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To Receive any Declarations of Interest and Notification of any Dispensations Granted
You are invited to declare any registerable and/or non-registerable interests in matters appearing on the agenda, and the nature of that interest.
You are also invited to disclose any dispensation in relation to any registerable and/or non-registerable interests that have been granted to you in respect of any matters appearing on the agenda.
Please complete the Declarations of Interests card available at the meeting and return it to the Democratic Services Officer before leaving the meeting.
Councillor K Clark declared a registerable personal interest in agenda Item 3: 2022-2026 Financial Planning and Budget Process: Cabinet’s Draft Budget proposals (CAB89/22), as she was a Director and Employee at Justice Prince CIC which had contracts with North Tyneside Council funded from the Housing Revenue Account (Working Roots).
To consider the 2022-2026 Financial Planning and Budget Process: to seek approval for Cabinet’s Draft Proposals for 2022/23 for the General Fund Revenue budget, Dedicated Schools Grant, Investment Plan and Housing Revenue Account (HRA) business Plan and Budget.
The Authority’s 2021/22 Budget and accompanying Medium Term Financial Plan (MTFP) had been agreed by full Council in February 2021. The Budget set in February 2021/22 was balanced, based on a robust set of assumptions in relation to the resources available, and prudent estimates of the expenditure necessary to deliver the Authority’s Services.
The Our North Tyneside Plan 2021-2025 (the Council Plan) set out the overall vision and policy context within which the Financial Plan and Budget proposals would operate. The Authority had worked to a clear set of priorities through the Council Plan and these priorities formed the basis of the framework for COVID-19 recovery in North Tyneside during 2020/21 and the early part of 2021/22.
The impact of the COVID-19 pandemic had continued throughout the financial year 2021/22 and it was anticipated there would continue to be implications into future years. Evidence had shown that the inequality gap had grown over the period of the pandemic. As Budget-planning activity progressed, Cabinet was aware there was a significant amount of uncertainty remaining. The recent announcement of the Government’s Social Care Reform would have a significant impact for the provision of social care and how it would be funded but the scale of new burdens for social care remained uncertain for local government.
Cabinet’s report on 29 November 2021 included details of the Comprehensive Spending Review (SR21) which the Chancellor announced on 27 October 2021. The Provisional Local Government Finance Settlement (the Settlement) for 2022/23 was announced on 16 December 2021. Full details of the Settlement were included in Annex A, section 3.
The Settlement confirmed that Core Spending Power (CSP) for local authorities would increase by 6.9% in cash terms for 2022/23. The Government’s assumption was that to achieve this increase all authorities would implement the maximum allowed Council Tax increase of 3%: a 2%increase for general Council Tax and a 1% increase for the Adult Social Care Precept. In calculating CSP, the Government had assumed that each authority’s Council Tax Base, used to calculate the total level of Council Tax resources, had increased in line with their average Council Tax Base growth since 2017/18.
The Elected Mayor and Cabinet’s draft Budget proposals therefore included for consideration, an increase of 1.99% for general Council Tax and 1% for the Adult Social Care Precept.
The SR21 and the Settlement had confirmed some of the assumptions made in the preparation of the draft Budget proposals but there remained a need for ongoing flexibility to respond to changing circumstances, particularly in light of the forecast economic impacts. The MTFP would continue to be updated in light of future Government announcements and as the ongoing impact of COVID-19 became clear. ... view the full minutes text for item CAB89/22
Date and Time of Next Meeting
Monday, 7 February 2022 at 6.00pm
Monday 7 February 2022 at 6.00pm (Extraordinary meeting).
Minutes published on Thursday 3 February 2022.