To:        Council – Advisory Meeting

              23 February 2022

 

 

Financial Plans and Revenue Budgets 2022/23

Executive Director: Resources

 

1          PURPOSE OF REPORT

 

1.1       At its meeting on 08 February 2022, the Executive considered the 2022/23 proposals for the revenue and capital budgets.  The recommendations on these proposals are submitted to the Council by the Executive and are included in section 2 covering all planned spending, service developments and expenditure reductions for next year.

 

1.2       A separate document presents an overview of the Council’s spending plans for 2022/23 and detailed budgets for the General Fund and capital programme.  The document reflects the Executive’s recommendations and includes the reports considered by it. 

 

1.3       In order to set a legal budget the full Council must make a formal Council Tax resolution.  The Localism Act 2011 made several changes to the Local Government Finance Act 1992, and now requires the Council to calculate a council tax requirement for the year rather than a budget requirement. The appropriate resolution to give effect to the proposals contained in the separate budget report is included in section 3.

 

1.4       The Council Tax Resolution also refers to the Council’s capital programme.  The revenue budget proposals allow for a council funded capital programme of £9.274m recommended by the Executive.  

 

1.5       The resolution in Section 3 also includes reference to the Council Tax for the Police and Crime Commissioner for the Thames Valley, the Royal Berkshire Fire Authority (RBFA) and all Parish Councils as the precepts of these bodies must be included in this Council’s formal Council Tax Resolution. The precept for the RBFA will be agreed at its meeting on 15 February 2022. The Council Tax Resolution assumes a 7.25% (£5 for a Band D property) increase in the RBFA precept; however, should this prove to be incorrect paragraphs 3.5 and 3.6 of the Council Tax Resolution will be revised and re-issued once the precept is agreed.

 

2          RECOMMENDATIONS SUBMITTED BY THE EXECUTIVE

 

2.1       Capital Programme 2022/23 - 2024/25

 

            RECOMMENDED:

 

i)              General Fund capital funding of £16.311m for 2022/23 in respect of those schemes listed on pages 184 to 186;

ii)             The inclusion of £7.037m of expenditure to be externally funded (including £1.133m of S106 funding) as outlined in the summary report for Council (page 179) and included on pages 184 to 186;

iii)           That those schemes that attract external grant funding be recommended to the Council for inclusion within the 2022/23 capital programme at the level of funding received.

iv)           Capital schemes that require external funding can only proceed once the Council is certain of receiving the grant;

v)            The inclusion of an additional budget of £1m for ‘Invest to Save’ schemes.

         

2.2       Revenue Budget 2022/23

 

RECOMMENDED that:

 

i)              The budget proposals set out in Table 1 (page 3) of the summary report for Council, subject to the changes identified in sections 3.2 (pages 4), 3.3 (pages 4 to 5), 3.4 (pages 5 to 7), 3.6 (pages 7 to 8), 3.9 (pages 9 to 11), 7.2 (page 20) and 7.3 (page 20) of the report, be agreed;

ii)             Fees and charges as set out in Annexe G (pages 106 to 170) be approved;

iii)           A provision for inflation of £4.368m be approved;

iv)           The commitment budget as set out in Annexe A be approved (pages 23 to 24);

            v)         That the Council should make additional funding available for distribution to schools through the local funding formula at the level set out in section 4.1 (pages 11 to 12) of the summary report for Council subject to any minor amendments made by the Executive Member for Children, Young People and Learning following the receipt of definitive funding allocations for Early Years and High Needs pupils;

vi)        A general contingency totalling £1.900m be included, use of which is authorised by the Chief Executive in consultation with the Executive Director: Resources in accordance with the delegations included in the Council’s constitution;

vii)        Subject to the above recommendations the revised draft budget proposals be agreed;

viii)       A contribution of £0.775m (after allowing for additional interest from the use of balances) be made from revenue balances to support revenue expenditure;

ix)        Total net expenditure (after use of balances) of £87.337m (page 22), be approved;

            x)         The Council’s Council Tax requirement, excluding Parish Council precepts, be set at £70.742m;

xi)        The Council Tax for the Council’s services for each Valuation Band be set as follows:

 

Band

Tax Level Relative to Band D

        £

A

6/9

  977.46

B

7/9

1,140.37

C

8/9

1,303.28

D

9/9

1,466.19

E

11/9

1,792.01

F

13/9

2,117.83

G

15/9

2,443.65

H

18/9

2,932.38

 

                       

            At the meeting on 08 February 2022 the Executive recommended the 2022/23 Treasury Management Strategy Statement and noted that strategy together with the Prudential Indicators and the Minimum Revenue Provision Policy Statement were matters which the Council needed to approve.

