Issue - meetings
MTFS and Budget Scene Setting 2023-26
Meeting: 11/07/2022 - Cabinet (Item 6)
6 MTFS and Budget Scene Setting 2023-26 PDF 785 KB
Additional documents:
- Appendix 1 - Draft Budget Setting Timetable 2023-24, item 6 PDF 197 KB
- Appendix 2A - MTFS Summary 2023-26, item 6 PDF 206 KB
- Appendix 2B - MTFS Detail by Service Area 2023-26, item 6 PDF 250 KB
- Appendix 3 - Previously Approved Growth and Inflation, item 6 PDF 198 KB
- Appendix 4 - Previously Approved Savings, item 6 PDF 201 KB
- Appendix 5 - New Growth, Inflation and Changes to Existing Savings, item 6 PDF 231 KB
- Appendix 6 - Projected Movement in Reserves, item 6 PDF 204 KB
- Appendix 7 - Reserves Policy, item 6 PDF 350 KB
- Webcast for MTFS and Budget Scene Setting 2023-26
Decision:
Decision
1. To note the current General Fund Revenue Funding Requirement of £421.500m for 2023-24 prior to the budget setting review to be carried out in year.
2. To note the budget gap assuming a 0% council tax increase compared to the normally permitted 1.99% and the implications on Adult Social Care funding if the Council was not able to levy the assumed 1% Adult Social Care Precept.
3. To note the latest draft position of the Council’s reserves, subject to sign off of the statements of accounts.
4. To note that currently £1m funding from the Public Health grant is allocated to the Key Stage Two extension of Free School Meals as well as £2m from the Free School Meals Reserve.
5. To note that any increase in the Social Care Grant for 2023-24 is assumed to be allocated in full to the services (75% to adult social care and 25% to children’s social care).
6. To note that the HRA housing rent and service charge increases will require consideration once the September 2022 CPI inflationary figure is known.
7. To note that the 2022-23 Management Fee payable to Tower Hamlets Homes (THH) was increased from £33.236m to £33.676m following addition of the 2021-22 pay award.
8. To note that under the Management Agreement between the Council and THH, THH manages delegated HRA income and expenditure budgets on behalf of the Council. In 2022-23, THH is managing delegated income budgets totalling £98.842m and delegated expenditure budgets totalling £32.128m.
9. To note the current assumption that the Local Council Tax Reduction Scheme will remain unchanged for 2023-24.
10.To note the Equalities Implications as set out in Section 4 of the report.
INTERIM CORPORATE DIRECTOR, RESOURCES (K. BARTLE)
(Director of Finance, Audit and Procurement (N. Visram)
Minutes:
Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, introduced the report setting out the Medium Term Financial Strategy and set the scene for the budget process for 2023.
In particular he highlighted the uncertainty caused by the short term settlments currently being provided by the government which made planning the Council’s budget and financial strategy very challenging.
The Mayor thanked the Lead Member, the Corporate Director of Resources and his officers for the work they had undertaken. He asked Cabinet to note that where the report noted future savings that had been agreed by the previous administration he would be reviewing the proposals and finally he agreed the recommendations as set out.
RESOLVED
1. To note the current General Fund Revenue Funding Requirement of £421.500m for 2023-24 prior to the budget setting review to be carried out in year.
2. To note the budget gap assuming a 0% council tax increase compared to the normally permitted 1.99% and the implications on Adult Social Care funding if the Council was not able to levy the assumed 1% Adult Social Care Precept.
3. To note the latest draft position of the Council’s reserves, subject to sign off of the statements of accounts.
4. To note that currently £1m funding from the Public Health grant is allocated to the Key Stage Two extension of Free School Meals as well as £2m from the Free School Meals Reserve.
5. To note that any increase in the Social Care Grant for 2023-24 is assumed to be allocated in full to the services (75% to adult social care and 25% to children’s social care).
6. To note that the HRA housing rent and service charge increases will require consideration once the September 2022 CPI inflationary figure is known.
7. To note that the 2022-23 Management Fee payable to Tower Hamlets Homes (THH) was increased from £33.236m to £33.676m following addition of the 2021-22 pay award.
8. To note that under the Management Agreement between the Council and THH, THH manages delegated HRA income and expenditure budgets on behalf of the Council. In 2022-23, THH is managing delegated income budgets totalling £98.842m and delegated expenditure budgets totalling £32.128m.
9. To note the current assumption that the Local Council Tax Reduction Scheme will remain unchanged for 2023-24.
10.To note the Equalities Implications as set out in Section 4 of the report.