A report outlining the information to enable Cabinet to develop its draft 2025/26 Budget and 2025-30 Medium Term Financial Strategy proposals.
Cabinet Portfolio Holder – Councillor Peter Butlin
Additional documents:
Minutes:
Councillor Peter Butlin introduced the report which updated on the Council’s financial position and provided options prior to the full Council budget decision being taken in February 2025.
Councillor Butlin reflected on the challenges encountered over the past few years and the increased demand on services resulting in the need for the Council to enter into spending controls.
He advised that the draft capital strategy would be brought to Cabinet in January 2025, recognising that further updates would be given once details of the Local Government Settlement were known. It was noted that this was the first budget from the new Government and concerns remained regarding SEND funding, National Insurance contributions, the National Living Wage and increased social care allocations. A list of risks and challenges were included at paragraph 2.2 of the report.
Councillor Butlin recognised that budget setting would not be easy for Local Authorities across the Country and the assumptions being made in relation to Council Tax flexibility did not leave a lot of room for financial movement in terms of addressing areas of concern. He was thankful that the Council was able to present a revenue budget position that was balanced over the five-year period by drawing on reserves but reiterated that this was challenging. He also referred to the risks surrounding Business Rates reset, National Insurance contributions and the Devolution White Paper due out shortly.
Councillor John Holland agreed that the finances were not easy to manage, reiterating that future generations should not pay for expenditure incurred now. He referred to previous government’s management of finances and the challenges faced with National Insurance Contributions. He felt that cost effectiveness and productivity had to be improved.
Councillor Jerry Roodhouse also recognised the challenge with the finances, stating there may be a change when the Local Government settlement was known. He felt the biggest concern was the dedicated schools grant, with numbers increasing. He noted that the Liberal Democrat group would look through the numbers and propose amendments at the Budget meeting in February.
Councillor Butlin reminded the meeting that the Council had a statutory responsibility to set a balanced budget and he signposted Members to paragraph 5.6 of the report which gave detail on the Statutory Override. He reiterated that there was very limited flexibility due to the pressures, context, risks and the recent, and planned changes, to how funding would be allocated.
Councillor Butlin proposed the recommendations as written.
That Cabinet
1) Develop its draft 2025/26 Budget and 2025-30 Medium Term Financial Strategy, taking into account the information, options and advice of Corporate Board, as presented in this report and noting the remaining uncertainties about the final Local Government Settlement expected later this month; and
2) Authorise Corporate Board to begin any preparatory work necessary to deliver the budget options, prior to the final full Council decision on the budget on 6 February 2025.