The committee considered the report which
presented the Medium-Term Financial Strategy (MTFS) for the four
years 2025-26 to 2028-29. It was highlighted that the officer
report had been prepared prior to the receipt of the Final Local
Government Finance Settlement, which was received on Monday 3
February 2025. The Local Government Finance Settlement (LGFS)
provided clarity on a number of grant contributions which were as
finance officers had anticipated. Therefore, there were no material
changes arising from the LGFS that needed to be reflected in the
MTFS. The request for the Council to consider increasing Council
Tax above the referendum limit was declined by central government
and recommendation f4 would not need to be considered by the
committee.
The committee noted the S151 Officer’s
Section 25 report which advised members on the robustness of the
estimates set out in the budget and the adequacy of the proposed
reserves. The low level of reserves was highlighted within the
report as a significant risk that needed to be addressed urgently.
The reserves strategy sets out how the level of reserves could be
built up over the life of the MTFS. Robust management of the budget
was critical.
The committee noted the financial implications
of the transformation programme. It was suggested that a separate
line in the budget for the costs associated with the transformation
programme would be more helpful for members. It was highlighted
that the gross transformation savings were estimated to be in the
region of £72m over the period of the MTFS and that the
£10.8m for digital programmes would help support and deliver
on some transformation savings. Officers commented that it was
important to account for costs and savings from transformation in
respective service areas, but that it was intended that there would
be other supporting information reported, that would show the
totality of transformation savings and the costs of achieving the
changes.
The MTFS set out assumptions relating to
likely capital receipts over the life of the MTFS from the sale of
any assets via the Disposal Programme. The committee requested
detail around the assets that might be sold. The committee noted
that no capital schemes had been stopped but there had been a
review of the capital programme to ensure that profiling of
projects was right. The committee requested detail on all projects
so that they could fully understand the impact. Officers committed
to providing the committee with further information on capital
projects and the assets being considered through the Disposal
Programme as soon as possible.
The committee debated the impact that any
increase in council tax would have on residents across the borough.
Members agreed that work needed to continue to ensure that the
impact on vulnerable individuals was fully understood.
The committee considered the recommendations
in blocks, as set out below.
RESOLVED:
That the Corporate Policy Committee notes
- The summary results of the Budget
Engagement exercise undertaken by the Council, as set out in
Appendix B and the implications for the MTFS.
- The draft report of the
Council’s Section 151 Officer, contained within the MTFS
report, regarding the robustness of estimates and level of reserves
held by the Council based on these budget proposals (Appendix A,
Section 2, Section 25 Statement). This remains a draft report
and will be finalised following a recommendation by the Corporate
Policy Committee to Full Council.
- The Council’s Finance
Procedure Rules remain unchanged and will always apply to ensure
proper approval should any changes in spending requirements be
identified (Appendix A, Annex 9).
- The report includes a change in MRP
Accounting Policy, with effect from 1 April 2024 the effects for
2025/26 being reflected in the MTFS (Appendix A, Annex 5, Section
3, para 5.52).
That the Corporate Policy Committee recommends
that Full Council notes:
- The report of the Council’s
Chief Finance Officer (Section 151 Officer), contained within the
MTFS report, regarding the robustness of estimates and level of
reserves held by the Council based on these budget proposals
(Appendix A, Section 2, Section 25 Statement).
RESOLVED (by
majority)
That the Corporate Policy Committee recommends
that Full Council:
- Approve the Revenue estimates for
the 2025/26 budget (Appendix A, Section 2, Overview) and the
medium-term Capital Programme estimates 2025-2029, as detailed in
the Medium-Term Financial Strategy report (MTFS) 2025-2029
(Appendix A, Section 2, Capital budget).
RESOLVED (by
majority)
That the Corporate Policy Committee recommends
that Full Council:
- Approve the setting of B and D
Council Tax of £1,882.04 representing an increase of 4.99%.
This is below the referendum limit (including 2% ringfenced for
Adult Social Care) and arises from the provisional finance
settlement (Appendix A, Section 1, Key Funding Assumptions).
RESOLVED (by
majority)
That the Corporate Policy Committee recommends
that Full Council:
- Approve the utilisation of up to
£25.3m conditional EFS (Capitalisation Direction) via
borrowing to balance the 2025/26 budget shortfall (as reflected in
Appendix A, Section 2, Balancing the Budget) and to delegate to the
Chief Finance Officer (Section 151 Officer) to review the basis of
funding through the 2025/26 year and report to the appropriate
committee any recommended change to the funding basis of the EFS.
The 2024/25 planned use of Flexible Capital Receipts is increased
to £1.518m, an increase of £0.518m from the £1m
approved in the 2024-28 Medium-Term Financial Strategy Report to
fund transformational projects within the Council (Appendix A,
Section 1, Key Funding Assumptions).
- Approve the 2025/26 planned use of
Flexible Capital Receipts as £1.0m (Appendix A, Annex 5,
Section 3).
- Approve the allocation of Revenue
Grant Funding for 2025/26 of £397.080m (Appendix A, Annex 3),
and delegates authority to the Chief Finance Officer, to approve
supplementary estimates if the value of any named grant changes
from the figures contained within Appendix A, Annex 3 (noting that
all such variations will subsequently be reported to the
appropriate committee, and that any new, previously unnamed, grants
are subject to approval in-line with the Constitution).
- Approve the allocation of Capital
Grant Funding for 2025/26 of £99.122m (Appendix A, Annex 4),
and delegates authority to the Chief Finance Officer, to approve
supplementary estimates if the value of any named grant changes
from the figures contained within Appendix A, Annex 4 (noting that
all such variations will subsequently be reported to the
appropriate committee, and that any new, previously unnamed, grants
are subject to approval in-line with the Constitution).
- Approve the Capital Strategy
(Appendix A, Annex 5).
- Approve the Prudential Indicators
for Capital Financing (Appendix A, Annex 5).
- Approve the Investment Strategy;
including the financial limits for various classifications of
investment, and the investment decision making process set out in
the Strategy (Appendix A, Annex 6).
- Approve the Treasury Management
Strategy (Appendix A, Annex 7) and the Minimum Revenue Position
(MRP) Statement for 2025/26 to 2028/29 (Appendix A, Annex 5) which
includes a change in the MRP Policy, with effect from 1 April
2024.
- Approve the Reserves Strategy
(Appendix A, Annex 8), which includes proposed movements to and
from reserves.
That Council recognises that Corporate Policy
Committee considered:
17.The Budget Engagement exercise undertaken
by the Council, as set out in the attached (Appendix B) and the
results contained within that report.
The meeting adjourned for
a short break at 11.05 and reconvened at 11.15 am