Agenda and minutes

To approve the minutes of the meeting held on 31st October 2022.

The minutes of the meeting held on 31st October 2022 were confirmed and signed.

For information, disclosable pecuniary interests and registrable interests relate to entries that are included, or should be included, on a councillor’s register of interests. Non-registrable interests relate to any other matters.

No disclosures were made.

No declarations were made.

No questions were submitted.

No questions were received.

A report of the Head of Finance regarding the draft budget 2023/24.

 Councillor Popley joined the meeting at 5:31pm.

Councillor Parsons joined the meeting at 5:40pm.

A report of the Head of Finance to advise members of the projected base budget position for 2023/24 including service pressures and savings put forward for the year and provide the basis for the budget consultation (item 6 on the agenda filed with these minutes).

The Deputy Leader of the Council and Lead Member for Finance and Property Services, the Lead Member for Investment, the Director of Finance, Governance and Contracts (DCX and S151) and the Head of Finance attended the meeting to assist with the consideration of this item.

The following summarises the discussion:

      i.        There had been some ministerial announcements on the financial settlement from government, although a detailed settlement was expected the week commencing 19th December 2022. Indications suggested that the government were prioritising stability over the next few years and the settlement was likely to be similar to that received last year. It was anticipated that there would be a 3% increase in core spending power before local Council Tax decisions. It was highlighted that Ministers had noted that local authority reserves had increased significantly over recent years and there may be a requirement to use some of these funds, as instructed by Ministers at a later date. There was an extended producer responsibility for packaging to be introduced in 2024/25, which could mean the council had an increased duty in their waste disposal operations, which would incur further costs. The council had an idea of the Council Tax base in the borough, which had increased overall, although it had decreased in the Loughborough area, which may affect the Loughborough Special Expenses calculations in future years.

    ii.        The Council’s commercialisation portfolio generated £1.5m annually. This figure was reduced in calculations to account for interest payments, minimum revenue provision (equivalent to setting aside loan repayments) and to build a commercialisation reserve, in order to cover any properties that become vacant or require renovations. The income generated by the council’s commercialisation portfolio was part of the council’s funding stream and would be included within the council’s budgets long term.

   iii.        The Capital Plan reserve was specifically required for Capital Plan expenditure or to support the revenue budget in extreme circumstances and this would be subject to Cabinet or Council approval. The commercialisation reserve did not have specific governance arrangements but it was highlighted that the council operated a Scrutiny Commission and a Finance and Performance Scrutiny Committee which would be able to identify any issues with the commercialisation reserves, and that all processes were transparent. 

   iv.        The council should collect approximately £47m in Business Rates, 50% of should be passed to central government. Some of the remaining sum was passed to authorities such as Leicestershire County Council and the Fire Authority and following this, a tariff was applied.  The end result was that the council collected approximately £4.5m. A levy was applied to any amount above the base rate, of which the government received  ...  view the full minutes text for item 12.

To consider recommendations the Panel may wish to propose for inclusion in the draft report to be considered at the next meeting, or, to agree a process by which recommendations will be proposed for inclusion in the draft report before the next meeting.

Considered any recommendations the Panel wished to propose for inclusion in the draft report and to agree a process by which recommendations would be proposed for inclusion in the draft report before the next meeting (item 7 on the agenda).

The Panel discussed a process by which recommendations could be proposed and agreed by members for inclusion in the draft report. It was agreed that members should provide any recommendations they wish to make to the Democratic Services Officer and the Chair, via email by the end of Friday 16th December 2022. Following this deadline, the Lead Officer would review the draft report of the Budget Scrutiny Panel and the Democratic Services Officer would publish as a supplementary item to the Budget Scrutiny Panel agenda for the meeting scheduled for 4th January 2023. At that meeting, members of the panel may make adjustments to the draft report, before it was submitted to the Scrutiny Commission at their meeting scheduled for 9th January 2023.

There were no recommendations made by the Panel at this meeting for inclusion in the Panel’s draft report.

RESOLVED

1.    That Panel Members forward proposed recommendations and observations to the Chair in a timely manner to enable resolutions.

2.    That the Democratic Services Officer collates the proposed recommendations and observations into the draft Panel report.

3.    That a draft of the Panel report is made available for publication following review of the Lead Officer, as a supplement to the agenda for the meeting of and Budget Scrutiny Panel scheduled for 4th January 2023.

Reasons

1-3 To enable proposed recommendations and observations to be agreed by Panel members.

To allow the panel to identify Lead Members, Directors and Heads of Service to help facilitate discussion at the final meeting of the panel.

Considered the Lead Members and Officers required to attend the next meeting of the Budget Scrutiny Panel (item 8 on the agenda).

Directors identified to attend the final meeting of the Budget Scrutiny Panel on 4th January 2023 were the Director of Housing and Wellbeing and the Director of Commercial and Economic Development.

RESOLVED that the Director of Housing and Wellbeing and the Director of Commercial and Economic Development be invited to attend the next meeting of the Budget Scrutiny Panel.

Reason

To assist with the consideration of the draft panel report and any points raised.