Issue - meetings

Report of the Cabinet Member for Finance and Corporate Services detailing the 2025/26 Budget and Medium Term Financial Strategy.

Report of the Cabinet Member for Finance and Corporate Services detailing the 2025/26 Budget and Medium Term Financial Strategy.

This report proposes a balanced budget, without utilising risk reserves or exceptional financial support and demonstrates the council living within its financial means for day to day expenditure. This is achieved through significant transformation savings built into budgets, additional central government funding and the continued culture of each directorate maintaining spending within their cash limited budgets.

The Council has requested an extension of EFS into 2025/26 to use unused components from the 2024/25 EFS. Although the 2025/26 budget is balanced without EFS, it will be needed for costs such as equal pay, transformation, and restructuring.

The proposed Council Tax for 2025/26 includes a 2.99% increase in core council tax and a 2.00% rise in the Adult Social Care precept, both within allowable limits without requiring a referendum. 

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

The Council agreed to suspend Council Procedure Rules 14.2, 14.5, 14.6, 14.7, 14.8, 14.9 and 16.2 for items 66, 67 and 68:-

(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 - 30 minutes

Seconders - 10 minutes

Conservative and Liberal Democrat Groups – 30 minutes

Councillor Barbour – 15 minutes

Honorary Aldermen – 5 minutes

Right of Reply (Executive only) – 10 minutes

Councillor Blackman on behalf of the Liberal Democrats proposed an alternative / variation to the Administration’s Budget (appended to these minutes):

With the consent of the Lord Mayor, Honorary Alderman Barnes-Andrews  addressed the meeting.

UPON BEING PUT TO THE VOTE THE EXECUTIVE’S BUDGET PROPOSALS WERE DECLARED CARRIED

RESOLVED that the 2025/26 Budget and Medium Term Financial Strategy be approved, as detailed in the report recommendations.

NOTE: All Members of the Council declared a pecuniary interest in the above matter, as payers and setters of Council Tax, noted the dispensation granted by the Monitoring Officer and remained in the meeting during the consideration of the matter.

NOTE - BEING PUT THE VOTE THE AMENDMENT PUT FORWARD BY THE LIBERAL DEMOCRATS WAS DECLARED LOST.

NOTE - FOR THE AMENDMENT: Councillors Blackman, Chapman, Gravatt, Percival and Wood. 

NOTE – AGAINST THE AMENDMENT:  Councillors Allen, J Baillie, P Baillie, Barbour, Barnes-Andrews, Blatchford, Beaurain, Bogle, Bunday, Cooper, Cox, Denness, Evemy, Fielker, Finn, A Frampton, Y Frampton, Galton, Goodfellow, Greenhalgh, Harwood, Kataria, Kenny, Keogh, C Lambert, G Lambert, Laurent, Leggett, Letts, McCreanor, McManus, Moulton, Noon, Payne, Rayment, Savage, Shields, Stead, Webb, Whitbread, Windle and Winning.

NOTE – FOR THE SUBSTANTIVE MOTION: Councillors Allen, Barnes-Andrews, Blatchford, Bogle, Bunday, Cooper, Cox, Denness, Evemy, Fielker, Finn, A Frampton, Y Frampton, Goodfellow, Greenhalgh, Kataria, Kenny, Keogh, C Lambert, G Lambert, Leggett, Letts, McCreanor, McManus, Noon, Payne, Rayment, Savage, Shields, Webb, Whitbread, Windle and Winning.

NOTE – AGAINST THE SUBSTANTIVE MOTION: Councillors  ...  view the full minutes text for item 66

To consider the report of the Cabinet Member for Finance and Corporate Services detailing the 2025/26 Budget and Medium Term Financial Strategy.

Decision made: (CAB 24/25 47847)

On consideration of the report of the Cabinet Member for Finance and Corporate Services, Cabinet approved the following:

GENERAL FUND REVENUE

To recommend to Council:

i)  Have regard to the Statement of the S151 Officer as set out in paragraphs 94 to 106 on the robustness of the budget and the adequacy of the council’s reserves, when approving the following recommendations.

ii)  The 5 year Medium-Term Financial Strategy 2024/25 to 2028/29 as set out in table 1 and appendix 1.

iii)  The Revenue Budget for 2025/26 as set out in tables 3 and 4 and Appendices 1 and 2.

iv)  The inclusion in the budget General Fund pressures totalling £12.72M in 2025/26, increasing to £23.34M in 2028/29, as detailed in paragraph 36.

v)  The inclusion of commitments totalling £1.98M in 2025/26, increasing to £10.40M in 2028/29, as detailed in paragraph 38.

vi)  The inclusion of savings proposals (including increases to ring-fenced grants) totalling £49.60M in the 2025/26 General Fund Revenue Budget, of which £34.56M relate to the Transformation Programme, increasing to £66.16M in 2028/29, of which £50.82M relate to the Transformation Programme, as detailed in paragraphs 40 to 43.

vii)  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.

viii)  A Band D Council Tax for Southampton City Council of £1,903.14 for 2025/26, a Net Budget Requirement of £230.78M and the Council Tax Requirement for 2025/26 at £128.17M as per Appendix 6. The Council Tax increase comprises a core increase of 2.99% and 2.00% specifically for Adult Social Care.

ix)  A change to fees and charges policy and note the new charges as set out in paragraph 64 to 67 and Appendix 9.

Other Recommendations

x)  Approve the Procurement Forward Plan for 2025/26 contained at Appendix 10.

xi)  Delegate authority to the relevant Executive Director, after consultation with the relevant Cabinet Member(s), to take all actions necessary to enter into all contracts contained in the Procurement Forward Plan for 2025/26 at Appendix 10 for the contract duration stated including any contractually permitted extension options. Providing that this is within the budget envelope available for the contract for the projects contained in the Procurement Forward Plan 2025/26 at Appendix 10.

xii)  Note the indicative Procurement Pipeline for the years 2026/27 and 2027/28 contained at Appendix 11.