Issue - meetings

General Fund Revenue Budget and Medium Term Financial Strategy 2025 - 26

 

 

Meeting: 12/02/2025 - Council (Item 57)

57 CABINET RECOMMENDATIONS TO COUNCIL - GENERAL FUND REVENUE BUDGET 2025/26 AND MEDIUM TERM FINANCIAL STRATEGY 2026/27 TO 2028/29 pdf icon PDF 173 KB

To receive a report from the Cabinet on recommendations referred to Council in relation to the General Fund Revenue Budget 2025/26 and Medium Term Financial Strategy 2026/27 to 2028/29.

Additional documents:

Minutes:

The Portfolio Holder for Corporate Finance, Property and Resources, Councillor Cox, introduced the report and moved the recommendations. The Leader, Councillor Allnatt, seconded the motion.

 

During the debate the following points were raised:

·       The Conservative Group confirmed that they could not support the budget because:

-        It is being propped up by the corporate priority reserve.

-        There is no allowance for the implementation of food waste collection.

·       The Conservative Group also stated that the budget could be short by £1m due to a shortfall of business rates and the budget will be short £73k on national insurance contributions.

·       The Conservative Group suggested that the Council should live according to its means, recognise that it is an at-risk authority due to use of reserves and cut the use of consultants.

·       It was recognised that the homelessness budget is a risk for the overall stability of the whole of the budget. This is because policies at a national level are causing homelessness to increase.

·       A Member commented that the cost of the lack of planning compliance is an unseen cost, which risks destabilising the budget.

·       A concern was raised that the current government want to fast track Devolution and Local Government Reorganisation and would starve District and Borough Councils of adequate funding and that the Council should probably focus on funding only the statutory services.

·       The comment was made that the budget was a depressing budget and it demonstrates the financial challenges the Council are facing.

·       The Deputy Leader commented that last year the opposition wanted to spend £150k more and that the administration didn’t adopt the idea therefore meaning that the budget is better position this year.

·       The Leader added that he had attending the Scrutiny Committee when the budget was discussed and that no alternatives were raised. He added that using reserves to support the budget are a legitimate use of funds. It was noted that the last administration also dipped into the reserves.

·       There was a fear that via Local Government Reorganisation, budgets for District and Borough responsibilities (leisure, etc) would be absorbed by the adult social care, education and highways budgets.

·       The Section 151 Officer was thanked for advising to put the income from the business pool into reserves.

·       It was noted that the asset management group aims to identify ways to maximise assets for the Council.

 

RESOLVED

 

Council

 

(1)  Approved the revenue budget for 2025/26 for General and Special Expenses, including proposed growth, as set out in Appendix A, B, C and D and summarised in Appendix 1 section 4.4;

 

(2)  Approved an overall Band D council tax increase of 2.99%, with the individual Band D council tax levels across each fund set out in Appendix 1 at paragraph 4.4.5;

 

(3)  Delegated authority to the Chief Executive in consultation with the Director for Corporate Services to access the Corporate Priorities Reserve to fund any of the approved growth items where UKSPF cannot be used due to not meeting the funding criteria;

 

(4)  Delegated authority to the  ...  view the full minutes text for item 57

Meeting: 06/02/2025 - Cabinet (Item 66)

66 GENERAL FUND REVENUE BUDGET AND MEDIUM TERM FINANCIAL STRATEGY (MTFS) 2025/26 pdf icon PDF 475 KB

To receive the General Fund Revenue Budget and Medium Term Financial Strategy (MTFS).

Additional documents:

Decision:

Cabinet:

 

1)    NOTED the year end forecast and financial position for the General Fund and Special Expenses for 2024/25.

