Issue - meetings

To consider the report of the Leader of the Council and the Cabinet Member for 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 Resources seeking Members to review the Council’s Money Plan for the period 2025 to 2030 and Budget Proposals for 2025 to 2026 for recommendation to Council.

Appendix 5 Budget Book 2025/26 is to follow

RECOMMENDED to Council that:

(1)        the proposals for the 2025/26 budget included in the report are approved;

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

Cabinet considered the report of the Leader of the Council, and the Cabinet Member for Resources, that sought Members to review the Council’s Money Plan for the period 2025 to 2030 and Budget proposals for 2025 to 2026 for recommendation to Council.

The Cabinet Member for Resources summarised the report.  He placed it in the context of the current challenging financial climate for district councils and confirmed that the forecasts represented the best estimates.  The Cabinet Member for Resources detailed the allocations within the Local Government Finance Settlement (5.6).  He informed Members that around £736k had been allocated from the Extended Producer Responsibility (EPR) scheme, and £112k to cover the increase in National Insurance contributions, although £200k had been expected (5.4).  The Cabinet Member for Resources thanked officers for their hard work despite the pressures they were placed under.

The Leader of the Council commented that the Local Government Finance Settlement was disappointing, having been £9.3m in 2016/17 but £5.7m for 2025/26, and placed a greater burden on Council Tax payers.  He stated that despite the pressures the proposed Budget was balanced and sound.  The Leader of the Council drew Members’ attention to the Capital Programme (Appendix 4) and reminded them that these projects would produce additional income.  He noted that commercial property income had increased (Appendix 6) and that it had been a manifesto pledge to grow it further to the benefit of the Council.  The Leader of the Council advised that there had been some corrections which would be incorporated in the report when it is published for consideration at Council (27^th February 2025).

The Cabinet Member for Environment reminded Members that the EPR scheme was a contribution from the producers of non-recyclable packaging towards its disposal and that as well as providing additional income it helped the Council achieve its net zero emissions ambition (Council 21^st March 2024 Minute 86).

RECOMMENDED to Council that:

(1)        the proposals for the 2025/26 budget included in the report are approved;

(2)        it is 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 2025 to 2030 and Budget Proposals for 2025 to 2026.

REPORT TO FOLLOW.

65.1    The Leader of the Council and Cabinet Member for Regeneration, Councillor Hilton, reminded Members that this would be the first budget set by the current administration.   He highlighted a rise in the Net Budget Requirement giving an extra £950k of spending and an increase this year in working budgets from £912k to £1.293m (Appendix 2).  Councillor Hilton however noted that the same budgets for 2026-27 were projected to be significantly lower due to the retention of business rates by central government.  He commented that although it was not known yet what government will decide, they appeared to be hitting most district councils hard.

65.2    The Deputy Leader and Cabinet Member for Resources, Councillor Wilson, outlined the main objectives of the Money Plan (4.2) and placed it in the context of the difficult financial climate that continued to surround all local authorities.  He informed Members that the Finance Team had calculated that funding received by the City Council was 29% lower in real terms than 10 years ago. 

65.3    Councillor Wilson advised that the Local Government Finance Settlement would be for one year, 2025-6, but with a commitment to multi-year settlements thereafter and that the Revenue Support Grant of £297k (Appendix 2) now encompassed several minor grants for simplicity’s sake.  He noted that this would be the first year of a Recovery Fund, £450k for 2025-26, but the last of the New Homes Bonus (Appendix 2).  Councillor Wilson stated that that a grant was expected to mitigate the increase in National Insurance employer contributions, but the amount was as yet unknown.  He confirmed that the pooling arrangements for Business Rates would continue.

65.4    All Officers were thanked by Councillor Wilson but especially the Financial Services Manager who had stepped up to prepare the Money Plan and draft Budget proposals after the former Head of Finance and Resources had left.  The Chair reiterated on behalf of the Overview and Scrutiny Committee that Members all wished to thank the Financial Services Manager for his hard work.

65.5    Councillor S. Chambers requested that indexed bookmarks be used in the PDF format of the report to enable easier navigation given its complexity.  Councillor Wilson stated that this would be worth looking at.

65.6    Councillor Radley sought clarification on the difference between `Third Party Payments’ and `Supplies and Services’ in the Budget Book (Appendix 5).  The Financial Services Manager specified that, in simple terms, the former were payments to contractors and the latter were the acquisition of goods.

65.7    Councillor Wiederhold queried whether the pay inflation assumption of 3% (8.1) was sufficient to attract the best candidates to staff vacancies.  Councillor Wilson commented that recruitment was always a challenge and that he hoped the work environment at the Council would be attractive.  He noted that the private sector had similar challenges and that the Council had to work within tight financial constraints.  Councillor Hilton advised that pay scales were set nationally so if there were issues with specific roles within that scale point, contractors or  ...  view the full minutes text for item 65