Agenda item

Cabinet, at its meeting on 2 February 2023, considered the attached report of the head of finance on the the draft revenue budget 2023/24, and the capital programme to 2027/28.

The Scrutiny Committee considered the report at its meeting on 26 January 2023. The Committee recommended to Cabinet that officers should consult the council’s Legal team to consider whether the council should enter into a contract with the Vale to formalise the funding agreement for the proposed new leisure facility at north-east Didcot, to be part funded by Vale of White Horse District Council whose residents could benefit from the facility. Cabinet welcomed Scrutiny Committee’s suggestion but considered that this need not be actioned at this stage.  The first step was for both councils to allocate sufficient funds in their budgets and for the project to be progressed further before a decision could be made on whether a contractual position was required between the two councils. 

The report of the chief financial officer on the robustness of the budget estimates and the adequacy of the reserves is attached.

RECOMMENDATION: to

1.    set the revenue budget for 2023/24, as set out in appendix A.1 to the head of finance’s report to Cabinet on 2 February 2023;

2.    authorise the head of finance, in consultation with the cabinet member for finance, to make a one-off contribution to the Oxfordshire County Council pension fund of up to £5 million, subject to confirmation of the results of the triennial pension fund valuation;

3.    approve the capital programme for 2023/24 to 2027/28, as set out in appendix D.1 to the report, together with the capital programme changes as set out in appendix D.2 and Appendix D.3 to the report;

4.    set the council’s prudential limits as listed in appendix E to the report;

5.    approve the medium-term financial plan to 2027/28, as set out in appendix F to the report;

6.    allocate £500,000 to fund the Communities Capital and Revenue grant scheme; and

7.    ask officers to review the Medium Term Financial Strategy at the end of the current spending review period. 

The chair referred to regulations that require councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget, including amendments, and the council tax. In accordance with the regulations, he would call for a named vote on each of these matters at this meeting.

Council noted the report of the chief finance officer on the robustness of the budget estimates and the adequacy of the reserves.

Council considered Cabinet’s recommendations, made at its meeting held on 2 February 2023, on the revenue budget for 2023/24 and the capital programme to 2027/28.

Councillor Barker, Cabinet member for finance, presented Cabinet’s proposals for the revenue budget and capital programme. He moved and Councillor Rouane, Leader of the council, seconded a motion to approve Cabinet’s recommendations as follows:

To

1.    set the revenue budget for 2023/24, as set out in appendix A.1 to the head of finance’s report to Cabinet on 2 February 2023;

2.    authorise the head of finance, in consultation with the cabinet member for finance, to make a one-off contribution to the Oxfordshire County Council pension fund of up to £5 million, subject to confirmation of the results of the triennial pension fund valuation;

3.    approve the capital programme for 2023/24 to 2027/28, as set out in appendix D.1 to the report, together with the capital programme changes as set out in appendix D.2 and Appendix D.3 to the report;

4.    set the council’s prudential limits as listed in appendix E to the report;

5.    approve the medium-term financial plan to 2027/28, as set out in appendix F to the report;

6.    allocate £500,000 to fund the Communities Capital and Revenue grant scheme; and

7.    ask officers to review the Medium Term Financial Strategy at the end of the current spending review period. 

In introducing the budget, the Cabinet member noted that it included £0.5 million of discretionary spending and used only £0.7 million from reserves.  In producing a balanced budget both officers and members had worked hard to review costs and achieve savings.  High inflation had put pressure on the council’s spending, and there was uncertainty over government funding beyond 2024/25.  Another uncertainty was whether the council would be required to pay an additional £5 million to the pension fund - provision for which was included in the budget.  The budget also included new capital funding for a new leisure facility at north-east Didcot, a new learner pool at The Wave in Didcot, and funding for the decarbonisation project at the Cornerstone Arts Centre.  Council tax would increase by £5 for a Band D property, the maximum allowed without holding a referendum.  This increase equated to less than 10 pence per week. 

A number of councillors spoke against the budget proposals. They opposed the capital costs for the building of a new council headquarters at the Didcot Gateway site. Alternative council owned accommodation was available, notably Abbey House in Abingdon, which could be repurposed reducing carbon costs and allow the site in Didcot to be made available for alternative uses including social housing. The increase in council tax would impact on residents at a time of rising costs. 

However, the majority of councillors supported the budget proposals. It was a balanced budget with minimal draw from reserves and proposed no cuts to services. It retained provision for community grants. Others welcomed the continued funding to support the climate action plan work and recruitment of officers to support this work.  A number welcomed the investment in new leisure centre facilities, support for the provision of affordable housing via the Local Authority Housing Fund (a new project introduced by the government to provide capital funding, which was matched in the budget to provide homes to meet local need) and the continued discretionary funding of the community hub which had provided support to the residents through the Covid-19 pandemic and during the cost-of-living crisis and also supported refugees and host families in the district.         

In accordance with regulations requiring councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget the chair called for a recorded vote which was carried with the voting being as follows:

RESOLVED: to

1.    set the revenue budget for 2023/24, as set out in appendix A.1 to the head of finance’s report to Cabinet on 2 February 2023;

2.    authorise the head of finance, in consultation with the cabinet member for finance, to make a one-off contribution to the Oxfordshire County Council pension fund of up to £5 million, subject to confirmation of the results of the triennial pension fund valuation;

3.    approve the capital programme for 2023/24 to 2027/28, as set out in appendix D.1 to the report, together with the capital programme changes as set out in appendix D.2 and Appendix D.3 to the report;

4.    set the council’s prudential limits as listed in appendix E to the report;

5.    approve the medium-term financial plan to 2027/28, as set out in appendix F to the report;

6.    allocate £500,000 to fund the Communities Capital and Revenue grant scheme; and

7.    ask officers to review the Medium Term Financial Strategy at the end of the current spending review period.