Decision details

RESOLVED

The Full Council be recommended to:

a)             agrees the overall approach to the Budget Strategy 2025/26 to 2027/28 as set out in section 8 of report FIN/673.

b)             approves the minimum recommended General Fund Balance remains at £3m.

c)             notes the following highlights of the Budget Strategy:

i.                    That the Budget is aligned to the Council’s Corporate Priorities.

ii.                  The outline 3 year forecast as shown in table 2 paragraph 6.1 of report FIN/673., this is likely to be subject to significant change depending on the outcome of the Local Government Finance Settlement for 2025/26 and the Spending Review Phase two reforms for the period 2026/27 and beyond.

iii.                The current budget deficit of £2.452m for 2025/26 (section 6.2 of report FIN/673.) is based on a Council tax increase of 2.99% which is £6.94 per band D dwelling.  Table 2 (section 6.6.10 of report FIN/673.) highlights the budget gap modelling different assumptions.

iv.                 The forecast does not include any fundamental changes in service delivery as these would be too speculative in nature at this stage.

v.                  That there are significant uncertainties around Government funding prior to the settlement in December 2024 and that this uncertainty increases from 2026/27 due to Spending Review Phase 2 including the anticipated reset of the business rates.

Reasons for the Recommendations

To agree the Council’s Budget Strategy for 2025/26 to 2027/28 including the assumptions made which will set the budget parameters for 2025/26.

The 2025/26 General Fund and Housing Revenue Account Budgets and the revised capital programme will be set by the Full Council in February 2025.  The Treasury Management Strategy and Capital Strategy will be considered at the same meeting. 

To note that until the provisional Local Government Finance Settlement is published in December 2024 these projections are highly likely to change.