Agenda item

GENERAL FUND REVENUE BUDGET AND MEDIUM TERM FINANCIAL STRATEGY (MTFS) 2025/26

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

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 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.

 

(Non-key decision)

 

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 2025/26 financial year which takes into account the proposals set out in the approved 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, albeit utilising reserves.

 

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.

Supporting documents: