Purpose

Annual report outlining the 2025/26 Revenue and Capital Budgets

Decision

AGREED:

i)             That Cabinet recommended that Council approved the approach to balancing the 2025/26 budget, specifically the:

a)    net revenue budget of £165.450m as set out in the main body of this report;

b)    approval of a council tax increase of 8.99%, following agreement from government to increase the level by 4% above the 4.99% cap;

c)    fees and charges as set out in Appendix E with delegated approval given to the Executive Director of Resources to make minor amendments to these prior to approval by Full Council;

d)    flexible use of capital receipts for the purposes outlined in Appendix I;

e)    Capital Strategy, including the Minimum Revenue Provision policy as set out in Appendix F;

f)     capital programme as set out in Appendix G;

g)    Treasury Management Strategy as set out in Appendix J;

h)    allocation of £165.017m Dedicated Schools Grant as set out in Appendix K;

i)     A pay award of 3% from 1 April 2025 for all staff paid on RBWM local pay scales as set out in Appendix L to this report; and

j)     the council tax setting report at appendix P, which will not appear as a separate item at Council.

ii)            In recommending the 2025/26 budget to full council, Cabinet noted that the council’s ability to set a balanced budget for next year was dependent on government agreeing to the council’s request for an additional £103m of borrowing next year through a ‘capitalisation direction, which had now been superseded as government had agreed to this following the publication of the report.

iii)           Cabinet also agreed not to recommend to Full Council that RBWM should conduct a referendum to increase council tax by 20% above the 4.99% cap in 2025/26.