Agenda item

To set out for Cabinet’s consideration and recommendation to Council the proposed 2024/25 budget and council tax based on;

·     Increasing council tax by 2.99% in 2024/25 in line with the government’s annual basic threshold.

·     Collecting the full additional 2% Adult Social Care (ASC) precept in 2024/25.

·     Implementation of the approved financial strategy.

·     £41m of further savings, efficiencies, and additional income generation required to correct the structural £30m deficit inherited from 2023/24 and other pressures, to set a legally balanced budget, and provide the basis of a more financially sustainable council moving forward.

Recognise that the council is projecting to spend £29m more on Special Educational Needs and Disability services in 2024/25 than the funding specifically being made available by government. The consequential deficit this creates in the Dedicated Schools Grant (DSG) will mean the council is technically insolvent on 31 March 2024 (as the deficit on the DSG will be greater than the total reserves held by the council with a negative overall general fund position). Statutory guidance which means the deficit can be ignored by all councils until the 31 March 2026 provides interim protection for the Council.

The Portfolio Holder for Finance presented a report and an updated addendum, copies of which had been circulated to each Member and a copies of which appear as Appendix 'D' to these Minutes in the Minute Book.

Cabinet were requested to consider and recommend to Council the proposed 2024/25 budget and council tax based on;

·     Increasing council tax by 2.99% in 2024/25 in line with the government’s annual basic threshold.

·     Collecting the full additional 2% Adult Social Care (ASC) precept in 2024/25.

·     Implementation of the approved financial strategy.

·     £41m of further savings, efficiencies, and additional income generation required to correct the structural £30m deficit inherited from 2023/24 and other pressures, to set a legally balanced budget, and provide the basis of a more financially sustainable council moving forward.

In relation to this Cabinet were informed that the council is projecting to spend £29m more on Special Educational Needs and Disability services in 2024/25 than the funding specifically being made available by government, and that the consequential deficit this creates in the Dedicated Schools Grant (DSG) will mean the council is technically insolvent on 31 March 2024 (as the deficit on the DSG will be greater than the total reserves held by the council with a negative overall general fund position), and that statutory guidance which means the deficit can be ignored by all councils until the 31 March 2026 provides interim protection for the Council.

The Chair of the Overview and Scrutiny Committee, Councillor Bartlett addressed the Cabinet advising that this report had been considered at a recent meeting of the Board.

In relation to this Cabinet were advised that whilst there were no formal recommendations that there had been a comprehensive and rigorous discussion at the Board providing test and challenge of the administration, and that the Board had praised the report for its clarity and expressed thanks to officers.

The Overview and Scrutiny Board Chair summarised the main issues which had been raised on the following areas: -

-       Delighted additional funding has addressed some of the points raised

-       Childrens safeguarding services

-       Day care centres

-       Contingency – the amount of contingency

-       Impact consequences and the way ahead – cuts in services

-       Balanced budget for next 4 years

-       Impact of cuts and cost to residents

A number of Councillors addressed the Cabinet raising concerns in regard to the following areas: -

-       Pay and Reward and the lack of member involvement.

-       Retention of day centres

Comprehensive discussion took place on the report prior to Cabinet recommending the budget to Council for approval.

RECOMMENDED that Council: -

(a)          Undertakes a recorded vote in relation to the following items as required by the Local Authorities (Standing Orders) (England) (Amendments) Regulations 2014.

i)              Agrees that a net budget of £356.9m, resulting in a total council tax requirement of £258.6m, is set for 2024/25 based on the draft local government financial settlement figures published by government in December 2023.

ii)             Agrees an increase in council tax of 2.99% for 2024/25 in respect of the basic annual threshold and the collection of the additional social care precept of 2%.

iii)           Confirms the key assumptions and provisions made in the budget as proposed and as set out in Appendix 3.

iv)           Agrees the allocations to service areas in the budget as set out in Appendix 5.

v)             Agrees the implementation of £41m of savings as set out in Appendix 5a.

vi)           Approves the flexible use of capital receipts efficiency strategy as set out in Appendix 6.

vii)         Approves the asset management plan as set out in Appendix 8.

viii)        Agrees the treasury management strategy (TMS) and prudential indicators as set out in paragraphs 74 to 79 and Appendix 9.

ix)           Accepts and supports the formal advice of the chief finance officer on the robustness of the budget and the adequacy of the reserves as set out in paragraphs 95 to 101 and Appendix 10.

(b)           Approves the implementation of a freeze on all non-essential expenditure from 1 April 2024 and until such time as the Corporate Management Board have provided Cabinet Members with assurance that all the £41m of 2024/25 budget savings have been delivered.

(c)           Delegate to the Chief Executive, in consultation with the Director of Finance, Leader, and Portfolio Holder for Finance, the allocation of any additional resources that become available through the final 2024/25 local government finance settlement or any other means.

(d)           Requests that the Corporate Director for Children’s Services produces for the April Cabinet a detailed delivery plan to limit the high needs expenditure projections to those included within the DSG management plan presented to the Department for Education and Schools Forum in January 2024. 

(e)           Approves the chief officers’ pay policy statement 2024/2025 for consideration and approval by the council in accordance with the provisions of the Localism Act 2011 as set out in paragraphs 103 to 105 and Appendix 12.

(f)            Requests that the Director of Finance provides Council with a schedule setting out the rate of council tax for each category of dwelling further to councillors’ consideration of the decision required in respect of (1) above and after taking account of the precepts to be levied by the local police and fire authorities, neighbourhood, town and parish councils, and chartered trustees once these have been determined prior to the Council meeting on the 20 February 2024.

Voting: Unanimous

Portfolio Holder: Finance

Reason

The council is required to set an annual balanced budget presenting how its financial resources, both income and expenditure, are to be allocated and utilised.

The meeting was adjourned at 12:47pm

The meeting reconvened at 1:00pm