Purpose

The report will 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.

Content

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.