Labour Group Budget Motion
North Lanarkshire Council · 23 February 2023
Back to Council — 23 February 2023 and its agenda
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North Lanarkshire Council Labour Group Budget Motion 2023/24 1. Whilst noting the update provided by the Chief Officer (Finance) in respect of the Local Government Financial Settlement for 2023/24, we reluctantly accept the wholly inadequate level of funding provided. 2. We endorse COSLA’s Save Our Services campaign asking for Local Government to be fairly funded and empowered to deliver services. We also acknowledge that COSLA advises this settlement represents a £71 million cash increase for the whole of local government after accounting for 2023/24 policy commitments. 3. The Resource Spending Review published in May 2022 set out the anticipated future Scottish Budget spend on Local Government up to and including 2025/26 as being maintained. However, once again the Scottish Government have provided a one-year financial settlement and we endorse COSLA’s call for multi-year settlements as a necessity to properly plan and deliver local services. 4. We note that after accounting for ring fenced funding, funding for new commitments and other directed expenditure, North Lanarkshire Council received a cash increase of £6.143 million (0.87%) to core funding within the Local Government Finance Settlement. 5. Therefore, the Council faces a budget gap of £28.254 million in 2023/24 and further gaps in 2024/25 and 2025/26 of £20.620 million and £16.300 million, respectively, a total of £65.174 million across the three-year planning period. 6. Whilst this administration remains fully committed to the key principle of the Revenue Resources Budget Strategy to develop budgets covering a three year period, setting a single year budget for 2023/24 is the focus here today. 7. Agree the significant action totalling £17.210 million, already taken by this Council to manage the gap in 2023/24 as outlined Appendix 1 of the Revenue Budget 2023/24 to 2025/26 and Council Tax 2023/24 Report. This includes £7.912m of Base Budget Adjustments over the three-year period, £6.510 million of which will be realised in 2023/24. It also reflects a prudent use of unallocated resources of £10.700 million to support the estimated budget burden in respect of hikes in energy costs, until there is greater certainty over the recurring financial implications for this Council. Such action reduces the budget gap in 2023/24 to £11.044 million. 8. Confirm that Council Tax rates will increase in 2023/24 by 5%, taking a Band D charge to £1,320.78, and recognise that this is estimated to generate additional revenue of £8.000 million, in perpetuity. 9. Reiterate our previous commitment to Community Investment by continuing to set aside the amount equivalent to a 1% Council Tax increase from 2023/24 to support Community Investment, leaving £6.400 million to help manage the 2023/24 budget gap. This brings the budget gap to £4.644 million. 10. Agree savings of £7.614 million which are detailed in Appendix 1.
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North Lanarkshire Council Labour Group Budget Motion 2023/24 11. However, in recognition of feedback from our Communities, we agree recurring investment of £2.970 million to; £m • Active & Creative Communities 2.000 Reverse previous savings linked to former Culture and Leisure Services • Environmental Improvement 0.970 Investment in greenspace maintenance across North Lanarkshire’s communities. This will see improved maintenance of cemeteries, reintroduction of grass cutting on verges for A and B Category roads at 40mph and above, enhanced roundabout maintenance and an effective enforcement deterrent from littering, fly tipping and dog fouling. 12. Note that this administration has ensured that Culture and Leisure functions and facilities are saved from closure in financial year 2023/24. However, given the scale of challenges that lie ahead it is recognised that a further review of additional savings options will be required to address significant forecast budget gaps in 2024/25 and 2025/26. Because of this, the Chief Executive should arrange for a full review of facilities to be conducted, the outcome of which should be reported to the Policy & Strategy Committee in due course. 13. Instruct Chief Officer (Education) to immediately commence statutory and non-statutory consultation on the proposal to move distance thresholds for mainstream home to school transport to statutory limits with updates to be reported through future Education Children and Families Committees. 14. Note that the Communities Committee has agreed it will receive a report on the Grant Award Programme, levels of funding and award criteria for voluntary organisations in the third committee cycle of 2023. 15. Note that a detailed report will be presented to Education and Families Committee by June 2023 in respect of ECF10, which will identify current uptake levels and options for alternative delivery of the programme reflecting additional funding anticipated from Scottish Government to provide meals during school holidays. 16. Note that this administration has instructed the Chief Executive to consider the process to be undertaken to manage the significant budgetary challenges anticipated from 2024/25, to ensure the Council remains financially sustainable. 17. Note that this administration puts jobs first and has therefore acted to ensure jobs are protected for as long as possible. 18. After providing for the cost of investment a balanced budget 2023/24 is proposed as summarised in Appendix 2. 19. Due to the phasing and the time required to implement the savings detailed in Appendix 1 it is necessary to a agree further use of unallocated balances totalling £10.375 million over financial years 2023/24 and 2024/25 (£6.975 million in 2023/24 & £3.400 million in 2024/25).
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North Lanarkshire Council Labour Group Budget Motion 2023/24 20. Approve a Revenue Budget for 2023/24 which recognises available resources of £978.624 million after accounting for the additional Council Tax income of £6.400 million and further use of one-off resources of £6.975 million in 2023/24. Reflecting the action already taken by this Council, the cost of investment and savings outlined, the total expenditure budget is estimated at £978.624 million, resulting in a balanced budget. 21. Agree the level of general fund contingency reserve at £8.000 million as advised by the Chief Officer (Finance). 22. Agree the continuation of the historic practice in respect of the volume discount as set out within section 6 of the Revenue Budget 2023/24 to 2025/26 and Council Tax 2023/24 Report. 23. Recognise that in line with requirements, a total of £5.045 million additional funding will be passed to the IJB for delegated services. 24. Agree that in the event additional undirected funding is made available for 2023/24, it will be held in reserves to mitigate against financial risks and uncertainties, and to support future budget pressures.
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North Lanarkshire Council Labour Group Budget Motion 2023/24 Appendix 1 2023/24 £m 2024/25 £m 2025/26 £m Total £m Review of Early Learning & Childcare; Single Status Employee Resources 0.000 2.000 1.000 3.000 To align staffing resources to previously approved model Review of Devolved School Management 0.639 0.375 0.000 1.014 Review of education resources including budget allocations to schools through the Devolved School Management (DSM) scheme. This review will be supported by DSM working group and in dialogue with Education senior managers, and will give consideration to utilisation of resources and the outcomes for children and young people, whilst remaining mindful of the impact on teacher numbers School Transport Move distance threshold to statutory limits 0.000 1.200 2.400 3.600 Total Savings 0.639 3.575 3.400 7.614 Savings Options
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North Lanarkshire Council Labour Group Budget Motion 2023/24 Appendix 2 £m Budget Shortfall per the Budget Report 11.044 Managed by; 5% Increase in Council Tax 6.400 Revenue Savings 7.614 Surplus/ (Shortfall) 2.970 New Investment (2.970) Net Budget 0.000
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North Lanarkshire Council Labour Group Budget Motion 2023/24 Appendix 3 £m £m Expenditure Budget 2023/24 per Budget Report 982.803 Advanced Action; Base Budget Adjustments (6.510) 2023/24 Savings Deliverable (0.639) 2023/24 New Investment 2.970 Revised Net Expenditure 2023/24 978.624 Available Resources: Resources Budget 2023/24 per Budget Report 954.549 5% Council Tax increase 2023/24 6.400 Use of balances per budget report 10.700 Further Use of Balances in 2023/24 to manage timing of savings 6.975 2023/24 Available Resources 978.624 Recurring Budget Shortfall/ (Excess) 0.000 Summary Budget for 2023/24