Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 11, 2025

Purpose: For Cabinet to recommend the final budget to Council

Content: Cabinet received a report on the Medium Term Financial Plan 2025/26 to 2027/28 and Capital Programme 2025/26 to 2028/29 for Buckinghamshire Council.   The Revenue Budget was for the financial years 2025/26 – 2027/28. The financial position for the Council was extremely challenging with significant pressures identified in relation to both the legacy effects of high inflation and ongoing increases in demand for key services, in line with those being experienced nationally. The Council discharged more than 1,300+ statutory duties and was facing increased demand pressures in key services such as Adult Social Care, Children’s Services, Home to School Transport and Special Education Needs and Disabilities. This year had become the most difficult to date in responding to these challenges whilst delivering a balanced budget, and this had been achieved through a significant programme of additional savings and income.   The Council had a strong track record of delivering savings with £75.4m delivered in the first 4 years following the inception of the new unitary council, a further £41.3m of income and savings currently on-track for delivery in 2024-25. A further programme of £115.6m of new income and savings had been identified as part of the 2025-26 to 2027-28 Revenue Budget.   The Final Local Government Settlement had not yet been published at the time of the agenda being sent out but the Council had received an extra £200,000. Further information was awaited from the Government on the longer term position. The Section 151 Officer reported that the Council had not been fully reimbursed for the increase in National Insurance contributions; there was no reimbursement for increases through the supply chain but there had been some reimbursement for direct costs (80% coverage, so the Council had to find an extra £800,000).  It was proposed that any small changes to funding in the final settlement be managed through the Mitigating Future Financial Risks reserve.   Overall, the key elements of the final revenue budget portfolio proposals include unavoidable growth of £49.8m, Inflation of £26.6m, and net savings and income changes of £46.2m in 2025-26.   The budget proposed had been built on the agreed Council Tax base and assumes a 2.99% increase in basic Council Tax and a 2% increase for the Adult Social Care Precept, giving a total increase of 4.99%. This was the maximum allowable without triggering a local referendum.   Whilst this budget provided the best available estimates for the 2025/26-2027/28 financial years, there was significant risk around future income, cost and especially funding projections, with the long-promised review of Local Government funding due to be implemented for 2026-27. The external environment was continuously monitored, and financial risks were managed through risk management revenue reserves contained within these budget proposals.   The Capital Programme was presented for 4 years as many schemes span multiple financial years. In total the programme includes £612.5m of projects. As with previous years it was proposed that a recommendation be made to Council in February for delegation to be given to Cabinet to add up to £100m worth of schemes to the capital programme, to be funded through prudential borrowing, subject to a robust business case being approved. This would enable additional priorities, such as regeneration and housing projects, to come forward and be added to the capital programme once positive business cases are fully developed.   RECOMMENDED to Full Council to –   1)      approve the Medium-Term Financial Plan 2025/26 to 2027/28 and Capital Programme 2025/26 to 2028/29.  2)      approve the ‘Special Expenses’ budgets, precepts and associated services for Aylesbury Town, High Wycombe Town and West Wycombe Church Yard (Appendix 2 and 3).  3)      delegate to Cabinet, decisions to add up to £100m to the Capital programme, to be funded by Prudential Borrowing.  4)      agree the 2025-26 Schools Funding Formula, in line with the National Funding Formula but scaled to 99.46% for affordability.  5)      approve the Council Tax Reduction Scheme Policy (Appendix 4).  6)      approve the Business Rates Discretionary Rate Relief Policy (Appendix 5).  7)      approve the Council Tax Discounts and Premiums Policy (Appendix 6).  8)      note (Appendix 7) Bucks Business Group Response to the Budget.   9)      note that a supplementary report, the formal Council Tax Resolution, will accompany the final Budget to Full Council. 10)  note the Equality Impact assessment for the proposed budget (Appendix 8).