Budget Council – 22 February 2024

List of Motions and Amendments to be Proposed

Liberal Democrat Amendment option B to the Budget proposals.

To be moved by Cllr Vassie as follows:

Revenue Budget

In relation to the Executive’s recommendations on the revenue budget (paragraph 7 of page 68 of Council papers refers):

In sub paragraph (d) add at the end of the sentence ‘subject to the following amendments;

· Reversal of saving CAC10 Libraries - £300k

· Reversal of saving PLA13 garden waste charge - £720k

· Reversal of saving PLA17 rough sleeper contract - £96k

In paragraph (v) delete and replace with;

Note the increase in social care funding of £1.525m and services grant of £76k, and recommend that this be used to fund additional investment of £1.116m.  Transfer the balance to contingency (£485k). The government has indicated that all of the current sources of funding will continue into 2024/25. Any reduction in funding will have a profound impact both locally and nationally. Clearly this assumption will need to be tested regularly and if there are reductions then further savings will be required possibly in very short timescales.

Delete paragraph (vi)

For information, the effect on the original motion of this amendment would be as follows:

Revenue Budget

1. Executive recommends that Council:

i. Approves the budget proposals outlined in the Financial Strategy report and in particular;

a) The net revenue expenditure requirement of £149.268m

b) A council tax requirement of £113.927m

c) The revenue growth proposals as outlined in the body of the report

d) The 2024/25 revenue savings proposals as outlined in annex 2, subject to the following amendments;

· Reversal of saving CAC10 Libraries - £300k

· Reversal of saving PLA13 garden waste charge - £720k

· Reversal of saving PLA17 rough sleeper contract - £96k

e) The fees and charges proposals as outlined in annex 3

f) The Housing Revenue Account (HRA) 24/25 budget set out in annex 5

g) The Dedicated Schools Grant (DSG) proposals outlined from paragraph 139

ii. Notes that the effect of approving the income and expenditure proposals included in the recommendations would result in a 4.99% increase in the City of York Council element of the council tax, 2% of which would relate to the social care precept.

iii. Approves the 100% increase in council tax on second homes with effect from 1st April 2025 subject to the Levelling Up bill receive Royal Assent by 31st March 2024, as set out in paragraphs 75 to 77.

iv. Approves the change to charge a 100% premium on homes that have been empty for 1 year with effect from 1st April 2024, as described in paragraph 78.

In addition, following a recent announcement, Council is recommended to:

v. Note the increase in social care funding of £1.525m and services grant of £76k, and recommend that this be used to fund additional investment of £1.116m.  Transfer the balance to contingency (£485k). The government has indicated that all of the current sources of funding will continue into 2024/25. Any reduction in funding will have a profound impact both locally and nationally. Clearly this assumption will need to be tested regularly and if there are reductions then further savings will be required possibly in very short timescales.

Reason: To ensure a legally balanced budget is set

Capital Budget 2024/25 to 2028/29

1) The Executive is requested to recommend that Council:

a) Agree to the revised capital programme of £395.186m that reflects a net overall increase of £56.409m (as set out in table 2 and in Annex 1). Key elements of this include:

i) New schemes funded by prudential borrowing totalling £3.353m as set out in table 3;

ii) Extension of prudential borrowing funded Rolling Programme schemes totalling £25.025m as set out in table 4;

iii) Extension of externally funded Rolling Programme schemes totalling £6.030m as set out in table 5;

iv) New schemes funded by external grants totalling £3.844m as set out in table 5;

v) An increase in HRA funded schemes totalling £18.157m funded from a combination HRA balances/capital receipts as set out in table 6;

b) Note the total increase in Council borrowing as a result of new schemes being recommended for approval is £28.378m the details of which are considered within this report and the financial strategy report.

c) Approve the full restated programme as summarised in Annex 2 totalling £395.186m covering financial years 2024/25 to 2028/29 as set out in table 12 and Annex 2

Reason:     In accordance with the statutory requirement to set a capital budget for the forthcoming financial year.

Capital and Investment Strategy

43. Executive recommends that Council:

i. Approve the Capital and Investment Strategy at Annex A

Reason: To meet the statutory obligation to comply with the Prudential Code 2017

Treasury Management Strategy Statement and Prudential Indicators

44. Executive recommends that Council approve;

i. The proposed treasury management strategy for 2024/25 including the annual investment strategy and the minimum revenue provision policy statement;

ii. The prudential indicators for 2024/25 to 2028/29 in the main body of the report;

iii. The specified and non-specified investments schedule (annex B)

iv. The scheme of delegation and the role of the section 151 officer (annex D)

Reason: To enable the continued effective operation of the treasury management function and ensure that all council borrowing is prudent, affordable and sustainable.