Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To consider the revenue budget and investment strategy for 2025/26.

RECOMMENDED TO CABINET: The Finance, Audit and Risk Committee commented on the budget process, assumptions and risks contained within the report, in the context that Cabinet recommend to Council that:

(1)   Notes the position on the Collection Fund and how it will be funded.

(2)   Notes the position relating to the General Fund balance and that due to the risks identified a minimum balance of £2.6 million is recommended.

(3)   Notes the net revenue savings that are likely to be required in future years, combined with the Chief Finance Officer’s section 25 report (Appendix D) which provides a commentary on the risks and reliability of estimates contained in the budget.

(4)   Approves the revenue savings and investments as detailed in Appendix B.

(5)   Approves the capital programme as detailed in Appendix C.

(6)   Approves a net expenditure budget of £22.792m, as detailed in Appendix E.

(7)   Approves a Council Tax increase of 2.99%, which is in line with the provisions in the Medium-Term Financial Strategy.

(8)   Approves the Investment Strategy as detailed in Appendix F.

(9)   Approve the adoption of the four clauses in relation to the Code of Practice on Treasury Management (as detailed in paragraphs 8.32 to 8.35).

REASON FOR DECISION:

(1)   To ensure that all relevant factors are considered in arriving at a budget (revenue and capital) and Council Tax level for 2025/26. To ensure that the budget is aligned to Council priorities for 2024-28 as set out in the Council Plan.

(2)   The Council’s Investment Strategy is set to comply with relevant statutory guidance, including the CIPFA Prudential Code. The Strategy also sets out the Council’s approach to risks in relation to the investment of surplus cash.

Audio recording – 41 minutes 20 seconds

N.B. Cllr Paul Ward declared an interest in this item due to his employment. He had spoken to the Monitoring Officer and had been advised that he could take part in the debate and vote on Recommendations 2.1 to 2.7 and 2.9, however needed to leave the Chamber and not take part in debate or vote on recommendation 2.8.

The Chair stated that recommendations 2.1-2.7 and 2.9 would be taken as one recommendation and 2.8 as a separate recommendation, and so to debate and vote would be separately.

The Service Director – Resources presented the report entitled ‘Budget 2025/26 (Revenue Budget and Investment Strategy) 2.1 – 2.7 & 2.9’ and highlighted the following:

·       The Government confirmed the funds for NI insurance employer payments, this fund was less than the total expenditure for the Council but was more than expected in the draft Budget.

·       At the last meeting of this Committee it was recommended that Cabinet and Council consider whether investments related to statutory services and the Implications of not going forward with them, this information had been added to the Cabinet report.

·       For the first time, the Budget report combed Capital, Revenue and Treasury, which was common in other Councils. This allowed the implications of capital funding to be more clearly seen.

·       The Report sets out that the Medium Term Financial Strategy (MTFS) was confirmed in September at Council and the Report adhered to that strategy.

·       Following the MTFS, Officers and Executive Members looked at where the Council could make savings and where the Council needs to make investments.

·       The next stage was the Budget Workshops with sessions for the administration and for Opposition groups.

·       There is a requirement to consult Business Ratepayers. This has been published to the North Herts Council website with e-mails to business groups to be sent on Thursday which would seek any feedback before the Council meeting.

·       The reasoning for some of the investments was set out in Section 8.1.

·       The changes since the draft and why these were featured in the budget was highlighted in Section 8.4

·       There is a requirement to consult Business Ratepayers. This has been published to the North Herts Council website with e-mails to business groups to be sent on Thursday which would seek any feedback before the Council meeting.

·       From 26/27 the Council will have a 3-year settlement.

·       In estimating future years budget the report took a middle case assumption.

·       The Report looked at the assumptions of the budget in Appendix D and a key part showed positive and negative predictions to what the Council could get as part of future funding. 

·       Table 3 looked at specific grants. Some concerns and opportunities in terms of the budget projections were, the UKSPF fund which gave scope in terms of investments in the District and the Healthy Hub Funding where there is uncertainty over the expectations of what needed to be delivered for this grant, and the Domestic Abuse Grant which was added to general  ...  view the full minutes text for item 61