The Assistant Director (Corporate Services) presented the Overview Scrutiny Committee with the draft revenue and capital estimates for General Fund services in 2022-23 together with the recommended level of council tax to be levied for 2022-23.

The report was presented in seven sections and the Assistant Director (Corporate Services) provided Members with a summary of each section: -

·       Section One – Policy Context;

·       Section Two – Government Funding;

·       Section Three – Medium Term Financial Strategy and Planning for the Council and its community;

·       Section Four - General Fund Revenue Budget;

·       Section Five – Council Tax;

·       Section Six - Robustness of Estimates and Adequacy of Reserves; and

·       Section Seven - Capital Programme.

The Assistant Director (Corporate Services) highlighted the following:

·       On 16 December 2021 the Provisional Local Government Finance Settlement for 2022-23 was announced by The Department for Levelling Up, Housing and Communities (DLUHC). The Final Finance Settlement was announced on 8 February 2022, this was reviewed and there were no substantial changes.

·       As like last year, the provisional settlement was for one year only, with the future funding of local government remaining uncertain in the coming years. Local government funding reforms that were planned for introduction from April 2021 (including the Fair Funding Review and reforms to the current Business Rates Retention System) had been put on hold. These reforms were likely to take place during 2022.

·       The provisional settlement also confirmed that government would be eliminating

negative RSG amounts in 2022-23. For Gravesham, this was budgeted at £243,710

that the council was expecting to lose by way of a reduction to its business rates

retention baseline funding level.

·       Lower Tier and Services Grants total £337,380

·       The council has secured indicative New Homes Bonus funding for 2022-23 of £573,150. Allocations continue to be as un-ring-fenced grant, thus enabling the council to maintain its policy of taking NHB Funding directly into Working Balances

·       As a result of the provisional settlement, the Council will experience an increase in its core spending power of 7.3% for 2022-23 and will have the seventh lowest level of assumed spending power per dwelling in Kent at £267. This is based on an assumption by Central Government that the Council will increase council tax by the maximum amount.

·       The Council, this year, had prepared a five-year Medium Term Financial Strategy spanning 2022-23 to 2026-27 in response to an absence of further information on the future of funding for local government from Central Government and the need for the Council to consider initiatives to reduce the emerging budget gap of £3m in 2026-27 that the Council will now face on its General Fund Services.

·       The COVID-19 Pandemic continues to impact on the financial position of the council,

particularly on income streams. The Budget Monitoring Report showing the projected

financial position at the end of Quarter Three (period to 31 December 2021) indicates a projected underspend for the year of £598,670 against the original budget indicating a contribution of £98,270 would be made to working balances, albeit income and  ...  view the full minutes text for item 26

That a resolution be placed before the meeting of the Council on Tuesday, 22 February 2022, specifying the Council Tax to be levied in the Borough of Gravesham for the year 2022-23.

The Cabinet was presented with the draft revenue and capital estimates for General Fund services in 2022-23 together with the recommended level of council tax to be levied for 2022-23.

The report was presented in seven sections and the Assistant Director (Corporate Services) provided Members with a summary of each section: -

·         Section One – Policy Context;

·         Section Two – Government Funding;

·         Section Three – Medium Term Financial Strategy and Planning for the Council and its community;

·         Section Four - General Fund Revenue Budget;

·         Section Five – Council Tax;

·         Section Six - Robustness of Estimates and Adequacy of Reserves; and

·         Section Seven - Capital Programme.

The Assistant Director (Corporate Services) advised that on 16 December 2021 the Provisional Local Government Finance Settlement for 2022-23 was announced by The Department for Levelling Up, Housing and Communities (DLUHC). As like last year, the provisional settlement was for one year only, with the future funding of local government remaining uncertain in the coming years. Local government funding reforms that were planned for introduction from April 2021 (including the Fair Funding Review and reforms to the current Business Rates Retention System) had been put on hold. These reforms were likely to take place during 2022. As a result of the provisional settlement, the Council will experience an increase in its core spending power of 7.3% for 2022-23 and will have the seventh lowest level of assumed spending power per dwelling in Kent at £267. This is based on an assumption by Central Government that the Council will increase council tax by the maximum amount.

The Assistant Director (Corporate Services) advised that the provisional settlement did not included any announcements that the Council would continue to receive support from Central Government during 2022-23 as a result of the COVID-19 Pandemic.

The Council, this year, had prepared a five-year Medium Term Financial Strategy spanning 2022-23 to 2026-27 in response to an absence of further information on the future of funding for local government from Central Government and the need for the Council to consider initiatives to reduce the emerging budget gap that the Council will now face on its General Fund Services.

The budget proposals for 2022-23 will maintain the ambitions of the Council as set out in the Corporate Plan and will continue to include funding to support the delivery of a new Leisure Centre, programmed replacement plans for Council-owned play sites, the delivery of new housing, improved town centre street scene and a commitment to become carbon neutral by 2030. They also reflected the commitments made in the last year to improve the creative offering in the Borough through the St Georges Creative Hub and develop a programme of works to improve rear accessways.

In relation to the council tax to be levied, the Assistant Director (Corporate Services), advised that the provisional settlement confirmed the continued flexibility for district councils in setting council tax levels by permitting district councils to raise council tax by 2% or up to and including £5 (whichever is  ...  view the full minutes text for item 8