2
There was submitted a report by the Director of Finance & Resources relative to the Revenue Budget and Council Tax for 2022/23, together with appendices detailing revenue estimates for 2022/23; estimates of expenditure and income for the year ended 31 March 2023; and the General Fund probable outturn for 2022/23.
The report provided an overview of the Council’s anticipated financial position on the General Fund revenue budget and set out the information required for the Council to set its budget and Council Tax for 2022/23. The report also recommended that councillors considered the immediate and medium-term financial context for the Council, the legacy impact of the Covid-19 pandemic on service costs and demands and income streams, the significant disruption to transformation plans, the need for the Council to support the social and economic recovery and renewal process, together with the ongoing financial pressures facing the public sector more generally all as detailed in the report.
It was noted that there would be a need for the budget position in 2022/23 to rely on the application of temporary financial flexibilities to address the reported budget deficit, with the need for the application of temporary financial flexibilities in this manner being a requirement to support the Council’s annual budget over the medium term.
The report stated that the Scottish Government had not provided detailed spending plans beyond their draft budget for 2022/23 but had through its Medium-term Financial Strategy (MTFS) outlined significant challenges in terms of the national budget, if agreed priorities were to be funded. The planned publication in May 2022 of the Scottish Resource Spending Review would hopefully provide increased certainty for the Council in terms of potential levels of grant.
The report highlighted key headlines from the Scottish Government’s draft budget for 2022/23 and the key elements of the Council’s revenue settlement were summarised within the report and included an increase, in cash terms, in the Council’s Government Revenue Grant Settlement of £13,935 million (4.0%); the inclusion within the Council’s settlement of approximately £4.006 million of resources for Scottish Government priorities and commitments which drove a corresponding growth in Council spending; the requirement for the Council to forward around £11.655 million of funding for Social Care to the Integration Joint Board (IJB), as Children’s Social Care and Criminal Justice was not delegated to the IJB in Renfrewshire.
In addition to the normal revenue settlement, the Scottish Government had also confirmed non-recurring Covid-19 specific funding for local government as part of the 2022/23 budget settlement of £120 million. It was noted that Renfrewshire’s share of this funding was £3.982 million.
The report advised that the medium-term outlook for the Council continued to remain highly uncertain, and there were now expected to be permanent cost impacts from the pandemic; however, pay and grant would continue to be the two biggest determinants of the Council’s financial outlook.
The report stated that in setting previous budgets, the Council had decided not to apply any general inflationary uplift to non-pay budgets. Given the financial challenges facing the Council, over the medium term and in line with historic practice, general non-pay inflation was not provided for in the 2022/23 budget. The Financial Regulations required charges for services to be reviewed at least annually. The overview of the Council’s spending, outlined in Table 3 of the report, made provision of £0.155 million for an inflation adjustment to charges of 3%.
Councillor Shaw, seconded by Councillor Nicolson, moved:
1 That this Administration’s fifth budget will continue to deliver on its commitments set out in its manifesto to the citizens of Renfrewshire to invest in inclusive economic growth, the environment, local communities and support the most vulnerable in Renfrewshire.
2 That as recommended by the Director, these budget proposals take a holistic view of resources available and include the use of the £1.800 million of available resources outlined in Agenda item 3 and direct them as follows: -
•
In recognition of the critical role quality outdoor time has played in supporting our young people and wider communities during the challenging periods of lockdown, we will invest £0.400 million of funding supplemented by a further £0.800 million of capital funded through supported borrowing underpinned by £0.040 million of revenue resource, resulting in a total fund of £1.200 million to support a programme of lifecycle and maintenance improvements in artificial playing surfaces.
•
£0.650 million of funding additional to the £2.350 million investment announced in 2020/21 and 2021/22, to support a programme of improvement projects across the school and early learning estate, bringing this total investment to £3.000 million over the three years.
•
£0.700 million of additional funding (being £0.500 million from capital funds and £0.200 million from borrowing supported from recurring revenue resource of £0.015 million) to further augment the £2.330 million previously committed to invest in our community halls, with a future detailed report to the Leadership Board outlining proposals for this additional investment while prioritising our previous commitment for investment in Steeple Hall, Kilbarchan.
