Agenda and minutes

Budget, Council - Wednesday, 1st March, 2023 6.00 pm

Venue: Council Chamber, Civic Centre, Oldham, West Street, Oldham, OL1 1NL. View directions

Contact: Liz Drogan

Items

No.

Item

To receive apologies for absence

Minutes:

Apologies for absence were received from Councillors S Bashforth, Cosgrove and Hobin.

To receive declarations of interest in any matter to be determined at the meeting

View the background to item 2.

Minutes:

There were no declarations of interests received.

To receive communications relating to the business of the Council

Minutes:

The Mayor referred to the tragic earthquake that has affected Turkey and Syria, asking Council to reflect on the many thousands of lives lost and the extensive damage caused.

The Mayor informed Council that a former Member, Marie Curran, had sadly passed away. Accordingly, Councillors Sykes, Dean and Quigg addressed Council paying their individual condolences and tributes.

Council observed a minute’s silence in her memory and for the victims of the earthquake.

To note the Minutes of the Budget Cabinet Meeting held on the 13 February 2023 and to consider the recommendations of Cabinet in relation to the Budget for 2023/24 further to the following attached reports: PDF 297 KB

a) Housing Revenue Account Estimates for 2023/24 to 2027/28 and Projected Outturn for 2022/23

b) Treasury Management Strategy Statement 2023/24 Including the Minimum Revenue Provision Policy Statement, Annual Investment Strategy and Prudential Indicators

c) Council Tax Reduction Scheme 2023/24

d) The Revenue Budget and Capital Programme for 2023/24

i. Revenue Budget 2023/24 and 2024/25 and Medium Term Financial Strategy 2023/24 to 2027/28

ii. Capital Strategy and Capital Programme 2023/24 to 2027/28

Liberal Democrats Budget Amendment Proposals 2023/24

Conservative Budget Amendment Proposals 2023/24

And if thought fit, pass the following resolutions:

That it be noted that on 23 January 2023, the following amounts were approved by the Cabinet as the Council's Council Tax Base for the financial year 2023/24:

a) 58,500 for the whole Council area [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the "Act")

b) 8,952 for dwellings in the Saddleworth Parish area to which a Parish precept relates

c) 5,615 for dwellings in the Shaw and Crompton Parish area to which a Parish precept relates

That the Council Meeting approve the Council Tax Requirement for the Council’s own purposes for 2023/24 (excluding Parish precepts) as being £108,994,860

That the following amounts be calculated by the Council for the year 2023/24 in accordance with sections 31A to 36 of the Local Government Finance Act 1992:

a) £674,318,932

being the aggregate of the amounts which the Council estimates for the items set out in section 31A(2) of the Act taking into account any Precepts for the Saddleworth and Shaw & Crompton Parish areas

b) £564,995,319

being the aggregate of the amounts which the Council estimates for the items set out in section 31A(3) of the Act.

c) £109,323,614

being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with section 31A(4) of the Act, as its Council Tax Requirement for the year (Item R in the formula in Section 31B of the Act).

d) £1,868.78

being the amount at 3(c) above, all divided by Item T (1(a) above), calculated by the Council, in accordance with section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).

e) £328,754

being the aggregate amount of all special items referred to in section 34(1) of the Act, being the Saddleworth and Shaw & Crompton Parish precepts.

f) £1,863.16

being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by the amount by Item T (1(a) above), calculated by the Council, in accordance with section 34(2) of the Act, as the basic amount of its council tax for the year for dwellings in those parts of its area to which no special item relates.

g) £1,888.66

Saddleworth Parish area

being the amounts given by adding to the amount at 3(f) above the amounts of the special item or items relating to dwellings in ... view the full agenda text for item 4.

Additional documents:

Minutes:

The Mayor requested and it was RESOLVED that Council Procedure Rule 14 (Rules of Debate) be suspended to enable Councillor Jabbar, the Deputy Leader of the Council and Cabinet member for Finance and Low Carbon to exceed the time limit for his contribution in moving the Administration Budget to 15 minutes with a 30 second extension and the seconder the Leader of the Council, Councillor Chadderton 6 minutes, the Opposition Spokespersons of the Main Opposition Groups in moving the opposition budget, a time limit of 7 minutes 30 seconds if required, with a right of reply of 6 minutes.

The Mayor informed members that regulations had been implemented which required recorded votes on specific decision at the Budget Council meeting. Members would be advised when a recorded vote was required.

Prior to the consideration of the Budget Proposals, the Mayor asked the Council to note the draft minutes of the Cabinet meeting held on 13^th February 2023.

On a vote being taken, the recommendation was CARRIED UNANIMOUSLY.

RESOLVED that the minutes of the Cabinet meeting held on 13^th February 2023 be noted.

a. Housing Revenue Account Estimates for 2023/24 to 2027/28 and Projected Outturn for 2022/23

Councillor Chadderton MOVED and Councillor Jabbar SECONDED a joint report which, sets out for the Housing Revenue Account (HRA), the detailed budget estimates for 2023/24, the strategic estimates for the four years 2024/25 through to 2027/28 and the projected outturn for 2022/23. The report also set out the recommended dwelling, non-dwelling rents and service and concierge charges to be applied from April 2023.

After taking all relevant issues into account, the projected financial position for 2022/23 was estimated to be a £1.796m positive variance when compared to the original budget forecast, approved at the Budget Council meeting on 2^nd March 2022. Of this variance, £0.570m is attributable to a lower than anticipated brought forward balance from 2021/22 with this being offset by £2.366m owing to the cessation of previously planned HRA funded capital schemes. The estimated balance at the end of 2022/23 was projected to be £22.279m. The closing financial position for 2023/24 showed an estimated HRA closing balance of £20.852m which was sufficient to meet future operational commitments and the potential financial pressures identified in the risk assessment. The 2023/24 position had been presented after allowing for an increase in dwelling rents of 5%, an increase in non-dwelling rents in line with individual contracts, an increase of 2% on service charges and the setting of Extra Care Housing concierge charges to fully recover costs.

Within the Autumn Statement, the Government announced plans to cap social housing rents at 7% for 2023/24. Previous policy guidance for the period 2020-2025 was that all rents were to be calculated based on a maximum of the Consumer Prices Index (CPI) rate in September of the preceding year plus 1%. The Department for Levelling Up, Housing and Communities (DLUHC) has since confirmed that due to the majority of Oldham’s HRA estate being contained within two ... view the full minutes text for item 4.