Issue - meetings
2024/25 Revenue Budget, Medium Term Financial Plan, and Council Tax setting
Meeting: 28/02/2024 - Executive (Item 77)
77 2024/25 Revenue Budget, Medium Term Financial Plan, and Council Tax setting 
PDF 780 KB
Additional documents:
- Appendix 1 - S25 Report 2024-25, item 77
PDF 1 MB
- Appendix 2 - Revenue Medium Term Financial Plan, item 77
PDF 849 KB
- Appendix 2 - Annex 1, 2, 3 - Savings and Growth, item 77
PDF 109 KB
- Appendix 2 - Annex 4 Detail of Net Revenue Budget by Directorate, item 77
PDF 17 KB
- Appendix 3 - Budget Consultation Feedback, item 77
PDF 807 KB
- Appendix 3 - Annex 1 Budget Consultation Impact Assessment Level 1, item 77
PDF 932 KB
- Appendix 3 - Annex 2 Budget Consultation Impact Assessment Level 2, item 77
PDF 335 KB
- Appendix 4 - Financial Reserves Policy 2024-25, item 77
PDF 448 KB
- Appendix 5 - Fees and Charges Policy, item 77
PDF 729 KB
- Appendix 5 - Annex 1 Fees and Charges Schedule, item 77
PDF 204 KB
- Appendix 6 - Capital Programme and Strategy, item 77
PDF 1 MB
- Appendix 6 - Annex 1 Revised Capital Programme 24.25 To 26.27, item 77
PDF 161 KB
- Appendix 7 - Council Tax Setting 2024-25, item 77
PDF 248 KB
- Appendix 8 - Schools Budget 2024-25, item 77
PDF 506 KB
Decision:
ORDERED that the amended Appendix 5 of the report be approved.
AGREED that:
In terms of the robustness of the Medium-Term Financial Plan, Executive
note the statutory s25 report of
the Council’s Section 151 Officer
in respect of the robustness of the estimates
within the budget and the adequacy of reserves.
In terms of the Revenue Medium Term Financial Plan 2024/25 to 2026/27
Executive:
1) Note the updated financial planning assumptions following the Final
Local Government Finance Settlement, together with confirmed government income
sources, expenditure plans and local income budgets.
2) Recommend to Council budget proposals for savings and income
generation of £13.910m in 2024/25 rising to £21.028m in 2026/27, which
incorporated the revisions to savings in light of the
consultation response as set out in Appendix 3.
3) Recommend to
Council an increase in Council Tax of
4.99% resulting in a Council Tax level (Band D) of
£1,975.76 excluding parish, Fire, and Police precepts (detailed in Appendix 7).
4) Note that after all available measures had been taken in relation to
budget proposals, a budget gap of £4.7m existed representing a shortfall of
annual income compared to net expenditure plans. Therefore, the Council was
dependent upon approval by DLUHC to capitalise this
expenditure and finance it from Council borrowing under the provisions of
Exceptional Financial Support (EFS) in order to set a
balanced budget for 2024/25.
5) Recommend to Council
the approval of the proposed General
Fund revenue budget for
2024/25 with a net budget requirement of £143.190m after
adjusting for the capitalisation of £4.7m of revenue expenditure relating to
EFS;
6) Note whilst the budget gap for 2024/25 has been addressed by the
EFS, there would still be a budget gap of £7.474m in 2025/26 and £0.491m in
2026/27 resulting in a cumulative budget gap over the MTFP period of £7.965m.
Further savings proposals arising from the Transformation Programme
would be required as a minimum to meet these budget gaps.
7) Note that in assessing the adequacy of reserves in the context of
financial risks within the Council’s operating environment, the s151 Officer
had determined that financial provision for:
• the sum of £3.5m in relation to savings delivery risk
• the sum of £4.6m in relation to the timing of realisation
of capital receipts to fund Transformation expenditure
were required in the form of capitalisation of expenditure to be funded from Council
borrowing under the provisions of EFS to provide assurance on the adequacy of
reserves, should those risks crystalise.
8) Note that the recommended budget was
dependent upon DLUHC approval of EFS in the sum of £13.4m in
order for it to be considered and approved by Council as a robust and
deliverable balanced budget.
9) Note that in the event of DLUHC not
approving EFS totaling £13.4m, the s151 Officer would have no option but to
issue a s114 Notice under s14(3) of the Local Government Finance Act 1988 with
the implications as set out in paragraph 4.11 of Appendix 2.
In terms ... view the full decision text for item 77
Minutes:
The Mayor and Executive Member for Adult Social Care and Public Health
submitted a report for Executive’s consideration.
The Mayor advised Executive of an amendment to Appendix 5 of the report which
was tabled at the meeting and circulated to Members.
The report proposed a 2024/25 net revenue budget of £143.190m, and Medium-Term
Financial Plan (MTFP) for the period 2024/25 to 2026/27 following the
confirmation of the Local Government Finance Settlement and set out the
financial planning assumptions applicable to the budget based upon the best
information available at the time.
A Council tax increase for 2024/25 of 4.99% was proposed, comprising 2%
Adult Social Care Precept and 2.99% Core Council tax which was within the
referendum limits set by Government.
The report proposed a Capital Programme of £88.549m for 2024/25 and
totalled £174.980m over the period from 2024/25 to 2026/27 together with a
financing statement comprising a combination of external funding and council
resources. In addition, the proposed capital strategy set out the Council’s
approach to capital investment and financing, including the forecast levels of
borrowing and the Minimum Revenue Provision (MRP) Policy which governed how the
Council accounted for debt repayment in accordance with statutory regulations.
The Capital programme provided for EFS of £13.4m to be financed from borrowing
over a period of up to 20 years whilst the actual amount and terms would be
determined by the s151 Officer, based upon the actual requirements, borrowing
rates and an assessment of revenue affordability at the appropriate time during
the 2024/25 financial year.
A summary of the Schools’ Budget and allocation of the Dedicated Schools
Grant (DSG) as determined under the Department for Education’s (DfE’s) National
Funding Formula, together with an overview of the financial pressures on the
DSG High Needs Block and forecast deficit which was being addressed under the
Delivering Better Value (DBV) Programme.
The s151 Officer’s recommended Reserves Policy for 2024/25 set out the
plan for replenishing and maintaining usable revenue reserves over the period
of the MTFP in order to achieve financial recovery and re-establish the
Council’s financial resilience.
The s151 Officer’s recommended Fees and Charges Policy sets out the
proposed framework within which discretionary charged for services would be
reviewed and fees and charges set in the future in order to ensure financial
viability of discretionary services.
The report was underpinned by the Section 151 Officer’s report in accordance with s25 of the Local Government Act 2003 which assessed the robustness of budget estimates and the adequacy of financial reserves in the context of the known financial risks that existed in the Council’s operating environment. The report set out the responsibilities of all officers and members to work collaboratively together in order to enable the Council to successfully navigate the complex and challenging path to recover its financial position and achieve financial sustainability over the medium term. Under s31A of the Local Government Finance Act 1992, the Council was required to have regard to this report when making decisions on agreeing the budget and ... view the full minutes text for item 77