 2023.

Reasons for Decisions:

Council will meet on 7 February 2023 to agree a budget and to set the Council Tax Precept for 2023/24. 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.

(The decisions on this item can be called in by the Resources and Performance Select Committee)

The report was introduced by the Leader who explained that the rise in inflation had put a huge amount of pressure on setting the budget for the year. The work the council had undertaken on its finances over the past few years has set the council up in a strong position for the year. It was explained that the budget being presented would not cut frontline core services and there would be a 2.99% increase to the council tax which is lower than the 5% increase some local authorities were proposing. The production of the 2023/24 budget had been developed through an integrated approach across Corporate Strategy, Transformation and Finance, aligning revenue budgets, capital investment and transformation plans with each Directorate’s service plans and the corporate priorities of the organisation. The council was investing over £300 million in capital projects over this next year which would be £1.9 billion over the period of the medium term financial strategy. This would be investing in our schools, in specialist facilities for those children that have additional needs, building accommodation for our looked after children so that they can be closer to home and building independent living facilities so people can live independently for longer.The final budget for 2023/24 proposes total funding of £1,101.5m; an increase of £61.4m from 2022/23.

The Cabinet Member for Finance and Resources explained that a responsible budget which allows the council to deliver frontline services and at the same time put aside contingency funds had been developed. There was a recognition of the issues facing residents and an exciting capital programme had been agreed. Officers were thanked for hard work in getting the budget to this stage. There was support from the Cabinet on the proposed budget. Members highlighted that many councils would be retracting from investment where as Surrey would continue to fund capital programmes.

RESOLVED:

That Cabinet makes the following recommendations to Council on 7 February 2023.

Cabinet recommends that Council:

1. Approves the net revenue budget requirement be set at £1,101.5 million (net cost of services after service specific government grants) for 2023/24 (Annex B), subject to confirmation of the Final Local Government Financial Settlement.
2. Approves the total Council Tax Funding Requirement be set at £866.0 million for 2023/24. This is based on a council tax increase of 2.99%, made up of an increase in the level of core council tax of 0.99% and an increase of 2% 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 3%).
4. Sets the Surrey County Council precept for Band D Council Tax at £1,675.08, which represents a 2.99% uplift. This is a rise of £0.94 a week from the 2022/23 precept of £1,626.39. This includes £217.94 for the Adult Social Care precept, which has increased by £32.46. A full list of bands is as follows:

5. Notes that underlying General Fund Balances are projected to remain at £48 million as of 1 April 2023.
6. Approves the Total Schools Budget of £599.3 million to meet the Council’s statutory requirement on schools funding (as set out in Section 9 of the 2023/24 Final Budget and Medium-Term Financial Strategy to 2027/28).
7. Approves the overall indicative Budget Envelopes for Directorates and individual services for the 2023/24 budget (Annex B).
8. Approves the total £1,950.4 million proposed five-year Capital Programme (comprising £1,202.4 m of budget and £748.0m pipeline) and approves the £308.7 million Capital Budget in 2023/24 (Annex C).
9. Approves the Capital and Investment Strategy (Annex F - 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.
10. Approves the policy for making a prudent level of revenue provision for the repayment of debt (the Minimum Revenue Provision (MRP) Policy) (Annex G).
11. Agrees the Council’s refreshed Transformation and Cross Cutting Efficiency Programme (as set out in section 3 of 2023/24 Final Budget Report and Medium-Term Financial Strategy to 2027/28)
12. 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 2023/24 Final Budget Report and Medium-Term Financial Strategy to 2027/28.
13. Cabinet notes that the Audit & Governance Committee has approved 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 2023.

Reasons for Decisions:

Council will meet on 7 February 2023 to agree a budget and to set the Council Tax Precept for 2023/24. 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.

(The decisions on this item can be called in by the Resources and Performance Select Committee)