To approve the 2023/24 budget and associated Medium Term Financial Strategy, Treasury Management Strategy and Minimum Revenue Provision.

Council considered a report from the Leader to set the 2023/24 budget. Council noted the following supplements published following the despatch of the agenda:

 

·         Budget Council meeting procedure 2023 published on 3 February;

·         Addition of recommendation to the 2023/24 Budget Setting report published on 9 February [ j) the additional government grant of £680k confirmed in the final local government settlement announced on the 6th of February to fund:

-       £480k For Phosphate Commission to deliver a robust process to achieve scientific, legal and regulatory certainty on river restoration and achieve earliest lifting of the Lugg catchment development moratorium; and

-       £200k For parish grants to fund PROW ( Public Rights of Way) structures (bridges, gates, styles, etc.) installation, in liaison with Herefordshire Council’s PROW team];

·         Budget amendments 2023/24 published on 9 February; and

·         Additional S25 opinion of the S151 officer following the publication of budget amendments published on 9 February.

 

The Cabinet Member Finance, Corporate Services and Planning introduced the report and moved the budget.

 

The Leader seconded the report and the budget.

 

Councillor Ellie Chowns, as Group Leader of The Green Party Group spoke on the budget.

 

Councillor Bob Matthews, as Group Leader of the True Independents Group spoke on the budget. Councillor Matthews confirmed the withdrawal of his budget amendment.

 

Council debated the budget.

 

Councillor John Harrington, as Group Leader of the Independents for Herefordshire Group spoke on the budget.

 

Councillor Terry James, as Group Leader of the Liberal Democrat Group spoke on the budget.

 

The Cabinet Member Finance, Corporate Services and Planning closed the debate.

 

(There was an adjournment at 12:30 p.m.; the meeting reconvened at 12:44 p.m.)

 

Amendment 1 – Proposed by Councillor Nigel Shaw and seconded by Councillor Jonathan Lester

 

Extra Funding for Rural Roads and Herefordshire Athletics

 

This amendment seeks to allocate the additional £611,909 Rural Services Delivery Grant to the Highways Capital Investment Budget within the capital budget. This sum to be effectively “ring –fenced” to be spent on u and c rural roads in recognition of the source of the funding. The aim will be to support the extra cost of delivering services across rural areas by improving the road infrastructure which is so necessary for service delivery.

 

The amendment also seeks to match the funding allocated by Hereford City Council to support the refurbishment of Herefordshire’s County Athletics track, to retain a quality facility to the benefit of those living in the whole county.

 

Currently this funding is being allocated to the general reserve. To put this money in reserves would send the wrong message to civil servants and the HM Treasury, namely that Herefordshire doesn’t need the funding.

 

Councillor Shaw proposed the amendment.

 

Councillor Lester seconded the amendment.

 

Council debated the amendment.

 

The Cabinet Member Finance, Corporate Services and Planning, as the mover of the original motion, spoke before the vote on the amendment.

 

The amendment was put to the recorded vote and was lost by a simple majority.

 

FOR (21): Councillors Polly Andrews, Bartrum, Bolderson, Clare Davies, Durkin, Gandy, Guthrie, I’Anson, James, Graham Jones, Mike Jones, Kenyon, Lester, Matthews, Millmore, Price, Probert, Shaw, Stark, Stone and Tillett.

 

Against (23): Councillors Graham Andrews, Paul Andrews, Bartlett, Boulter, Bowes, Chowns, Crockett, Gemma Davies, Fagan, Hardwick, Harrington, Harvey, Hey, Hitchiner, Marsh, Milln, Norman, Summers, Symonds, Toynbee, Tyler, Watson and Wilding.

 

Abstentions (3); Councillors Bowen, Foxton, and Swinglehurst

 

 

The 2023/24 budget and associated medium term financial strategy, treasury management strategy and minimum revenue provision, as recommended by Cabinet,  was put to the recorded vote and was approved by a simple majority.

 

FOR (24): Councillors Graham Andrews, Paul Andrews, Bartlett, Boulter, Bowes, Chowns, Crockett, Gemma Davies, Fagan, Foxton, Hardwick, Harrington, Harvey, Hey, Hitchiner, Marsh, Milln, Norman, Summers, Symonds, Toynbee, Tyler, Watson and Wilding.

 

Against (22): Councillors Polly Andrews, Bartrum, Bolderson, Clare Davies, Durkin, Gandy, Guthrie, I’Anson, James, Graham Jones, Mike Jones, Kenyon, Lester, Matthews, Millmore, Price, Probert, Shaw, Stark, Stone, Swinglehurst and Tillett.

 

Abstentions (1); Councillors Bowen.

 

RESOLVED:

 

That: Council approves:

 

a) the council tax base of 71,073.11 Band D equivalents in 2023/24;

b) an increase in core council tax in 2023/24 of 2.99%;

c) an additional precept in respect of adult social care costs of 2% applied to council tax in 2023/24 resulting in a total council tax increase of 4.99%, increasing the band D charge from £1,701.70 to £1,786.61 for Herefordshire Council in 2023/24;

d) the balanced 2023/24 revenue budget proposal totalling £193.3m, subject to any amendments approved at the meeting, specifically the net spending limits for each directorate as at appendix C;

e) the revenue budget includes £4.0m for All Ages Social Care to fund edge of care and prevention services for all ages and the continuation of support for low income households;

f) delegates to the section 151 officer the power to make necessary changes to the budget arising from any variations in central government funding allocations via general reserves;

g) the Medium Term Financial Strategy (MTFS) 2023/24 to 2026/27 at appendix A;

h) the Treasury Management Strategy at appendix D be approved;

i) the revised methodology used to calculate the annual MRP charge, noted in appendix D, be approved; and

j) the additional government grant of £680k confirmed in the final local government settlement announced on the 6th of February to fund:

 

•     £480k For Phosphate Commission to deliver a robust process to achieve scientific, legal and regulatory certainty on river restoration and achieve earliest lifting of the Lugg catchment development moratorium; and

•     £200k For parish grants to fund PROW ( Public Rights of Way) structures (bridges, gates, styles, etc.) installation, in liaison with Herefordshire Council’s PROW team.