Agenda item

To consider the attached report and related appendices

The meeting restarted at 11:25am

Cllr Parrott, Executive member for Finance & Corporate and Martin Flitcroft presented the final financial plan budget proposals for 2025/26 to 2027/28, noting that the closing date for consultation feedback was yesterday and these would be reported to Executive on 11 February and Full Council on 25 February

The main changes since the draft budget was considered include:

1)    The removal of £1m contribution to the Local Government pension fund following information received from the Pension Fund manager due to the uncertainties of devolution.  This will remain in the funding Reserve figure

2)    The addition of an additional Appendix regarding departmental budgets

Martin Flitcroft explained the budget for 2025/26 in pictorial form split between Revenue and Capital and Income and expenditure.

The floor opened up for questions/comments which included:

·       Paragraph 3.9 referred to additional National Insurance costs of 2% which were only partly funded by the Government.  The estimated costs are £538,000 with partial funding of £140,000 leaving a net sum of approximately £400,000 as a problem for the Council which will be funded from Reserves

·       Attention was drawn to line 14 of Appendix 4 (use of Reserves) and reference made to the work of the MTFP working Group who must focus on key areas including Fees & Charges and carry out a comprehensive review of the Capital Programme and dovetail with the work of Modern 25

·       There was a proposal that any spending on projects that affects post devolution spending should cease but this was not supported and the majority of views expressed felt that the Council should continue with projects to support residents of the District

·       Prudential borrowing limits the amount we can borrow but we are currently only borrowing internally.  Should borrowing be required Councils borrow from the PWLB (Public Works Loans Board), not at commercial rates.  Prudential indicators that are currently being developed will form part of the final budget report

·       Towns and Parishes Precepts will be part of the final budget papers (Appendix 15)

·       Appendix 6 Increase in Fees & charges will have reflected changes recommended by the MTFP Task & Finish Group where possible and is a mixture of fee increases and increased usage

·       A question was raised about the Councils position on holding vacancies and it was confirmed that the full establishment is included in the budget and a separate target for vacancy management.  Service managers would review any vacancies in line with service requirements and should any slippage occur this would be reflected during budget monitoring against the credit target (time required to recruit etc)

·       Any proceeds of sale arising from the Assets Review would more than likely be capital income and not revenue

·       The impact of Devolution will have to be considered in due course

It was RESOLVED to approve the budget as set out in the Agenda