•
£0.150 million of funding for a new Retail Improvement Fund directed to support local businesses improve shop fronts, replacing the Fund which had been repurposed in 2020 to support local businesses implement social distancing measures
•
£0.100 million to extend the investment in the infrastructure with Renfrewshire’s cemeteries, bringing the total investment since 2020/21 to £0.500 million.
3 Recognising the difficulties our town centres have faced over recent years, Council agrees to commit the £2.250 million of existing town centre resources as outlined in the capital plan to the following priority areas:
•
Johnstone £0.500 million, with a focus on priority areas of Houston Arcade, Floors Street, High Street and Houston bandstand
•
Villages £0.450 million in total, to underpin a conservation and heritage grants scheme for property owners in and around village centres (£0.250 million); and also to replenish the Villages Investment Fund (£0.200 million). Council will also aim to supplement the grants scheme through other external sources
•
Erskine £0.300 million, to be prioritised to support the economic development of the town through the development of new build industrial units
•
Renfrew £1.000 million, to support the development of options for key sites and buildings such as the former Police Station and amenity improvements around Blythswood.
Building on recent success in levering external funding, the Council will consider how the allocation of these resources could be utilised potentially as contributions to unlock further grant funding possible from a range of national government grant programmes. The Council also undertakes to examine emerging opportunities for investment in Linwood.
4 Recognising the proposed development of buildings surrounding County Square, in particular to the rear of the Piazza Centre, Council agrees to pause the redevelopment of County Square itself with the allocated resource of £2.6m being deferred in the capital plan to future years while clarity with regards the wider commercial proposals develops; noting that the allocated resource will remain earmarked for investment in Paisley town centre and will be subject to local consultation.
5 The Council has been successful in securing funding from the Learning Estate Investment Programme to enable a new Paisley Grammar School Community Campus to be progressed; and a further round of bids for LEIP funding will be invited later in 2022. Council commits £10m from existing resource within the schools estate management plan as match funding towards a priority bid for a new Thorn Primary School in Johnstone.
6 Many communities, households and families across Renfrewshire have been disproportionately impacted by the pandemic, with COVID exacerbating existing inequalities in terms of household income, health and wellbeing. The cost of living crisis is already beginning to worsen the challenges being experienced by local households and families. Tackling inequality and poverty, will continue to be key priorities for this Administration as we support communities to recover and thrive following the pandemic.
This Administration is not just committed to listening but acting to address these inequalities and that is why today we will commit the following additional resources to support a new Fairer Renfrewshire programme:
•
£1 million from resources set aside in 2021/22 for social renewal and recovery in response to the pandemic but as yet uncommitted
•
The Council’s confirmed £3.982 million share of the £120 million of financial resources announced by the Scottish Government at Stage 2 of the Budget Bill on the 10th February 2022.
This further £4.982 million of funding will supplement our existing Tackling Poverty Programme and Alcohol & Drugs Commission resources, with all activity coming together to form one Fairer Renfrewshire programme.
Given the impacts of the pandemic and the cost of living crisis, we need to ensure that we are working with partners to adapt and to change the support that is available to people experiencing poverty and financial insecurity. This new funding commitment will support existing programmes of work around poverty and financial insecurity up to 2023/24 during which time the Council will explore sustainable funding options for the programme, ensuring Fairer Renfrewshire objectives remain a funded priority in the longer term.
Additionally, it is expected that tackling poverty across Renfrewshire’s communities will be supported from the deployment of £290 million of additional resources across Scotland by the Scottish Government in 2022/23 to tackle fuel poverty and the cost of living crisis.
Furthermore, the Council will ensure every penny of the funding received from the Scottish Government’s Local Authority COVID Economic Recovery Fund is allocated to support individuals and businesses recover from the pandemic and address cost of living challenges.
This commitment today will support our Social Renewal Plan, ensuring priorities and actions, co-produced by the community for the community, are backed up by substantial funding that will help and support our communities through this most challenging of times.
