Apologies for absence were received from Councillor Grant.

There were no declarations of interest declared at the meeting.

The minutes of the meeting held on 4 January 2024 were confirmed with the following amendment:-

That Councillor Murray-Smith had had looked at the Trust Pilot reviews for Mediequip which were very poor. 

There were no matters arising from the above minutes which were not covered elsewhere on the agenda.

The Committee received and considered the report from the Executive Director  - Resources.

The Executive Director reported that this report presents for consideration by Scrutiny the budget report for 2024/25 for the revenue and capital budgets for the general fund and housing revenue account. In respect of the general fund budget, this has been informed by the one-year local government finance settlement for the 2024/25 financial year which was provisionally announced in December and updated for the final settlement as announced last week which resulted in £16,000 additional funding to the position as included in the report which will be reflected in the final report to Council along with the further amendment made by Cabinet yesterday. 

The Executive Director reported the detail of the budget together with the assumptions used to inform the position were included within the commentary of the report and within the supporting appendices. The budget reflects many months of work by officers and members, including a number of joint cross party working groups which have informed the production of savings and income opportunities to be delivered for the 2024/25 year. 

The Executive Director reported that Members will recall that the Medium-Term Financial Strategy as reported in November forecast a gap of just over £2.5million for the coming financial year and set a savings target of £2million for 2024/25. The budget presented for consideration by Cabinet today for recommendation to Council includes the savings approved by Council at the meeting in December 2023, totalling just over £1.1million. 

The Executive Director reported that, in addition to other savings that were in progress, plus the further savings of £304,000 as updated by Cabinet yesterday to be approved as part of this report; savings and additional income totalling £1.7million are included in the budget for 2024/25. This means there is a reliance on the general reserve in 2024/25 of £688,885 to produce a balanced budget. 

The Executive Director reported that the budget process for 2024/25 has been challenging, the additional cost pressures that the council continues to face which is not matched by funding increases continues to have an impact on the financial position, for example:-

• Increases in utility costs, despite renegotiation of electricity contracts, energy costs continue to be significant cost; 
• The cumulative impact of past pay awards; 
• Other pressures on the revenue budget are from higher interest rates and the impact of financing the capital programmes from borrowing, which has partly been mitigated by an increase in interest receivable; 
• Contract inflation on contracts that we have for example for provision of software and other services – whilst some of these can be negotiated, where CPI is a factor these present a pressure. 

The Executive Director reported that the budget assumes the increase in a band D Council tax for the Boroughs element of the Council tax bill which will increase the annual amount for a band D property to £186.90, this is an increase of 2.99%,  which equates to £5.42. The Council continues to hold a number of earmarked reserves which along with the general reserve provides some financial stability, however the use of reserves does not provide a long term solution and the council will continue to lobby the government around the fair fund allocation of resources. 

The Executive Director reported that the report also includes for approval a number of capital bids as listed at Appendix I, some of which will be subject to more detailed business cases ahead of releasing funds. 

The Executive Director reported that, in summary, for the general fund, whilst the report presents for approval the budget for 2024/25, the high-level future financial forecasts have been included for information which show a forecast gap of £2.2million for 2025/26 for which early work will commence in the new year on options to close this deficit. 

The Executive Director reported that, in relation to the Housing Revenue Account budget for 2024/25, the report presents the revenue and capital budgets for the Council’s activity as a landlord for its 5,746 homes and 382 lease holders. The 2024/25 budget for the HRA reflects the current revenue requirements for housing management and capital programme investment on housing as well as the current provision of the repairs and maintenance service via the partnership with Norse. There will be a reset of the budget in the 2024/25 year following the stock condition survey which has been completed in the current year and also once the service has been insourced to inform a more accurate view on the make up the budgets moving forward. 

The Executive Director reported that, in the medium term, the budget and forecasts presented assume additional borrowing to support the affordable homes capital delivery programme and continued investment in the housing stock. The rent setting for the year, assumes the rent cap of CPI plus 1% which equates to 7.7% for 2024/25, this has been used to inform the budget modelling for 2024/25 and future years. For the HRA the budget as recommended is a deficit of £2.8m, this still allows the recommended balance to be maintained and the overall budget will be subject to further review once the outcome of the stock condition survey is quantified. 

The Executive Director concluded that the detail of the budgets for both the general fund and housing revenue account are supported by the commentary in the report and the detail within the appendices. 

Councillor Jeal asked for clarification that if a member was in arrears with their Council Tax that this would exclude them from voting on the budget proposals. The Executive Director confirmed that this was the case for both the budget and council tax proposals.

Councillor Wainwright raised the cost to the Council of holding the annual Easter Fair to the amount of £1.4k. He further highlighted the recharge of £96k for staging the markets which equated to £500k per annum which was a phenomenal amount for the Council to find. Councillor Wainwright also identified the increase in street cleansing for the Market Place by GYS which had increased from £696k to £995k and asked if these cost centres were interrogated fully.

