Issue - meetings

Report of the Director of Finance

The Cabinet considered a report of the Director of Finance that outlined, as a basis for consultation, a set of new revenue budget proposals for 2022/23 to 2024/25 which represented changes to the Council’s existing Budget. Consultation views were also sought on the potential level of Council Tax and Adult Social Care Precept increases for 2022/23. The final Budget proposals and the Council Tax and Adult Social Care Precept increases would be subject to Council approval in February 2022. An appendix to the report provided details of the Pre-Budget Financial Position.

The Council’s overall future strategy was set out in the “One Coventry Council Plan” which described the Council’s key priorities including: improving the quality of life for Coventry people, especially the most vulnerable; promoting the growth of a sustainable Coventry economy and ensuring that residents shared in the benefits; and making the most of assets and working closer with partners and residents to enable people to do more for themselves. Implicit within the plan was the Council’s commitment to delivering a range of core services to everyone in the city. The Plan was currently being revised and it was intended that it would be brought for approval during the first part of 2022. Much of the policy content would remain similar to the current version although it was expected that there would be some significant changes.

The expected developments in relation to the system of local government finance continued to be delayed. The Secretary of State for Levelling Up, Housing and Communities had announced that a future move to 75% Business rates retention would not now proceed although the current assumption was that wider 50% retention and existing arrangements for Business Rates pools and pilots would continue for the foreseeable future. In the Council’s case this would mean continued membership of the Coventry and Warwickshire Business Rates Pool and the West Midlands Combined Authority Business Rates Pilot, both of which continued to offer potential positive financial benefits. At present though, neither further reform to the fundamental nature of the Busines Rates and Council Tax arrangements within local government nor the fair funding review of local government appeared imminent.

The Chancellor of the Exchequer did announce the Autumn Budget and Spending Review 2021 (SR2021) on 27th October 2021. This presented a three-year horizon for Government spending in the form of Departmental Spending Limits (including local government). This indicated some further financial support for local government although at the time of writing the Council was still awaiting the 2022/23 Provisional Local Government Finance Settlement which would include details on a number of key funding announcements which would dictate the funding envelope within which the Council would need to operate next year. As a result, the financial Pre-Budget position set out in this report was assumption sensitive and was likely to be subject to significant changes in some important areas prior to the setting of the final Budget in February 2022. A note of caution was urged both due to the pressures  ...  view the full minutes text for item 53