Agenda item

Report to follow

The Assistant Chief Officer and Treasurer introduced his report on the 2024/25 Revenue Budget, Capital Programme and Council Tax setting process.  This had been delayed due to the final local government settlement being announced on 5 February 2024. The formal NNDR 1 returns had also been received on that date and both of these figures had been included in the final report.

The Assistant Chief Officer reported that Members had been engaged throughout the budget preparation process, including at two specific Member Budget workshops, and the Lead Member had been consulted frequently on the development of the proposals that were now before the Authority for approval.

The Authority was being asked to approve a revenue budget requirement of £38.829 million, with a corresponding precept of £26.312 million and a Council Tax increase of 2.99%, or an increase of £3.27 on a Band D property, leading to a Band D charge of £112.72.

The Medium Term Revenue Plan, savings and efficiencies, Medium Term Financial Strategy, Reserves Strategy and the Treasurer’s statement on the robustness of estimates and adequacy of reserves were set out as appendices to the report.

The Assistant Chief Officer reported that 703 responses had been received to the budget consultation, with 59% of respondents supporting a Council Tax increase of 2.99%.

The Medium Term Financial Strategy considered various scenarios relating to pay awards, referendum cap changes and other factors. The forecasts had been based on a ‘hard reset’ of business rates in 2026/27.

The Assistant Chief Officer drew Members’ attention to paragraph 4 of the report, as it detailed the ‘golden thread’ linking the budget proposals to the Service’s Community Risk Management Plan and the priorities set by the Authority.

The value of the Capital Programme was £1.149 million, and it was noted that there was no investment in fleet planned for 2024/25, as there was an order being placed for fire appliances in the current financial year.

The Assistant Chief Officer highlighted row 15 of the Medium Term Revenue Plan, setting out the future requirements for transformational savings of £700,000 in 2025/26 and £650,000 in 2026/27, as referred to earlier in the meeting.

Members discussed the scenario of a hard reset of business rates, as the view was expressed that this was unlikely and that transitional funding would be provided by the Government. The Assistant Chief Officer advised that this scenario was prudent given the information currently available.

The Government’s decision to allow for a Council Tax increase of up to £5 for small district councils, but not for other precepting bodies such as this Authority, was noted.

The Chief Fire Officer, in light of the questions posed at the beginning of the meeting, advised that funding for an additional Principal Officer post was from row 8 of the budget (Transformation Investment/Initiatives).

He also requested that his thanks to the Assistant Chief Officer on the production of the budget in light of several vacancies in the finance team and other challenges, be recorded. This was echoed by Members of the Authority.

Councillor Headley, as the Lead Member for Finance, commented on the need to invest in transformation given the scale of the budget gap in 2025/26 and 2026/27 of £1.35 million. Investment was required to produce efficiency savings in future years.

In response to a request from Councillor Owen that a briefing note be produced for Members expanding on Councillor Headley’s statement, Councillor Headley advised that this would be drafted and circulated to Members.

The recommendations relating to the revenue budget requirement of £39.829 million, with a corresponding precept of £26.312 million and a  Council Tax increase of 2.99% were put to the meeting, as well as the associated recommendations, and the votes recorded thereon were as follows:

For the Recommendations (8)           Councillors Ali, Burnett, Coombes, Goodchild, Headley, M Hussain, Owen and Sultan

Councillor Wenham also supported the budget proposals, although he could not vote as he was not physically present at the meeting.

Therefore, these recommendations were carried unanimously.

RESOLVED:

1. That it be determined for 2024/25 that:

a. A Revenue Budget requirement is set at £39.829m, met as indicated in paragraph 3.7 of this report.

b. In meeting this budget requirement, the Authority’s Precept be set at £26.312m and that consequently, a council tax increase of 2.99% up to £112.72 per Band D equivalent property, calculated as shown in Paragraph 3.7 of this report.

c. In order to meet the Precept requirement, the Treasurer be authorised to issue Precepts in the necessary form to each of the Unitary Councils and for the amounts indicated in Paragraph 3.10 of this report.

2. That the Medium-Term Revenue Plan attached at Appendix 1 to the report and the 2024/25 savings and efficiencies detailed at Appendix 2 to the report be approved.

3. That the Medium-Term Capital Programme attached at Appendix 3 to the report be approved.

4. That the Medium-Term Financial Strategy attached at Appendix 4 to the report and the Reserves Strategy attached at Appendix 5 to the report be approved.

5. That in considering the above recommendations, the Treasurer’s statement on the robustness of estimates included in the budget and the adequacy of the reserves for which the budget provides, attached at Appendix 6 to the report be noted.