Full details of the deployment of these resources will be outlined in a future Fairer Renfrewshire report, however today we can confirm the following priority commitments to allow actions to be commenced now: -
•
Funding for a joint 2-year pilot financial inclusion project in schools supported by Renfrewshire CAB; with a focus on areas where identified gaps in provision exist and those areas not covered by existing services such as Families First. The pilot will be fully developed in a future report to the Leadership Board.
•
Additional top-up funding for Discretionary Housing Payments (DHP) of £0.300 million and top up funding to the Scottish Welfare Fund of £0.500 million.
•
Building on the Scottish Government commitment to provide £150 to every household in council tax bands A-D and to every household in receipt of CTR; extend the funding of £0.230 million provided to households in 2021/22 from Winter Insecurity Monies and as agreed by the Leadership Board to tackle financial insecurity and hardship with a further commitment of £0.270 million, bringing the total support to £0.500 million in 2022.
•
Funding of £0.100 million supplementing the £0.250 million set aside in the 21/22 budget to address the issue of children and young people’s mental health and wellbeing.
7 Council will commit £0.450 million from unallocated general reserves to pilot an enforcement service over 12 months to tackle fly tipping across Renfrewshire utilising CCTV technology and improved links to SEPA/Police Scotland; with a report back to the Infrastructure, Land and Environment Policy Board at the end of the pilot to assess future options.
8 Council will further commit £0.200 million from Covid-specific general reserves to replenish the Cultural Heritage & Events Fund (CHEF) in 2022/23 in order to continue to support our local cultural and heritage organisations.
9. Council also recognises the need to maintain a prudent level of unallocated reserves given the heightened level of risk over the medium term as outlined in the Director’s report; and as previously agreed by Council, commits to maintain the Council’s level of unallocated reserve at a minimum of £10.000 million moving into 2022/23, with any unallocated balance in excess of this amount to be transferred to the investment capital fund to provide additional capacity to support the financial flexibility mechanisms outlined in the Director’s report over the medium term.
10 To protect services to the most vulnerable in Renfrewshire, and in line with the conditions set out in the 2022/23 financial settlement, agree to the recommendation outlined in the Director’s report to make available £11.655 million of additional recurring resources to manage the net impact of new service and cost pressures within Adult Social Care Services, continue the implementation of the Carers Act, uplift free personal nursing care rates and provide funding for interim care and care at home services. These additional resources will be made available under delegation to the Renfrewshire Health and Social Care Partnership (RHSCP) from 1 April 2022. In addition, as part of this delegation process, agree to continue to work in pro-active partnership with the RHSCP and social care providers to secure payment of the £10.50 minimum pay settlement to all adult social care workers in commissioned services.
11 To agree the base budget assessment for all services for 2022/23 as recommended by the Director of Finance and Resources, and subject to agreement of item 9 above, agree a 2022/23 base budget of £457.367 million.
12 To agree to make provision in 2022/23 for pay inflation as detailed in section 5.1 of the Directors report and make no provision for general non-pay inflation, as recommended by the Director of Finance and Resources.
13 To agree to a general 3% inflationary increase in charges for services, subject to the note at paragraph 18 below.
14 To agree the resource allocations for 2022/23 for all services, as amended by these proposals.
15 To agree the detailed Revenue Estimates for all services be amended to reflect these proposals and the necessary allocation of central support costs, central repairs costs, capital charges, specific grants and loan charges provision with Directors authorised to take any action necessary to implement these decisions.
16 Subject to agreement of the above, to agree that the council tax for 2022/23 be set at £1,354.88 for Band D subjects, representing a 3.0% increase in the 2021/22 level, and for all bandings to be set at:
Band |
2021/22 |
2022/23 |
A |
876.95 |
903.26 |
B |
1,023.10 |
1,053.79 |
C |
1,169.26 |
1,204.34 |
D |
1,315.42 |
1,354.88 |
E |
1,728.32 |
1,780.17 |
F |
2,137.56 |
2,201.69 |
G |
2,576.03 |
2,653.31 |
H |
3,222.78 |
3,319.46 |
Note that the increase of 3% supports a financially responsible objective of achieving a recurring revenue balance with a minor revenue surplus of £0.055 million which is allocated as outlined at point 2 above.
