Issue - meetings

Budget Strategy 2025/26 – 2027/28

Meeting: 27/11/2024 - Cabinet (Item 11)

11 Budget Strategy 2025/26 – 2027/28 pdf icon PDF 133 KB

The Leader’s Portfolio

 

To consider report FIN673 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission on 25 November 2024.

 

Decision:

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.

 

Minutes:

The Leader presented report FIN/673of the Head of Corporate Finance.  The report set out future financial projections along with the policy framework for improving financial efficiency and meeting the long term investment needs of the Town, as well as proposals for the annual budget process.

 

Councillor Ayling presented the Overview and Scrutiny Commission’s commentson the report to the Cabinet following consideration of the matter at its meeting on 25 November 2024, which included, acknowledging that some fees and charges may have to be increased by more than CPI to help close the budget gap and ensure that services were operating more closely to a cost recovery basis where possible, and noting that fees and charges would be applied proportionally as possible but were currently under review as part of the budget process.  The Commission had noted there was a proposed amendment in recommendation 2.2 ciii to specify the Council Tax Banding in report FIN/673, with the revised wording as follows (in bold):

 “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”.

 

The Leader confirmed that he was happy to accept the additional wording to recommendation 2.2 ciii.

 

 

RESOLVED

 

That 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  ...  view the full minutes text for item 11


Meeting: 25/11/2024 - Overview and Scrutiny Commission (Item 7)

7 Budget Strategy 2025/26 – 2027/28 pdf icon PDF 133 KB

To consider report FIN/673 of the Head of Corporate Finance.

Minutes:

The Commission considered report FIN/673 of the Head of Corporate Finance. The report set out future financial projections along with the policy framework for improving financial efficiency and meeting the long term investment needs of the Town, as well as proposals for the annual budget process..

 

During the discussion with the Leader of the Council, the Head of Corporate Finance and the Chief Accountant, the following comments were made:

·         Acknowledgement that some fees and charges may have to be increased by more than CPI to help close the budget gap and to ensure that services were operating more closely to a cost recovery basis where possible.  It was noted that fees and charges would be applied proportionally as possible but were currently under review as part of the budget process.

·         Recognition that as a result of the Employers National Insurance contributions increase, the overall impact was anticipated to cost the council in the region of £620k for direct staff.  It was noted that compensation was not anticipated to be available for contracted services which would add to service cost pressures in the longer term.

·         It was noted there was a proposed amendment in recommendation 2.2 ciii to specify the Council Tax Banding in report FIN/673. The revised wording was as follows (in bold):

 

2.2 ciii.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.

     

RESOLVED

That the Commission noted the report and requested that the views expressed during the debate, including the amendment to recommendation 2.2ciii, were fed back to the Cabinet through the Commission’s Comment sheet.