Agenda item

2024-2025 Budget and Council Tax

The Leader’s Portfolio

To consider report FIN/642 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission on 29 January 2024.

(Report to be circulated separately as agreed by the Leader).

Decision:

RESOLVED

That the Full Council be recommended to approve the following items regarding the 2024/25 Budget:

a) approve the proposed 2024/25 General Fund Budget which includes using £1,202,470 of general fund reserve as set out in Section 6 of report FIN/642,

b) approve the proposed 2024/25 Housing Revenue Account Budget as set out in Appendix 5 of report FIN/642 which includes the savings and growth items as set out in Section 9 pf report FIN/642,

c) approve the 2024/25 and future years Capital Programme and funding as set out in Section 10 of the report FIN/642,

d) agree the transfers between reserves as outlined in Section 11 of report FIN/642.

e) agree that the Council’s share of Council Tax for 2024/25 be increased by 2.99% an increase of £6.76 from £225.34 to £232.10 for a Band D property as set out in paragraph 5.11 of report FIN/642,

f) approve the Pay Policy Statement for 2024/2025 as outlined in paragraph 12.4 and Appendix 8 of the report FIN/642noting that the pay award has yet to be agreed,

g) approve the Capital Strategy as outlined in paragraph 10.1 and Appendix 9 of the report FIN/642

Reasons for the Recommendations

To provide adequate funding for the proposed level of services and to fulfil the statutory requirement to set a Budget and Council Tax and report on the robustness of estimates.

Minutes:

The Leader presented report FIN/642of the Head of Corporate Finance. It was heard that the Council has a statutory responsibility to set a Council Tax and Budget in advance of the commencement of the new financial year. It was noted that the report detailed each of the Revenue, Capital and Housing Revenue Accounts (HRA) that combine together to formulate ‘The Budget’. In proposing the level of Council Tax for the Financial Year 2024/25, each of those accounts identified had been considered. The General Fund Budget for 2024/25 forecast a take from balances of £1.2m. It was noted that that could reduce by the increase in the funding guarantee grant announced on Wednesday 24 January 2024, which was too late to be included in the budget.

It was noted that the draw down from reserves was to be £190k more than forecast in November 2023’s budget strategy. However, the identified service expenditure pressures had worsened significantly, as reported in the Q3 budget monitoring report. It was emphasised that the main additional pressures were an additional £1m for temporary accommodation and £630k for the Town Hall and District Heat Network. Those increases had been balanced by a favourable increase in the level of Business Rates.

The General Fund budget assumes a Council Tax increase below the referendum level of 2.99% or £6.76, which would result in a £232.10 charge for a band D property. The budget also assumes that fees and charges are increased at 7% where feasible.

It was noted in respect of the HRA, that there was a proposed rent increase contained in the budget of 7.7% (CPI +1%). The HRA has its own 30 year business plan to ensure that spending plans remain affordable. The HRA balance was anticipated to be around £3m at the end of the period which was a healthy balance.

The Capital budget had been updated with the detailed capital investment programme for Crawley Homes of £13.95m. The General Fund capital programme was approved by Full Council in December 2023.

Councillor Ayling presented the Overview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on 29 January 2024, which included:

· Concerns raised about the future budget gaps. It was noted that the review of current reserves was part of the process identified in the Budget Strategy, but reserves could only be used once. A seminar was being arranged to provide further budgetary information.

· Details sought on the current overspend within the repairs and maintenance budget. It was noted that there had been various national changes impacting the service including Decent Homes Standard, new legislation, national campaigns and more recently, the new structure for the Repairs teams.

Councillor S Mullins spoke as part of the discussion on the report.