Further note the £150 rebate as mentioned at point 6 above will result in every household in bands A-D and those in receipt of CTR paying less council tax in 2022/23 than in the current financial year.
17 Subject to agreement of the points above, agree that the Council’s budget is underpinned by appropriate decisions and makes appropriate provision to meet the specified commitments in the package of conditions linked to the Council’s grant settlement.
18 To agree to increase other charges for services by 3% (as detailed in paragraph 13 above) or where appropriate by the rate set in national legislation or guidance, or where charges are based on full cost recovery by the appropriate increase to maintain this position, subject to Directors being authorised:
(a) to round the charge up or down to a figure deemed by them appropriate, and
(b) not to impose any increase, if having reviewed the implications of the increase, he or she determines it would be inappropriate to do so, having regard to any material factor applicable to the goods or services to which the charge relates.
To note the requirement of financial code 13 that Directors review the amounts their departments charge for goods or services and if they think any charge needs to be increased, they will recommend this to the appropriate Board. The Council therefore agrees that when a Director carries out such a review and believes a charge for goods or services should be levied which reflects an increase greater than the increase of 3% or the rate set in national legislation or guidance, he or she will be entitled to recommend the same to the appropriate Board for approval.
Adjournment
The meeting adjourned at 9.45 am to allow members to consider the motion. The meeting reconvened at 10.00 am.
Declarations of Interest
Councillors Ann-Dowling and Montgomery having previously declared an interest left the meeting.
DECIDED:
(a) That the Administration’s fifth budget would continue to deliver on its commitments set out in its manifesto to the citizens of Renfrewshire to invest in inclusive economic growth, the environment, local communities and support the most vulnerable in Renfrewshire;
(b) That as recommended by the Director, these budget proposals take a holistic view of resources available and include the use of the £1.800 million of available resources outlined in Agenda item 3 and direct them as follows: -
• In recognition of the critical role quality outdoor time has played in supporting our young people and wider communities during the challenging periods of lockdown, the Council will invest £0.400 million of funding supplemented by a further £0.800 million of capital funded through supported borrowing underpinned by £0.040 million of revenue resource, resulting in a total fund of £1.200 million to support a programme of lifecycle and maintenance improvements in artificial playing surfaces.
• £0.650 million of funding additional to the £2.350 million investment announced in 2020/21 and 2021/22, to support a programme of improvement projects across the school and early learning estate, bringing this total investment to £3.000 million over the three years.
• £0.700 million of additional funding (being £0.500 million from capital funds and £0.200 million from borrowing supported from recurring revenue resource of £0.015 million) to further augment the £2.330 million previously committed to invest in our community halls, with a future detailed report to the Leadership Board outlining proposals for this additional investment while prioritising our previous commitment for investment in Steeple Hall, Kilbarchan.
• £0.150 million of funding for a new Retail Improvement Fund directed to support local businesses improve shop fronts, replacing the Fund which had been repurposed in 2020 to support local businesses implement social distancing measures.
• £0.100 million to extend the investment in the infrastructure with Renfrewshire’s cemeteries, bringing the total investment since 2020/21 to £0.500 million;
(c) That the difficulties our town centres have faced over recent years be recognised, Council agrees to commit the £2.250 million of existing town centre resources as outlined in the capital plan to the following priority areas:
• Johnstone £0.500 million, with a focus on priority areas of Houston Arcade, Floors Street, High Street and Houston bandstand.
• Villages £0.450 million in total, to underpin a conservation and heritage grants scheme for property owners in and around village centres (£0.250 million); and also to replenish the Villages Investment Fund (£0.200 million). Council will also aim to supplement the grants scheme through other external sources.
• Erskine £0.300 million, to be prioritised to support the economic development of the town through the development of new build industrial units.
• Renfrew £1.000 million, to support the development of options for key sites and buildings such as the former Police Station and amenity improvements around Blythswood.
