Agenda item

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3494 which is to be considered by cabinet at its meeting on the 12 February 2025.

Councillor Neil Cutler, Cabinet Member for Finance and Performance introduced the report, ref CAB3494 which set out proposals for the General Fund budget 2025- 2026, (available here).  The introduction included the following points.

1.    The budget paper was prepared based on the medium-term financial strategy (MTFS) and budget options presented to the committee in November 2024.

2.    The Government settlement had been confirmed with significant changes, resulting in a £230,000 reduction in the forecast of government funding.

3.    Updated baseline figures since November 2024 included a forecast 2024/25 surplus of £1.46 million. £1m of the surplus was due to the release of surplus non-domestic rates.

4.    TC-25 savings had increased from £250,000 to £682,000, giving total savings of £1.3 million across the two years.

5.    The updated MTFS showed a balanced budget for 2025/26 and 2026/27, with a £1.197 million deficit in 2027/28, rising to £4.45 million in 2029/30.

6.    Changes in the budget proposal since the draft included a proposal to increase District Council tax by 2.7%, which was an increase of £4.30 on band D properties.

7.    Changes to the Council tax reduction scheme, to operate in line with universal benefit increases, and to increase support to various groups were proposed.

8.    An additional £15,000 to the Exceptional Hardship Fund to replenish it to its original level of £50,000 was also proposed.

9.    A 100% Council tax premium would apply to empty and second homes from April 2026.

10.Significant transfers from two risk reserves were proposed, including the transition reserve and the exceptional inflation reserve to top up operational reserves. Also £200,000 additional resources were to be allocated to planning enforcement .

11.The council was committing significant sums to its Council plan priorities, particularly greener faster, food waste collection, good homes for all, and additional investment in temporary accommodation.

12.That recommendation 6c of the cabinet report was to be removed.

The committee was asked to comment on the proposals within the attached cabinet report, ref CAB3494, which was to be considered by the cabinet at its meeting on 12 February 2025. The committee proceeded to ask questions and debate the report. In summary, the following matters were raised.

1.    The use of the property portfolio to drive additional income sources.

2.    Investment in the parking reserve.

3.    The cost of the Guildhall per resident or council taxpayer.

4.    The financing of the food waste service without government funding, given that the consultation showed 69% of people were in favour of the service with government funding.

5.    How to "turbocharge" the TC-25 programme.

6.    How the £11m of CIL (Community Infrastructure Levy) funding could be spent on capital projects.

7.    Where the interest received on CIL funds was reflected in the budget.

These points were responded to by Councillor Cutler, Cabinet Member for Finance and Performance, Councillor Tod, Leader and Cabinet Member for Asset Management, and Liz Keys, Director (Finance) accordingly.

RESOLVED

1.    That the report be noted.

2.    That the cabinet member considers whether the asset and parking information could be made more publicly accessible.

3.    That cabinet considers the committee’s comments raised during the discussion of the item.