Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 12, 2025

Purpose:

Content: The Executive Mayor and Cabinet RESOLVED to;   2.1 Consider the responses to the budget engagement with residents and statutory consultation with businesses (set out in Section 10 of this report and detailed more fully in Appendix H).   2.2 Consider and have due regard to the equalities impact assessment undertaken on the budget proposals as set out in Appendix L.   2.3 Approve the responses to the Scrutiny and Overview Committee recommendations (to follow publication of this report) on the budget proposals as set out in Section 20.   2.4 Note the Council’s request for Exceptional Financial Support (EFS) in the form of a Capitalisation Direction from the Ministry for Housing, Communities and Local Government of up to £136m for 2025-26, increasing to £203m by 2028-29.   2.5 Approve that (subject to Full Council approving the budget and any further decisions required of the Executive including as set out in Paragraph 2.21 below) that Corporate Directors be authorised to implement their respective growth and savings proposals for 2025-26 in accordance with the recommendations within this report, the Council's Constitution, Financial Regulations, relevant Schemes of Delegation and undertake any further consultation required, including regarding the Equalities Impacts of specific decisions within the Budget envelope as approved by Full Council.   2.6 Propose to Full Council for approval an increase in the Croydon element of the 2025-26 council tax charge by 2.99% (Band D £56.68).   2.7 Propose to Full Council for approval a 2% increase (Band D £37.91) in the 2025-26 Adult Social Care precept levy.   2.8 Note, based on the Mayor of London’s draft consolidated budget, a proposed 4.03% (Band D £18.98) increase regarding the Greater London Authority precept.   2.9 Propose to Full Council for approval, the calculation of budget requirement and council tax as set out in Appendix G and note that the inclusion of the GLA precept will result in a total increase of 4.80% (Band D £113.57) in the overall Croydon council tax bill. 7   2.10 Propose to Full Council for approval the setting of the Council’s own total net expenditure budget for 2025-26 at £373.501m.   2.11 Propose to Full Council for approval the detailed programme of revenue savings, income, demand pressures and legacy budget corrections, as set out in Appendix C.   2.12 Propose to Full Council the Reserves Policy set out in Appendix K.   2.13 Propose to Full Council for approval that the Corporate Director of Resources be authorised to collect and recover National Non-Domestic Rate and council tax in accordance with the Local Government Finance Act 1988 (as amended) and the Local Government Finance Act 1992.   2.14 Note the revenue budget assumptions detailed in the report and budget projections to 2028- 29 made by the Corporate Director of Resources in agreement with the Chief Executive and with the Corporate Management Team.   2.15 Note that all Directors will be required to report on their projected financial position compared to their revenue estimates in accordance with the 2025-26 monthly financial performance reporting timetable.   2.16 Note the statement (Appendix I of the Report) of the Corporate Director of Resources and S151 Officer, under Section 25 of the Local Government Act 2003, regarding the adequacy of reserves and robustness of estimates.   2.17 Note that the provisional Dedicated Schools Grant allocation for 2025-26 will increase by £50.859m to £517.684m (section 12 of the Report).   2.18 Propose to Full Council that the Council Tax Support scheme (statutory local council tax reduction scheme) under Section 13A(2) of the Local Government Finance Act 1992 is not changed from that agreed by Full Council resolution on 6th March 2024.   2.19 Note that given the increasing scale of the budget gaps projected in the MTFS, the Improvement and Assurance Panel has asked the Council to produce a ‘Stabilisation Plan’ by no later than 31 March 2025.   2.20 Agree that for 2025-26, £25m of the EFS relating to future growth be held in a corporate contingency and to be released and allocated by the Executive in consultation with the Improvement and Assurance Panel.