Minutes:
Annex 1
Adjustment to the 2023/24 Budget Proposal
Full Council 9 February 2023
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
|
|
2023/24 |
2024/25 |
2025/26 |
2026/27 |
|
£m |
£m |
£m |
£m |
|
|
Spending Gap as reported Full Council Feb 23 |
9.162 |
-8.325 |
10.601 |
22.890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding |
-3.069 |
-3.752 |
-3.770 |
-3.787 |
|
|
|
|
|
|
|
Other – Member Grants |
0.042 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
Forecast Budget Gap – Full Council Adjustment |
6.135 |
-12.077 |
6.831 |
19.103 |
Table 2 – Updated Transitional Reserve Forecast
|
|
2023/24 |
2024/25 |
2025/26 |
2026/27 |
|
|
£m |
£m |
£m |
£m |
|
Opening Balance |
188.533 |
175.149 |
183.893 |
177.063 |
|
Gap funding |
6.135 |
-12.077 |
6.831 |
19.103 |
|
Commitments |
7.249 |
3.333 |
0.000 |
|
|
Closing balance |
175.149 |
183.893 |
177.063 |
157.960 |
The revised funding table is as follows:
|
|
£m |
|
Budget Requirement |
1,039.046 |
|
Less Revenue Support Grant |
38.206 |
|
Less Business Rates |
236.738 |
|
Less New Homes Bonus |
1.482 |
|
Less Improved Better Care Fund |
47.145 |
|
Less Social Care Grant |
94.569 |
|
Less Collection Fund |
3.827 |
|
Less Capital Receipts |
5.000 |
|
Less Services Grant |
7.663 |
|
Equals council tax cash |
604.416 |
|
|
|
|
Divided by tax base (estimate) |
383,826.57 |
|
Gives LCC Band D council tax for 2023/24 |
£1,574.71 |
|
LCC Band D council tax 2022/23 |
£1,514.29 |
|
Percentage increase |
3.99% |
The revenue budget for 2023/24 is as follows:
|
Revenue Budget 2023/24 |
Net Budget (£m) |
|
Adult Services |
444.813 |
|
Safeguarding and Quality Improvement |
10.220 |
|
Public Health |
-3.016 |
|
Children's Social Care |
193.647 |
|
Education, Culture and Skills |
45.386 |
|
Education and Children's Services |
10.774 |
|
Policy Commissioning and Children's Health |
0.271 |
|
Highways and Transport |
162.016 |
|
Growth and Regeneration |
3.118 |
|
Environment and Planning |
3.194 |
|
Resources |
7.917 |
|
Finance Services |
19.848 |
|
Strategy and Performance |
40.262 |
|
Law and Governance |
19.664 |
|
Digital Service |
35.776 |
|
People Services |
5.835 |
|
Organisation Development and Change |
2.179 |
|
Chief Executive Services |
2.874 |
|
Sub-Total |
1,004.778 |
|
Financing Charges |
40.403 |
|
Use of one-off resources (funding from Transitional Reserve) |
-6.135 |
|
Revenue Budget 2023/24 (Budget Requirement) |
1,039.046 |
Council Tax (on the basis of a budget requirement of £1,039.046m) and the Council Tax base for each property valuation band:
|
Council Tax Band |
£ |
|
|
|
Band A |
1,049.81 |
|
|
|
|
|||
|
Band B |
1,224.77 |
|
|
|
|
|||
|
Band C |
1,399.74 |
|
|
|
|
|||
|
Band D (basic) |
1,574.71 |
|
|
|
|
|||
|
Band E |
1,924.65 |
|
|
|
|
|||
|
Band F |
2,274.58 |
|
|
|
|
|||
|
Band G |
2,624.52 |
|
|
|
|
|||
|
Band H |
3,149.42 |
|
|
|
|
c) The contribution from each district council through their precept of the net total raised from the council tax of £604.416m:
|
District |
£m |
|
Burnley |
37,074,972 |
|
Chorley |
60,378,365 |
|
Fylde |
50,373,398 |
|
Hyndburn |
34,557,011 |
|
Lancaster |
67,049,577 |
|
Pendle |
39,015,645 |
|
Preston |
64,717,432 |
|
Ribble Valley |
39,336,256 |
|
Rossendale |
32,798,060 |
|
South Ribble |
58,505,626 |
|
West Lancashire |
59,989,790 |
|
Wyre |
60,619,406 |
|
Total raised from Council Tax |
604,415,538 |
County Councillor Phillippa Williamson,
Leader of the County Council,
9 February 2023
Annex 2
BUDGET COUNCIL: 9th FEBRUARY 2023
ADDITIONS PROPOSED BY THE CONSERVATIVE GROUP TO THE 2023/24 BUDGET
Proposed one-off additions to the revenue budget
£m
Highway Deterioration Fund 1.000
Growth Fund 1.800
Total cost of proposed additions: 2.800
The additions to the revenue budget are one-off additional investments and will be an addition to the budget financial gap for 2023/24 detailed in the budget adjustment that will be funded from the Transitional Reserve. The revised funding gap of £8.935m is lower than the £9.162m funding gap in the published report reflecting an improved funding position on business rates and the final settlement which is reflected in the budget adjustment.
