Agenda item

The Director of Corporate Services / Treasurer presented the report which set out the draft revenue budget for 2023/24-2027/28 and the resultant council tax implications.

The budget requirement had been re-assessed taking account of known / anticipated changes, incorporating current projections, and forecast vacancy factors based on anticipated recruitment resulting in a total requirement of £68.5m.

It was noted that the Local Government Settlement was not the anticipated multi-year settlement, as it only covered next year. It did however allow for:-

·         a 6.0% increase in funding, and it had been assumed that this increased by a further 5.0% next year and 2.0% in subsequent years;

·         a ‘Service Grant’ of £0.6m;

·         a change to the council tax referendum principles for Fire and Rescue Authorities (FRAs) increasing this to 3.0% but with a one-off increase in 2023/24 to £5 for all FRAs.

It was therefore proposed utilising this flexibility to increase council tax by £5 (6.4%, 10p per week), to £82.27. This would still leave a funding gap of £0.3m, which would be met from a combination of drawdown of reserves and unidentified savings delivered in year.

Looking longer term the key variables remained future funding levels, pay awards, pension costs and the successful implementation of the outcome of the Emergency Cover Review. At the present time funding gaps in future years were being forecast and depending upon the extent of these further efficiencies would look to be delivered and / or reserves utilised to offset these.

Members considered the report in detail.

Summary of Budget Changes

In summary, the lack of a multi-year settlement made longer term planning more difficult as there could be no certainty around future funding forecasts. Offsetting this was the opportunity provided by the £5 council tax flexibility allowed this year.

Raising council tax by the maximum permissible still only increased the overall council tax bill by £5 but would generate £2.3m of funding for the Authority. It was proposed to utilise a combination of drawdown from reserves and further savings to bridge the funding gap in 2023/24 and beyond, the extent of this requirement being dependent upon final pay award agreement and future funding settlements.

The council tax increase / budget gave greater long term funding certainty which would form the basis of future investment requirements which were essential to hit the ‘road to outstanding’ ambition and be the best equipped, best trained and best accommodated Service.

In response to a question raised by CC Pattison the Deputy Chief Fire Officer advised that there were no foreseen challenges for the recruitment of apprentices to wholetime firefighter vacancies as per the forecast recruitment profile (set out on page 166 of the agenda pack).

In response to a question raised by Councillor Smith, the Director of Corporate Services confirmed that a consortium was used to purchase energy in advance when it was believed that the rates were favourable, as this was recognised as an efficient way of purchasing energy. 

CC Howarth commented that even with the 6% increase in grant settlement from Government there was still the need to increase the council tax by 6.4% to maintain services the Authority were proud of.  While this increase equated to only 10 pence per week it was in addition to other increases by other precepting authorities.  The Government was just offloading the deficit onto the tax payer.  In response, the Chairman commented the Authority had no control over the Government grant.  He stated that he would never want to increase council tax.  Although the Authority managed the budget well, there was a need to have an efficient and effective Service making Lancashire safer.

The proposal based on a council tax band D equivalent of £82.27, an increase of £5.00 was MOVED by County Councillor D O’Toole and SECONDED by County Councillor J Shedwick.  The Authority voted unanimously in favour of the proposal by a show of hands.

The motion was therefore CARRIED and it was:

Resolved: - That the Authority: -

1.    noted the Treasurer’s advice on the robustness of the budget.

2.    noted the Treasurer’s advice on the appropriate level of reserves/balances.

3.    agreed the revised budget requirement of £68.183m for 2023/24.

4.    noted the level of Revenue Support Grant Funding £9.727m.

5.    noted the level of Business Rates Retention Top Up Funding £11.563m.

6.    noted the level of Local Business Rates Retention Funding £4.311m.

7.    noted the section 31 grant of £3.863m due in respect of the business rate reliefs.

8.    noted the business rate tax collection fund surplus of £0.133m.

9.    noted the level of Service Grant Funding £0.634m.

10.noted the net council tax collection fund surplus of £0.276m after allowing for the 3-year spread from 2021/22.

11.agreed the council tax requirement, calculated in accordance with Section 42A (4) of the Localism Act of £37.675m.

12.noted the council tax base of 457,949 determined for the purposes of Section 42B of the Local Government Finance Act 1992.

13.agreed a council tax band D equivalent of £82.27, an increase of £5.00, calculated by the Authority under Section 42B of the Local Government Finance Act 1992 agree, on the basis of the fixed ratios between valuation bands set by the Government, council tax for each band as follows:

14.agreed, based on each district and unitary councils share of the total band D equivalent tax base of 457,949, the share of the total LCFA precept of £37.675m levied on each council as follows: