Agenda item

Report to follow.

Cabinet considered recommendations that came from the Overview and Scrutiny Panel meeting that was held on 18 January 2022. At that Panel meeting, Members discussed Cabinet proposals for the Council Budget for 2022/23. Thereafter the Panel made the following recommendations back to Cabinet:

1.  To allocate up to £125,000 from the New Homes Bonus allocation for the capital works required to the Ramsgate Eastcliff and Viking Bay coastal lifts to ensure they are in full working order for the foreseeable future;

2.  To allocate the full remainder of the New Homes Bonus allocation as capital to provide additional in-house temporary accommodation;

3.  To transfer £200,000 from the risk management reserve to a new climate risk and opportunity reserve.

Members confirmed the planned and cautious approach that was taken, combined with an efficient savings plan that enabled Cabinet to produce a balanced draft budget. Planning Council finances in this way meant the Council was on the right track for balancing the budget in the coming years.

A balanced budget position was supported in-part by the very welcome additional funding that was provided by Government the 2022/23 financial year. However, much of this funding was temporary and therefore careful consideration would be given to its use. Allocating these resources in the most appropriate and prudent way would help ensure that the Council moved into the medium term on the soundest financial footing possible. This was a prudent and responsible approach to use.

The council was committed to the delivery of a strategic response to the temporary accommodation needs of homeless families. Cabinet had already committed £1.6 million to the development of the first temporary accommodation project, providing 8 self-contained flats, and following the completion of this project, would consider further projects to build a larger and more cost effective portfolio of properties.

This approach will be the best way to secure long-term savings in the costs of temporary accommodation. The relatively small amount available from New Homes Bonus would not be sufficient to deliver a further scheme and its use at this stage to offset the costs of borrowing is considered to be the most prudent option. Cabinet was exploring external funding options and additional future borrowing when a further temporary accommodation option is identified.

The funding required to address the lift issues has been estimated to be in excess of £230,000, in addition to on-going maintenance. As such, Cabinet was considering and pursuing other long-term sustainable funding options for the repair and on-going maintenance of our coastal lifts. With regard to the reserve transfer for climate change projects, the monies that sit in the Risk Management Reserve would be available for such projects as and when needed. Furthermore, Cabinet was also looking in this area for external funding opportunities as well. As such Cabinet did not view it necessary to transfer an amount to a dedicated earmarked reserve.

Accordingly, Cabinet agreed not to adjust the budget to accommodate any of the three recommendations from OSP and was going to therefore recommend the budget to Council for approval in the originally proposed form.

The following Members spoke under Council Procedure Rule 20.1:

Councillor Yates;

Councillor Whitehead;

Councillor Austin.

In response to comments made and questions asked by Members under 20.1; Cabinet explained that the Risk Management Reserve fund can be used for a broad range of purposes. The governance arrangements and approval processes are the same and can be used in the same way as the General Reserve. This fund could therefore be used for climate emergency projects.

Cabinet further said that the Council was always looking for suitable land for housing development and was currently looking at various sites. However this had to be done in a structured way.

Thereafter, Councillor David Saunders proposed, Councillor Bob Bayford seconded and Cabinet agreed that:

1.  The 2022-23 General Fund revenue budget be recommended to Council for approval;

2.  The 2022-26 General Fund capital programme be recommended to Council for approval.