Agenda item

To consider the recommendations made by the Executive, at their meeting on 25 January 2024, in relation to:

 

i)     The Financial Strategy 2024/25 to 2028/29 (Revenue Budget)

ii)    The Capital Budget 2024/25 to 2028/29

iii)  The Capital Financing and Investment Strategy

iv)  The Treasury Management Strategy Statement and Prudential Indicators 2024/25 to 2028/29.

These recommendations are set out in the attached report and will be moved by the Executive Leader.

 

Please note you can view the Executive Budget Agenda 25 January 2024 here: https://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=13934&Ver=4

Cllr Douglas moved, and Cllr Kilbane seconded, the following recommendations made by Executive at its meeting on 25 January 2024 in relation to:

 

i)     The Financial Strategy 2024/25 to 2028/29 (Revenue Budget)

 

ii)    The Capital Budget 2024/25 to 2028/29

 

iii)  The Capital Financing and Investment Strategy

 

iv)  The Treasury Management Strategy Statement and Prudential  Indicators 2024/25 to 2028/29.

 

as set out in paragraphs 7 to 10 of the report at Agenda Item 8 on the Council agenda:

 

“Revenue Budget

 

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

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 agree

    that this be allocated to existing pressures.

 

vi.  Note the increase in services grant of £76k and agree that this    be allocated to the contingency.

 

Reason: To ensure a legally balanced budget is set.

 

Capital Budget 2024/25 to 2028/29

 

Executive recommends that Council:

 

i.  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 A). Key elements of this include:

 

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

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

c) Extension of externally funded Rolling Programme schemes  totalling £6.030m and new schemes funded by external grants totalling £3.844m as set out in table 5;

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

 

ii. 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.

 

iii.  Approve the full restated programme as summarised in Annex

      B totalling £395.186m covering financial years 2024/25 to  2028/29 as set out in table 12 and Annex B.

 

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

 

Capital and Investment Strategy

 

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

 

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.”

 

Liberal Democrat Amendment Option A

 

Cllr Ayre moved, and Cllr Widdowson seconded, the following amendment on behalf of the Liberal Democrat Group:

 

 

“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 (c) add at the end of the sentence ‘subject to the following amendments;

 

·        £50k additional growth (total £250k) for Hostile Vehicle

Mitigation for City Centre Access. To be spent on ways to ensure access to the city centre for all disabled people including Dial & Ride, shuttle bus etc.

·        £50k increased growth (total £150k) for gritting footpaths, cycle ways and roads

·        £10k investment in civic party community engagement fund

·        £400k growth to replace the Household support fund

·        £80k increase in revenue cost of capital for Ward Highways scheme (£1m capital spend)

·        £80k increase in revenue cost of capital for vacant workspace alteration (£1m capital spend)

·        £80k increase in revenue cost of capital for Acomb Library and Westfield MUGA (£1m capital spend)

·        £500k one off investment to establish a York business and shop insulation loan scheme

 

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

·        Increase in saving CAC03 from ICT management - £36k

·        A reduction of one Executive Member - £20k

·        Extend corporate restructure-replacement of 'Director' posts with 'Assistant Director' posts - £60k

·        Delete Assistant Director posts - £184k

·        A 5% reduction in ICT - £140k

·        Entirety of Economic Development budget funded through external funding - £228k (any in year shortfall covered by venture fund)

·        Relocate CYC staff in West Offices to existing vacant

premises - £250k

·        Delete post in Communications - £52k

·        Reducing spend on Council Meetings - £8k

·        Part reversal of saving CORP03 webcasting - £20k

·        Reversal of saving CORP05 apprentices funding - £80k

·        Reversal of saving CORP06 early intervention & prevention - £591k

·        Part reversal of saving CORP07 vacancy management - £200k

·        Reversal of saving CAC10 Libraries - £300k

·        Reversal of saving PLA06 schools cycling training - £20k

·        Reversal of saving PLA09 Dial a ride - £50k

·        Reversal of saving PLA11 graffiti removal - £60k

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

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

·        Reversal of saving PLA12 Grounds maintenance - £100k

·        Reversal of saving PLA20 Make it York - £25k

·        Part reversal of saving PLA21 service reviews - £370k

·        Reversal of saving ASC05 community contracts - £264k

·        Reversal of saving ASC10 Social work weekends - £129k

 

In paragraph (v) delete and replace with;

 

Note the increase in social care funding of £1.525m and

recommend that this be used to fund additional investment. 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.

