Issue - meetings

Cabinet, at its meeting on 16 February 2024, will consider the attached report of the head of finance on the the draft revenue budget 2024/25, and the capital programme to 2028/29.

Cabinet’s recommendations will be circulated to all members prior to the Council meeting.

Also attached is the chief finance officer’s report on the robustness of the budget estimates and the adequacy of the reserves.

The chair referred to regulations that require councils to record the names of those members voting in favour, against or abstaining from any vote on the budget, including amendments, and the council tax. In accordance with the regulations, she would call for a named vote on each of these matters at this meeting.

Council noted the report of the chief finance officer on the robustness of the budget estimates and the adequacy of the reserves.

Council considered Cabinet’s recommendations, made at its meeting held on 16 February 2024 on the revenue budget for 2024/25 and the capital programme to 2028/29.

Councillor Crawford, Cabinet member for finance, presented Cabinet’s proposals for the revenue budget and capital programme. He moved and Councillor Thomas seconded a motion to approve Cabinet’s recommendations as follows: to

1. set the revenue budget for 2024/25, as set out in appendix A.1 to the head of finance’s report to Cabinet on 16 February 2024;

2. approve the capital programme for 2024/25 to 2028/29, as set out in appendices D.1 and D.2 to the report, together with the capital programme changes as set out in appendix D.2 and appendices D.3 and D.4 to the report;

3. set the council’s prudential limits, as listed in appendix e to the report;

4. approve the medium-term financial plan to 2028/29, as set out in appendix F to the report.

In moving the Cabinet recommendations, Councillor Crawford, the Cabinet member for finance introduced the draft budget, noting that the council’s financial position had improved from that which was forecast in 2019. There were no service cuts in the budget. The budget contained significant additional spend on HR in order that the transformation project could be fully supported. The budget allocated funds to continue supporting the community hub. Council tax would increase by £5 per Band D property, the maximum allowed before a referendum was required.

A number of members welcomed the growth in staff numbers commenting on the importance of providing sufficient resources. Members were also pleased to see continued investment in community support namely Vale Community Impact and Citizen’s Advice Bureau. Members also welcomed positive future funding for The Beacon. Some members commented they wanted to see a commitment to decarbonisation in future as this had been made a clear priority in the corporate plan and should be funded.

In accordance with regulations requiring councils to record the names of those members voting in favour, against or abstaining from any vote on the budget the chair called for a recorded vote which was carried with the voting being as follows:

To consider the head of finance’s report. 

Cabinet considered the head of finance’s report on the revenue budget for 2024/25 and the capital programme for 2024/25 to 2028/29.  The report brought together the information required to enable Cabinet to recommend the budget to Council.  In addition, the report recommended the Prudential Indicators to be set by Council in accordance with the Prudential Code, it contained the chief finance officer’s opinion on the robustness of the estimates and the adequacy of the council’s financial reserves, and included the medium term financial plan for the years 2024/25 to 2028/29. 

Scrutiny Committee had considered the report and had asked Cabinet to consider the following:

·       include gross amounts in reporting, to help with understanding the base budget; a fuller explanation of the base budget was requested;

·       in Appendix D1 on the capital programme, the links between expenditure and corporate plan themes were welcomed.  These should be continued and matched to new themes when the new corporate plan was approved;

·       add sensitivity analysis for the Medium Term Financial Plan, where possible, to model the impact of variables;

·       ask that the Cabinet members for finance and communications review how to make budget information more accessible to residents and contextually link the budget more clearly to corporate plan priorities. 

Cabinet thanked Scrutiny Committee for its comments.  The head of finance had reported that he would reflect these points in discussion with the Cabinet member for finance, and as far as he was able, he would include these points in future budget setting reports. 

The Cabinet member for finance reported that the draft budget had been prepared following a budgetary review and challenge by both officers and members.  The review had covered both revenue and capital expenditure.  The council was under financial pressure due to high inflation over the past year, increasing the council’s costs.  However, interest rates had been unexpectedly high throughout the past year, bringing in more treasury income than expected.  The council had received an increase in its core spending power government grant, but the level of grant was uncertain in future years.  There were no cuts to services in this year’s budget, and there had been a lower draw upon reserves than previously expected.  These factors had allowed the council to set a balanced budget.  However, it was important to keep within the budget envelope to ensure the council’s finances were sustainable over the medium term. 

Council tax would be increased by £5 for Band D properties, the maximum before a referendum was required.  The district council’s element of the council tax for a Band D property would be £156.69 for 2024/25, an increase of less than 10 pence per week. 

Cabinet welcomed the proposed budget.  A key factor in achieving this balanced budget was the review of revenue and capital expenditure by members and officers.  It allowed the council to deliver its corporate plan priorities while avoiding any service cuts.  Members were proud of the way the council had stabilised its finances and produced so much with so little.  Cabinet  ...  view the full minutes text for item 76