To agree that building on recent success in levering external funding, the Council would consider how the allocation of these resources could be utilised potentially as contributions to unlock further grant funding possible from a range of national government grant programmes. The Council also undertakes to examine emerging opportunities for investment in Linwood;
(d) That the proposed development of buildings surrounding County Square be recognised, in particular to the rear of the Piazza Centre and that it be agreed that Council would pause the redevelopment of County Square itself with the allocated resource of £2.6m being deferred in the capital plan to future years while clarity with regards the wider commercial proposals develops; noting that the allocated resource would remain earmarked for investment in Paisley town centre and would be subject to local consultation;
(e) That it be noted that the Council had been successful in securing funding from the Learning Estate Investment Programme to enable a new Paisley Grammar School Community Campus to be progressed; and a further round of bids for LEIP funding would be invited later in 2022. That it be agreed that the Council would commit £10m from existing resource within the schools estate management plan as match funding towards a priority bid for a new Thorn Primary School in Johnstone;
(f) That it be noted that many communities, households and families across Renfrewshire had been disproportionately impacted by the pandemic, with Covid-19 exacerbating existing inequalities in terms of household income, health and wellbeing. The cost of living crisis was already beginning to worsen the challenges being experienced by local households and families. Tackling inequality and poverty, would continue to be key priorities for this Administration as we support communities to recover and thrive following the pandemic;
That this Administration was not just committed to listening but acting to address these inequalities and that is why today we would commit the following additional resources to support a new Fairer Renfrewshire programme:
• £1 million from resources set aside in 2021/22 for social renewal and recovery in response to the pandemic but as yet uncommitted
• The Council’s confirmed £3.982 million share of the £120 million of financial resources announced by the Scottish Government at Stage 2 of the Budget Bill on the 10th February 2022.
This further £4.982 million of funding would supplement our existing Tackling Poverty Programme and Alcohol & Drugs Commission resources, with all activity coming together to form one Fairer Renfrewshire programme.
Given the impacts of the pandemic and the cost of living crisis, we need to ensure that we are working with partners to adapt and to change the support that was available to people experiencing poverty and financial insecurity. This new funding commitment would support existing programmes of work around poverty and financial insecurity up to 2023/24 during which time the Council would explore sustainable funding options for the programme, ensuring Fairer Renfrewshire objectives remained a funded priority in the longer term.
Additionally, it was expected that tackling poverty across Renfrewshire’s communities would be supported from the deployment of £290 million of additional resources across Scotland by the Scottish Government in 2022/23 to tackle fuel poverty and the cost of living crisis.
Furthermore, the Council would ensure every penny of the funding received from the Scottish Government’s Local Authority COVID Economic Recovery Fund was allocated to support individuals and businesses recover from the pandemic and address cost of living challenges.
This commitment today would support our Social Renewal Plan, ensuring priorities and actions, co-produced by the community for the community, were backed up by substantial funding that would help and support our communities through this most challenging of times.
Full details of the deployment of these resources would be outlined in a future Fairer Renfrewshire report, however today we can confirm the following priority commitments to allow actions to be commenced now: -
• Funding for a joint 2-year pilot financial inclusion project in schools supported by Renfrewshire CAB; with a focus on areas where identified gaps in provision exist and those areas not covered by existing services such as Families First. The pilot would be fully developed in a future report to the Leadership Board.
• Additional top-up funding for Discretionary Housing Payments (DHP) of £0.300 million and top up funding to the Scottish Welfare Fund of £0.500 million.