 

In paragraph (vi) delete and replace with;

 

Note the increase in services grant of £76k and recommend that this be used to fund one-off investment

 

Addition of following paragraph;

(vii) use of £500k venture fund monies for the York business and shop insulation loan scheme

 

Addition of following paragraph;

(viii) use of £696k public health reserve and £500k acquisition

reserve to fund one off items

 

 

Addition of following paragraph;

(ix) repurposing £170k revenue contribution for Housing

Environment Improvement Programme (HEIP) towards Estate

Improvements in 2024/25.”

 

After debate, a named vote was taken on the amendment, with the following result:

 

For	Against	Abstained
Cllr Ayre	Cllr Baxter	Cllr Nicholls
Cllr Cuthbertson	Cllr B Burton	Cllr Rowley
Cllr Fenton	Cllr J Burton	Cllr Steward
Cllr Fisher	Cllr Clarke	Cllr Warters
Cllr Healey	Cllr Coles
Cllr Hollyer	Cllr Crawshaw
Cllr Hook	Cllr Douglas
Cllr Knight	Cllr Kelly
Cllr Mason	Cllr Kent
Cllr Orrell	Cllr Kilbane
Cllr Pearson	Cllr Lomas
Cllr Runciman	Cllr Melly
Cllr Smalley	Cllr Merrett
Cllr Vassie	Cllr Myers
Cllr Waller	Cllr Nelson
Cllr Wann	Cllr Pavlovic
Cllr Waudby	Cllr Ravilious
Cllr Widdowson	Cllr Rose
Lord Mayor (Cllr Cullwick)	Cllr Steels-Walshaw
	Cllr Taylor
	Cllr Webb
	Cllr Wells
	Cllr Whitcroft
	Cllr Wilson
19	24	4

 

The amendment was therefore declared LOST.

 

An adjournment took place between 8:20 pm to 8:37 pm.

 

 

Liberal Democrat Amendment Option B

 

Cllr Vassie then moved, and Cllr Smalley seconded, the following amendment on behalf of the Liberal Democrat Group:

 

“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)”

 

After debate, a named vote was taken on the amendment, with the following result:

 

For	Against	Abstained
Cllr Ayre	Cllr Baxter	Cllr Warters
Cllr Cuthbertson	Cllr B Burton
Cllr Fenton	Cllr J Burton
Cllr Fisher	Cllr Clarke
Cllr Healey	Cllr Coles
Cllr Hollyer	Cllr Crawshaw
Cllr Hook	Cllr Douglas
Cllr Knight	Cllr Kelly
Cllr Mason	Cllr Kent
Cllr Nicholls	Cllr Kilbane
Cllr Orrell	Cllr Lomas
Cllr Pearson	Cllr Melly
Cllr Rowley	Cllr Merrett
Cllr Runciman	Cllr Myers
Cllr Smalley	Cllr Nelson
Cllr Steward	Cllr Pavlovic
Cllr Vassie	Cllr Ravilious
Cllr Waller	Cllr Rose
Cllr Wann	Cllr Steels-Walshaw
Cllr Waudby	Cllr Taylor
Cllr Widdowson	Cllr Webb
Lord Mayor (Cllr Cullwick)	Cllr Wells
	Cllr Whitcroft
	Cllr Wilson
22	24	1

 

The amendment was therefore declared LOST.

 

Conservative Amendment

 

Cllr Steward moved, and Cllr Rowley seconded, the following amendment on behalf of the Conservative Group:

 

“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 (c) add at the end of the sentence ‘subject to the following amendments;

·     £25k investment in community tool library

·     £200k increase in highways maintenance budget

·     £18k increase in growth for revenue cost of capital

·     Remove £50k growth for Equalities

 

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

 

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

·        Reversal of saving CHS02 home to school transport - £0k in 24/25

·         Reversal of saving CAC08 reduction in civic support - £10k

·         Reversal of saving CAC10 Explore Contract - £300k

·         Delete Assistant Director posts - £144k

·         Delete post in Democratic Governance - £55k

·         Delete post in Economic Growth - £50k

·         Delete budget for Our City - £60k

·         Reduce Committee Chair allowances by 50% - £34k

·         Reduce Executive Special Responsibility Allowances by 25% - £57k

·         Remove the corporate policy team - £105k

·         Remove the communications team - £198k

·         Reduce overtime budget - £100k

·         Delete Political Assistant posts - £90k

·         Further centralise Housing, Childrens. Adults calls - save in management costs - £30k

 

In paragraph 7 (ii) third line, delete ‘4.99%’ and replace with ‘4.49%’.

