Agenda item

To receive the recommendations from the meeting of Cabinet held on 25 November:

a)    Update on the Council’s financial position and Medium-Term Financial Strategy update – report of the Cabinet Member for Finance & Assets is online at:  Agenda item 6

b)    Community Advice Partnership Agreement – report of the Cabinet Member for Community & Wellbeing is online at:  Agenda item 9

a)      Update on the Council’s financial position and Medium-Term

Financial Strategy update

Councillor Jonathan Chowen introduced the report on the Council’s financial position and MTFS, and outlined how assumptions had changed since the update in September.  He anticipated a modest surplus in the 2022/23 budget, but there was little information from Government to help with later projections and future strategy. Once further details were available on garden waste and food waste collections, business rates and income recovery positions, revisions to the MTFS could be made.

Councillor Chowen advised that the garden waste collection charges had to be agreed before the budget was set in February because of the timing of annual billing.  The recommendations to Council included four new revenue budgets to enable the Council to accept grant funding on specific services.  With regard to the final recommendation, it was noted that the Council had withdrawn from the West Sussex Business Rates pool last year because of uncertainty over the impact of Covid-19 on business rates.

There was also uncertainty over the full cost of measures to tackle climate change, which had not yet been included in the financial planning.  Councillor Chowen advised that this would be funded through the anticipated surplus and by dipping into the reserves as required.  He emphasised that funding decisions would be discussed widely and fully before the budget for this could be confirmed.

The proposal was seconded by Councillor Stuart Ritchie.

RESOLVED

i)        That changes in the Council’s financial position in 2021/22 and the medium-term be noted.

ii)       That the charges from 1 April 2022 for the garden waste subscription service are increased from £42 for the first bin to £44 and for any subsequent bin increased from £33 to £35.

iii)      To approve the creation of a £2,500 revenue budget for a short breaks funding grant from West Sussex County Council and matching expenditure in the 2021/22 leisure services budgets.

iv)      To approve the creation of a £99,271 revenue budget for Contain Outbreak Management Fund (COMF) grant funding from West Sussex County Council and matching expenditure in the 2021/22 environmental health service budgets.

v)      To approve the creation of a £139,000 revenue budget for Contain Outbreak Management Fund (COMF) grant funding from West Sussex County Council and matching expenditure in the 2021/22 housing services budgets.

vi)      To approve the creation of a £78,946 revenue budget for Winter 2021 COVID-19 rent arrears financial support grant funding from Department for Levelling Up, Housing & Communities and matching expenditure in the 2021/22 housing services budgets.

vii)     Subject to the safety net being put in place, to approve the Council joining the West Sussex Business Rates pool in 2022/23.

REASON

i)        The Council needs to acknowledge the effects of the local situation occasioned by the COVID-19 pandemic and the continued impact this is having on its financial position both in the short and medium-term. This has moved the council from what has been a long-term healthy financial position to one with predicted deficits.  However, given the level of uncertainty in the projections, the economy and proposed Government action the report does not recommend direct action to reduce expenditure at this stage.

ii)       The costs of running the garden waste service increase by inflation, and this price increase is passing this cost onto users of the service.

iii)      The short breaks grant will be spent on a Family Fun Day at Chanctonbury Leisure Centre for disabled children and young people before the end of March 2022. This will form an additional part of the Reaching Higher project.

iv)      The COMF grant will be spent preventing health inequalities and on COVID-19 risk management.

v)      The housing COMF grant will be spent on a range of interventions and housing solutions to support those affected by homelessness and risk of homelessness associated with COVID-19.

vi)      The Winter 2021 COVID-19 rent arrears financial support grant will support low-income private renters with COVID-19 related arrears to avoid eviction or find a new home.

vii)     Joining the West Sussex business Rates pool should benefit the County and therefore the district by retaining locally generated business rates, using it to further support the economic regeneration of the wider West Sussex area.

b)      Community Advice Partnership Agreement

Councillor Liz Kitchen, Cabinet Member for Community Matters, stated that the current contract for the provision of an independent information and advice service was due to expire at the end of March. The existing service was funded though the Council’s annual strategic grant budget and was provided by Community Advice.

The Council had entered into a partnership contract with WSCC and Sussex district and borough councils to collectively procure and fund community advice services.  On 25 November Cabinet had agreed to continue under this partnership agreement.

Councillor Kitchen stated that the current providers, Citizens Advice, provided a comprehensive and valuable service, supporting residents on a range of matters, including benefits, consumer rights, employment and all family matters.  The proposal was seconded by Councillor Billy Greening.

RESOLVED

To approve a budget contribution of £93,000 for up to 7 years, uplifted annually in line with the consumer price index calculated on the anniversary of the agreement, subject to satisfactory service reviews in line with Horsham District Council’s corporate priorities and the availability of Horsham District Council funding.

REASON

To enable community advice services to continue to be delivered for residents of the Horsham District, therefore protecting the quality of like of those who live in, work in and visit our district.