Decision Maker:

Outcome: For Determination

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 5, 2025

Purpose:

Content: RECOMMENDATION TO FULL COUNCIL ON 27 FEBRUARY 2025   RESOLVED that Cabinet submit to Full Council for approval the following recommendations:-   2025/26 BUDGET RECOMMENDATIONS   1. 2025/26 Revenue Budget, Capital Programme and Council Tax   a) that the report of the Director of Finance (S151 Officer), under Section 25 of the Local Government Act 2003 at Section 1 be noted, that the 2025/26 budget proposals be agreed and that the Chief Executive and Senior Management Team (SMT), in consultation with Cabinet Spokespersons, implement plans necessary to ensure the Council’s ongoing financial sustainability in 25/26 and beyond.   b) that the revised Medium Term Financial Strategy (MTFS) and Budget Forecast for 25/26 to 27/28 contained at Section 2 (supported by the suite of background papers in Sections 2a – 2d) be noted and that these are monitored as part of the arrangements for the delivery of the MTFS.   c) that provision be made of £34.1M to cover anticipated demographic and other cost pressures in 25/26: ·       Pay and Inflation (£8.7M) ·       Children’s Social Care (Children in Care / Practice Improvement) (£4.8M) ·       Adult Social Care (Provider Fees / Practice Improvement) (£10.2M). ·       Social Care Demography (£2.7M) ·       Home to School Transport (£0.9M) ·       Waste & Fleet Services (£3.7M) ·       Homelessness & Temporary Accommodation (£0.6M) ·       Investment in Core Services (£2.5M)   be approved for inclusion in the budget as identified at Section 2   d) that revenue investments be made in the Great Childhood Ambition (£1.5M) and Community Enhancement (£1.5M) programmes on a pilot basis with a full review of the benefits and outcomes being submitted to members in due course.   e) that a contingency of £0.5M is held for additional pressures over and above those provided above.   f) that one-off reserves of £5M be invested in a 2-year pilot child travel concessions scheme.   g) that the increase in the general social care funding (£5.4M) be used to partly offset the pressures in Children’s and Adult Social Care.   h) that the new Recovery Grant (£7.9M) be used to offset the above pressures noting that this funding is one-year only pending wider Local Government Finance reform.   i) that funding received for Children’s Prevention (£1.7M) and Extended Producer Responsibility (waste packaging) (£5.5M) be used in line with relevant funding conditions.   j) that the proposed Phase 2 Service Review, Asset Management and other savings of £12.6M in 25/26 highlighted in Section 2 and detailed at Section 4a – 4e be approved for implementation, noting that Members will receive further updates on options to deliver savings related to Early Years Nursery and Schools Catering provision   k) that the one-off New Homes Bonus received as part of the 2024 Local Government Finance Settlement be earmarked for previously agreed capital priorities   l) that the Council’s Reserves Strategy and updated reserves position at Section 2b be approved noting that £5M has been identified as available for investment, whilst retaining Budget Resilience Reserve of £18M.   m) that a separate £20M Minimum Working Balance is held as a contingency for unforeseen events.   n) that the proposed changes to the 25/26 fees and charges policy and accompanying schedule of charges set out at Section 2d be approved.   o) to submit to Council for approval the cash limited budgets for each Service with overall net expenditure for 25/26 of £281.7M (after efficiencies at Section 4) as highlighted in Section 5a.   p) to consider the budgets for all services and approve, for submission into Council, the 25/26 – 27/28 budget proposals presented at Sections 5a – 5c, subject to Cabinet receiving detailed implementation reports where appropriate.   q) to consider and approve the changes to the schools funding formula including the transfer of funding from the schools’ block to the high needs block and approve the proposed 25/26 schools block budget as set out at Section 5d.   r) note the indicative capital programme for 25/26 through to 28/29 of £308M with further detailed reports on individual schemes to be submitted where necessary (Section 6 refers).   s) note that the above includes £2M provisionally set aside for additional investment in repairing the Borough’s highways (principal roads / side streets) and that this will be released subject to receiving further reports on plans for its use.   t) note that the above also includes £2M provisionally set aside for investment in small infrastructure projects within individual towns and villages across the Borough as part of the Community Enhancement programme and that this will be released subject to receiving a further detailed report on plans for its use.   u) that the Chief Executive and SMT, in consultation with Cabinet Spokespersons, be required to submit reports into Cabinet, as a matter of urgency, in relation to the detailed General Fund Revenue Budget for 25/26 on any further action required to achieve an appropriately balanced budget in addition to those proposals set out above.   v) that the Chief Executive and SMT be responsible for managing their respective budgets including ensuring the implementation of all approved saving proposals.   w) that the Authority's SMT be charged with ensuring that the budget remains in balance and report regularly into Cabinet on budget / savings monitoring including any action required.   x) that Cabinet and the Director of Finance (Section 151 Officer) be authorised to make any necessary technical adjustments to form the 25/26 budget.   y) that appropriate consultation on the budget proposals takes place with the Trade Unions and representatives of Non-Domestic Ratepayers and that the views of consultees be considered by Cabinet and the Council.   z) that the Chief Executive, Director of Finance and SMT be tasked with undertaking a full mid-year [2025] budget review, to reflect the outcome of the Government Spending Review and progress with the Local Government Funding Reforms, with a view to developing a financial plan that permanently realigns recurrent income and expenditure over the longer term.   aa) that the budget papers be submitted for the consideration of the full Council.   2. Council Tax 2025/26:   2.1 That Cabinet note the contents of Section 2a (25/26 Council Tax options) and that:   a) the Council Tax Collection Fund net surplus as at 31st March 2024 relating to BMBC of £1.6M be used to reduce the 25/26 Council Tax requirement, in line with statute.   b) the 25/26 Band D Council Tax increase for Barnsley MBC services be set at 4.9% (2.9% for Core Council Services and an additional 2.0% for the Adult Social Care precept).   c) the Band D Council Tax for Barnsley MBC’s areas be determined following confirmation of the South Yorkshire Police and South Yorkshire Fire Authority precepts for 25/26.   d) the Band D Council Tax for areas of the Borough with Parish / Town Councils be determined following confirmation of individual parish precepts for 25/26.   e) that changes be made to the local council tax support scheme as highlighted in Section 2a, effectively reducing the maximum discount for the lowest income households from 92.8% to 90.0% off the relevant bill, increasing the earnings disregard amounts, reducing the capital limits, introducing a deduction for non-dependents and introducing a new protected band for claimants with a disability but no earnings.   f) that a review of the new scheme be undertaken with an update being provided to Members later in 2025/26.   3. Treasury Management Strategy & Policy Statement 2025/26   3.1 that Cabinet approve the 25/26 Treasury Management Strategy and Policy Statement (included in the main papers at Section 2c) and specifically:   a) approve the 25/26 Treasury Management Policy Statement (Section 2c Appendix A).   b) approve the 25/26 Minimum Revenue Provision (MRP) Statement (Section 2c Appendix B).   c) approve the 25/26 Borrowing Strategy at Section 2c including the full suite of Prudential and Treasury Indicators (Section 2c Appendix C).   d) approve the 25/26 Annual Investment Strategy at Section 2c