Agenda item

To consider recommendations in respect of:

 

·       Capital Programme 2022/23 –2024/25

 

·       Revenue Budget 2022/23

 

·       Council Tax 2022/23

 

The supporting information has been circulated as a supplement and is available with this agenda on the Council website.

The Council considered the report by the Executive Director: Resources which set out the financial plans and revenue budgets for the financial year 2022/23 and the supporting information which presented the Council’s spending plans for 2022/23 and detailed budgets for the General Fund and Capital Programme.

 

Councillor Heydon gave a comprehensive presentation placing particular focus on the following matters:

 

·       He stated that the Council was focused on value for money, maintaining services and green spaces, and remaining one of the lowest taxed authorities

·       He reflected that the covid funding had supported the borough in a variety of ways including bringing the Forest Giants to Bracknell and made available unprecedented levels of funding to local voluntary and community groups, through the Bracknell Forest Recovery Grant. The Council had worked closely with Involve targeting support at the agreed priority areas of health and wellbeing, education and skills, disadvantage and exclusion, and building stronger communities. The Council had also funded a whole range of initiatives to help address financial hardship in low-income households, for example topping up the value of school holiday supermarket vouchers last Summer.

·       He advised that detailed planning for the coming year’s budget started back in September 2021. Based on assumptions from the high-level Spending Review announcement in late October the draft proposals were published in December for consultation. He stated that the overarching aim was to protect front line services and within this context, the capital programme did not contain any new funding for additional major schemes, to avoid placing significant pressure on the revenue budget. Schemes that have already been approved and are underway would be funded including work to redevelop the central depot facilities and, in partnership with the NHS, to construct a new health and community hub in Binfield.

·       He reflected that the Heathlands partnership model had been genuinely ground-breaking, that it had taken a number of years to bring forward a local care and health facility for local residents and he was disappointed that the recent storm had prevented the Secretary of State for Health and Social Care attending his planned visit.

·       He thanked the Executive Director for Resources and his team for their commitment, professionalism and wise counsel.

·       He noted that on average, mainstream schools would receive a 5.7% increase in funding per pupil next year from the separate Dedicated Schools Grant. It is expected that this will cover rising costs overall, although the impact will vary between individual schools.

·       He advised that, as with many local authorities, the Council faced significant pressures on the High Needs Budget which funds provision for pupils with special educational needs and disabilities. Funding for those pupils would increase by 11.5% in 22/23. Although this was a generous settlement it would fall short of forecast costs. A potential overspend of around £7.5m was predicted next year, leading to a cumulative deficit of around £20m. He concluded that work was underway on a strategy to provide more local places for children with complex needs, but it would take time to bring these facilities on board to deliver both service advantages and savings compared to out of area placements.

·       He reported that typically inflationary costs would add around £2m to the budget each year but for 2022/23 over double that was being allowed for to maintain the same level of service.

·       He advised that there were continually rising costs in both adult and children’s social care. This was not due to significant increases in the number of vulnerable people receiving care services but rather due to increasing levels of complexity, combined with tightening supply in the social care market, most notably for children’s services.

·       He reflected that it was becoming increasingly difficult to make efficiencies to help balance the budget when faced with such pressures. For 2022/23 £2.3m of savings had been identified and included in the draft proposals.

·       He was pleased to report that the budget consultation had received 86 responses from members of the public. The Council has responded as follows:

o   Almost three quarters of the responses were from local taxi drivers, raising objections to some of the proposed increases in license fees. The Council asked colleagues at West Berkshire Council, who do the work to administer these, to review those charges and they have been reduced.

o   Thirteen responses raised concerns about our draft proposal to extend access to our libraries using our Open Plus technology, with a small reduction in staffed opening hours. Since December, the Library service has looked again at how the proposed saving could be achieved. Through deleting a small number of vacant posts and a modest reduction to the book fund budget, the same level of saving is being achieved without any impact on current staffed opening hours.

·       He stated that the level of council tax was one of the most difficult decisions to balance. The local government finance settlement confirmed that Bracknell Forest was permitted to increase the level of council tax by up to 4.5% in 2022/23. This comprises a 2% general increase and a 1% Adult Social Care Precept that applies to all authorities with social care responsibilities plus a further 1.5% Adult Social Care precept carried forward from 2021/22. The maximum permitted council tax increase of 4.49% in 2022/23 was being proposed.

·       He advised that the future level of Government funding was at risk with business rates system being reset in 2023/24, a new grant funding methodology due to be introduced as well as uncertainty around the impact of “levelling up” on Bracknell Forest.

·       He explained that the proposals included the use of over £1m of reserves to support the budget but that using more reserves would be a short-term plan and not anticipating the pressures that were going to affect the borough.

·       Despite the proposed council tax increase, he stated that Bracknell Forest residents would still be paying one of the lowest levels of council tax in the country. In recognition that some low-income households are already struggling with meeting household bills an additional £100 council tax discount to all working age households receiving council tax support was proposed. This was being funded from Bracknell Forest’s own resources and was completely separate from any other Government schemes.

 

On the proposition of Councillor Heydon, Executive Member for Transformation and Finance, seconded by Councillor Bettison OBE the recommendations as set out in the agenda papers were moved.

 

On the proposition of Councillor Temperton, Leader of the Opposition, seconded by Councillor Bidwell the following amendment was proposed:

 

This Council supports the recommendations submitted by the Executive in respect of the Capital Programme 2022/23 – 2024/25 and the Revenue Budget 2022/23 as set out in pages 19 and 20 of the agenda, with the following amendments (highlighted in bold);

 

2.2 Revenue Budget 2022/23

 

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, plus an additional one-off pressure of £0.100m for improvements to parking on our estates be agreed;

 

viii) A contribution of £1.560m (after allowing for additional interest from the use of balances) be made from revenue balances to support revenue expenditure. Comprising £775K already in the core budget, plus an extra £677K to cover the reduced Council tax and some for lost interest;

 

x) The Council’s Council Tax requirement, excluding Parish Council precepts, be set at £70.065m

 

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	968.10
B	7/9	1,129.45
C	8/9	1,290.80
D	9/9	1,452.15
E	11/9	1,774.85
F	13/9	2,097.55
G	15/9	2,420.25
H	18/9	2,904.30

 

That the impact of the above changes be reflected in a revised Council 

Tax Resolution.

 

The meeting was adjourned for councillors in attendance to consider the circulated amended Council Tax resolution.

 

On being put to the vote the amendment fell.

 

A recorded vote was taken on the substantive motion and the voting was as follows:

 

FOR (33): Councillors Allen, Angell, Atkinson, Dr Barnard, Bettison OBE, Bhandari, D Birch, Mrs Birch, Brossard, Dudley, Finch, Ms Gaw, Gbadebo, Mrs Gibson, M J Gibson, Green, Mrs Hamilton, Harrison, Mrs Hayes MBE, Ms Hayes, Heydon, Mrs Ingham, Mrs Kennedy, Kirke, Leake, Mrs Mattick, Mrs McKenzie-Boyle, McLean, Ms Merry, Porter, Skinner, Turrell and Wade

 

ABSTAIN (4): Councillor Bidwell, Brown, Neil and Temperton

 

Therefore it was RECOMMENDED TO COUNCIL on 24 February 2022 that:

 

2.1       Capital Programme 2022/23 - 2024/25

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

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 of the agenda report;

iii)             That those schemes that attract external grant funding be agreed 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 be agreed.

 

2.2       Revenue Budget 2022/23

 

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 1992as 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