The Executive Director explained that the GYS cleansing costs included the Market Place  and the wider Town Centre area and the cost centres did not accurately reflect how these costs were apportioned. The Executive Director assured Members that the Finance Team did challenge the cost centres this year on a line on line basis with the Head of Service.

Councillor Waters-Bunn asked for clarification in regard to the increase in the fees and charges for Hackney Carriage drivers which had not, to her knowledge, been presented to the Licensing Committee for consideration. The Executive Director reported that these fees had been part of the review of fees and charges across the whole Council which had been considered by Cabinet. The setting of fees and charges was the remit of Cabinet and anything outside of policy was the remit of Council. Councillor Waters-Bunn asked whether the feedback received from Hackney Carriage drivers had been considered by Cabinet. The Executive Director informed Scrutiny that Cabinet had agreed to approve the fees and charges for 2024/25 without modification.

The Monitoring Officer suggested that Councillor Waters-Bunn raise this issue at Full Council.

Councillor Robinson-Payne asked for clarification in regard to the vacant Head of Health & Communities post which was funded by the Council and the Integrated Care Board (ICB) and asked whether the Council would have to pay the unused funding back to the ICB. The Executive Director - People confirmed that the ICB funded 50% of the post last year and the post had been vacant from 2 February 2024 this year but the Council would not invoice them.

The Chair asked for confirmation that all car parks in Gorleston had been considered as part of the fees and charges review and why Brush Quay had been singled out. The Executive Director reported that users of the Brush Quay car park would have to pay for parking at a cost of £24.70 a quarter. The Chair reported that the proposed charge was £49.40 for 6 months from 1 April to 30 September inclusive.

The Chair thanked the Executive Director for her presentation and that Scrutiny had considered and commented on the Budget report for 2024/25.

The Committee received and considered the report from the Finance Manager.

The Finance Manager reported that the report presented the Council’s three Strategies, capital, investment & treasury management which would be be presented to Council for approval alongside the budget. These strategies are intrinsically linked so are presented together. They all support and impact on the 2024/25 budget and medium-term financial strategy.

The Finance Manager reported that the capital strategy details the Council’s planned capital expenditure and how it is to be financed recognising how capital spend contributes to local service provision and covers General Fund, Housing Revenue Account and commercial capital spend & financing. It recognises the ongoing impact of capital financial decisions taken now on future budgets. In light of this the capital strategy also considers the risks around the capital spend and how these are mitigated, as well as the sustainability of the planned spend.

The Finance Manager reported that the investment strategy focuses on commercial and service investments and recognises the ongoing implications of related investment decisions now, and in the past, have on future revenue budgets. The strategy provides the framework for specific investment decisions that may be presented as part of a business case in the coming financial year. 

The Finance Manager reported that the final strategy that is presented that goes alongside the setting of the annual budget is the treasury management strategy for the forthcoming financial year. The strategy outlines the approach to the borrowing and investment activity and managing these in a prudent way that has regard to security and liquidity ahead of the highest rate of return and ensuring that sufficient cash is available to meet the capital expenditure plans. The treasury management strategy covers both the borrowing for the general fund and the housing revenue account taking into account future borrowing requirements which are aligned to the approved capital programme for the Council as presented within the budget reports. 

The Finance Manager reported that monitoring of the strategies will be provided during the year with prudential indicators included as part of budget monitoring reports, and a half yearly report against the Treasury Management Strategy being made to Members later in the year. 

Councillor Waters-Bunn asked if the increase in the Local Housing Allowance Rate (LHA) was included in the reports. The Executive Director responded that it was not included. The Head of Housing Assets reported that the LHA would be increased this April, for the first time since its introduction following the Covid pandemic.

The Chair reported that the Council was in dire need of a Fair Funding Review, as were most Local Authorities, which the Leader of the Council had raised at Council. He proposed that Scrutiny should support the Leader in his quest for a Fair Funding Review at the earliest opportunity. 

Councillor Murray-Smith reported that he did not feel that the Chair's proposal came under the remit for Scrutiny and that this proposal should be moved at Full Council. The Chair reported that he was mystified as the proposal supported the leader of his political party.

Councillor Jeal suggested that Scrutiny seek the advice of the Monitoring Officer to ascertain if the Committee could make such a proposal. 

Councillor Freeman reported that, in the interest of political cross-working harmony, that he supported the Chair's proposal to support the Leader's request for a Fair Funding Review.

Proposer: Councillor Williamson

Seconder: Councillor Thompson

Following a vote, the Committee:-

RESOLVED:-

That the Committee support the Leader of the Council, Councillor Smith, in his efforts to secure a fair Funding Review from Central Government.