Decision - General Fund Revenue Budget, Capital & Treasury Management Strategy 2023/24

This report sets out the budget proposals for 2023/24 including a recommended Council Tax increase alongside a proposed Capital Strategy and Treasury Management Strategy in accordance with the Prudential Code for Capital Finance.

RESOLVED: That Policy & Resources Committee recommends to Council: 1. The Administration's proposed budget and Council Tax increase on the Brighton & Hove element of the council tax, comprising: i ) A general Council Tax increase of 2.99%; ii) An Adult Social Care Precept increase of 2.00%; iii) The council's net General Fund budget requirement for 2023/24 of £ 232.385m ; iv) The 2023/24 budget allocations to services as set out in Appendix 1; v) The Budget Strategies and proposed savings as set out in Appendix 1: vi) The one-off resource allocations as set out in the table at paragraph 5.14. vii) A recommended working balance of £ 9.000m (approximately 3.9% of the net budget) to be maintained over the period of the Medium Term Financial Strategy. viii) Approval, in principle, to consideration of introducing a 100% discretionary premium on second homes, subject to the recommendations of an officer report to Policy & Resources Committee as soon as practicable following RoyalbAssent of the relevant legislation, and application of these resources to replenish the council's reserves within the Medium Term Financial Strategy. 2. That Council notes the updated 4-Year Medium Term Financial Strategy included in Appendix 1 including predicted budget shortfalls of £ 58m over the 4-year period. 3. That Council approves the Capital Strategy for 2023/24 at Appendix 2 comprising: i ) The strategy for funding the investment in change, including the flexible use of capital receipts as set out in section 7; ii) The capital resources and proposed borrowing included at Annex A of the Capital Strategy; iii) The Capital Investment Programme for 2023/24 of £ 211.698m included atbAppendix 1 and incorporating allocations to strategic funds. 4. That Council notes the Equalities Impact Assessments to cover all relevant budget options as set out in Appendix 6. 5. That Council further notes that approval of the budget is an indicative resourcing decision to be taken in the context of the explanation given in the Legal Implications paragraph 18.3. 6. That Council approves the Treasury Management Strategy Statement as set out in Appendix 3 comprising: i ) The Annual Investment Strategy; ii) The Prudential and Treasury Indicators; iii) The Minimum Revenue Provision policy; iv) The authorised borrowing limit for the year commencing 1 April 2023 of £ 607m . 7. That Council notes that supplementary information needed to set the overall council tax, including a detailed Budget Book, will be provided for the budget setting Council meeting as listed in paragraph 12.3. That Policy & Resources Committee: 8. Agrees that the council's Chief Finance Officer be authorised to make any necessary technical, presentational or consequential amendments to this report before submission to Budget Council. 9. Notes the Business Framework set out in Appendix 7 which will underpin the management, governance and delivery of the council's services.

The strategy sets out how the council will prioritise, finance and govern capital investment from 2023/24 to 2027/28, including housing, infrastructure, property, digital services and climate-related projects. The proposed 2023/24 capital programme totals £211.698m, including £114.234m of council borrowing, and the strategy also explains the council’s non-treasury investments, loans, guarantees and associated risks.