Purpose

For Cabinet to recommend the final budget to
Council

Content

Cabinet received a report on the Medium Term
Financial Plan (MTFP) 2024/25 to 2026/27 and Capital Programme
2024/25 to 2027/28 for Buckinghamshire Council. These proposals
were based on the latest known funding position, service budget
pressures and the key financial risks facing the Council both now
and in the future. They also took account of the findings from the
recent budget scrutiny inquiry.
 
The Council Tax Resolution report would be
presented as a separate report as part of the budget to Council in
February 2024 and would contain the final information from the
other precepting authorities leading to the total Council Tax for
the area, which Full Council would be required to approve.
 
The
Revenue Budget was for the financial years 2024/25 – 2026/27.
The financial position for the Council was extremely challenging
with significant pressures identified in relation to both inflation
and ongoing increases in demand for key services, in line with
those being experienced nationally. The Council discharged more
than 1300 statutory duties and was facing increased demand
pressures in key services such as Adult Social Care,
Children’s Services, Home to School Transport and Temporary
Accommodation. This year had become the most difficult to date in
responding to these challenges whilst delivering a balanced budget,
and this had been achieved through a significant programme of
additional savings and income.
 
The
Council had a strong track record of delivering savings with
£45m delivered in the first 3 years following the inception
of the new unitary Council, a further £30.4m of income and
savings currently on-track for delivery in 2023-24. A further
programme of £95.3m of new income and savings had been
identified as part of the 2024-25 to 2026-27 Revenue
Budget.
 
Since the Draft Budget report to Cabinet on 4 January 2024, the
Government had announced additional one-off funding for Social Care
on 24 January. This had been confirmed by the Final Local
Government Settlement on 5 February and details were set out in the
Cabinet report.
 
Overall, the key elements of the final revenue budget portfolio
proposals include unavoidable growth of £47.2m,
Inflation of £14.2m, and net savings and income
changes of £28.3m in 2024/25. The budget proposed had
been built on the agreed Council Tax base and assumes a 2.99%
increase in basic Council Tax and a 2% increase for the Adult
Social Care Precept, giving a total increase of 4.99%. This was the
maximum allowable without triggering a local referendum and was
below the average rate of inflation experienced during
2023/24.
 
Whilst the budget provided the best available estimates for the
2024/25-2026/27 financial years, there was significant risk around
future income, cost, and funding projections. The external
environment was continuously monitored, and financial risks were
managed through revenue contingency budgets contained within these
budget proposals.
 
The
Capital Programme covered 4 years as many schemes spanned multiple
financial years. In total the programme included £666.3m of
projects. As with previous years it was proposed that a
recommendation be made to Council in February for delegation to be
given to Cabinet to add up to £100m worth of schemes to the
capital programme, to be funded through prudential borrowing,
subject to a robust business case being approved. This would enable
additional priorities, such as regeneration and housing projects,
to come forward and be added to the capital programme once positive
business cases were fully developed.
 
RECOMMENDED to Full
Council to –
 
(1)              
Approve
the Medium Term Financial Plan 2024/25 to 2026/27 and
Capital Programme 2024/25 to 2027/28.
(2)              
Approve
the ‘Special Expenses’ budgets, precepts and associated
services for Aylesbury Town, High Wycombe Town and
West Wycombe Church Yard (Appendices 2
& 3).
(3)              
Support
the proposal to delegate to Cabinet, decisions
to add up to £100m to the Capital Programme, to be funded by
Prudential Borrowing, subject to a robust business case being
approved.
(4)              
Approve
the Business Rates Discretionary Rate Relief Policy
(Appendix 5).
(5)              
Note that
a supplementary report, the formal Council Tax Resolution,
will accompany the final budget to full
Council.
(6)              
Note the
Bucks Business Group response to the budget (Appendix
6).
(7)              
Note that
a supplementary report, the formal Council Tax Resolution,
will accompany the final budget to full Council.
(8)              
Note the
Equality Impact Assessment for the proposed budget (Appendix
7).