Agenda item

A report on the Revenue Budget for 2024/25, including the proposed level of council tax for borough council purposes and the Medium Term Financial Strategy 2025/28.

Cabinet:

1)    NOTED the year end forecast and financial position for the General Fund and Special Expenses for 2023/24.

2)    RECOMMENDED that Council:

2.1     Approve the revenue budget subject to any amendment arising from the final settlement for 2024/25 for General and Special Expenses, including proposed growth and savings items, as set out in Appendix A and D and summarised in section 4.5.

2.2     Approve an overall Band D council tax increase of 2.99%, with the individual Band D council tax levels across each fund set out in para 4.5.7.

2.3     Note 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 Appendix A.

2.4     Approve implementation of a 100% premium for properties that have been empty and unfurnished for longer than one year and a 100% premium for second homes as set out in para 4.5.5. The premiums will be implemented from 1 April 2025.

2.5     Delegate authority to the Chief Executive, in consultation with the Director for Corporate Services, to increase resources required to meet the needs of the resettlement scheme subject to there being sufficient grant funding to meet the revenue costs.

2.6     Delegate authority to the Chief Executive, in consultation with the Director for Corporate Services, to access the Corporate Priorities Reserve to fund any one-off change and redundancy costs arising from the reconfiguration of the IT service provided by the Leicestershire ICT Partnership, as set out in para 4.5.6 (m).

2.7     Delegate authority to the Chief Executive, in consultation with the Director for Corporate Services, to access the Corporate Priorities Reserve to fund any one-off costs associated with any potential future planning appeals.

2.8     Delegate authority to the Chief Executive, in consultation with the Director for Corporate Services, to access the Corporate Priorities Reserve, to fund a permanent Environmental Programme Manager, to support the introduction of food waste collection and other environmental projects, until such time as the sufficiency or otherwise of the revenue grant funding is known and assessed.

2.9     Approve that any current year surplus/deficit on general expenses at 31 March 2024 be met by transfers to or from the Corporate Priorities Reserve, in order to maintain the working balance at its agreed level of £1m;

2.10    Approve that any current year surplus/deficit for Special Expenses Melton Mowbray at 31 March 2024, be transferred to/from the Special Expenses Reserve thereby bringing the actual working balance back to the target £50k;

2.11    Note the changes made to the risk categorisation of budgets as set out in para 4.8.1 and Appendix F.

The Portfolio Holder for Corporate Finance, Property and Resources, introduced the report the purpose of which detailed the year end forecast and financial position for the General Fund and Special Expenses 2023-24 and set out the forecasts of the Council’s financial position for the next 3 years.

The Portfolio Holder for Corporate Finance, Property and Resources advised the Council had now received a final settlement additional figure from the Rural Services Delivery Grant of £34,000 and figures would be adjusted subject to decisions made at Council on 8 February 2023.

The Portfolio Holder for Corporate Finance, Property and Resources advised that due to budget constraints investment had to be prioritised and focused with investments in areas such as planning, town centre and environmental health.

The Director for Corporate Services advised that with the budget proposals being dependent on the use of reserves, the Council would need to develop a Financial Sustainability Plan. 

The Director for Corporate Services confirmed that with the information provided from budget holders at the present time and the risks presented at section 15 in the report, she is satisfied with the robustness of the estimates and reserves.

Cabinet:

1)    NOTED the year end forecast and financial position for the General Fund and Special Expenses for 2023/24.

2)    RECOMMENDED that Council:

2.1     Approve the revenue budget subject to any amendment arising from the final settlement for 2024/25 for General and Special Expenses, including proposed growth and savings items, as set out in Appendix A and D and summarised in section 4.5.

2.2     Approve an overall Band D council tax increase of 2.99%, with the individual Band D council tax levels across each fund set out in para 4.5.7.

2.3     Note 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 Appendix A.

2.4     Approve implementation of a 100% premium for properties that have been empty and unfurnished for longer than one year and a 100% premium for second homes as set out in para 4.5.5. The premiums will be implemented from 1 April 2025.

2.5     Delegate authority to the Chief Executive, in consultation with the Director for Corporate Services, to increase resources required to meet the needs of the resettlement scheme subject to there being sufficient grant funding to meet the revenue costs.

2.6     Delegate authority to the Chief Executive, in consultation with the Director for Corporate Services, to access the Corporate Priorities Reserve to fund any one-off change and redundancy costs arising from the reconfiguration of the IT service provided by the Leicestershire ICT Partnership, as set out in para 4.5.6 (m).

2.7     Delegate authority to the Chief Executive, in consultation with the Director for Corporate Services, to access the Corporate Priorities Reserve to fund any one-off costs associated with any potential future planning appeals.

2.8     Delegate authority to the Chief Executive, in consultation with the Director for Corporate Services, to access the Corporate Priorities Reserve, to fund a permanent Environmental Programme Manager, to support the introduction of food waste collection and other environmental projects, until such time as the sufficiency or otherwise of the revenue grant funding is known and assessed.

2.9     Approve that any current year surplus/deficit on general expenses at 31 March 2024 be met by transfers to or from the Corporate Priorities Reserve, in order to maintain the working balance at its agreed level of £1m;

2.10    Approve that any current year surplus/deficit for Special Expenses Melton Mowbray at 31 March 2024, be transferred to/from the Special Expenses Reserve thereby bringing the actual working balance back to the target £50k;

2.11    Note the changes made to the risk categorisation of budgets as set out in para 4.8.1 and Appendix F.

Reasons for Recommendations:

The Council, having set a Budget at the start of the financial year, needs to ensure the delivery of this Budget is achieved. Consequently, there is a requirement to regularly monitor progress so corrective action can be taken when required, which is facilitated through regular reporting of the financial position.

The recommendations set the Council’s General Fund budget and proposed level of council tax for the 2024/25 financial year, which takes into account the proposals set out in the draft Corporate Strategy. The proposals take into account the net expenditure that the Council expects to spend in the next financial year to deliver services to our residents. The report also includes details of the funding and income received to support these services to ensure a balanced budget is proposed.

The Council also holds a number of reserves which can be drawn upon to fund future expenses. The level of reserves is considered within this report, as is the future outlook, for spending in the years ahead, in order for the Council’s future financial resilience to be considered as part of the proposals.

Cabinet and Council are required to consider and approve the General Fund Revenue Account budget proposals in order to set the budget and council tax for the forthcoming financial year.