Agenda item

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of the Chief Finance Officer  (report published on 17 January 2022)

Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Finance Officer that provided an update on the Council’s budget strategy for 2022/23 and financial outlook up to 2025/26. Specifically, the report considered the budget and council tax proposals for 2022/23.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

It is essential that the Council Tax rate is set in accordance with the Council tax billing timetable. Any delay would put the Council at risk of not being able to collect the tax in time to make precept payments which would have serious cash flow implications.

Regarding the budget strategy, Cabinet may approve the proposals as set out, or require changes to be made to the suggested approach. The overriding aim of any budget setting process is to approve a balanced budget by statutory deadlines, allocating resources to help ensure delivery of the Council’s corporate and service ambitions. The proposed approach is in line with that broad aim and any changes that Cabinet puts forward should also be framed in that context.

In term of the actual budget position, this report puts forward a balanced budget. If Cabinet agrees the budget, then it will form their proposal to Budget and Performance Panel on 02 February 2022. The feedback from this meeting will be considered by Cabinet and incorporated into a final budget proposal which will be considered at the Cabinet meeting on 08 February 2022 and recommended to Council on 24 February 2022.

Councillor Whitehead proposed, seconded by Councillor Hamilton-Cox:-

“That the recommendations, as set out in the report, be approved with an additional recommendation to the Capital Programme at Appendix C to include the Canal Quarter Scheme and Bailrigg Garden Village schemes within the development pool ”

Councillors then voted:-

Resolved unanimously:

(1)   That Cabinet make recommendations to Council regarding the Lancaster City Council element of the Council Tax as set out in paragraph 3.4 (option one) of this report which is a £5 increase to the Band D Council Tax (from £236.95 to £241.95).

(2)   That Cabinet makes recommendations regarding its initial budget proposals as set out in section 4 and Appendix A of this report.

(3)   That the Capital Programme be revised to include the Canal Quarter Scheme and Bailrigg Garden Village schemes within the development pool.

(4)    That the recommendations and proposals in this report be referred to Council on 26 January for initial consideration as well as being presented for scrutiny by Budget and Performance Panel on 02 February, in order that any feedback can be provided to Cabinet at its 08 February meeting.

Officer responsible for effecting the decision:

Chief Finance Officer

Reasons for making the decision:

The budget framework in general sets out a financial plan for achieving the Council’s corporate priorities .incorporating measures to make progress in addressing the climate emergency and digital improvements as well as activities to address wellbeing, health and community safety.  The decision enables Cabinet to make recommendations to Council in order to complete the budget setting process for 2022/23.