• Building on the Scottish Government commitment to provide £150 to every household in council tax bands A-D and to every household in receipt of CTR; extend the funding of £0.230 million provided to households in 2021/22 from Winter Insecurity Monies and as agreed by the Leadership Board to tackle financial insecurity and hardship with a further commitment of £0.270 million, bringing the total support to £0.500 million in 2022
• Funding of £0.100 million supplementing the £0.250 million set aside in the 21/22 budget to address the issue of children and young people’s mental health and wellbeing;
(g) That it be agreed that Council would commit £0.450 million from unallocated general reserves to pilot an enforcement service over 12 months to tackle fly tipping across Renfrewshire utilising CCTV technology and improved links to SEPA/Police Scotland; with a report back to the Infrastructure, Land and Environment Policy Board at the end of the pilot to assess future options;
(h) That it be agreed that Council would further commit £0.200 million from Covid-specific general reserves to replenish the Cultural Heritage & Events Fund (CHEF) in 2022/23 in order to continue to support our local cultural and heritage organisations;
(i) That it be noted that Council also recognised the need to maintain a prudent level of unallocated reserves given the heightened level of risk over the medium term as outlined in the Director’s report; and as previously agreed by Council, commits to maintain the Council’s level of unallocated reserve at a minimum of £10.000 million moving into 2022/23, with any unallocated balance in excess of this amount to be transferred to the investment capital fund to provide additional capacity to support the financial flexibility mechanisms outlined in the Director’s report over the medium term;
(j) That to protect services to the most vulnerable in Renfrewshire, and in line with the conditions set out in the 2022/23 financial settlement, that the recommendation outlined in the Director’s report be agreed to make available £11.655 million of additional recurring resources to manage the net impact of new service and cost pressures within Adult Social Care Services, continued the implementation of the Carers Act, uplifted free personal nursing care rates and provided funding for interim care and care at home services. These additional resources would be made available under delegation to the Renfrewshire Health and Social Care Partnership (RHSCP) from 1 April 2022. In addition, as part of this delegation process, that it be agreed to continue to work in pro-active partnership with the RHSCP and social care providers to secure payment of the £10.50 minimum pay settlement to all adult social care workers in commissioned services;
(k) That the base budget assessment for all services for 2022/23 as recommended by the Director of Finance and Resources be agreed, and subject to agreement of item 9 above, a 2022/23 base budget of £457.367 million be agreed;
(l) That it be agreed that provision be made in 2022/23 for pay inflation as detailed in section 5.1 of the Directors report and make no provision for general non-pay inflation, as recommended by the Director of Finance and Resources;
(m) That a general 3% inflationary increase in charges for services be agreed, subject to the note at paragraph 18 below;
(n) That the resource allocations for 2022/23 for all services be agreed, as amended by these proposals;
(o) That it be agreed that the detailed Revenue Estimates for all services be amended to reflect these proposals and the necessary allocation of central support costs, central repairs costs, capital charges, specific grants and loan charges provision with Directors authorised to take any action necessary to implement these decisions;
(p) That it be agreed that the council tax for 2022/23 be set at £1,354.88 for Band D subjects, representing a 3.0% increase in the 2021/22 level, and for all bandings to be set at:
Band |
2021/22 |
2022/23 |
A |
876.95 |
903.26 |
B |
1,023.10 |
1,053.79 |
C |
1,169.26 |
1,204.34 |
D |
1,315.42 |
1,354.88 |
E |
1,728.32 |
1,780.17 |
F |
2,137.56 |
2,201.69 |
G |
2,576.03 |
2,653.31 |
H |
3,222.78 |
3,319.46 |
To note that the increase of 3% supports a financially responsible objective of achieving a recurring revenue balance with a minor revenue surplus of £0.055 million which was allocated as outlined at point 2 above.
To further note the £150 rebate as mentioned at point 6 above would result in every household in bands A-D and those in receipt of CTR paying less council tax in 2022/23 than in the current financial year;
(q) That it be agreed that the Council’s budget was underpinned by appropriate decisions and to make appropriate provision to meet the specified commitments in the package of conditions linked to the Council’s grant settlement; and
(r) That it be agreed to increase other charges for services by 3% (as detailed in paragraph 13 above) or where appropriate by the rate set in national legislation or guidance, or where charges are based on full cost recovery by the appropriate increase to maintain this position, subject to Directors being authorised;
(i) To agree to round the charge up or down to a figure deemed by them appropriate, and
(ii) To agree not to impose any increase, if having reviewed the implications of the increase, he or she determined it would be inappropriate to do so, having regard to any material factor applicable to the goods or services to which the charge relates.
To note the requirement of financial code 13 that Directors review the amounts their departments charge for goods or services and if they thought any charge needed to be increased, they would recommend this to the appropriate Board. That Council therefore agreed that when a Director carried out such a review and believed a charge for goods or services should be levied which reflected an increase greater than the increase of 3% or the rate set in national legislation or guidance, he or she would be entitled to recommend the same to the appropriate Board for approval.