Agenda item
Final Revenue Budget 2023/24 and Medium-Term Financial Strategy 2023/24 to 2025/26
- Meeting of Performance and Finance Scrutiny Sub-Committee, Tuesday 28 March 2023 6.30 pm (Item 23.)
- View the background to item 23.
Minutes:
Members received the Final Revenue Budget 2023/24 and Final Medium Term Financial Strategy 2023/24 to 2025/26 Report that were presented to Cabinet on 16 February 2023.
The Director of Finance and Assurance (S151 Officer) informed Members that the report set out the final revenue budget for 2023/24 and final Medium Term Financial Strategy (MTFS) for 2023/24 to 2025/26. In December 2022, Cabinet approved the draft versions of the revenue budget and MTFS for general consultation. Cabinet had been asked to note the adjustments.
After all adjustments, the MTFS showed a balanced budget position for 2023/24 and 2024/25, and an estimated budget gap of £6.321m to £13.143m for 2025/26. This was due largely to the uncertainty of the Social Care Grant. As the budget was approved annually, the latter two years of the MTFS, especially year 3, would be subject to review and adjustment before being finally approved.
The final MTFS was based on the Local Government Indicative Financial Settlement received on 19 December 2022. The final settlement was received on 7 February 2023. Any impact on the budget and MTFS would be managed through the Contingency for Unforeseen Items. The Council held a contingency for unforeseen items (£1.248m) which was intended to support uncertainties. The Council would still be required to review the budget on a yearly basis.
In the discussion that ensued, Members made comments and asked the following questions:
§ Given the estimated budget gap, was there a “Plan B” to deliver services if the gap was not bridged?
§ What pressure was the Place Directorate under to achieve its target of issuing 50 000 traffic and parking violations, such as penalty charge notices (PCNs) or fixed penalty notice (FPNs), and would current staffing levels of enforcement officers be adequate?
§ Was there statistical data on PCNs and FPNs to demonstrate the trend over the years, and to determine whether residents’ mind-sets had changed in relation to following traffic regulations?
§ Was there pressure on enforcement officers to issue more fines, and were they required to meet “targets”?
§ What effect would the budget gap have on Adult Services, and what would be “Plan B” if funding was inadequate?
§ The budget saving on waste collection showed possible changes to day and routes collection, would this affect service delivery?
In response, the Director of Finance and Assurance (S151 Officer) advised as follows:
§ Citing page 21 of the Report, which showed the legal requirement of achieving a balanced budget, it was acknowledged that meeting some of the savings would be challenging. However, not all savings would start on 1 April 2023, as some would begin mid-year (June 2023).
§ Some savings had a risk element to them. However, with better enforcement and use of technology, it was envisaged that the target of set by the Place Directorate for more PCNs and FPNs would be met.
§ Furthermore, PCNs were not just for raising monies but also to help change the mindset of the drivers, as there were many people breaking the law, especially in Harrow.
§ There was statistical data to show trends in the issuance of traffic and parking fines over the years. This showed they were having some effect. If there was a risk that the target may not be achieved, and it would be reviewed. Enforcement officers were not required to meet specific targets of issuing fines.
§ It was expected that the saving target for Adult Services would be met, and this would begin mid-year.
§ During the national lockdown arising from the coronavirus pandemic (Covid-19), more waste collection trucks were deployed as residents were at home, which led to more disposal of waste. However, the current situation meant the extra trucks could be withdrawn, as well as the additional routes.
RESOLVED: That the report be noted.
Supporting documents:
- Final Budget Report February Cabinet, item 23. PDF 307 KB View as DOCX (23./1) 146 KB
- Appendix 1A - Savings and Growth from the 2022-23 and 2023-24 budget Process - Feb 2023, item 23. PDF 255 KB
- Appendix 1B - Savings and Growth from the 2022-23 Budget Process._, item 23. PDF 94 KB
- Appendix 2 MTFS 2023-24 to 2025-26 - Feb 2023, item 23. PDF 111 KB
- Appendix 3 - Revenue Budget Summary 2023-24, item 23. PDF 53 KB
- Appendix 4 - Levies, Contributions and Subscriptions 2023-24, item 23. PDF 16 KB
- Appendix 5 - Policy on use of Contingency, item 23. PDF 83 KB
- Appendix 6 - School Budgets 2023-24, item 23. PDF 194 KB
- Appendix 7 - Public Health Grant 2023-24, item 23. PDF 117 KB
- Appendix 8 - Reserves Policy, item 23. PDF 80 KB
- Appendix 9 - Reserves, item 23. PDF 34 KB
- Appendix 10 - Report of the Chief Finance Officer, item 23. PDF 112 KB
- Appendix 11 - Model Council Tax Resolution 2023-24 (2), item 23. PDF 100 KB
- Appendix 12 - Members Allowances Scheme 2023-24, item 23. PDF 142 KB
- Appendix 13 - Annual Pay Policy Statement for 2023-24, item 23. PDF 203 KB
- Appendix 14 - Flexible Use of Capital Receipts Strategy, item 23. PDF 89 KB
- Appendix 15 - Summary of Resident Consultation, item 23. PDF 367 KB
- Appendix 16 - ECF Min Rec - Draft Revenue Budget 2023-24 and MTFS 2023-24 - 2025-26, item 23. PDF 95 KB View as DOC (23./18) 94 KB
- Appendix 17 - HBCP Minute Extract, item 23. PDF 98 KB View as DOC (23./19) 80 KB