Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
1) To approve the Draft Budget for 2022/23 and Medium Term Financial Strategy (MTFS) for general consultation.
2) Note the proposal for the Council Tax increase for 2022/23.
RESOLVED: That
(1) the draft budget for 2022/23 and the Medium Term Financial Strategy (MTFS) 2022/23 to 2024/25 be approved for general consultation as set out in Appendices 1 and 2 to the officer report, so that Cabinet may later consider the budget in light of the consultation responses and the equality impact assessment (s) before it is referred to Council in February 2022;
(2) it be noted that the Spending Review 2021 confirmed broad plans for public spending for 2022/23, which would impact on local government, and that the draft budget would be updated when the detail was announced in the Indicative Financial Settlement (was expected mid to late December 2021 followed by the Final Settlement no later than January 2022);
(3) the balanced budget position for 2022/23, the estimated budget gap of £14.847m for 2023/24 and an estimated balanced budget for 2024/25 based on the scenario of a Council Tax increase of 2.99% per annum over all three years of the MTFS, be noted;
(4) the use of £15.7m Budget Planning Reserve MTFS to achieve the balanced budget position for 2022/23 which was reversed out in the following year, be noted;
(5) the proposal to increase core Council Tax by 1.99% per annum 2022/23 to 2024/25 in line with Central Government spending power calculations, be noted;
(6) the proposal to increase Council Tax by 1% per annum 2022/23 to 2024/25 in line with Central Government spending power calculations in respect of the Adult Social Care Precept, be noted;
(7) the requirement to develop a fully costed budget and implementation plan to support the estimated financial challenges over the MTFS for presentation to Cabinet, be noted;
(8) no proposed structured changes to the schools funding formula for 2022/23 as set out in Appendix 3 and paragraph 1.47 to the officer report, be noted;
(9) the draft Public Health budget for 2022/23 as set out in Appendix 4 to the officer report, be agreed;
(10) the assumed funding for the protection of social care 2022/23 through the Better Care Fund (BCF) as set out in paragraphs 1.51 to 1.54 in the officer report, be noted; and
(11) the Director of Finance and Assurance, following consultation with the Portfolio Holder for Finance and Resources, be authorised to agree Harrow’s 2022/23 contribution to the London Borough’s Grant
Scheme.
Reason for Decision: To ensure that the Council publishes a draft budget for 2022/23 and a draft three Year MTFS to 2024/25. Final approval will be sought from Cabinet and Council in February 2022.
Alternative Options Considered and Rejected: As set out in the report.
Conflict of Interest relating to the matter declared by Cabinet Member/Dispensation Granted: None.
Report author: Strategic Director of Finance
Publication date: 10/12/2021
Date of decision: 09/12/2021
Decided at meeting: 09/12/2021 - Cabinet
Effective from: 18/12/2021
Accompanying Documents: