Agenda item

To present the Council’s Revenue Budget for 2023/24, the budget reduction requirement and the Administration’s budget proposals for 2023/24 including Council Tax intentions. The report also provides a forecast of the 2024/25 position and the financial forecasts for the remainder of the MTFS period, 2025/26, 2026/27 and 2027/28.

Consideration was given to a report of the Director of Finance which provide the Policy Overview and Scrutiny Committee with the budget reduction requirement and the Administration’s budget proposals for 2023/24 and a forecast of the 2024/25 position having regard to the Provisional Local Government Finance Settlement (PLGFS) published on 19 December 2022. The report also presents the financial forecasts for the remainder of the Medium Term Financial Strategy (MTFS) period 2025/26, 2026/27 and 2027/28.

 

This report presents the Council’s Revenue Budget for 2023/24 together with the budget reduction requirement and the Administration’s budget proposals for 2023/24 including Council Tax intentions. It also provides a forecast of the 2024/25 position and the financial forecasts for the remainder of the MTFS period, 2025/26, 2026/27 and 2027/28. This report updates the financial position presented to Cabinet on 12 December 2022 using information from the PLGFS published on 19 December 2022 and the month 8 financial monitoring forecasts.

 

Having regard to the proposed increase in Council Tax, Section 17 presents the Administration’s approach to balancing the budget for 2023/24 via the budget reduction process. There are a total of 45 proposals presented in accordance with Political Portfolios. These are expected to deliver savings totalling £16.313m and have an FTE impact of 7 in 2023/24. The proposals also have an impact on 2024/25 of £7.575m (and a further £1.135m in 2025/26). All the proposals are presented in summary at Appendix 5 and in detail at Appendix 6 to the report.

 

Assuming approval of the 2023/24 budget reduction proposals and taking into account the impact of one-off budget reduction proposals, the budget reduction requirement for 2023/24 reduces to £12.963m and 2024/25 to £10.670m.

 

The Committee examined the budget reduction proposals.

 

 

The Leader of the Council and Cabinet Member for Regeneration and Housing and The Director of Finance were in attendance to introduce the following proposals:

 

COR-BR1-610 Resource review of Research and Engagement

COR-BR1-611 Realignment of Executive Assistants

PEG-BR1-606 Capitalisation of Transport officers

PEG-BR1-607 Increase capitalisation of staff time on regeneration projects

The Leader and Cabinet Member for Finance and Low Carbon were in attendance to introduce the following proposals:

 

COR-BR1-629 Reprofiling of the Minimum Revenue Position

COR-BR1-630 Service Inflation

COR-BR1-631 Finance Service Restructure

COR-BR1-632 Implementation auto processing/artificial intelligence

COR-BR1-633 PFI Insurance rebate/reduction in professional fees

COR-BR1-644 Improvement in the approach to Council Tax administration

                        and Council Tax Collection

COR-BR1-634 Procurement – Reduction in non-pay budgets

 

With regard to a question for clarification on Council Tax outstanding as at end of 2023, Members were informed that there was an expectancy to collect 94 per cent with approximately £7m in arrears with every effort being made to collect the maximum income and external enforcement are utilised in this regard. Members noted that although collection agencies were much more professional in their work they are closely monitored where collection methods are concerned with any complaints being dealt with immediately.

 

 

The Leader of the Council and Cabinet Member for Culture and Leisure were in attendance to introduce the following proposals:

 

COM-BR1-618 School Swimming Service

COM-BR1-619 OCL Sports Development School Coaching Service

 

 

The Leader of the Council was in attendance to introduce the following proposals:

 

PEG-BR1-608 Employment and Enterprise – Economic Growth (Get Oldham

                        Working)

PEG-BR1-609 Employment and Enterprise – Economic Growth (Investment)

 

The Cabinet Member for Education and Skills was in attendance to introduce the following proposals:

 

CHS-BR1-603          Learning Services – School Improvement, School    Support, Virtual School

CHS-BR1-604          Re-alignment of SEND Central Services & Support

CHS-BR1-605          School Support Services - Academisation

 

In response to questions, Members were informed that the SEND support team services would not be reduced and the funding for Looked After Children was sufficient.

