Agenda item

To consider a report of the Portfolio Holder for Finance, Commercial and Capital Strategy.

The Portfolio Holder for Finance, Commercial & Capital Strategy set out the Budget Strategy and medium-term financial plan. He confirmed that all members of the council had the opportunity to help shape the budget and he acknowledged the involvement of both Scrutiny Committees.

 

The presenting detail of the budget strategy report; the Portfolio Holder highlighted that an increase in general council tax of 1.9987% and 1.9987% in the social care precept, providing a band D council tax figure for Dorset Council of £1,905.93; an overall increase of 3.9974%, was proposed.

 

He also took the opportunity to highlight other aspects of the budget including, Dorset Council Plan priorities, fees and charges and the possibility of increasing second home council tax as part of possible future legislation.

 

The Chairman took the opportunity to thank scrutiny for their comments as part of the budget process.

 

In a response to a question around the pay award, the Chief Executive confirmed that the council engaged and was committed to the national negotiation scheme and the result of those negations would be honoured.

 

It was proposed by Cllr G Suttle and seconded by Cllr P Wharf

 

Recommendation to Full Council

 

(i)             That the revenue budget summarised in Appendix 1, be agreed

 

(ii)           That the increase in general council tax of 1.9987% and 1.9987% in the social care precept, providing a band D council tax figure for Dorset Council of £1,905.93; an overall increase of 3.9974%, be agreed

 

(iii)          That the council tax base agreed by the S151 Officer earlier in this budget setting process, be noted.

 

(iv)           That no change to the current scheme of Local Council Tax Support as set out in this report, be agreed

 

(v)           That the capital strategy set out in Appendix 3 be agreed and the review in progress around the current capital programme and emerging bids, be noted.

 

(vi)          That the treasury management strategy set out in Appendix 4, be agreed.

 

(vii)        That the assumptions used to develop the budget strategy and Medium-Term Financial Plan (MTFP), as set out throughout this report, and summarised in Appendix 5, be agreed

 

(viii)       the recommended balances on earmarked reserves and on general funds, including the minimum level of the general fund, the application of a further £3.5m of reserves to support the safety valve agreement, and the repurposing of £3m of the Council’s other reserves for spend-to-save investment in transformation, be agreed

 

(ix)          That the fees and charges policy set out in Appendix 6, be agreed

 

(x)           That the responses to recommendations and comments made as part of the budget scrutiny process (Appendix 7), be agreed

 

(xi)          Those recommendations 1-6 from the 8 December 2022 Harbours Advisory Committee meeting regarding fees and charges, budgets, and asset management plans, be agreed

 

(xii)        That the flexible use of £5.3m of capital receipts for the purposes of transforming the Council’s asset portfolio over the next three to five years, be agreed. Work with DLUHC is ongoing to confirm this.

Reason for Recommendation

The Council is required to set a balanced revenue budget, and to approve a level of council tax as an integral part of this.  A balanced budget is essentially one where all expenditure is funded by income without unsustainable use of one-off or short-term sources of finance.

The Council is also required to approve a capital strategy, a capital programme and budget, and a treasury management strategy, each of which are included with this report.

The draft budget proposals have been considered by the Place and Resources Scrutiny Committee and by the People and Health Scrutiny Committee and their recommendations were set out in appendix 8 for Cabinet’s consideration.