Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 11, 2025

Purpose:

Content: Cabinet agreed the following for recommendations to Borough Council for approval: a)   The General Fund revenue budget for the 2025/26 financial year as detailed in the report and itemised in Appendix A, resulting in a 4.99% increase in the council’s element of the Council Tax. b)   That the 4.99% increase in the council’s element of the Council Tax comprises of the 2% Adult Social Care precept and a 2.99% general increase. c)   The savings proposals for the General Fund and the Housing Revenue Account in Appendix B of the submitted report. d)   The fees and charges schedule in Appendix C of the submitted report. e)   The Housing Revenue Account budget for the 2025/26 financial year as detailed in paragraphs 8.1 to 8.18 of the submitted report. f)    The capital programme for 2025/26 to 2028/29 as detailed in paragraphs 9.1 to 9.13 and in Appendix D of the submitted report g)   The Capital Strategy in Appendix E of the submitted report. h)   The Treasury Management Strategy 2025/26, Annual Investment Strategy Statement on Minimum Revenue Provision and Prudential and Treasury Indicators and Approved Countries for Investment as detailed in paragraphs 12.1 to 12.7 and in Appendix F of the submitted report; i)    That the Executive Director of Finance and Resources be authorised to undertake the operational activity required to manage cashflows including: ·       authority during 2025/26 to make amendments to borrowing and investment limits provided they are consistent with the strategy and there is no change to the authorised limit for borrowing; ·       authority to borrow as per the approved borrowing requirements set out in the Prudential and Treasury Indicators without the additional requirement for a formal Chief Officer Decision; ·       authority to invest with institutions that meet the creditworthiness criteria within the Annual Investment Strategy; j)      That Borough Council will receive a mid-year report and an outturn report on the implementation of the Treasury Management Strategy 2025/26, and that Cabinet will receive a quarterly update on treasury management performance for borrowing and investments within the financial monitoring update reports; k)    Note the Climate Budget Statement 2025/26 at section 21 of the submitted report; l)      Note that, under delegated authority given by Cabinet at its meeting on 21 January 2025, the Executive Director of Finance and Resources approved the Council Tax Base for 2025/26 for the whole council area as 94,102.6 [Item T in the formula in Section 31B of Local Government Finance Act 1992, as amended (the “Act”)]; m)  Agree the Council Tax Requirement arising from Cabinet’s proposed budget for 2025/26 at £150,135,000 [Item R in the formula in Section 31B of the Act]; n)    Agree that the following amounts be calculated for the year 2025/26 in accordance with Sections 31 to 36 of the Act; (i)             £804,341,486 being the aggregate of the amounts which the Council estimates for its total expenditure in accordance with the items set out in Section 31A (2) of the Act; (ii)            £654,206,486 being the aggregate of the amounts which the Council estimates for its total income in accordance with the items set out in Section 31A (3) of the Act; (iii)          £150,135,000 being the amount by which the aggregate (n)(i) above exceeds the aggregate at (n)(ii) above, calculated by the Council in accordance with Section 31A (4) of the Act as its Council Tax Requirement for the year (Item R in the formula in Section 31B of the Act); (iv)          £1,595.44 being the amount at (n)(iii) above (Item R), all divided by Item T at (l) above, calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year. o)      Note that for the year 2025/26 the Mayor of London has issued a Greater London Authority (GLA) draft consolidated budget setting out his proposed precept on the Council Tax in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table in recommendation (p) below; p)    Agree that, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, Cabinet hereby calculates the aggregate amounts shown in the table below as the amounts of Council Tax for 2025/26 for each part of its area and for each of the categories of dwellings:   q)    Determine that the council’s basic amount of Council Tax for 2025/26 is not excessive in accordance with principles approved under Section 52ZB of the Local Government Finance Act 1992; r)     The proposed re-alignment of earmarked reserves in 2024/25 as set out in paragraphs 12.7 and 12.8 of the submitted report, specifically: ·       the contribution of £4.2m to Unallocated General Balances. ·       the transfer of £23.5m from Operational Reserves to Risk Reserves and Unallocated General Balances as set out in Table 13 of the submitted report, to offset forecasting overspending in the 2024/25 financial year. s)    The proposed drawings from earmarked reserves to fund the 2025/26 budget as set out in section 12 of the submitted report; t)      Agree the council’s Council Tax Reduction Scheme for 2025/26 as set out in a detailed report elsewhere on this Cabinet agenda; u)    Note the Chief Financial Officer’s Section 25 Statement and comments on the adequacy of reserves and the robustness of the estimates underpinning the budget contained at paragraph 16.1 of the submitted report.   Additional recommendation agreed at Cabinet: v)    Agree a capitalisation strategy for submission to the Secretary of State to allow the Council the freedoms to use capital receipts from the sale of its assets (excluding right to buy receipts) to fund permitted revenue expenditure in accordance with a direction given by the Secretary of State under section 16 and 20 of the Local Government Act 2003 and to authorise the Executive Director of Finance and Resource to draw up a draft strategy for consideration by Borough Council as an addition to the Budget papers.   Cabinet approved the following: ·       The delegation of the allocation of inflation to service budgets and the re-basing of corporate contingencies to service budgets within the revenue budget for 2025/26 to the Executive Director of Finance and Resources as detailed in paragraphs 12.6 to 12.8 of the submitted report. ·       The basis for the allocation of schools funding from the Schools Block of the Dedicated School Grant (DSG) for 2025/26, including the principles of the local schools 5 to 16 funding formula, as detailed in Section 7 of the submitted report.