Cabinet Member for Finance
In accordance with Council Procedure Rule 19.3, immediately after any vote is taken at a budget decision meeting of the Council the names of Councillors who cast a vote for the decision or against the decision or who abstained from voting shall be recorded in the Minutes of that meeting.
At its meeting on 6 February 2023, Cabinet considered Paper BCa/22/39, the General Fund Budget for 2023/24 and four-year outlook. Paper BC/22/41 now includes all the relevant updated information plus the tax base, precepts and council tax band information at parish level, together with the necessary recommendations.
Minutes:
68.1 The Chair invited Councillor Busby – Cabinet Member for Finance and Assets & Investments to introduce report BC/22/41.
68.2 Councillor Busby detailed the purpose of the report and PROPOSED the recommendations contained within the report, which was SECONDED by Councillor Ward.
68.3 Councillor Beer referred to pg39 and asked why an additional £100,000 was needed for Kingfisher Leisure Centre, in addition to the £641,000 already allocated and referred to ongoing issues at the centre.
68.4 Councillor Busby clarified that there were difficulties acquiring repair parts despite having set aside for them, and the key point is that the Council spends the £641,000 plus the additional £100,000, due to the additional work needed to be done.
68.5 Councillor Hinton referred to pg21 and the increase in employee costs, and requested information regarding the number of employees and how the £1.6million increase was justified.
68.6 The Director for Corporate Resources referred Councillors to table 2 on pg22 and explained that the increase was due to pay award increments and the pay review and not additional staff.
68.7 Councillor Hinton requested confirmation of the total number of staff Babergh is accountable for.
68.8 The Chief Executive advised Councillors that the exact figures change on a daily basis but he would be happy to provide an up-to-date account during the course of the meeting. He reminded the Council of the annual all-member briefing detailing staffing in headcount and full-time equivalent numbers. In addition, the Chief Executive clarified that the main impact was the previous years pay award which was defined centrally.
68.9 Councillor Beer asked how much wages cost the Council, and whether it was 85% of the Council’s costs.
68.10 The Director for Corporate Resources referred Council to chart 4 on pg23 depicting the total of employee costs including pensions, national insurance and tax, and amounts to about half of all costs.
68.11 Councillor Beer requested the translated employee cost to residents.
68.12 The Director for Corporate Resources agreed to provide a calculation.
68.13 Councillor M. Barrett questioned the adequacy of the assumption of a 2% pay award in the budget about the staff costs in the next year, referring to pg29 table 6.
68.14 Councillor Busby acknowledged that the assumption may not be enough but that it was a likely indication of where a pay award would start but that the final figure would be nationally agreed.
68.15 The Director for Corporate Resources clarified that the next year is an assumption of 4% and for the subsequent 3 years the forecast was set at 2%, although there was uncertainty with inflation.
68.16 The Chairman responded to Councillor Beer’s previous question having received the Director for Corporate Resource’s calculations of 50.8%.
68.17 Councillor Dawson raised concern as to whether with all the increased costs in the budget, the cost of parking would be covered.
68.18 Councillor Busby confirmed parking had been budgeted for.
68.19 Councillor Dawson sought assurance that no car parking fees would be implemented after the election.
68.20 Councillor Busby responded that it would be up to the next Council to decide.
68.21 Councillor Lindsay referred to pg65 regarding ICT costs, and £409,000 for contracts and queried this increase in costs. Additionally, on pg66 Councillor Lindsay asked why there were two items for climate change and why economic growth was included.
68.22 The Chief Executive clarified that the duplication was because the first was a summary.
68.23 The Director for Corporate Resources explained the contracts were for all software costs excluding the HRA, and that inflation rates had impacted costs by ten percent, but that a detailed written answer could be provided upon request.
68.24 Councillor Busby added the inclusion of the new Finance IT system, due in the summer.
68.25 Councillor Ward commented that the economic growth and climate change services are featured together due to having the same Director responsible for those areas. Additionally, Councillor Ward further explained staff expenditure in chart 4 but acknowledged percentages would be a useful inclusion for clarity.
68.26 Councillor Lindsay reiterated his request for clarity within the table on pg66 as climate change is not featured as a separate item.
68.27 The Director of Corporate Resources provided a brief step-by-step explanation.
68.28 Councillors debated the matter. Concern was raised towards future potential parking charges and the potential unsustainability of staff costs. The importance of investments and other income avenues was highlighted. The requirement of annual budgeting over 3-year settlements was commented on. Rises in council tax were acknowledged as not ideal but it was agreed Babergh could not afford otherwise. The extent of climate change involvement and initiatives were discussed against the backdrop of finances.
Councillor Maybury left the meeting at 6.27pm and did not take part in the vote.
In accordance with Council Procedure Rule 19.3, the vote was recorded as follows:
For |
Against |
Abstain |
Clive Arthey |
Peter Beer |
Alison Owen |
Susan Ayres |
Sian Dawson |
|
Melanie Barrett |
|
|
Simon Barrett |
|
|
David Busby |
|
|
Derek Davis |
|
|
Kathryn Grandon |
|
|
John Hinton |
|
|
Alistair McCraw |
|
|
John Nunn |
|
|
Adrian Osborne |
|
|
Jan Osborne |
|
|
Lee Parker |
|
|
Stephen Plumb |
|
|
John Ward |
|
|
Mick Fraser |
|
|
Mary McLaren |
|
|
Robert Lindsay |
|
|
Leigh Jamieson |
|
|
|
|
|
TOTAL 19 |
TOTAL 2 |
TOTAL 1 |
By 19 Votes for, 2 votes against and 1 abstention,
It was RESOLVED:-
1.1 That the General Fund Budget proposals for 2023/24 and four-year outlook set out in report BC/22/41 be approved.
1.2 That the General Fund Budget for 2023/24 is based on a 2.99% increase to Band D Council Tax, which is equivalent to £5.30 per annum (10p per week) for a Band D property.
Supporting documents: