The Leader and Cabinet Member for Finance introduced the report which set-out the draft interim 2022/23 revenue and capital budgets and the draft Medium Term Financial Plan (MTFP) and explained that the Council was waiting to hear how much funding it would receive from central government.  He stated the importance of setting a balanced budget and explained that the draft budget would be considered by the Scrutiny Committee at its meeting on 26 January 2022, followed by Cabinet on 9 February 2022 before being set by Full Council at their meeting on 23 February 2022.  

The Leader and Cabinet Member for Finance said that local government had had to face the impact of long-term reduced funding and delays in clarifying the position of councils.  He said that the Council had been previously been dependent on the New Homes Bonus funding from the Government but it was unclear whether the Council would still receive this.  The Leader and Cabinet Member for Finance spoke of the costs of running an effective organisation which were set-out in Appendix II of the report.  He outlined other significant costs to the Council: inflation which he warned may continue to rise; unavoidable increases in the cost of contracts; interest costs from the Sittingbourne Town Centre investment; and the cost of the Covid-19 pandemic.   He advised that the Government had previously reimbursed the Council approximately £4million for the impact of the Covid-19 Pandemic  but that funding was not available for the 2022/23 period, and he spoke about the loss of income caused by the pandemic including the significant loss in car parking income.

The Leader and Cabinet Member for Finance advised that in the summer of 2021 it was predicted that the Council would be facing a funding gap of £3.7million.  He said that the Council’s strategy for closing that gap was to make budget savings and to allocate from a reserve fund.  The Leader and Cabinet Member for Finance drew attention to Appendix I of the report which showed that the funding gap had been reduced to £2.316million, if Members agreed to the savings outlined in Appendix II of the report.  He did not consider that the savings proposed in the budget would significantly affect the level of service delivered by the Council.

The Leader and Cabinet Member for Finance considered that the Council had acted prudently to ensure they could provide a balanced budget this year by creating a Budget Contingency Reserve to meet the funding that was needed.  He drew attention to paragraph 2.4 of the report which showed that the Council had made funding available for improvements in the borough from one-off funding bids which he explained were not always eligible for everyday housekeeping spending, and he said that the improvements made to the public realm were something the Council should be proud of.

The Leader and Cabinet Member for Finance drew attention to saving no. 43 (Parish Councils Footway Lighting), in Appendix II of the report and reported that following communication with  ...  view the full minutes text for item 488