Agenda item - Budget and Business Planning 2022/23

(Lead Member: The Mayor, Director: Angela Taylor)

Resolved:

a) That approval be given to the Combined Authority proposed revenue budget for 2022/23.

b) That approval be given to the indicative capital programme and budget for 2021/22 – 2024/25.

c) That progress on the 2022/23 business plan be noted and that the proposal to review the Combined Authority’s corporate priorities is endorsed.

d) That in accordance with the powers contained in the Local Government Finance Act 1988 (as amended) and by virtue of article 9(6) of the West Yorkshire Combined Authority Order and the Transport Levying Bodies Regulations 2015 (as amended) a levy of £103 million be determined for the year ended 31 March 2023.

e) That the Director, Corporate and Commercial Services be authorised to issue the levy letter in respect of the financial year ending 31 March 2023 to the five District Councils in West Yorkshire.

f) That a payment of £5.09 million be made to the five District Councils in accordance with Table 1 of the submitted report.

g) That authorisation be given to the Director, Corporate and Commercial Services to arrange appropriate funding for all expenditure in 2021/22 and 2022/23 subject to statutory limitation, including the most appropriate application of capital funding as set out in the submitted report.

h) That approval be given to the continuing of the policy, effective from 2017/18, for recovering the Combined Authority costs of managing the capital programme against the capital programme spend being mainly West Yorkshire plus Transport Fund, Transforming Cities, Getting Building Fund, Brownfield Housing, Local Transport Plan Integrated Transport and any schemes developed in year. For 2022/23 the estimated total value is £12 million.

i) That the adoption of the CIPFA Code of Practice for Treasury Management in Public Services be reaffirmed.

j) That the treasury management policy as set out in Appendix 5 of the submitted report be approved.

k) That the prudential limits for the next three years as set out in Appendix 5 of the submitted report be adopted.

The Combined Authority considered a report on the proposed budget for 2022/23, including the transport levy, treasury management statement, revised forecast outturn revenue position, and summary business plans.

The Levelling Up white paper had been published earlier in the week and had included some positive details regarding the simplifying of funding awards, and reducing the number of bidding processes for time-limited pots of money, though it was noted this did not include the new £22 million Brownfield Land Fund which had been announced. However, details regarding what funding would be made available by Government for the delivery of the region’s Bus Service Improvement Plan (BSIP), as well as what would be received from the UK Shared Prosperity Fund, had not been included, and the continuation of bus service funding by Government was a serious uncertainty, with bus operators already looking at reducing their services. Members noted that a strong bus network was key to the levelling up agenda and that cessation of this funding would be very detrimental in this regard, with the impact on Wakefield being particularly highlighted. The need to work together across the North to respond to this uncertainty was emphasised.

It was noted that a reserves policy of 5% had been set, at slightly above £10 million, and Members questioned how this compared to other Combined Authorities. Officers advised that the approach to reserves varied depending on risks faced, and that though this was higher than in previous years, it seemed appropriate, particularly given the limited opportunities to raise funds throughout the year. It was also noted that this money would not be spent without further reporting to the Combined Authority on the need for its use.

Members also raised two line items, regarding professional services and consultancy as well as supplies and services. It was noted that these were both catch-all items to some degree and included expenditure on delivering economic services programmes. An updated version of the revenue budget appendix with these items separated into different categories would be circulated to Members after the meeting. It was also noted that a new finance system with improved reporting was intended to be implemented at the end of the calendar year.

Staffing levels were discussed, with an increase of 13% from the previous year to 657 full-time employees. It was noted that recruitment had been difficult in places, with some vacancies having to be carried over. Members raised the possibility of creating posts to bring in further expertise with bidding processes, as outside help had been needed previously. Officers advised that this was done in cases of recurring need, and would be looked at in future if more specialism was needed, but noted that Combined Authority officers had strong experience with bid-writing.