xii)       The Council approves the following indicators, limits, strategies and policies included in Annexe E (pages 75 to 98):

·         The Prudential Indicators and Limits for 2022/23 to 2024/25 contained within Annexe E(i);

·         The Minimum Revenue Provision (MRP) Policy contained within Annexe E(ii);

·         The Treasury Management Strategy Statement, and the Treasury Prudential Indicators contained in Annexe E(iii);

·         The Authorised Limit Prudential Indicator in Annexe E(iii);

·         The Investment Strategy 2022/23 to 2024/25 and Treasury Management Limits on Activity contained in Annexe E(iv);

 

xiii)      The formal Council Tax Resolution contained in section 3 be approved.

 

3          COUNCIL TAX RESOLUTION

 

3.1       That the recommendations of the Executive outlined in sections 2.1 and 2.2 be agreed.

3.2       That it be noted that the amounts calculated for the year 2022/23 in accordance with Section 67 of the Local Government Finance Act 1992 are:

 

(a)       48,249 TAX BASE FOR THE WHOLE COUNCIL AREA

                        being the amount calculated by the Council, in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992, as amended, as its council tax base for the year

       (b)       TAX BASE FOR PART OF THE COUNCIL’S AREA

                                                            EACH PARISH AREA

Binfield

4,482

Bracknell

20,528

Crowthorne

3,087

Sandhurst

8,007

Warfield

5,220

Winkfield

6,925

            being the amounts calculated by the Council, in accordance with regulation 6 of the Regulations, as amended, as the amounts of its council tax base for the year for dwellings in those parts of its area to which one or more special items relate

 

3.3       That the following amounts be now calculated by the Council for the year 2022/23 in accordance with Sections 31 to 36 of the Local Government and Finance Act 1992 as amended (the Act):

 

(a)

£324,342,353

TOTAL EXPENDITURE INCLUDING GENERAL FUND, PARISH PRECEPTS AND THE COUNCIL’S SHARE OF ANY DEFICIT ON THE COLLECTION FUND

            being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act

 

(b)

£249,764,964

TOTAL INCOME INCLUDING GOVERNMENT SUPPORT AND THE COUNCIL’S SHARE OF ANY SURPLUS ON THE COLLECTION FUND

            being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act

 

 (c)

£74,577,389

BOROUGH AND PARISH PRECEPTS NET EXPENDITURE TO BE FINANCED FROM COUNCIL TAX

            being the amount by which the aggregate at 3.3(a) above exceeds the aggregate at 3.3(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its council tax requirement for the year

 

 (d)

£1,545.68

AVERAGE BAND "D" COUNCIL TAX FOR WHOLE BOROUGH

            being the amount at 3.3(c) above, divided by the amount at 3.2(a) above, calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its council tax for the year (including Parish precepts)

 

 (e)

£3,835,188

PARISH PRECEPTS

            being the aggregate amount of all special items referred to in Section 34(1) of the Act

 

   (f)

£1,466.19

BOROUGH COUNCIL TAX FOR BAND "D" PROPERTIES

being the amount at 3.3(d) above less the result given by dividing the amount at 3.3(e) above by the amount at 3.2(a) above, calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its council tax for the year if there were an area of the Borough to which no special item relates

 

(g)

Part of the Council’s area

BOROUGH AND PARISH COUNCIL TAX FOR EACH PARISH FOR BAND “D”               £

 

Binfield

1,520.75

 

 

Bracknell

1,560.70

 

 

Crowthorne

1,551.13

 

 

Sandhurst

1,540.95

 

 

Warfield

1,510.75

 

 

Winkfield

1,546.63

 

            being the amounts given by adding to the amount at 3.3(f) above the amounts of the special item or items relating to dwellings in those parts of the Council's area mentioned above divided in each case by the amount at 3.2(b) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts of its council tax for the year for dwellings in those parts of its area to which one or more special items relate

 

 (h)

Part of the Council's area

BOROUGH AND PARISH COUNCIL TAX IN EACH PARISH FOR EACH VALUATION BAND

 

Parish

A

B

C

D

E

F

G

H

 

