Issue - meetings

To consider the report of the Leader of the Council and the Cabinet Member for Performance and Resources seeking approval of the council’s Money Plan and Budget Proposals.

To consider the report of the Leader of the Council, and the Cabinet Member for Performance and Resources seeking Members to review the Council’s Money Plan for the period 2024 to 2029 and Budget Proposals for 2024 to 2025 for recommendation to Council.

RECOMMENDED to Council that:

(1)       the proposals for the 2024/25 budget included in this report be approved;

(2)       it be noted that consultation has been undertaken on budget proposals.

Cabinet considered the report of the Leader of the Council, and the Cabinet Member for Performance and Resources that sought Members to review the Council’s Money Plan for the period 2024 to 2029 and Budget Proposals for 2024 to 2025 for recommendation to Council.

The Leader of the Council outlined the key features of the report proposing what he believed to be a sustainable money plan and budget.  He drew Members’ attention to the public consultation (Appendix 7) and the findings of the Chief Finance Officer (Section 151 Officer) on the robustness of the estimates and adequacy of the financial reserves (3.2).

The Cabinet Member for Performance and Resources placed the proposals in the context of high inflation and the cost-of-living crisis, and reassured Members that the plan represented the best estimates going forward in what are challenging times for local government.  She highlighted the details of Local Government Finance Settlement (5.6) and advised Members that since the initial settlement announced in December, a further £41,000 has been provided, primarily from the funding guarantee and service grant.  The Cabinet Member for Performance and Resources directed Members to the Money Plan (Appendix 1) and in particular the intended return of the General Fund balance to 10% of the revenue budget by 2028/29 and the importance of protecting the Business Rates Reserve fund to limit the impact of the expected business rate reset in 2026/27.  She summarised the key budget pressures (appendix 2).  The Cabinet Member for Performance and Resources further drew Members’ attention to the budget savings for the coming year (Appendix 3) and highlighted some of the savings in her own portfolio including £85,000 from the relocation of Customer Services and £25,000 from in-sourcing parking enforcement.  On behalf of Cabinet she thanked all staff who assisted in the creation of the proposed budget expressing particular gratitude to the Head of Finance and Resources for his excellent support to Members.

The Cabinet Member for Planning and Housing Strategy stressed the significance of the wider challenges, such as the cost-of-living crisis, not least for her own portfolio and the importance of making savings whilst protecting the most vulnerable residents.  She reiterated the thanks for the Finance Team.  The Cabinet Member for Culture and Leisure expressed confidence in the Head of Finance and Resources and added his own thanks to all officers and the Senior Management Team for preparing what was a balanced budget.  The Cabinet Member for Communities and Neighbourhoods informed Members that he believed that the report proposed a good and responsive budget for communities.

RECOMMENDED to Council that:

(1)       the proposals for the 2024/25 budget included in this report be approved;

(2)       it be noted that consultation has been undertaken on budget proposals.

To consider the report of the Leader of the Council and Cabinet Member for Performance and Resources which sets out the Money Plan for the period 2024 to 2029 and Budget Proposals for 2024 to 2025.

The format for the session will be as follows:

1.    The Leader of the Council will introduce the report.

2.    The Cabinet Member for Performance and Resources will add her comments on the report.

Each Cabinet Member will then present their respective portfolios in the following order:

1.    Cabinet Member for Performance and Resources.

2.    Cabinet Member for Culture and Leisure.

3.    Cabinet Member for Environment.

4.    Cabinet Member for Communities and Neighbourhoods.

5.    Cabinet Member for Planning and Housing Strategy.

During their presentations the Cabinet Member will address the following points: -

1.    Current staffing levels.

2.    Financial pressures for next year, including any potential reduction in income streams.

3.    The proposed budget savings for next year and how these will impact on the services they provide.

4.    Any new income streams identified during the process.

5.    The main priorities for their portfolio and whether any have changed as a result of the Money Plan.

APPENDICES 6 AND 7 TO FOLLOW.

86.1       The Leader of the Council and Cabinet Member for Environment, Councillor Cook, introduced the report, and explained that Members were being asked to review the Council’s Money Plan for recommendation to Council and that the Overview and Scrutiny Committee were being asked to consider the information contained in the report and make any recommendations to Cabinet. He highlighted the fact that in accordance with section 25 of the Local Government Act (2003), the S151 officer was required to report on the robustness of the estimates of the calculations and the adequacy of the proposed financial reserves.  Councillor Cook outlined the main objectives of the Money Plan, which were included at 4.2 in the report.

86.2       The Deputy Leader of the Council and Cabinet Member for Performance and Resources, Councillor Hannah Norman, noted that there was a tough economic climate nationally, with high inflation and cost of living pressures. She referred to 5.6 in the report (Local Government Finance Settlement 2024/25) which highlighted that there would be:

·       An increase in the Revenue Support Grant of 6.62% which equated to an additional £17,000.

·       A reduction in the Services Grant of £125.000, and;

·       A new homes bonus grant of £811,000.

86.3       Councillor Norman stated that the opening position of 2024/25 showed a general fund balance of £500,000 with the General Fund returning to around 10% of the general budget by 2028/29. She stated that 2026/27 saw a drawdown from the Business Rate Reserve due to an expected business rate reset. Councillor Norman referred Members to Appendix 2 of the report which detailed the Budget Pressures and Efficiencies over the duration of the Money Plan and advised that homelessness prevention alongside inflation were two key pressures. She said in relation to income generation, the direct cremations that the Crematorium would offer, alongside the Food Docks opening would be two key drivers of income.

86.4       In relation to Appendix 3 (Budget Savings Programmes - 2024/25 & 2025/26) Councillor Norman informed Members that in her portfolio an estimated saving of £85,000 would be made owing to the relocation of staff from the Gateway to the office in Eastgate Shopping Centre. Further, the insourcing of parking enforcement was forecasted to save £25,000. She concluded by thanking all Cabinet members, and Officers who had assisted with the preparation of the Money Plan, particularly the Head of Finance & Resources.

86.5       The Chair thanked the Head of Finance & Resources for a clear and accessible report. He raised concerns in relation to the amount the Council were borrowing, particularly in relation to the Forum, and asked how confident the Council was that they were not overborrowing and would be financially secure. The Head of Finance & Resources stated that there would be a gap until the Forum development was completed as it could not generate income until then. He stated that although interest rates had unfortunately increased, the advice from Treasury advisors was that interest rates would come down.

86.6       The Chair referred to the Budget Pressures outlined in  ...  view the full minutes text for item 86