Agenda item

REPORT OF THE SERVICE DIRECTOR – RESOURCES

The Council’s budget setting process starts with proposals that are developed by Officers and Executive Members. These proposals are considered by the Political Liaison Board, in the context of the Council’s forecast overall financial position. The selected proposals are then taken to the two budget workshops (administration group and opposition groups). Feedback from those workshops is considered by Cabinet in this report to determine those proposals that should be taken forward to set the 2025/26 budget.

RESOLVED: That Cabinet:

(1)   Noted the Council’s expected funding for 2025/26.

(2)   Confirmed (in line with the Medium-Term Financial Strategy) that budget forecasts should be based on increasing Council Tax by 2.99% (the maximum amount allowable without a local referendum). Noting that Government have assumed Council Tax will increase by the maximum allowed in calculating Core Spending Power.

(3)   Noted that the Council may see real-term reductions in its funding in future years.

(4)   Agreed. in context of the above, which proposals (revenue and capital) should be taken forward as part of the budget-setting process for 2025/26.

REASON FOR DECISIONS: To ensure that all relevant factors are considered in arriving at a proposed budget, Investment Strategy and Council Tax level for 2025/26, to be considered by Full Council on 27 February 2025.

Audio recording 1 hour 11 minutes 19 seconds

The Chair invited Councillor Sean Nolan, as Chair of the Finance, Audit and Risk Committee, to present the referral on this item. Councillor Nolan advised that there had been discussion around:

·       The future mid-term financial health of the Council.

·       The risk emerging from the local government reform and what this could mean for the Council.

·       Meeting a balanced budget presently achieved by interest rates on savings and general fund reserves.

·       The effect on the income stream from interest rates on investments which could end.

·       The forthcoming budget for 2025/26, the proposals and the budget workshops.

Councillor Ian Albert, as Executive Member for Finance and IT, presented the report entitled ‘Revenue and Capital Budgets for 2025/26 Onwards’ and advised that:

·       This was an important stage of the budget setting process.

·       There would be difficult challenges ahead with devolution and the local government reorganisation.

·       Hertfordshire County Council were proposing a Council Tax increase by 4.99% an increase of around £85.

·       North Herts District proposed to increase Council Tax by 2.99% an increase of £7.77, which was the maximum amount allowed without a local referendum.

·       Following a period of grant reductions, inflation and the pandemic implications, there had been a rise in demand for services, for example homelessness, which had added extra financial pressure.

·       The Council needed to review what was discussed at the budget workshops and decide what to incorporate into the proposals for the 2025/26 budget.

·       There would be a public consultation for the Sunday and evening car parking charge and the general car parking structure. Noting the introduction of new technology ‘pay on exit’ machines from next month.

·       It was recommended from the workshops that the proposed Civic Secretary post in R14 of the Revenue Budget Appendix should be removed.

·       The Service Director post in R18 of the Revenue Budget Appendix was an investment proposal that should be progressed and there was currently £58K savings available in the budget for this.

·       The funds allocated in the capital proposal for the Walsworth Common Pavilion Changing Room refurbishment should not be changed.

·       The interactive water feature proposal would be removed.

·       There was uncertainty over the funding from Government for National Insurance increases.

·       The Council should increase Council Tax by the maximum allowed to ensure continuation of delivering as many services as possible.

The Managing Director advised that increasing the leadership team capacity was a recommendation in the Corporate Peer Challenge Report and the leadership team proposal request was for one additional Service Director.

The following Members took part in the debate:

·       Councillor Daniel Allen

·       Councillor Ian Albert

·       Councillor Amy Allen

·       Councillor Tamsin Thomas

Points raised during the debate included:

·       Funding for the Housing and Environmental Health Team as detailed in R4-R13 of the Appendix was important to bring the Directorate to where it needed to be and should go with the original proposal rather than the scaled back version.

·       It was good to see the Museum Storage Option ECP29 and the Walsworth Common Pavilion Changing Room ECP6 projects in the Capital Budget programme.

·       There would be a public consultation on changes to car parking charges and no decisions had yet been reached.

Councillor Ian Albert proposed as amended and Councillor Daniel Allen seconded and, following a vote, it was:

RESOLVED: That Cabinet:

(1)   Noted the Council’s expected funding for 2025/26.

(2)   Confirmed (in line with the Medium-Term Financial Strategy) that budget forecasts should be based on increasing Council Tax by 2.99% (the maximum amount allowable without a local referendum). Noting that Government have assumed Council Tax will increase by the maximum allowed in calculating Core Spending Power.

(3)   Noted that the Council may see real-term reductions in its funding in future years.

(4)   Agreed. in context of the above, which proposals (revenue and capital) should be taken forward as part of the budget-setting process for 2025/26.

REASON FOR DECISIONS: To ensure that all relevant factors are considered in arriving at a proposed budget, Investment Strategy and Council Tax level for 2025/26, to be considered by Full Council on 27 February 2025.

N.B. Following the conclusion of this item there was a short break in proceedings, and the meeting reconvened at 21.13.