£

£

£

£

£

£

£

£

Binfield

1,013.83

1,182.81

1,351.78

1,520.75

1,858.69

2,196.64

2,534.58

3,041.50

Bracknell

1,040.47

1,213.88

1,387.29

1,560.70

1,907.52

2,254.34

2,601.17

3,121.40

Crowthorne

1,034.09

1,206.43

1,378.78

1,551.13

1,895.83

2,240.52

2,585.22

3,102.26

Sandhurst

1,027.30

1,198.52

1,369.73

1,540.95

1,883.38

2,225.82

2,568.25

3,081.90

Warfield

1,007.17

1,175.03

1,342.89

1,510.75

1,846.47

2,182.19

2,517.92

3,021.50

Winkfield

1,031.09

1,202.93

1,374.78

1,546.63

1,890.33

2,234.02

2,577.72

3,093.26

being the amounts given by multiplying the amounts at 3.3(g) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands

3.4       That it be noted that for the year 2022/23 the Police and Crime Panel have stated the following amounts in precepts issued to the Council regarding the Police and Crime Commissioner for the Thames Valley, in accordance with Section 40 of the Act, for each of the categories of dwellings shown below:

 

 

A

B

C

D

E

F

G

H

 

£

£

£

£

£

£

£

£

Police and Crime Commissioner for the Thames Valley

160.85

187.66

214.47

241.28

294.90

348.52

402.13

482.56

 

 

3.5       That it be noted that for the year 2022/23 the Royal Berkshire Fire Authority have stated the following amounts in precepts issued to the Council, subject to confirmation by the Fire Authority on 15 February, in accordance with Section 40 of the Act, for each of the categories of dwellings shown below:

      

 

A

B

C

D

E

F

G

H

 

£

£

£

£

£

£

£

£

Royal Berkshire Fire Authority

49.30

57.52

65.73

73.95

90.38

106.82

123.25

147.90

 

3.6       That, having calculated the aggregate in each case of the amounts at 3.3(h), 3.4 and 3.5 above, the Council, in accordance with Section 30(2) of the Act, hereby sets the following amounts as the amounts of council tax for the year 2022/23 for each of the categories of dwellings shown below:

 

(a)

Part of the Council's area

TOTAL COUNCIL TAX FOR EACH VALUATION BAND

 

Parish

A

B

C

D

E

F

G

H

 

£

£

£

£

£

£

£

£

Binfield

1,223.98

1,427.99

1,631.98

1,835.98

2,243.97

2,651.98

3,059.96

3,671.96

Bracknell

1,250.62

1,459.06

1,667.49

1,875.93

2,292.80

2,709.68

3,126.55

3,751.86

Crowthorne

1,244.24

1,451.61

1,658.98

1,866.36

2,281.11

2,695.86

3,110.60

3,732.72

Sandhurst

1,237.45

1,443.70

1,649.93

1,856.18

2,268.66

2,681.16

3,093.63

3,712.36

Warfield

1,217.32

1,420.21

1,623.09

1,825.98

2,231.75

2,637.53

3,043.30

3,651.96

Winkfield

1,241.24

1,448.11

1,654.98

1,861.86

2,275.61

2,689.36

3,103.10

3,723.72

 

 

4          REASONS FOR RECOMMENDATIONS

 

            To enable the Council to make a formal Council Tax resolution by setting a revenue budget, Council Tax level and capital budget for 2022/23. 

 

5          ALTERNATIVE OPTIONS CONSIDERED

 

5.1       Background information relating to the options considered is included in the supporting information.

 

6          SUPPORTING INFORMATION

 

6.1       The attached ‘Financial Plans and Budget Supporting Information 2022/23’ presents an overview of the Council’s spending plans for 2022/23 and detailed budgets for the General Fund and capital programme.  The document reflects the Executive’s recommendations and includes summaries of the reports considered by it. 

 

7          ADVICE RECEIVED FROM STATUTORY AND OTHER OFFICERS

 

            Borough Solicitor

 

7.1       Nothing to add to the report.

           

Executive Director: Resources

 

7.2       The financial implications of this report are included in the supporting information.

 

Equalities Impact Assessment

 

7.3       The Council’s budget proposals impact on a wide range of services.  A detailed consultation was undertaken on the draft budget proposals published in December to provide individuals and groups the opportunity to provide comments. 

 

7.4       None of the budget proposals require specific equality impact assessments to be carried out.

 

Strategic Risk Management Issues

 

7.5       The supporting information sets out the key risks facing the Council’s budget and the arrangements in place to manage these risks, including maintaining an appropriate level of reserves and contingency.

 

            Climate Change Implications

 

7.6       There are no implications arising from the proposals in this report, which are recommending budget proposals to Council.

 

 

8          CONSULTATION

 

8.1       Details of the consultation process and responses received are included in the supporting information.

Contact for further information

 

Stuart McKellar - 01344 352180

Stuart.McKellar@bracknell-forest.gov.uk

 

Arthur Parker - 01344 352158

Arthur.parker@bracknell-forest.gov.uk