Agenda item

To consider the recommendations made by the Executive, at their meeting on 9 February 2023, in relation to:

 

i)     The Financial Strategy 2023/24 to 2027/28

ii)    The Capital Budget 2023/24 to 2027/28

iii)  The Capital Financing and Investment Strategy

iv)  The Treasury Management Strategy Statement and Prudential Indicators 2023/24 to 2027/28.

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

 

Note:The original budget reports to Executive, on which their recommendations are based, will be circulated to all Members with this agenda and can be found on the council’s website, here:

https://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=13295&Ver=4

 

Cllr Aspden moved, and Cllr D’Agorne seconded, the following recommendations made by Executive at its meeting on 9 February 2023 in relation to:

i)     The Financial Strategy 2023/24 to 2027/28

ii)    The Capital Budget 2023/24 to 2027/28

iii)  The Capital Financing and Investment Strategy

iv)  The Treasury Management Strategy Statement and Prudential Indicators 2023/24 to 2027/28.

as set out in paragraphs 43 to 46 of the report at Item 7 on the Council agenda:

 

“Revenue Budget

 

Executive recommends that Council:

 

(i)           Approve the budget proposals outlined in the Financial Strategy report and in particular:

                               a.    The net revenue expenditure requirement of £141.624m;

                               b.    A council tax requirement of £107.783m;

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

                               d.    The 2023/24 revenue savings proposals as outlined in Annex 2;

                               e.    The fees and charges proposals as outlined in Annex 3;

                                 f.    The consultation feedback as set out in Annex 4;

                               g.    The Housing Revenue Account (HRA) savings proposals set out in Annex 6 and the HRA 2023/24 budget set out in Annex 7;

                               h.    The dedicated schools grant proposals outlined from paragraph 186, including option 1 for allocating 3 & 4 year old early years funding to providers;

                                 i.    The use of £1m from reserves to fund one off investment, as outlined in paragraph 87.

 

(ii)         Note 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)        Approve the 100% increase in council tax on second homes with effect from 1^st April 2024 subject to the Levelling Up bill receive Royal Assent by 31^st March 2023, as set out in paragraphs 119 to 121.

 

Reason: To ensure a legally balanced budget is set

 

Capital Budget 2023/24 to 2027/28

 

Executive recommends that Council:

 

(i)           Agree to the revised capital programme of £481.980m that reflects a net overall increase of £51.158m (as set out in table 2 and in Annex A). Key elements of this include:

a)   New schemes funded by prudential borrowing totalling £1.229m as set out in tables 3;

b)   Extension of prudential borrowing funded Rolling Programme schemes totalling £22.286m as set out in table 4;

c)   Extension of externally funded Rolling Programme schemes totalling £8.998m as set out in table 6;

d)   An increase in HRA funded schemes totalling £18.645m funded from a combination HRA balances/Right to Buy receipts as set out in table 7.

 

(ii)         Note that the total increase in Council borrowing as a result of new schemes being recommended for approval is £23.515m, 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 £481.980m covering financial years 2023/24 to 2027/28 as set out in table 11 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 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:

a.   The proposed treasury management strategy for 2023/24 including the annual investment strategy and the minimum revenue provision policy statement;

b.   The prudential indicators for 2023/24 to 2027/28 in the main body of the report;

c.   The specified and non-specified investments schedule (Annex B);

d.   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.”

 

Cllr Douglas then moved, and Cllr Kilbane seconded, the following amendment on behalf of the Labour Group:

 

Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 43 of page 42 of Council papers refers):

 

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

 

·               £40k recurring investment in Youth Services across the City, funding additional youth outreach sessions in areas of greatest need, due to prevalence of anti-social behaviour;

 

·               £100k one-off investment for seed funding of commitment to deliver free school meals to every primary school child across our communities in response to the cost-of-living crisis;

 

·               £30k one-off investment to undertake a consultation on altering current access restrictions for Blue Badge holders in the city centre;

 

·               £20k one-off investmentin work to develop a new staffing and service model across all wards to include new ‘Neighbourhood Caretaker’ roles that respond to local community priorities;

·               Part reversal of one-off growth £150k – part reversal of the one- off growth of £250k ‘to allow wards to invest directly in improvements to local communities, from installing new benches to repairing local roads’.

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

·               A reduction of two Executive Members - £40k’.”

 

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

 

For	Against	Abstained
Cllr Crawshaw	Cllr Aspden	Cllr Doughty
Cllr Douglas	Cllr Ayre	Cllr Rowley
Cllr Fitzpatrick	Cllr Baker	Cllr Warters
Cllr Galvin	Cllr Barker
Cllr Heaton	Cllr Craghill
Cllr Kilbane	Cllr Cullwick
Cllr Lomas	Cllr Cuthbertson
Cllr Looker	Cllr D’Agorne
Cllr Melly	Cllr Daubeney
Cllr Musson	Cllr Fenton
Cllr Myers	Cllr Hollyer
Cllr Norman	Cllr Hook
Cllr Pavlovic	Cllr Hunter
Cllr Perrett	Cllr Mason
Cllr K Taylor	Cllr Orrell
Cllr Webb	Cllr Pearson
Cllr Wells	Cllr Runciman
	Cllr Smalley
	Cllr D Taylor
	Cllr Vassie
	Cllr Waller
	Cllr Wann
	Cllr Widdowson
	Cllr Carr (Lord Mayor)
17	24	3

 

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 Aspden	Cllr Doughty	Cllr Crawshaw
Cllr Ayre	Cllr Rowley	Cllr Douglas
Cllr Baker		Cllr Fitzpatrick
Cllr Barker		Cllr Galvin
Cllr Craghill		Cllr Heaton
Cllr Cullwick		Cllr Kilbane
Cllr Cuthbertson		Cllr Lomas
Cllr D’Agorne		Cllr Looker
Cllr Daubeney		Cllr Melly
Cllr Fenton		Cllr Musson
Cllr Hollyer		Cllr Myers
Cllr Hook		Cllr Norman
Cllr Hunter		Cllr Pavlovic
Cllr Mason		Cllr Perrett
Cllr Orrell		Cllr K Taylor
Cllr Pearson		Cllr Warters
Cllr Runciman		Cllr Webb
Cllr Smalley		Cllr Wells
Cllr D Taylor
Cllr Vassie
Cllr Waller
Cllr Wann
Cllr Widdowson
Cllr Carr (Lord Mayor)
24	2	18

The original recommendations were therefore declared CARRIED and it was

 

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