Issue - meetings

To consider the report of the Cabinet Member for Finance and Change detailing the 2024/25 Budget and Medium Term Financial Strategy.

Report of the Cabinet Member for Finance and Change detailing the 2024/25 Budget and Medium-Term Financial Strategy for 2024/25 to 2027/28. The report provided detail to inform Council in setting the council tax charge for 2024/25. A report setting out the Capital Strategy, Flexible Use of Capital Receipts Strategy, and details of the General Fund capital programme for

2023/24 to 2028/29 was considered elsewhere on this agenda. The council’s financial position is such that the budget setting process for 2024/25 had

been considerably more challenging than previous years, including during those under austerity and funding reductions. The council faces significant financial challenges to deliver a balanced budget. This included limited revenue reserves, ongoing financial pressures, especially in children’s services and adult social care, and the continuing impact of inflation and interest rates.

The 2023/24 budget was balanced by a reliance on revenue reserves (£20.6M). In addition, sizable new budget pressures and increases to existing pressures have emerged during 2023/24. A combination of limited remaining reserves and high pressures has led to an underlying structural budget deficit in-year that is projected to continue into future years.  It is against this backdrop that budget proposals for 2024/25 were presented. Despite

considerable progress during 2023/24 in identifying measures to reduce expenditure and identify savings, a shortfall remains between the predicted level of spend and the council’s funding available. A balanced budget for 2024/25 is only achieved with Exceptional Financial Support (EFS) from the government. This support would be in the form of a capitalisation direction, which would allow the council to use capital resources to meet revenue expenditure in 2024/25. Without this support the council would almost certainly have been facing a Section 114 notice.

The recommendations therein, were moved by Councillor Letts and seconded by Councillor Finn.

The Council agreed to suspend Council Procedure Rules 14.2, 14.5, 14.6, 14.7, 14.8, 14.9 and 16.2:-

(i)  to enable any amendments to be proposed, seconded and considered at the same time;

(ii)  to enable any amendment to be re-introduced later into the meeting; and

(iii)  to revise the time allowed for speakers as follows:-

Movers of motions - 20 minutes

Seconders - 10 minutes

Green Party/Independent Members – 5 minutes

Honorary Alderman - 5 minutes

Right of Reply (Executive only) – 10 minutes

RESOLVED:

(i)  That the revised Medium Term Financial Strategy (MTFS) for the period 2024/25 to 2027/28 as set out in Table 1 and Appendix 1 be approved.

(ii)  That the 2024/25 General Fund Revenue Budget as set out in Table 2 and Appendices 1 and 2 be approved.

(iii)  That an increase in the ‘core’ council tax of 2.99% and an increase in the Adult Social Care precept of 2.00%, allowable under general powers to increase council tax without a referendum be approved.

(iv)  That additional General Fund pressures totalling £42.03M in 2024/25, increasing to £51.21M in 2027/28, as detailed in paragraph 33 be approved.

(v)  That the new commitments totalling £0.86M in 2024/25, increasing to £4.89M in 2027/28, as detailed  ...  view the full minutes text for item 65

To consider the report of the Cabinet Member for Finance and Change detailing the 2024/25 Budget and Medium Term Financial Strategy.