Decision Maker: Cabinet

Outcome: Decision approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: February 18, 2025

Purpose: This report presents a balanced budget for Cabinet to recommend for approval at Full Council for the 2025/26 financial year.?   This is in the context of the exceptionally challenging circumstances that the council faces, as provided in the draft budget report in January 20241 and set out in the s151 officer’s formal report pursuant to s25 of the Local Government Act 2003.?

Content: Decision   For the reasons set out in the report and its appendices Cabinet RESOLVED to Agree:   i)  The General Fund net budget requirement for 2025/2026 be set at £496m as set out in Section 8. ii)  An overall 8.99% increase in the Council's element of council tax for 2025/26 with 2% as a precept for Adult Social Care and a 6.99% general increase. iii)  Having taken into account the outcome of the consultation process and report in appendix M, to change the Council Tax Reduction Scheme as set out in section 8. iv)  Subject to confirmation of the GLA's precept, agree to set the overall amount of council tax for 2025/26 as set out in Appendix J, the Council Tax Resolution. v)  The budget Saving and Growth proposals to be made to the budget for 2025/26 as set out in Appendices A and B. 2.6.Agree the capital programme along with the minimum revenue provision policy, and unchanged CIL infrastructure List, as set out in the Capital Strategy Appendix C. vi)  To notify the Secretary of State of the plans to fund transformative expenditure to generate ongoing savings using the provision for flexible use of capital receipts as per appendix F. 2.8.Agree or note, as appropriate, the proposed fees and charges as set out in Appendix D for implementation from 1st April 2025. vii)  The Treasury Management Strategy and Annual Investment Strategy including the revised treasury and prudential indicators set out in Appendix K. viii)  The Chief Officers' Pay Policy Statement for 2025/26 as set out in Appendix H. ix)  To note that the level of the Dedicated Schools Grant (DSG), for 2025/26 has been set at £399m, and approve the local funding formula recommended by the Schools Forum. x)  To note the HRA Business Plan as set out in the draft budget report approved by Cabinet 9 January 2025. xi)  To note the Public Health Grant budget as set out in appendix G. xii)  To note an average 2.7% rent increase on all Council-owned rented accommodation (including homes managed under a PFI contract), and service charge increases will be applied as set out in the draft budget report. xiii)  To note that a long term borrowing report will be presented to Cabinet in March 2025, subject to Full Council decision on the Treasury Management Strategy Statement and Annual Investment Strategy as per recommendation 2.6 above. xiv)  To note the Monitoring Officer's Advice as set out in Appendix L. xv)  To note the Section 25 Statement of the Corporate Director of Finance as set out in section 19. xvi)  To note that the proposals for balancing the budget rely on the use of £51.2m of capital receipts, which is subject to approval of the Council’s application for Exceptional Financial Support. xvii)  To note that MHCLG have advised that applications for EFS, by any Council, are unlikely to be determined until late February 2025 and that a “reserve” date for Full Council has been set for 4 March 2025. xvii) Alternatives Considered   a)  This report contains proposals which achieve a balanced budget for 2025/26. Prior to the final budget setting at the planned full meeting of the Council, alternative proposals can be considered, but the end result must provide a balanced budget for the coming financial year.?