Issue - meetings

The Council is recommended to make the resolutions set out in the report at agenda item 8. 

63.1    The Leader introduced and moved the recommendations from the Executive. Councillor Merryweather seconded and presented the detailed proposal.

63.2    Councillor Merryweather reported that the general fund budget remained broadly on target. Higher costs due to inflation magnified the structural deficit and increased sustainable measures that needed to be made to compensate for the future. Councillor stated that they were currently in the process of planning next year's budget; however, the Local Authority had not received the necessary information from the government.

63.3    Councillor Peter Martin proceeded to congratulate Councillor Clark on standing down and congratulated Councillor Fairclough. Councillor Martin also congratulated the council on their financial performance in the past year, with a surplus of £700,000 last year and an expected surplus of £230,000 this year.

63.4    Councillor Martin stated that Councillor Merryweather was to increase his inflation rate assumptions from 4% to 5%. Councillor Martin also stated that the Chancellor's main duty at this moment should be to stimulate the economy to, therefore, decrease inflation.

63.5    Councillor Beaman asked if there was any indication that Waverley would lose any more retained business rates on the margins. The Mayor invited the Leader to respond. Councillor Merryweather responded, stating, "Not next year," but he emphasised that the council should proceed as though it would happen.

63.6    Councillor Goodridge supported the recommendation but referenced the Capital Project paragraph 8.2 on page 27 under assets, which concerned 69 High Street. The estimated carry forwards were required at £4.5 million due to additional reviews taking place on the viability, delays in the lease agreements, and in-house resource. Councillor Goodridge stated that due to the issue of viability, the council was not one fit to purchase assets and develop them in this way. Also, stating that the council did not have the human resources, and the viability was still a problem.

63.7    The Mayor invited the Leader to respond. Councillor Merryweather responded, stating, "Councillor Goodridge was speaking about the outturn report at the end of the fiscal year rather than the point where it is at now."

63.8    Councillor Hyman commented that on page 23 of the report, it stated that the good performance had been down to robust management of staff costs. Councillor Hyman asked if this would be continued because there appeared to be some suggestion that the council might be deviating from that policy in a big way. The Mayor invited the Leader to respond. Councillor Merryweather did not respond due to not understanding the question posed.

The Mayor moved to a vote and it was RESOLVED:

To note the 2023/24 forecast outturn position for the General Fund;

To note the emerging pressures and risks set out in the report;

To note the position regarding the General Fund capital programme and individual capital projects.

The Executive are recommended to make the resolutions set out in the report at agenda item 9.

Portfolio Holder for Finance, Assets and Property

The Executive RESOLVED to RECOMMEND that the Council:

     I.        Note the 2023/24 forecast outturn position for the General Fund

    II.        Note the emerging pressures and risks set out in the report

  III.        Note the position regarding the General Fund capital programme and individual capital projects.

Councillor Merryweather introduced the report, thanked Officers for their work in its preparation, and summarised that the general fund budget remained broadly on target. Overall inflation was a dominant characteristic, but work was ongoing to mitigate cost pressures and to improve productivity over the medium-term. Whilst inflation was decelerating is was not as fast as forecast. Those higher costs magnified the Council’s structural deficit and increased the quantity of sustainable measures that would need to be taken to compensate now and in future years.  One consequence of higher inflation was higher interest rates which the Council had benefited from, but that benefit would dissolve as rates fell. Councillor Merryweather continued to explain that high interest rates consequentially increased the viability threshold for capital spending decisions; and advised that contextually, there was increased demand for Council services and a challenging labour supply market.

There being no further discussion, the Executive RESOLVED to RECOMMEND that the Council:

     I.        Note the 2023/24 forecast outturn position for the General Fund

    II.        Note the emerging pressures and risks set out in the report

  III.        Note the position regarding the General Fund capital programme and individual capital projects.

Resolved:

     I.        The annual General Fund budget is a major decision for the Council and setting a balanced budget is a statutory requirement. The uncertain economic climate necessitates a review of the MTFP in the light of its financial impacts on the council: the Council must act quickly to ensure the risk of a net budget shortfall is addressed so that the Council can continue to function.

    II.        Scrutiny of this MTFP through a Mid-Year Review demonstrates transparency and good governance.