Decision Maker: Executive

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: February 13, 2025

Purpose:

Content: The Executive is asked to agree the following recommendations: 1.1. To note known allocations to/from General Fund (GF) Earmarked Reserves and note that these forecasts will be reviewed throughout 2025/26 budget monitoring processes.   The Executive is asked to note and endorse the following recommendations which will be referred to Full Council for approval:   The General Fund Medium-Term Financial Strategy 1.2. To?agree and recommend to Full Council?the?proposed?Medium-Term Financial Strategy (MTFS)?and 2025/26 budget, including the underlying?MTFS principles, latest in-year monitoring position and the budget assumptions. 1.3. To?agree and recommend to Full Council the?proposed?2025/26 net budgets by directorate. 1.4. To agree and recommend to Full Council the 2025/26 savings and note that individual savings may be subject to individual consultation before they can be implemented. 1.5. To note?the?Dedicated?Schools?Grant (DSG)?settlement for 2025/26 and related funding assumptions following the Final Local Government Finance Settlement on the 3 February 2025 (‘the settlement’). 1.6. To note that the fees and charges policy and the General GF fees and charges from 1 January 2025 are as agreed by Executive on 28 November 2024. 1.7. To agree the proposed fee increases for parking permits, and suspensions, commercial waste, cemeteries and fixed penalty notices. 1.8. To?agree and recommend to Full Council?that the Section 151?Officer is delegated responsibility for any technical adjustments required for the?2025/26?budget (in line with the?council’s Financial Regulations).   1.9. To agree and recommend to Full Council that centrally held demographic growth is allocated to service budgets in-year 2025/26, only once a more evidenced assessment is available and has been approved by the Section 151 Officer.   General Fund Contingency and Reserves 1.10. To?agree and recommend to Full Council?the proposed Minimum GF Balance and Earmarked reserves level at 25% of Core Spending Power, and to agree the?movements to/from earmarked reserves assumed as part of the 2025/26 revenue budget. 1.11. To note the Balance Sheet Analysis to support the MTFS. 1.12. To note the assessment of compliance against the CIPFA Financial Management (FM) Code and that this will be re-visited at least annually as part of the budget process, with any actions or recommendations implemented on an ongoing basis.   The Housing Revenue Account Budget and MTFS 1.13. To agree and recommend to Full Council, the balanced 2025/26 Housing Revenue Account (HRA) and note the latest estimates over the 3-year MTFS period. 1.14. To agree and recommend to Full Council the 2025/26 savings and note that individual savings may be subject to individual consultation before they can be implemented. 1.15. To agree and recommend to Full Council the HRA 30-year business plan.   Capital Investment and Treasury and Investment Management 1.16. To agree and recommend to Full Council, the proposed 2025/26 to 2029/30 capital programme and indicative capital programme for 2030/31 to 2034/35. 1.17. To agree and recommend to Full Council the funding of the 2025/26 to 2034/35 capital programme and to delegate authority to the Section 151 Officer, where necessary, to apply capital resources to fund the capital programme in the most cost-effective way for the council. 1.18. To note that inclusion of a scheme in the capital programme does not in itself necessarily grant permission to commit expenditure against the approved capital budget. This remains subject to any additional approval requirements of the council’s constitution, financial regulations and procurement rules. 1.19. To agree and recommend to Full Council the Capital Strategy, Investment Strategy, Treasury Management Strategy and Minimum Revenue Provision (MRP) Policy Statement.   Council Tax and Retained National Non-Domestic Rates 1.20. To agree and recommend to Full Council the calculations required for the determination of the 2025/26 council tax requirement and the level of council tax as detailed in Section 8 and summarised below: • The 2025/26 council tax requirement of £125,803,940) • The relevant basic amount of Islington Band D council tax of £1,521.72, a 4.99% increase compared to 2024/25 (comprising 2% specifically for expenditure on adult social care and 2.99% for all expenditure), and that this is not ‘excessive’ in accordance with the council tax referendum principles for 2025/26. (Table 29) • The basic amount of Islington Band D council tax for dwellings to which no special item relates (i.e. outside of the Lloyd Square Garden Committee area) of £1,521.44.  • The amount of 2025/26 council tax (excluding the GLA precept) for each valuation band over each of the council’s areas  • The total amount of 2025/26 council tax (including the GLA precept) for each valuation band over each of the council’s areas. 1.21. To note the council’s estimated retained business rates funding in 2025/26, as per the 2025/26 NNDR1 return. 1.22. To note the council’s forecast national non-domestic rates (NNDR) position for 2024/25   Matters to consider in setting the Budget 1.23. To have regard to the Section 151 Officer’s report on the robustness of the estimates included in the budget and the adequacy of the proposed financial reserves when making decisions about the budget and the level of council tax, as required under Section 25(2) of the Local Government Act 2003. 1.24. To note the Monitoring Officer comments. 1.25. To note the Environmental Implications and Contribution to Achieving a Net Zero Carbon Islington by 2030. 1.26. To note the Equality Impact Assessment (EQIA) and to take full account of it in approving the overall budget and related proposals. 1.27. To note that the council invited residents and NNDR payers (or representatives of NNDR payers) in Islington to comment on the draft 2025/26 budget proposals in this report, as required under Section 65 of the Local Government Finance Act 1992 and to note the summary of responses received. 1.28. To agree and recommend to Full Council the Retail Relief Scheme for 2025/26. 1.29. To agree and recommend to Full Council the Pay Policy Statement for 2025/26.   2. To note the observations of the Corporate Resources and Economy Resources Scrutiny Committee on the budget 2025/26 proposals.   3. That Resources officers be thanked for their work on the budget proposals.     AGREED RECOMMENDATIONS   – as detailed in the report – as detailed in the report – none