Agenda and minutes

Apologies for absence were received from County Councillor Alan Hosker.

County Councillors Samara Barnes, Yousuf Motala and Lian Pate, joined the meeting virtually.

Announcements

Earthquake in Southern Turkey and Northern Syria

The Chairman extended the county council's sympathies to all those who had been affected by the recent earthquake in Southern Turkey and Northern Syria and encouraged individuals to donate to the relief efforts being organised by the Disasters Emergency Committee if they were able to do so.

Monitoring Officer Designate

The Chief Executive asked Full Council to welcome Heloise MacAndrew who would be joining the county council on 1 April 2023 as Director of Law and Governance and the county council's statutory Monitoring Officer.

New Year Honours 2023

The Chairman extended the Full Council's congratulations to Jacqui Old, Executive Director of Education and Children's Services, who had been appointed a Commander of the Order of the British Empire (CBE) in the recent New Year Honours for services to the community in North Tyneside.

Award of MBE

The Chairman extended the Full Council's congratulations to Roxanne McKinnon, who works in the county council's Business Intelligence Team, who has recently received her insignia, from HM The King, as a Member of the Order of the British Empire (MBE) in recognition of the work she undertook as part of the Lancashire Resilience Forum during the COVID-19 pandemic which was crucial in protecting communities against Coronavirus.

County Councillor Phillippa Williamson, Leader of the County Council, moved the recommendations of the Cabinet regarding:

-  The revenue budget 2023/24 and the medium-term financial strategy 2023/24 to 2026/27.

-  The Council Tax and Precept 2023/24.

-  The Capital Programme 2023/24

Together with the recommendations of the Audit, Risk and Governance Committee from its meeting on 30 January 2023 regarding:

-  The Treasury Management Strategy, the Investment Strategy, and the Minimum Revenue Provision Policy Statement for 2023/24.

The motion was seconded by County Councillor Alan Vincent, Cabinet Member for Resources, HR and Property (Deputy Leader).

In moving the report, County Councillor Williamson outlined an Adjustment and Additions to the proposals contained within the report.

A copy of the Adjustment and Additions was circulated to all Members and is set out at Annexes 1 and 2 to these minutes.

County Councillor Mark Clifford, on behalf of the Labour Group, then made his Budget speech and moved an Amendment to the Budget proposals on behalf of the Labour Group which was seconded by County Councillor Noordad Aziz.

A copy of the Amendment was circulated to all Members and is set out at Annex 3 to these minutes.

Following a period of debate, a recorded vote on the Amendment was taken in accordance with the provisions of Standing Order B45(7). The names of those Members who voted for or against the Amendment, and those who abstained, are set out below.

For (29)

Against (47)

Abstain (2)

The Labour Group's Amendment was therefore LOST.

The following Amendment was proposed by County Councillor Lizzi Collinge and seconded by County Councillor Erica Lewis:

Amend the saving proposal relating to Telecare (Reference – A004) to enable free Telecare services to all residents who are in receipt of Pension credit - cost - 0.629m

Following a period of debate, a recorded vote on the Amendment was taken in accordance with the provisions of Standing Order B45(7). The names of those Members who voted for or against the Amendment, and those who abstained, are set out below.

For (30)

Against (46)

There were no Notices of Motion to be considered.

Annex 1

Adjustment to the 2023/24 Budget Proposal

The budget recommendation to Full Council included the most up to date information available at the time, including funding projections based on the Provisional Financial Settlement that was announced on 19 December 2022, and assumptions on council tax and business rates collection fund and growth levels as that information was not received in time for the publication of the budget report. 

1. The Final Settlement 2023/24

The final settlement was announced on 6 February 2022 and was broadly in line with the grant allocations that were announced as part of the Provisional Settlement. The only change was to the Service Grant, which was increased from £7.360m to £7.663m.

2023/24 Budget Impact – Increased income of £0.303m

2. Business Rates

On reviewing the final settlement business rates information in conjunction with the information received from district councils, the business rates forecast for 2023/24 is showing an improvement of £3.939m compared to those included in the report to Full Council. The main elements of the improved position are as follows:

·  The local share of business rates received by the county council is higher than expected. The medium term financial strategy had assumed 0.5% growth and a value of £28.911m, however the local share is £32.343m a 12.4% increase. No information or intelligence had been received to indicate this level of increase.

2023/24 Budget Impact – Increased income of £3.432m

·  As part of business rates funding, s31 grants are received that mainly act as compensation for decisions the Government have taken such as capping inflationary increases. Some elements of these link to the local share calculation. Therefore, the increase in local share has also resulted in additional s31 grant funding.

2023/24 Budget Impact – Increased income of £0.277m

·  Due to increases in the local share, the income received from the business rates pool will increase.

2023/24 Budget Impact – Increased income of £0.230m

3. Collection Fund

The county council has a budgeted income from the council tax and business rates collection fund of £5m. District Councils have confirmed their final collection fund positions, with a surplus of £3.179m on the council tax collection fund, and a surplus of £0.648m on the business rates collection fund. The total collection fund position is lower than the budget, therefore an adjustment is made to the budget to reduce the collection fund budget for 2023/24.

2023/24 Budget Impact – Reduced income of £1.173m

4. Member Grants

Cabinet agreed at the meeting on 2 February 2023 to increase each member grant by £500 in 2023/24 as a one-off in coronation year.

2023/24 Budget Impact – Additional cost of £0.042m

The impact on the medium term financial strategy presented to Full Council is as follows:

Table 1 – Updated Medium Term Financial Strategy