Issue - meetings
2025/26 Budget and MTFP
Meeting: 05/02/2025 - Executive (Item 76)
76 2025/26 Revenue Budget, Medium Term Financial Plan, and Council Tax Setting 
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Additional documents:
- Appendix 1 - S25 Report 2025-26, item 76
PDF 569 KB
- Appendix 2 - Revenue Medium Term Financial Plan MTFP, item 76
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- Appendix 2 - MTFP - Annex 1 & 2 savings, item 76
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- Appendix 2 - MTFP - Annex 3- 25-26 Effect of 24-25 savings, item 76
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- Appendix 2 - MTFP - Annex 4 & 4a - Growth, item 76
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- Appendix 2 - Annex 5 Detail of NRB by Directorate, item 76
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- Appendix 3 - Consultation Impact Assessments, item 76
PDF 750 KB
- Appendix 4 - Reserves Policy, item 76
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- Appendix 5 - Fees and Charges Policy, item 76
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- Appendix 6 - Capital Programme and Strategy, item 76
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- Appendix 6 - Annex 1 Revised Capital Programme 25.26 To 28.29, item 76
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- Appendix 7 - Council Tax Setting 2025-26, item 76
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- Appendix 8 - Schools Budget 2025-26, item 76
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Decision:
AGREED that Executive note the contents of the report and
submit the following to Council for approval:
1.
Budget proposals for savings and income
generation of £7.036m in 2025/26 rising to £8.686m in 2028/29, as set out in
Appendix two (Annex one and two) of the report.
2.
Budget growth of £2.521m in 2025/26 rising
to £2.918m in 2026/27 for re-investment in services aligned to the Recover,
Reset, and Deliver plan as set in Appendix two (Annex four) of the report.
3.
Budget provision of £0.311m in 2025/26
and a further £0.100m in 2026/27 to address the removal of previously approved
savings in line with the priorities outlined in the Council Plan and after
listening to residents’ views as set out in Appendix two (Annex three) of the
report.
4.
An increase in Council Tax of 4.99%
resulting in a Council Tax level (Band D) of £2,074.35 excluding parish, Fire,
and Police precepts in line with both the Government’s referendum limits and
the s151 Officer’s advice (paragraphs 4.29 to 4.32 and detailed in Appendix
seven of the report).
5.
The proposed General Fund revenue budget
for 2025/26 with a net budget requirement of £143.362m
6.
The Financial Reserves Policy for 2025/26
(Appendix four of the report) including the proposed contributions to reserves
to strengthen the Council’s financial resilience, and which proposes:
·
a minimum General Fund Balance of least 7% of
the Net Revenue budget over the MTFP period to 2028/29. In the 2025/26 proposed
budget the level is 7.75% equivalent to £11.1m.
·
the building up of the Financial Resilience
Reserve to at least £10m in 2025/26 and £20m by the end of 2028/29 to
strengthen the Council’s financial resilience
7.
The proposed Fees & Charges Policy
for 2025/26, and the schedule of fees and charges arising from the application
of the approved policy for 2025/26 (Appendix five of the report).
8.
The Capital Strategy 2025/26 and the
proposed 2025/26 to 2028/29 Capital Programme totalling £170.290m which
included the addition of new Council funded schemes, and the associated
financing statement (Appendix six of the report).
AGREED that Executive note:
1.
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 (Appendix one).
2.
The updated financial planning
assumptions in the Council’s Medium Term Financial Plan following the
publication of the Provisional Local Government Finance Settlement (Appendix
two), and that these will be updated further following publication of the Final
Local Government Finance Settlement in early February 2025, with any changes
being reported to the Council on 19 February 2025 as part of the budget setting
report.
3.
The creation of a Delivery Risk Budget of
£2m on a one-off basis in 2025/26 only to protect against unplanned use of
reserves (Appendix two).
4. The transfer of the estimated surplus on the Collection Fund for 2024/25 of £3.135m to a new Savings Delivery Risk Reserve to help provide against the risk of non-delivery or delay of savings ... view the full decision text for item 76
Minutes:
The Mayor and Executive Member for Finance submitted a
report for Executive consideration. The Executive Member for Finance emphasised
the report was not for decision and was to be recommended to Council.
The report proposed a 2025/26 net revenue budget of £143.362m, and a Medium-Term Financial Plan (MTFP) for the period 2025/26 to 2028/29 following the issuing of the Provisional Local Government Finance Settlement (LGFS) 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 2025/26 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 £74.798m for 2025/26 and totalling £170.290m over the period from 2025/26 to 2028/29 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. The Prudential Indicators and Treasury Management Strategy 2025/26m which was discussed at another point in the meeting, translated the Council’s revenue income and expenditure plans and capital investment plans for the purpose of the Council’s cash flow management together with setting the framework within which the Council’s investment and borrowing activity was governed. It included the Minimum Revenue Provision (MRP) Policy which governed how the Council accounted for debt repayment in accordance with statutory regulations.
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 2025/26 set out the plan for replenishing and maintaining unrestricted 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 charges for services will be reviewed and fees and charges set in the future 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 to enable the Council to successfully 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 setting the Council Tax.
The Executive Member for Finance stated the previous 12 months had been difficult and that the road to financial ... view the full minutes text for item 76