Item Number: B3 - Addendum – Draft revenue and capital budgets 2022/23 and Medium-term Financial Plan 2022-26
By: Director Finance and Corporate Services
To: Kent and Medway Fire and Rescue Authority – 18 February 2022
Subject: Addendum – Draft revenue and capital budgets 2022/23 and Medium-term Financial Plan 2022-26
Subsequent to the publication of the Budget Report, final Business Rates figures have now been confirmed by Medway Council, resulting in the following funding changes:
• Retained Business Rates have reduced from £6.135m to £6.047m, resulting in a reduction of £88k in funding for 2022/23;
• The 2021/22 Business Rates Collection Fund deficit, to be repaid to billing authorities in 2022/23, has increased from £1.199m to £1.346m, resulting in a reduction of £147k in funding for 2022/23;
• The section 31 grant in relation to Business Rates Reliefs has increased from £2.515m to £2.756m, resulting in £241k of additional funding for 2022/23.
The combination of these three funding changes results in the proposed 2022/23 net revenue budget increasing by £6k, from £77.423m to £77.429m. This additional funding has reduced the amount required to be drawn down from Earmarked Reserves in 2022/23 to balance the net revenue budget, from £432k to £426k.
On 7 February the final local government finance settlement 2022/23 was published by the Government. For this authority the funding announced at the provisional settlement was confirmed at the final settlement, so there are no Government funding changes required.
Although confirmation is still awaited for some grant receipts, it has been confirmed that; the Fire Pensions Grant will continue to be paid at the same level as in previous years (£3.536m as estimated) and; the National Resilience (New Dimensions) grant will continue to be paid at the same level as in previous years (£973k as estimated). It has also now been confirmed that additional Protection Grant funding will be provided in 2022/23, but the exact allocation for each Authority is still to be confirmed (not budgeted). Some other grants, including the Firelink Grant are still under consideration (estimates have been based on previous years values i.e. Firelink Grant of £610k is estimated).
As a result of the above, one recommendation in the report needs to be updated, and as such the updated recommendation is detailed below for Members approval;
- Approve the revenue budget proposals and the resulting net revenue budget requirement of £77.429m for 2022/23 (paragraphs 13 and 14 and Appendix 1 refer);
Lead contact/officer: Director Finance and Corporate Services – Alison Kilpatrick
Telephone number: 01622 692121 ext 8262
Background papers: None