Issue - meetings

To consider the recommendations of Cabinet for the Revenue Budget and Precept for 2022/23 and the Capital Programme 2022/23 to 2024/25.

The Council considered the Revenue Budget and Precept for 2022/23 and the Capital Programme for the period 2022/23 to 2024/25. 

In presenting the report, the Leader highlighted the County Council’s approach of having a two-year budgeting process and referred to the savings proposals considered at the Council last November, which had been adjusted in line with the annual finance settlement from Government last December.  The County Council had received a lower settlement than expected due to the lower Social Care Precept and it was therefore important that money raised through the Government’s National Insurance initiative was targeted away from the NHS to Adult Social Care to ease the pressure on these services.  The Leader also highlighted that funding for schools had exceeded £1bn.

In turning the to the Capital Programme of just over £0.75bn for the three-year period, the Leader referred to the schools building programme and the use of reserves to support projects.  He also referred to the Government’s encouragement to Pension Funds to invest locally in infrastructure, which he had discussed with the Chairman of the Hampshire Pension Fund Panel and Board.

In commending the revenue budget proposals Councillor Steve Forster, Executive Member for Commercial Strategy, Estates and Property referred to the setting of a balanced budget against the backdrop of increased adult social care costs, Covid, and associated recovery costs, which demonstrated good management and robust use of reserves.  The Executive Member referred to the funding for schools, including new schools, recycling facilities, roads and bridges and supporting younger adults.  He acknowledged the extensive lobbying of Government by the Administration regarding the County Council’s financial position.  He also reported that the County Council acknowledged the increased cost of living together with energy and fuel cost pressures and referred to the Council Tax rebate for Bands A-D announced by the Government.  Lastly, the Executive Member drew attention to how the Capital Programme could help to generate income towards the £157m funding gap.

The Group Leaders responded to the proposals and recognised the challenges that the County Council faced. They expressed reservations about the County Council’s financial position going forward, which was considered to be unsustainable, questioned whether the lobbying of Government had been successful and felt this needed to be stepped up, and referred to the overall pressures on residents and the impact that was having.  Some concern was also expressed about the impact on senior office time regarding the County Deal work.

Councillor Alex Crawford proposed the following Amendment, which was seconded by Councillor Kim Taylor:

“To insert an additional recommendation for the Revenue Budget & Precept 2022/23 as follows:

n)    That the Leader of the Council be asked to prepare a submission for the County Council to make to the Government (DLUHC) and Hampshire MPs setting out the minimum extra funding that the County Council will need for its finances to be sustainable over the next four years.”

No further Amendments were proposed.

During a full debate, Members expressed both support and concerns about the proposals before  ...  view the full minutes text for item 57