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 higher) without triggering the requirement for referendum. The budget proposals reflected the Council implementing a £4.95 increase in its council tax charge in 2022-23, equating to an increase of less than 10 pence per week for a B and D property. The total annual charge for the Gravesham element of the council tax bill will be £217.98; by way of comparison, the Band D equivalent council tax for 2021-22 is £213.03.

The Cabinet expressed its concern regarding the uncertainty of local government funding and the impact on the economy arising from the pandemic.

The Leader highlighted that, despite the emerging budget gap, the budget proposals continued to maintain the ambitions of the Council however acknowledged that that there will continue to be a long-term impact on the economy and Council’s budgets, one of those impacts being the consequence of the pandemic for example people’s habits had now changed; more people were shopping online therefore not visiting local town centres, using car parks etc. The budget pressures were also seeing an impact on specific schemes that provide support to vulnerable people operated by other organisations such as Kent Homeless Connect which is commissioned by Kent County Council. This Council was proactively identifying those financial challenges that it will face and responding to those challenges by implementing initiatives etc. It was important for the Council, moving forward, to ensure that for future challenges, borrowing etc. an adequate repayment plan was in place.

In relation to the uncertainty of local government funding, the Chief Executive advised that national bodies such as the Local Government Association, District Council’s Network etc. were continuing to lobby Central Government. 

Resolved that a resolution be placed before the meeting of the Council on 22 February 2022, specifying the council tax to be levied in the Borough of Gravesham for the year 2022-23.