Purpose

To agree the draft budget

Content

Cabinet received a report
setting out the draft revenue budget for the financial year 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 has 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, a further £30.4m of income and savings currently
budgeted for delivery in 2023-24. A further cumulative programme of
£96.1m of new income and savings had been identified as part
of the 2024-25 Draft Budget. The draft budget proposed was built on
the proposed Council Tax base and assumed 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.
 
The Provisional Local
Government Finance Settlement was published on 18th December and
provided details of provisional central government funding
allocations for 2024/25. Given the timing it had not been possible
to fully consider the implications of these figures, and as such
this Draft Budget was based on estimates consistent with the Autumn
Statement and Funding Policy Statement. The implications of the
Provisional Settlement would be fully considered in the Final
Budget.
 
Whilst this 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 significant and material changes would be reported and included
within the final budget presented to full Council on 21st
February.
 
The Capital Programme was
presented for 4 years as many schemes span multiple financial
years. In total the programme included £562.8m of projects.
As with previous years it was proposed that a recommendation was
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.
 
The Council Tax Resolution
report would be presented as a separate report as part of the final
budget in February and would contain the final information from the
other precepting authorities leading to the total Council Tax for
the area, which full council was required to approve.
 
This report did not include
special expenses budgets. Discussions were ongoing with the
relevant committees to agree special expenses budgets for 2023/24,
and these would also be presented alongside the final budget. The
level of precept charged in Special Expenses areas formed part of
the Council tax referendum threshold calculation, so final Council
Tax levels cannot be finalised until this matter was
agreed.
 
 RESOLVED
 

That the revenue
budget for 2024/25 - 2026/27 and capital programme be APPROVED as
draft. 

That the outcome
of the budget consultation (Appendix 1) be
NOTED. 

That the Schedule
of Fees and Charges for 2024/25 (Appendix 2) be
AGREED. 

That the current
risks associated with the draft budget proposals be
NOTED. 

That the proposal
to seek delegation from Council to Cabinet for up to £100m of
new capital schemes to be added to the capital programme, through
Prudential Borrowing, and where robust financial business cases
have been made, be supported. 

That it be noted
that a supplementary report, the formal Council Tax Resolution,
will accompany the final budget submitted to Full
Council.