Budget Council – 22 February 2024

List of Motions and Amendments to be Proposed

Liberal Democrat Amendment A to the Budget proposals.

To be moved by Cllr Ayre 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 (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

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, 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 Westfield MUGA (£1m capital spend)

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

d) The 2024/25 revenue savings proposals as outlined in annex 2, 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

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 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.

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

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

viii. use of £696k public health reserve and £500k acquisition reserve to fund one off items

ix. repurposing £170k revenue contribution for Housing Environment Improvement Programme (HEIP) towards Estate Improvements in 2024/25

Reason: To ensure a legally balanced budget is set

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 linedelete ‘£395.186m’ and replace with ‘£398.016m’

In paragraph 8 (i), second linedelete ‘£56.409m’ and replace with ‘£59.239m’

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

(e) Include new schemes: £1m for ward highways; £1m for workspace alteration; £1m for Acomb Library Westfield MUGA

(f) Reduce Housing Environment Improvement Programme (HEIP) scheme by £170k in 2024/25

In paragraph 8 (ii), second linedelete ‘£28.378m’ and replace with ‘£31.378m’

In paragraph 8 (iii), second linedelete ‘£395.186m’ and replace with ‘£398.016m’

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

1) The Executive is requested to recommend that Council:

a) Agree to the revised capital programme of £398.016m that reflects a net overall increase of £59.239m (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 £31.378m 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 £398.016m 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.