Agenda item

To consider the budget recommendations arising from the Cabinet meeting scheduled for 5 February 2025. The recommendations will be circulated as soon as practicably possible following the meeting of the Cabinet. A copy of the reports and appendices to the Cabinet have been published and are available on the Council’s website on the following link: https://democracy.bcpcouncil.gov.uk/ieListDocuments.aspx?CId=285&MId=6058&Ver=4

Cabinet 5 February 2025 – Minute No. 113 – Council Budget Monitoring 2024/25 at Quarter Three

RECOMMENDED that Council: -

(c)           Agrees the acceptance of capital grant for the HRA detailed in Appendix D paragraph 20.

Note – resolutions (a) and (b) were resolved matters by the Cabinet.

Cabinet 5 February 2025 – Minute No. 117 – Early Years and Mainstream Schools Funding 2025/26

RECOMMENDED that Council agrees: -

(a)           The early years funding formula detailed in Appendix 1; and

(b)           The mainstream schools funding formula options detailed in Appendix 2 (paragraph 18), with the final outcome dependent on DfE decisions. 

Cabinet 5 February 2025 – Minute No. 114 – Housing Revenue Account (HRA) Budget Setting 2025/26

RECOMMENDED that Council agrees: -

(a)            The revenue budget for 2025/26 is set using the following principles:

(i)         That dwelling rents are increased by 2.7 per cent (CPI for September 2024 + 1 per cent) from 7 April 2025 in line with the Ministry of Housing, Communities and Local Government Policy statement on rents for social housing published in February 2019 (Rent Policy Statement).

(ii)       That garage, garage bases and parking plot rental charges are increased by 5 percent from 7 April 2025 and an additional £1.00 per week increase is made to garages in parts of Poole so that charges begin to align.

(iii)      That leasehold services are charged to leaseholders in line with actual costs incurred.

(iv)      That shared ownership dwelling rents are increased in line with lease terms.

(v)       That the changes to services charges are agreed as set out in appendix 2.

(vi)      That HRA reserves are set at £8.6 million.

(b)           That the Income and Expenditure budget as set out in Appendix 3 is agreed;

(c)            That capital budgets for 2025/26 are set using the following principles;

(i)         That the major project capital programme as set out in Appendix 4 is noted.

(ii)       That the planned maintenance programme as set out in Appendix 5 is agreed.

(iii)      That £0.5 million for the acquisition of individual properties (Acquire and Repair) is agreed.

Note – resolution (d) was a resolved matter by the Cabinet.

Cabinet 5 February 2025 – Minute No. 112 – Budget 2025/26 and Medium-Term Financial Plan

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 £356m, resulting in a total council tax requirement of £281.2m, is set for 2025/26 based on the draft local government financial settlement figures published by government in December 2024.

(ii)       Agrees an increase in council tax of 2.99% for 2025/26 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 £7.8m of savings as set out in Appendix 5a.

(vi)      Approves the flexible use of capital receipts efficiency strategy as the mechanism for funding the council’s transformation related expenditure as set out in Appendix 6.

(vii)    Approves the capital investment programme (CIP) as set out in paragraphs 84to 97 and Appendix 7.

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

(ix)      Agrees the treasury management strategy (TMS) and prudential indicators as set out in paragraphs 100to 103 and Appendix 9.

(x)       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 118 to 124and Appendix 10.

(b)          Accepts the government revenue and capital grant announcements linked to the 2025/26 local government finance settlement. This includes a £1.373m UK Shared Prosperity Fund (UKSPF) grant for 2025/26 split between revenue and capital as set out in paragraphs 37 to 40;

(c)           Agree to borrow to fund the 2025/26 excess Special Educational Needs and Disability (SEND) High Needs DSG revenue expenditure above the government grant being made available. This is subject to clarification and negotiation with government, including whether or not a capitalisation direction will be required. A capitalisation direction may also be considered in respect of the associated interest costs;

(d)          Approves an increase in the permanent pay bill of the authority due to the implementation of the pay and reward project from the £1.641m pa agreed in December 2024 to £2.793m pa (1.5%) after the end of the pay protection period;

(e)           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 2025/26 local government finance settlement or any other means; and

(f)            Approves the chief officers’ pay policy statement 2025/2026 for consideration and approval by the council in accordance with the provisions of the Localism Act 2011 as set out in paragraphs 126to 128 and Appendix 12.

Council was advised that there were four budget related items from the Cabinet meeting held on the 5 February with recommendations to Council.

Minute No. 113 – Council Budget Monitoring 2024/25 at Quarter Three

The Portfolio Holder for Finance, Councillor Mike Cox presented the report on Council Budget Monitoring 2024/25 at Quarter Three and outlined the recommendations as set out in the supplementary agenda papers.

RESOLVED that Council: -

(a)           Agrees the acceptance of capital grant for the HRA detailed in Appendix D paragraph 20

Note – resolutions (a) and (b) were resolved matters by the Cabinet.

Voting: Agreed with no dissent

Minute No. 117 – Early Years and Mainstream Schools Funding 2025/26

The Portfolio Holder for Children, Young People, Education and Skills, Councillor Richard Burton presented the report on the Early Years and Mainstream Schools Funding 2025/26 and outlined the recommendations as set out in the supplementary agenda papers.

