Purpose

This report requests approval and
recommendation to full Council of the General Fund Capital and
Revenue Budget 2025-26 and the Council Tax 2025-26, and the Capital
and Treasury Management Strategies 2025-26 including the Capital
Investment Programme, Annual Investment Strategy, Borrowing
Strategy, Prudential Indicators and MRP Policy.

Content

That Cabinet recommends to Council the
following:

1)            
That Council approves the
Administration’s proposed General Fund revenue and capital
budget and Council Tax increase on the Brighton and Hove element of
the council tax for 2025/26, comprising:

i)     
A general Council Tax increase of
2.99%;

ii)    
An Adult Social Care Precept
increase of 2.00%;

iii)  
The council’s net General
Fund budget requirement for 2025/26 of £264.819m;

iv)  
The 2025/26 budget allocations to
services as set out in Appendix 1 incorporating budget savings
proposals detailed at Appendix 2, subject to the amendment
below:
 

Care pathway for sexual
dysfunction (female)

Proposed withdrawal of funding
for this service as this is not a Public Health
responsibility.  The most significant
impact will be experienced by women who are unable to identify or
afford a paid-for therapy service.

v)   
The changes to Fees & Charges
set out in Appendix 3;

vi)  
The one-off resource allocations
as set out in the table at paragraph 6.5.

vii) 
A recommended working balance of
£9.000m (approximately 3.4% of the net budget) to be
maintained or replenished over the period of the Medium Term
Financial Strategy.

2)            
That Council notes plans to
address future projected budget shortfalls set out in the 4-Year
Medium Term Financial Strategy at Appendix 4.

3)            
That Council approves the Capital
Strategy for 2025/26 at Appendix 5 comprising:

i)     
Funding for investment in
transformation and change, supported by the flexible use of capital
receipts as set out in paragraph 10.12;

ii)    
The capital resources and proposed
borrowing included at Annex A of the Capital Strategy;

iii)  
The Capital Investment Programme
for 2025/26 of £246.946m included at Appendix 5 incorporating
allocations to strategic funds.

4)            
That Council approves the Treasury
Management Strategy Statement as set out in Appendix 6
comprising:

i)     
The Annual Investment
Strategy;

ii)    
The Prudential and Treasury
Indicators;

iii)  
The Minimum Revenue Provision
policy;

iv)   
The authorised borrowing limit
for the year commencing 1 April 2025.

5)            
That Council notes and considers
the Equalities Impact Assessments to cover all relevant budget
proposals as set out in Appendix 7.

6)            
That Council further notes that
approval of the budget is an indicative resourcing decision to be
taken in the context of the explanation given in the Legal
Implications in Section 19.

7)            
That Council notes that
supplementary information needed to set the overall council tax,
including a detailed Budget Book, will be provided for the Budget
Council meeting as listed in paragraph 12.1.

8)            
That Cabinet agrees that the
council’s S151 Chief Financial Officer be authorised to make
any necessary technical, presentational or consequential amendments
to this report before submission to Budget Council.
 

9)            
Following the announcement of the Public Health Grant
on 7 February 2025 and the higher than anticipated grant
announcement, Full Council approve use of these additional
resources to:

 
·       
Reduce the proposed reduction of contribution to the
Healthy Child programme from £100,000 to £50,000 shown
on Page 340;
·       
Remove the £4,000 proposed saving on YMCA
Mental Health Champions (part of proposed savings of £44,000
on Page 340);
·       
Remove the proposed saving of £35,000 for
cessation of the Audio Active CYP service (part of proposed savings
of £44,000 on Page 340);
·       
Remove the proposed £20,000 saving on Mental
Health Support Services         on Page
341;
·       
Remove the proposed saving of £45,000 on the
Ageing Well service delivered by Impact initiatives on Page
342;
·       
Remove the proposed reduction in contribution of
£18,000 to the Academic Library Service (part of proposed
savings of £73,000 on Page 342);
·       
Remove the proposed reduction of £10,000 to
the TDC Act on Cancer Project screening promotion service (part of
proposed savings of £73,000 on Page 342);
·       
Remove the proposal to reduce the contribution to
Oral Health promotion by £9,000 (10%) as shown on Page 342,
and;
·       
Reduce the proposed staffing saving of
£565,000 by £39,000 to £526,000 as shown on Pages
342/343.