Decision details

Cabinet received a report of the Head of Finance enabling members to consider service level expenditure, funding and council tax levels for the medium term 2022/23 to 2024/25, including use of reserves.

Councillor Watkin, Portfolio Holder responsible for Finance was invited to introduce the report.

Councillor Watkin commented that at last year’s budget setting meeting he had said there was uncertainty about the impact of coronavirus on the council; it had proven those concerns were correct.  He highlighted key points within the budget report.  Coronavirus was still having an impact on some of the services provided by the council and these would continue to be monitored throughout the coming year.  The council was proposing many exciting projects which were set out in the Capital Investment Programme.  There were a number of risks but appropriate action would be taken as required. 

Councillor Watkin advised that the budget, as set put, proposed an increase of approximately 1.5%, equivalent to approximately £2 per month.  It was likely to be one of the lowest increases in Hertfordshire.

The Mayor noted the proposed increase was significantly below inflation.

Councillor Johnson commented that the council was in a lucky position of not being required to look for cuts.  He said this showed great testament to how the council had been run over the years.

The Mayor informed members that the council received more income from its property investments than it did from Council Tax.

Councillor Bell recognised that it had been very difficult over the last 18 months to two years due to the pandemic.  He commended officers for their work.  He noted the proposed funding for a new bus interchange in the town centre and asked if there was any indication when this may happen.

The Mayor explained that the bus interchange project involved other organisations working in partnership, including the county council.  Currently there was no definitive time frame.  Councillor Stotesbury added that it was important that it was indicated within the budget to show the council’s commitment to it.

Councillor Bell then referred to the funding for social rented housing and in particular whether Croxley View phase three was part of it.

Councillor Johnson advised that the social rented housing, including temporary accommodation, for the Croxley View scheme were allocated within the first two phases.  The third phase of the scheme was aimed more at the sales market, although there would need to be some to meet the council’s requirement of 35% affordable housing.  The £1 million referred to by Councillor Bell was outside of the 55 units mentioned.

The Mayor stressed that it was important to the administration that Council Tax was kept as low as possible.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 the votes were recorded as follows –

Those in favour

Mayor Taylor, Councillors Dychton, Johnson, Stotesbury, Watkin and Williams

The resolution as set out in the report were CARRIED by 6 vote to 0.

RESOLVED –

1.         That Cabinet delegates to the Director of Finance in consultation with the Portfolio Holder for Resources the ability to amend the budget figures in accordance with decisions taken at the Cabinet meeting on 17 January 2022 and any minor variations that may occur before the Council meeting on 24 January 2022.

That Cabinet recommends to Council that:

2.         Council resolves in accordance with the Local Authorities (Calculation of Tax Base) Regulations 1992, the amount calculated by Watford Borough Council as its Council Tax Base for the year 2022/23 is 33,891.3 as outlined in the report.

3.         Approves the continuation of the Local Council Tax Reduction Scheme for 2022/23.

4.         Approves the budget (Attachment 1) as laid out in the report, including:

• the budget for 2022/23

• the Capital Investment Programme 2021/22 to 2024/25

5.         Approves the schedule of fees and charges and income charging policy (Attachment 2).

6.         Approves the Capital Strategy for 2022/23, and delegates to the Director of Finance in consultation with the Portfolio Holder Resources responsibility for agreeing and maintaining the Treasury Management policy. (Attachment 3)

7.         Agrees to increase the annual Council Tax for a Band D property 2022/23 by 1.5%. This will apply to all other bands.

8.         Notes the key risks identified and approves their proposed mitigations.

9.         Notes the advice provided by the Director of Finance on the robustness of estimates and the adequacy of reserves.

10.       Notes the indicative budgets for 2023/24 and 2024/25.