RESOLVED that Council agrees: -

(a)           The early years funding formula detailed in Appendix 1; and

(b)           The mainstream schools funding formula options detailed in Appendix 2 (paragraph 18), with the final outcome dependent on DfE decisions.

Voting: Agreed with no dissent

Minute No. 114 – Housing Revenue Account (HRA) Budget Setting 2025/26

The Portfolio Holder for Housing and Regulatory Services, Councillor Kieron Wilson presented the report on the Housing Revenue Account (HRA) Budget Setting 2025/26 and outlined the recommendations as set out in the supplementary agenda papers.

RESOLVED that Council agrees: -

(a)           The revenue budget for 2025/26 is set using the following principles:

(i)         That dwelling rents are increased by 2.7 per cent (CPI for September 2024 + 1 per cent) from 7 April 2025 in line with the Ministry of Housing, Communities and Local Government Policy statement on rents for social housing published in February 2019 (Rent Policy Statement).

(ii)       That garage, garage bases and parking plot rental charges are increased by 5 percent from 7 April 2025 and an additional £1.00 per week increase is made to garages in parts of Poole so that charges begin to align.

(iii)     That leasehold services are charged to leaseholders in line with actual costs incurred.

(iv)      That shared ownership dwelling rents are increased in line with lease terms.

(v)       That the changes to services charges are agreed as set out in appendix 2.

(vi)      That HRA reserves are set at £8.6 million.

(b)           That the Income and Expenditure budget as set out in Appendix 3 is agreed;

(c)           That capital budgets for 2025/26 are set using the following principles;

(i)         That the major project capital programme as set out in Appendix 4 is noted.

(ii)       That the planned maintenance programme as set out in Appendix 5 is agreed.

(iii)      That £0.5 million for the acquisition of individual properties (Acquire and Repair) is agreed.

Note – resolution (d) was a resolved matter by the Cabinet

Voting: Agreed with no dissent

Minute No. 112 – Budget 2025/26 and Medium-Term Financial Plan

The Portfolio Holder for Finance, Councillor Mike Cox presented the report on the Budget 2025/26 and Medium-Term Financial Plan and outlined the recommendations as set out in the supplementary agenda papers.

Councillor Philip Broadhead moved an amended budget, this was seconded by Councillor John Beesley, copies of which had been circulated to all councillors and had been published as a supplement to the agenda papers prior to the meeting and a copy of which will be appended to the signed minutes in the signed minute book.

Council comprehensively debated the amendment which proposed a reduction in car parking charges off season in Bournemouth and Poole Town Centres for a trial period.

Following discussion, the proposed amended budget was put to a recorded vote and fell with voting 10:55 (1 Abstentions):-

For: 10

Against: 55

Abstentions: 1

The meeting adjourned at 8.47pm and reconvened at 9.00pm

Councillors Brian Hitchcock and Pete Miles left the meeting at 8.47pm

Council then debated the substantive budget proposals in detail as originally proposed.

Following comprehensive debate Council moved to a recorded vote where the motion as set out below was carried with voting 39:19 (6 Abstentions): -

For: 39

Against: 19

Abstentions: 6

RESOLVED 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 £356m, resulting in a total council tax requirement of £281.2m, is set for 2025/26 based on the draft local government financial settlement figures published by government in December 2024.

(ii)           Agrees an increase in council tax of 2.99% for 2025/26 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 £7.8m of savings as set out in Appendix 5a.

(vi)         Approves the flexible use of capital receipts efficiency strategy as the mechanism for funding the council’s transformation related expenditure as set out in Appendix 6.

(vii)       Approves the capital investment programme (CIP) as set out in paragraphs 84 to 97 and Appendix 7.

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

(ix)         Agrees the treasury management strategy (TMS) and

(x)           prudential indicators as set out in paragraphs 100 to 103 and Appendix 9.

(xi)         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 118 to 124 and Appendix 10.

(b)          Accepts the government revenue and capital grant announcements linked to the 2025/26 local government finance settlement. This includes a £1.373m UK Shared Prosperity Fund (UKSPF) grant for 2025/26 split between revenue and capital as set out in paragraphs 37 to 40;

(c)          Agree to borrow to fund the 2025/26 excess Special Educational Needs and Disability (SEND) High Needs DSG revenue expenditure above the government grant being made available. This is subject to clarification and negotiation with government, including whether or not a capitalisation direction will be required. A capitalisation direction may also be considered in respect of the associated interest costs;

(d)          Approves an increase in the permanent pay bill of the authority due to the implementation of the pay and reward project from the £1.641m pa agreed in December 2024 to £2.793m pa (1.5%) after the end of the pay protection period;

(e)          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 2025/26 local government finance settlement or any other means; and

(f)           Approves the chief officers’ pay policy statement 2025/2026 for consideration and approval by the council in accordance with the provisions of the Localism Act 2011 as set out in paragraphs 126 to 128 and Appendix 12.

Voting: 39:19 (6 Abstentions)