“Robust and sustainable budget’ for the next year
Council Tax for the borough to remain one of the lowest in Surrey
Epsom & Ewell Borough Council set its budget for 2022/23 yesterday evening (Tuesday 15 February 2022) at a Full Council meeting.
In setting the budget for 2022/23, councillors have agreed a 2.38% increase to Council Tax (borough council portion) – this is the equivalent of 9.5p per week for the average band D property or £4.95 per year. This means that Council Tax for this borough remains below the average for Surrey.
Speaking at the meeting, Councillor Colin Keane, Chairman of the Strategy & Resources Committee stated: “In spite of all the challenges this council has faced during the pandemic we have not cut the services we provide to our residents and, in some instances, we have increased services and support to our residents, and we will continue to do so in the year ahead”.
Councillor Keane highlighted the independent auditors’ favourable report on the management of the Council’s finances to date and stated that “A combination of prudent investment and financial management means this council starts the new financial year with a balanced budget”. The auditors’ positive comments also cited robust governance and financial sustainability as well as securing value for money.
Councillor Keane noted the council’s property investment which is expected to provide nearly one million pounds of net income to help to provide essential council services in the next year. One of the Council priorities in the coming year is to invest in Heritage Arts and Culture for the borough.
The funding for the budget comes from several sources including income from council commercial business ventures, council charges and fees, business rates, government grants and Council Tax, which Epsom & Ewell Borough Council also collects on behalf of Surrey County Council and Surrey Police.
Surrey County Council has agreed a Council Tax rise, including Adult Social Care, of 4.99%. The Surrey Police and Crime Commissioner has set an increase of 3.5%.
The percentage of their overall Council Tax being paid this year by residents to the Borough Council will be 10%, Surrey Police will receive 14% and 76% will fund Surrey County Council activities.
Councillor Keane added “We know some residents have suffered financial hardship through reduced wages and work opportunities, and with the anticipated increase in cost of living and acute rise in fuel costs these hardships will continue. However, the modest increase in the borough council element of the Council Tax provides the services needed by our residents and ensure those who are most disadvantaged are helped appropriately”.
Notes:
The budget sees a rise in the Epsom & Ewell Borough Council proportion of Council Tax of £4.95 per annum of 2.4% (for a band D property).
Full details of the budget can be found here
https://democracy.epsom-ewell.gov.uk/documents/s22812/Budget%20Report%202022%20-%202023.pdf
Details of the Annual Independent audit can be found here
https://democracy.epsom-ewell.gov.uk/documents/s22780/External%20Audit%20Update%20Appendix%201.pdf
Full Council Budget Speech Councillor Keane, 15 February 2022:
Mr Mayor
It gives me great pleasure to give this year’s Budget speech.
I am currently reading a book entitled Six Minutes in May about how Winston Churchill replaced Neville Chamberlain as Prime Minister in 1940. The book references John Simon the Chancellor of the Exchequer at the time, who confessed that before giving a Budget Speech he felt like a man sentenced to death who is to be hanged shortly….….
I am pleased that being in the position to share a balanced budget, even in a time of such uncertainty around local government finance and re-organisation, I haven’t, so far..had such a feeling and hope the listening experience will be nothing like that either!
We have had another very challenging year, with Covid 19 having a grip over us, with loved ones suffering and being alone. Residents have suffered financial hardship through reduced wages and work opportunities, and with the anticipated increase in cost of living and acute rise in fuel costs, these hardships will continue.
In spite of all the challenges the council has faced during the Pandemic we have not cut the service we provide to our residents. In some instances, we have increased services and support, and we will continue to do so in the year ahead.
This has not been by accident but by design.
As has been highlighted in the past, our strong financial position, has been the result of many years of sound advice and excellent financial management by our finance team.
I would like to give a particular thanks for the budget to Lee Duffey - Chief Financial officer, Brendan Bradley - Head of Finance and Sue Emmons - Chief Accountant.
Many residents were angered by the incorrect information distributed in the recent flyer, delivered around the Borough by their Conservate Borough and Surrey County Councillor in conjunction with the Local MP. Their leaflet was filled with fake news, including uncovering the Property losses and a ‘Pensions black hole’. This information was erroneous.
If they understood the council finances, they would have known that our six properties are a sound investment, only purchased after each one had been carefully assessed, complete with external advice, evaluation of tenants and a full business case.
In 2022/23 the properties are expected to provide nearly one million pounds of net income to help to provide essential services, despite both the pandemic and the economic challenges.
The pension issue is not a ‘black hole’ but follows a recent re-valuation of the Surrey County Council Scheme of which EEBC employees are members. Where a deficit is highlighted on a re-valuation, EEBC has an agreed plan to fund its share over a 20-year period.
The other Surrey District and Borough Councils also have similar sized deficits all determined by Surrey County Council’s Actuary, to help fund the Conservative lead Surrey County Council’s Pension Scheme.
As in previous years Epsom & Ewell has continued to receive an unqualified (meaning a favourable) audit report, and we are the only Surrey District and Borough to have our accounts signed off by the due date of 30 September 2021. We also are part of an elite group of only 9% of Local Authorities nationally whose accounts were in by the due date!
This budget does include a modest increase in Council Tax for households of 2.38% this works out at 9.5 pence per week for a band D household (£4.95 per annum).
To remind colleagues, out of the total Council Tax bill, high spending Conservative Controlled Surrey County Council take 76% of the council tax residents pay. Its increase is 4.99% next year. Surrey Police receive 14% of the total tax with its increase per home being 3.5%.
Each year when the budget is brought before council, we receive pressure from our Labour opposition not to raise EEBC’s share of Council tax. However along with this ask, they fail to propose what policies and strategies could be adopted, which would fill the reduced income if we adopted their proposal.
An agreement to this ask would bring about a shortfall of £165,000, which could only be filled from cutting essential services to our residents, through raising fees and charges or using funds from our already diminishing reserves.
If our Council tax is not increased this has an impact on the Council Tax base not just this year but for all future years. It would make it increasingly difficult to support those residents, whom our Labour colleagues want to help because they are struggling the most financially or to continue to operate our discretionary scheme, to provide support for those with reduced means and not covered by other schemes.
We aim to spend EEBC’s 10% share of the total Council Tax paid by our residents, to provide the services needed by our residents and to ensure those who are most disadvantaged are helped appropriately.
We continue to do all we can to bid for Government aid, cut costs where we can and introduce commercial initiatives to further raise our revenues.
We will continue to be prudent in our approach to our fiscal management and will resist taking the actions that some authorities have by spending funds they do not have, have not built-up reserves and have prepared their statutory accounts in an overly creative manner!
I would recommend reading the regular Rotten Boroughs feature in Private Eye magazine, if Members wish to see what can go wrong if Councils are not run properly and their financial affairs not conducted appropriately!
Our approach to financial management has meant that where we have a projected future deficit largely due to the pandemic, as currently, we can plan to recover our financial position in the short to medium term and will ensure that the Residents’ Association controlled Borough of Epsom and Ewell continues to be such an attractive place to live and work.
Before you is a Robust and Sustainable budget as highlighted in the CFO’s Statement in the Budget Report.
The Statement also highlights that our finances and the budget will as ever, be closely reviewed throughout the next financial year, in particular with members receiving quarterly monitoring reports dealing with the financial issues facing the Council and all budget managers receiving monitoring reports for their particular area.
Mr Mayor I move the Recommendations
