Issue - meetings

This report seeks to set out the budget assumptions in respect of inflation for: Employment, Costs (Contracted and non-contracted) and Fees and Charges income, as well as addressing the challenges from the 2022/23 budget that could impact on 2023/24 Budget Setting process.

The report sets out some recommendations for the budget assumptions on inflation for employment, costs and income and provides Council with an insight to the budget deficit caused by the cost of living crisis.

The current challenging financial situation that was facing public services nationally, particularly as a result of increasing inflation and interest rates, was highlighted to the Committee.  Consequently, budget managers were being asked to identify ways in which savings could be made.  It was stated that whilst the use of reserves to balance the Council’s budget was possible, doing so required careful consideration.

Committees were currently in the process of reviewing the business plans for services that fell within their remits.  The plans contained details of growth bids that were being sought and this would inform the budget setting process that was due to begin in the near future.

There was a discussion about whether a ‘blanket’ savings target should be imposed on all council departments.  Officers advised that a more structured approach to identifying savings was preferable at this time, particularly because there was a working group of officers tasked with identifying opportunities to make savings, but that the ‘blanket’ approach would remain an option if it was required.

The Committee discussed whether a general review of the council’s staffing structure was required, in particular for middle and upper tier posts.

There was discussion about the cost of living challenges that were being faced by residents.  It was confirmed that a package of support was being worked up, with a view to considering it at the meeting on 28 November 2022.

The Committee agreed the following budget assumptions for 2023/24, which would result in an estimated budget deficit of £1.27m, requiring savings to be made in accordance with paragraph 3.6 of the report:

1.    Salaries 5%

2.    Costs 3%

3.    Fees & Charges

a)    5% Concessionary

b)    Charge the maximum allowed for statutory fees and charges.

The Committee also asked the Chief Executive to present, at the Corporate Policy and Resources Committee on 28 November 2022, a proposed process for reviewing the Council’s staffing and management structure.

This report seeks to set out the budget assumptions in respect of inflation for: Employment, Costs (Contracted and non-contracted) and Fees and Charges income, as well as addressing the challenges from the 2022/23 budget that could impact on 2023/24 Budget Setting process.

The report sets out some recommendations for the budget assumptions on inflation for employment, costs and income and provides Council with an insight to the budget deficit caused by the cost of living crisis.