 

2)    RECOMMENDED that Council approves the revenue budget  for 2025/26 for General and Special Expenses, including proposed growth, as set out in Appendices A, B, C and D and summarised in the report at section 4.4; 

 

3)    RECOMMENDED that Council approves an overall Band D council tax increase of 2.99%, with the individual Band D council tax levels across each fund set out in the report at paragraph 4.4.5;

 

4)    RECOMMENDED that Council delegates authority to the Chief Executive in consultation with the Director for Corporate Services to access the Corporate Priorities Reserve to fund any of the approved growth items where UKSPF cannot be used due to not meeting the funding criteria;

 

5)    RECOMMENDED that Council delegates authority to the Director for Housing and Communities in consultation with the Director for Corporate Services to access the reserves up to £100k to fund the one off costs of preparing for the implementation of food waste collection and recycling reforms;

 

6)    RECOMMENDED that Council delegates authority to Director for Corporate Services in consultation with the Director for Housing and Communities to approve a supplementary estimate to support any ongoing additional revenue costs of providing up to five additional waste collection vehicles and delivery of a food waste collection service;

 

7)    RECOMMENDED that Council notes that the Council’s employee establishment will be updated in line with any changes arising from approval of any of the growth proposals set out in Appendices A and B; 

 

8)    RECOMMENDED that Council approves that any current year surplus/deficit on general expenses at 31 March 2025 be met by transfers to or from the Corporate Priorities Reserve in order to maintain the working balance at its agreed level of £1m; 

 

9)    RECOMMENDED that Council approves that any current year surplus/deficit for Special Expenses Melton Mowbray at 31 March 2025 be transferred to/from the Special Expenses Reserve thereby bringing the actual working balance back to the target £50k;

 

10) RECOMMENDED that Council notes the changes made to the risk categorisation of budgets as set out in Appendix 1 at paragraph 4.6.2 and Appendix F.

Minutes:

The Portfolio Holder for Corporate Finance, Property and Resources, Councillor Cox, introduced the report and moved the recommendations. Councillor Allnatt seconded the motion.

 

It was confirmed that the growth for Planning Enforcement would assist with compliance enforcement.

 

A discussion ensued regarding homelessness costs and it was confirmed that costs in this area for the current financial year are unable to be contained within budget. The Council had received increased funding for homelessness for the next financial year, although there needs to be a structured solution outside the budget process in order to control costs in the long term.

 

Members are keen to take action regarding the Council’s assets and changing the use of them.

 

It was recognised that the possible local government reorganisation (LGR) of Leicestershire would affect budgets of all Councils involved. Unitarisation would have a big impact upon future spending patterns, however there was a realisation that the big spending functions (e.g. social care, education, highways) cannot be allowed to subsume budgets on functions that are currently provided by District and Borough Councils. It was confirmed that the Council’s relationship with the other District and Borough Councils is good and that the future challenge of LGR would be faced together.

 

RESOLVED

 

That Cabinet:

 

1)    NOTED the year end forecast and financial position for the General Fund and Special Expenses for 2024/25.

 

2)    RECOMMENDED that Council approves the revenue budget  for 2025/26 for General and Special Expenses, including proposed growth, as set out in Appendices A, B, C and D and summarised in the report at section 4.4; 

 

3)    RECOMMENDED that Council approves an overall Band D council tax increase of 2.99%, with the individual Band D council tax levels across each fund set out in the report at paragraph 4.4.5;

 

4)    RECOMMENDED that Council delegates authority to the Chief Executive in consultation with the Director for Corporate Services to access the Corporate Priorities Reserve to fund any of the approved growth items where UKSPF cannot be used due to not meeting the funding criteria;

 

5)    RECOMMENDED that Council delegates authority to the Director for Housing and Communities in consultation with the Director for Corporate Services to access the reserves up to £100k to fund the one off costs of preparing for the implementation of food waste collection and recycling reforms;

 

6)    RECOMMENDED that Council delegates authority to Director for Corporate Services in consultation with the Director for Housing and Communities to approve a supplementary estimate to support any ongoing additional revenue costs of providing up to five additional waste collection vehicles and delivery of a food waste collection service;

 

7)    RECOMMENDED that Council notes that the Council’s employee establishment will be updated in line with any changes arising from approval of any of the growth proposals set out in Appendices A and B; 

 

8)    RECOMMENDED that Council approves that any current year surplus/deficit on general expenses at 31 March 2025 be met by transfers to or from the Corporate Priorities Reserve in order to maintain the working balance  ...  view the full minutes text for item 66