Decision details

Cabinet received a report setting out the draft revenue budget for the financial year 2024/25 – 2026/27. The financial position for the Council was extremely challenging with significant pressures identified in relation to both inflation and ongoing increases in demand for key services, in line with those being experienced nationally. The Council discharged more than 1300+ statutory duties and was facing increased demand pressures in key services such as Adult Social Care, Children’s Services, Home to School Transport and Temporary Accommodation. This year had become the most difficult to date in responding to these challenges whilst delivering a balanced budget, and this has been achieved through a significant programme of additional savings and income.

The Council had a strong track record of delivering savings with £45m delivered in the first 3 years, a further £30.4m of income and savings currently budgeted for delivery in 2023-24. A further cumulative programme of £96.1m of new income and savings had been identified as part of the 2024-25 Draft Budget. The draft budget proposed was built on the proposed Council Tax base and assumed 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 and was below the average rate of inflation experienced during 2023/24.

The Provisional Local Government Finance Settlement was published on 18th December and provided details of provisional central government funding allocations for 2024/25. Given the timing it had not been possible to fully consider the implications of these figures, and as such this Draft Budget was based on estimates consistent with the Autumn Statement and Funding Policy Statement. The implications of the Provisional Settlement would be fully considered in the Final Budget.

Whilst this budget provided the best available estimates for the 2024/25-2026/27 financial years, there was significant risk around future income, cost and funding projections. The external environment was continuously monitored, and significant and material changes would be reported and included within the final budget presented to full Council on 21st February.

The Capital Programme was presented for 4 years as many schemes span multiple financial years. In total the programme included £562.8m of projects. As with previous years it was proposed that a recommendation was 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 were fully developed.

The Council Tax Resolution report would be presented as a separate report as part of the final budget in February and would contain the final information from the other precepting authorities leading to the total Council Tax for the area, which full council was required to approve.

This report did not include special expenses budgets. Discussions were ongoing with the relevant committees to agree special expenses budgets for 2023/24, and these would also be presented alongside the final budget. The level of precept charged in Special Expenses areas formed part of the Council tax referendum threshold calculation, so final Council Tax levels cannot be finalised until this matter was agreed.

 RESOLVED

1. That the revenue budget for 2024/25 - 2026/27 and capital programme be APPROVED as draft. 

2. That the outcome of the budget consultation (Appendix 1) be NOTED. 

3. That the Schedule of Fees and Charges for 2024/25 (Appendix 2) be AGREED. 

4. That the current risks associated with the draft budget proposals be NOTED. 

5. That the proposal to seek delegation from Council to Cabinet for up to £100m of new capital schemes to be added to the capital programme, through Prudential Borrowing, and where robust financial business cases have been made, be supported. 

6. That it be noted that a supplementary report, the formal Council Tax Resolution, will accompany the final budget submitted to Full Council.