Chichester District Council
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Issue - meetings

Financial Strategy and Plan 2022-23

Meeting: 23/11/2021 - Council (Item 62)

Financial Strategy and Plan 2022-23

The report can be found on pages 87-113 of the Cabinet agenda for 2 November 2021.

 

The Cabinet made the following recommendations to Full Council:

 

a)    The key financial principles and actions set out in appendix 1 of the 5 year Financial Strategy report be approved.

b)    That having considered the recommendations of the Corporate Governance and Audit Committee, the Minimum Level of Reserves remains set at £4m.

c)    That the current 5 year Financial Model detailed in appendix 2 (Part 2) and the Resources Statement in appendix 3 to the Financial Strategy report be noted.

Minutes:

The Chair explained that at Cabinet when discussing the Financial Strategy report Mr Ward advised changing the inflation assumption for 2022-23 to 4% which is based on the Office for Budget Responsibility forecasts. Cabinet agreed with this and requested that one of the appendices to the report, the 5 year model be updated for Full Council. The part II update was provided to members.

 

Cllr Wilding then proposed the recommendation which was seconded by Cllr Lintill.

 

Cllr Wilding then introduced the item.

 

Cllr Plowman requested information on the impact of the uncertainty of inflation on the financial model as a whole. Cllr Wilding explained that the effects are small over the five year model period.

 

Cllr Brown asked why the Strategy could not include more long term investments and borrowing. Cllr Wilding explained that they would be considered cautiously as a number of council’s had lost millions of pounds in making investments of this nature.

 

Cllr Oakley asked for more information on the Council Tax growth base. Cllr Wilding explained that Council Tax revenue growth had gone up by 1% in a year. Mr Ward added that the Model assumes 1% growth based on past experience. The Divisional Manager for the service had been consulted and based on recent case levels agreed no assumed change over the five year model.

 

Mr Ward clarified that the council is not legally allowed to borrow money for speculative purposes or for revenue return. Borrowing must relate to service provision. He gave an example of replacing refuse freighters.

 

In a vote the following resolution was carried:

 

RESOLVED

 

a)    The key financial principles and actions set out in appendix 1 of the 5 year Financial Strategy report be approved.

b)    That having considered the recommendations of the Corporate Governance and Audit Committee, the Minimum Level of Reserves remains set at £4m.

c)    That the current 5 year Financial Model detailed in appendix 2 (Part 2) and the Resources Statement in appendix 3 to the Financial Strategy report be noted.

 


Meeting: 02/11/2021 - Cabinet (Item 76)

76 Financial Strategy and Plan 2022-23 to 2026-27 pdf icon PDF 189 KB

The Cabinet is requested to consider the report and its appendices and make the following recommendations to Council:

 

a)    The key financial principles and actions set out in appendix 1 of the 5 year Financial Strategy report are approved.

b)    That having considered the recommendations of the Corporate Governance and Audit Committee, the Minimum Level of Reserves remains set at £4m.

c)    That the current 5 year Financial Model detailed in appendix 2 (Part 2) and the Resources Statement in appendix 3 to the Financial Strategy report be noted.

Additional documents:

Decision:

*RECOMMENDATIONS TO COUNCIL

 

a)    The key financial principles and actions set out in appendix 1 of the 5 year Financial Strategy report be approved.

b)    That having considered the recommendations of the Corporate Governance and Audit Committee, the Minimum Level of Reserves remains set at £4m.

c)    That the current 5 year Financial Model detailed in appendix 2 (Part 2) and the Resources Statement in appendix 3 to the Financial Strategy report be noted.

 

Minutes:

Cllr Wilding introduced the item.

 

Mr Ward was then invited to provide an update following the Governments Spending Review announcement for 2021 which covers a three year period. He explained that the announcement included a £4.8 billion increase in grant funding over the three years although the distribution is yet to be announced. It also remains unclear whether the council will be permitted to go beyond a 2% increase in Council Tax. He outlined the freeze to the business rates multiplier for small businesses for next year. There will also be a 50% discount for hospitality and leisure activities which the council will be recompensed for. Mr Ward wished to draw attention to the anticipated inflation rate for next year of 4%. He explained that the council’s Fees and Charges Policy uses the inflation rates set out in the report and therefore the possibility of a 1% variation should be noted. Cllr Lintill requested the revisions be included in the papers for November Full Council.

 

Cllr Dignum  wished to draw attention to the increasing pressure for higher pay, the increase in fuel costs and the parking income which although it had increased did not match like for like with pre-pandemic years.

 

Cllr Plant asked that members give consideration to the funding arrangements for the food collection service. She also wished to draw attention to section d on page 99 of the agenda pack regarding the pension lock.

 

In a vote the following recommendations to Council were agreed:

 

RECOMMENDATIONS TO COUNCIL

 

a)    The key financial principles and actions set out in appendix 1 of the 5 year Financial Strategy report be approved.

b)    That having considered the recommendations of the Corporate Governance and Audit Committee, the Minimum Level of Reserves remains set at £4m.

c)    That the current 5 year Financial Model detailed in appendix 2 (Part 2) and the Resources Statement in appendix 3 to the Financial Strategy report be noted.


 

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