 

In paragraph 7 (v) delete and replace with;

 

Note the increase in social care funding of £1.525m and

recommend that £800k of this be used to fund one-off investment with the balance of £725k being allocated to existing pressures.

 

Capital Budget 2024/25 to 2028/29

 

In relation to the Executive’s recommendations on the capital

budget (paragraph 8 of page 69 of Council papers refers):

 

In paragraph 8 (i), first line delete ‘£395.186m’ and replace with

‘£395.386m’

 

In paragraph 8 (i), second line delete ‘£56.409m’ and replace with ‘£56.609m’

 

Under paragraph 8 (i), insert new sub paragraphs:

 

(e) Include a new scheme to invest £200k in the purchase of one

pothole lorry.

 

In paragraph 8 (ii), second line delete ‘£28.378m’ and replace with ‘£28.578m’

 

In paragraph 8 (iii), second line delete ‘£395.186m’ and replace with ‘£395.386m’.”

 

After debate, a named vote was taken on the amendment, with the following result:

 

For	Against	Abstained
Cllr Nicholls	Cllr Baxter	Cllr Ayre
Cllr Rowley	Cllr B Burton	Cllr Cuthbertson
Cllr Steward	Cllr J Burton	Cllr Fenton
	Cllr Clarke	Cllr Fisher
	Cllr Coles	Cllr Healey
	Cllr Crawshaw	Cllr Hollyer
	Cllr Douglas	Cllr Hook
	Cllr Kelly	Cllr Knight
	Cllr Kent	Cllr Mason
	Cllr Kilbane	Cllr Orrell
	Cllr Lomas	Cllr Pearson
	Cllr Melly	Cllr Runciman
	Cllr Merrett	Cllr Smalley
	Cllr Myers	Cllr Vassie
	Cllr Nelson	Cllr Waller
	Cllr Pavlovic	Cllr Wann
	Cllr Ravilious	Cllr Warters
	Cllr Rose	Cllr Waudby
	Cllr Steels-Walshaw	Cllr Widdowson
	Cllr Taylor	Lord Mayor (Cllr Cullwick)
	Cllr Webb
	Cllr Wells
	Cllr Whitcroft
	Cllr Wilson
3	24	20

 

The amendment was therefore declared LOST.

 

After debate, a named vote was then taken on the original recommendations, with the following result:

 

For	Against	Abstained
Cllr Baxter	Cllr Ayre	Cllr Warters
Cllr B Burton	Cllr Cuthbertson
Cllr J Burton	Cllr Fenton
Cllr Clarke	Cllr Fisher
Cllr Coles	Cllr Healey
Cllr Crawshaw	Cllr Hollyer
Cllr Douglas	Cllr Hook
Cllr Kelly	Cllr Knight
Cllr Kent	Cllr Mason
Cllr Kilbane	Cllr Nicholls
Cllr Lomas	Cllr Orrell
Cllr Melly	Cllr Pearson
Cllr Merrett	Cllr Rowley
Cllr Myers	Cllr Runciman
Cllr Nelson	Cllr Smalley
Cllr Pavlovic	Cllr Steward
Cllr Ravilious	Cllr Vassie
Cllr Rose	Cllr Waller
Cllr Steels-Walshaw	Cllr Wann
Cllr Taylor	Cllr Waudby
Cllr Webb	Cllr Widdowson
Cllr Wells	Lord Mayor (Cllr Cullwick)
Cllr Whitcroft
Cllr Wilson
24	22	1

 

The original recommendations were therefore declared CARRIED and it was

 

Resolved:  That the Executive’s recommendations to Council be  approved.