 

The Cabinet Member for Health and Social Care was in attendance to introduce the following proposals:

 

ASC-BR1-601          Adult Social Care - Direct Payments

ASC-BR1-602          Adult Social Care - Target Operating Model

 

Members were informed that the officers will endeavour reduce demand by intervening a lot earlier in the system to assess people to stop people getting into crisis and thus preventing extensive wrap around care.

 

ASC-BR1-612          Sexual Health

ASC-BR1-613          NHS Health Checks

ASC-BR1-614          Public Health Budget

ASC-BR1-615          Young People's Substance Misuse & Sexual Health  Service

 

Members were advised that although the service for BR1-612 and BR1-615

was being split up the level of service for both areas will not change.

 

The Cabinet Member for Corporate Services was in attendance to introduce

the following proposals:

 

COR-BR1-620          Human Resources and Organisational Development Service Restructure

COR-BR1-621          MS Licences migration to cheaper licences for some staff

COR-BR1-622          MS Licences Improved Starter / Leaver Process

COR-BR1-623          Reduced Call Handling in Contact Centre

COR-BR1-624          Reduction in Customer and Digital Experience

COR-BR1-625          Applications Portfolio Management

COR-BR1-626          Review of CDTT Operating Model including ICT

COR-BR1-627          CDTT operating model review and implementation of Transformation changes

COR-BR1-617          Cease the Provision of a Meal prior to Council Meetings

COR-BR1-628          Democratic Services Review:

 

 

The Cabinet Member for Neighbourhoods was in attendance to introduce the following proposals:

 

COM-BR1-616          Reduction in Councillor Ward budgets

PEG-BR1-635          Reshape Bonfire Event

PEG-BR1-636          Don’t Trash Oldham Betterment Programme

PEG-BR1-637          Refocus fly-tipping enforcement activity – Don’t Trash Oldham

PEG-BR1-638          Increase Fees in Cemeteries and Crematoria Service

PEG-BR1-639          Increase Fees for Community Pitch Hire

PEG-BR1-640          Develop Building Control shared response with other Local Authorities

PEG-BR1-641          Income Generation – Trade Waste

PEG-BR1-642          Variable Lighting Strategy

PEG-BR1-643          Review Options for Future of Remaining Glasshouse Provision

 

Referring to a question regarding the reduction in Ward budgets, Members

were informed that the Council was in a difficult financial position and that this

reduction was preferable over some of the other possible reduction choices.

 

With reference to Fees and Charges Members were advised that some Fees and Charges have been increased while some have been absorbed. School Meals and Pest Control were exceptions and had not been increased.

RESOLVED that the Policy Overview and Scrutiny Committee accepted and commended the following to Cabinet:

 

1.    The policy landscape and context in which the Council is setting its revenue budget for 2023/24;

2.    The financial forecasts for 2023/24 and 2024/25 having regard to the Provisional Local Government Finance Settlement and associated funding announcements;

3.    Revisions to Budget Reductions approved in 2021/22 and 2022/23 resulting in a value of £3.655m for 2023/24 and £5.700m for 2024/25.

4.    The Flexible Use of Capital Receipts at a value of £2.600m for 2023/24 and 2024/25;

5.    A proposed overall 2023/24 Council Tax increase of 3.99% for Oldham Council (1.99% for general purposes and 2% Adult Social Care Precept) resulting in the charges set out at Table 15 of the report;

6.    The 2023/24 Budget Reduction proposals at a value of £16.313m with a further £7.575m for 2024/25 and £1.135m for 2025/26;

7.    The proposed use of £14.008m of reserves to balance the 2023/24 budget and a transfer to reserves of £1.045m for Retained Business Rates;

8.    The proposal to draw on the Collection Fund for major preceptors of £128.374m for Borough Wide services and £108.995m for Council services (subject to confirmation);

9.    The proposed net revenue budget for 2023/24 for the Council set at £287.027m;

10.The proposed fees and charges as set out in the schedule included at Appendix 10;

11.The proposed revisions to the Council Tax Empty Property Discount (paragraph 12.37) and Council Tax Empty Property Premium (paragraph 12.39);

12.The level of balances supporting the 2023/24 budget of £20.012m underpinned by the agreed policy on Earmarked Reserves;

13.The draft pay policy statement included at Appendix 13; and

14.The delegation to the Cabinet Member for Finance and Low Carbon and the Director of Finance to make a final decision on the feasibility of a pensions pre-payment if it represents value for money to the Council (Section 8.2-o).