Table 1– Updated Medium Term Financial Strategy
|
|
2023/24 |
2024/25 |
2025/26 |
2026/27 |
|
£m |
£m |
£m |
£m |
|
|
Spending Gap – Full Council Budget Adjustment |
6.135 |
-12.077 |
6.831 |
19.103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Highway Deterioration Fund |
1.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
Growth Fund |
1.800 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
Budget Gap – Full Council Conservative Adjustment (including additions) |
8.935 |
-12.077 |
6.831 |
19.103 |
Table 2 – Transitional Reserve Forecast
|
|
2023/24 |
2024/25 |
2025/26 |
2026/27 |
|
|
£m |
£m |
£m |
£m |
|
Opening Balance |
188.533 |
172.349 |
181.093 |
174.263 |
|
Gap funding |
8.935 |
-12.077 |
6.831 |
19.103 |
|
Commitments |
7.249 |
3.333 |
0.000 |
|
|
Closing balance |
172.349 |
181.093 |
174.263 |
155.160 |
The revenue budget for 2023/24 is as follows:
|
Revenue Budget 2023/24 |
Net Budget (£m) |
|
Adult Services |
444.813 |
|
Safeguarding and Quality Improvement |
10.220 |
|
Public Health |
-3.016 |
|
Children's Social Care |
193.647 |
|
Education, Culture and Skills |
45.386 |
|
Education and Children's Services |
10.774 |
|
Policy Commissioning and Children's Health |
0.271 |
|
Highways and Transport |
163.016 |
|
Growth and Regeneration |
4.918 |
|
Environment and Planning |
3.194 |
|
Resources |
7.917 |
|
Finance Services |
19.848 |
|
Strategy and Performance |
40.262 |
|
Law and Governance |
19.664 |
|
Digital Service |
35.776 |
|
People Services |
5.835 |
|
Organisation Development and Change |
2.179 |
|
Chief Executive Services |
2.874 |
|
Sub-Total |
1,007.578 |
|
Financing Charges |
40.403 |
|
Use of one-off resources (funding from Transitional Reserve) |
-8.935 |
|
Revenue Budget 2023/24 (Budget Requirement) |
1,039.046 |
View of the Chief Executive and Director of Resources (S151)
The proposals have been validated as being deliverable financially in 2023/24.
In validating the proposals, I have been mindful that:
The transitional reserve is currently forecast to be £188.533m at 31st March 2023. The additional call on the reserve arising from this amendment will be £2.800m in 2023/24 and will not impact on the forecast funding gap in future years. The transitional reserve is sufficient to support the structural deficit for the next 4 financial years with a revised forecast level of £155.160m at 31st March 2027.
In the intervening period the council will need to take steps to address the structural deficit to ensure it can maintain a sustainable financial position.
Annex 3
BUDGET COUNCIL: 9th FEBRUARY 2023
AMENDMENT PROPOSED BY THE LABOUR GROUP TO THE 2023/24 BUDGET
(1) Proposed amendments to the revenue budget
|
|
2023/24 £m |
|
Amend the saving proposal relating to Telecare (Reference – A004) to enable free Telecare services to all residents who are in receipt of Pension credit. |
0.629* |
|
|
|
|
Extend Free School Meals to primary school children from families that are not currently eligible but are in receipt of Universal Credit or legacy benefits |
2.000 |
|
|
|
|
Introduce a maximum £1 cap, per day for return journey for all LCC school bus users.
|
2.100 |
|
|
|
|
Establish an independent poverty commission across Lancashire to report back to LCC.
|
0.100 |
|
|
|
|
Kinship carer support fund, to develop a policy and provide financial support to Kinship carers across Lancashire.
|
1.000 |
|
|
|
|
Development of a Good Work Charter |
0.100 |
|
|
|
|
Total cost of proposed amendments |
5.929 |
*Recurrent adjustment
The additions to the revenue budget to be funded from the transitional reserve in 2023/24.
(2) Proposed additions to the capital programme
|
|
2023/24 £m |
|
Reduce the intervention level by half for works to be undertaken on potholes from 40mm to 20mm.
|
4.500* |
|
|
|
|
Additional investment into supported housing projects (Extra Care) |
5.000 |
|
|
|
|
Invest an extra £10m into the green agenda to work towards Lancashire County council becoming carbon net zero by 2030.
|
10.000 |
|
|
|
|
Total |
19.500 |
*Recurrent adjustment
The additions to the capital programme are all to be funded from the transitional reserve.
View of the Chief Executive and Director of Resources (S151)
The proposals have been validated as being deliverable financially in 2023/24.
In validating the proposals, I have been mindful that:
The transitional reserve is currently forecast to be £188.533m at 31st March 2023. The transitional reserve is sufficient to support the structural deficit for 2023/24 – 2026/27 with a revised forecast level of £117.143m at 31st March 2027.
In the intervening period the council will need to take steps to address the structural deficit to ensure it can maintain a sustainable financial position.
Annex 4
BUDGET COUNCIL: 9th FEBRUARY 2023
AMENDMENT PROPOSED BY THE LIBERAL DEMOCRAT GROUP TO THE 2023/24 BUDGET
Proposed amendments to the revenue budget
£m
Provide funding for street light energy costs to allow 0.500
more flexible policy on times of dimming in locations
where there are community safety concerns
Youth worker provision - 6 additional permanent youth 0.297
workers and a 7th senior youth worker
Parking enforcement - 12 street enforcement officers 0.357
(1 in every district)
Reinstate saving relating to winter gritting route review 0.253
(Reference - H002)
Tree Planting (£2,500 per division) 0.210
Total cost of proposed amendments: 1.617
The additions to the revenue budget to be funded from the Transitional Reserve.
View of the Chief Executive and Director of Resources (S151)
The proposals have been validated as being deliverable financially in 2023/24.
In validating the proposals, I have been mindful that:
The transitional reserve is currently forecast to be £188.533m at 31st March 2023. The transitional reserve is sufficient to support the structural deficit for the next 4 financial years with a revised forecast level of £151.491m at 31st March 2027.
In the intervening period the council will need to take steps to address the structural deficit to ensure it can maintain a sustainable financial position.