Agenda item

To receive a report from the Deputy Chief Executive (S151) Officer on the 2024/2025 Budget.

Cabinet had before it a report * from the Deputy Chief Executive (S151) Officer on the 2024/25 Budget.

The Cabinet Member for Finance outlined the contents of the report with particular reference to the following:

·         The report provided the proposed balanced budgets for the General Fund, Housing Revenue Account and Capital Programme and recommended the Band D Council Tax charge for 2024/25.

·         The Leadership Team, Corporate Managers and the Finance Team were involved in discussions to secure savings, without reducing service delivery as far as possible. However it was a more difficult challenge year-on-year and therefore, looking to the future, a new more strategic process was required to match service provision to available funding.

·         The General Fund budget had been set against a backdrop of over a decade of cuts to Public Sector funding, a global pandemic, a once in a generation Cost of Living Crisis, and the closure of the Council’s subsidiary housing company.

·         This had been achieved through savings that minimised any impact on service delivery as far as possible. However, further ongoing budget saving options would need to be identified to mitigate the underlying budget shortfall across the remainder of this MTFP.

·         The Cabinet Member for Finance thanked officers for the report and Members for the active engagement through the Policy Development Groups and Scrutiny Committee.

·         The Council would prepare for the future in a timely manner and continue to discuss how it could provide a wide range of services in a much reduced funding envelope. The process would continue to involve all staff, Members and the Council’s local residents/businesses.

·         The balanced budget for the General Fund in appendix 1, the forecasted budget deficit last reported to Cabinet stood at £150k. The table in the report showed the recommended actions necessary to move towards a balanced position.

Discussion took place regarding:

·         Devon County Council to support the recommendation 8 if approved.

·         The continuing support and commitment for the paddling pool in the Crediton and Westexe area that creates pleasure and positivity within the community and supporting young people and families.

·         The apprentice posts, ongoing support and the approach for the future.

RESOLVED that:

Cabinet recommend to Full Council:

·         A Council Tax Requirement of £7,016,360 calculated using a Council Tax of £232.16 for a Band D property, an increase of £6.76 or 2.99% from 2023/24 and a Tax Base of 30,222.10, in accordance with the Local Authorities (Calculation of Tax Base) Regulation 1992, as amended, after the relevant adjustments in respect of the Council tax support scheme approved by Cabinet on 14 November 2023;

·         The overall budgeted Net Cost of Services within the General Fund of £15,814,834 for 2024/25 was approved as detailed within Appendix 1 (p2 – 38) and inclusive of the proposed balancing adjustments included within Table 1 in paragraph 3.1;

·         All of the transfers to and from Earmarked Reserves as detailed in Appendix 1 (p39), including a transfer to Earmarked Reserves of £106,828 in order to begin to replenish the depleted reserves which had been used to meet the cost of closing 3 Rivers Developments Ltd;

·         The HRA budget for 2024/25 as detailed within Appendix 1 (p40 – 49), with total income of £16,000,360, less direct costs of £12,956,880 with internal charges £1,957,080 and capital financing of £1,086,400 balancing the budget;

·         The overall Capital Programme for new projects commencing in 2024/25 of £18,967k (exclusive of forecast slippage from the existing Capital Programme) be approved – Appendix 1 (p50 – 55).

·         To approve the 2024/25 Deliverable Budget based on the forecast spend profile of £40,701k (inclusive of forecast slippage as at Quarter 3 from the existing Capital Programme), forming the budget to monitor against in 2024/25, subject to any changes to slippage at Outturn – Appendix 1 (p50 – 55).

·         Noted the updated MTFP’s for the General Fund, Housing Revenue Account and Capital Programme covering the years 2025/26 to 2028/29 and agreed that work on strategic planning for delivering a balanced budget for 2025/26 and beyond is commenced immediately;

·         Agreed the ring-fencing of additional income generated from the increase in the Second Homes premium from April 2025 to be used to address housing-related challenges through the acquisition of additional properties to provide suitable accommodation, supporting people with complex needs to access housing, and the provision of specialist accommodation including supported facilities for care leavers and youth homelessness.

(Proposed by Cllr J Buczkowski and seconded by Cllr S Clist)

Reason for Decision:

In order to comply with the requirement to set a balanced budget, management must ensure that the proposed savings were robust and achievable and ensure that the assumptions the Council had used were realistic and prudent. Failure to set a robust deliverable budget would put the Council at risk of not being able to meet its commitments and casts doubt on its “going concern” and “Value for Money” status,

Note * Report previously circulated.