Agenda item

Cabinet Reports- Minutes of the meetings held between 10 December 2024, 7 January and 4 February

Meeting of Council, Wednesday, 19th February, 2025 6.00 pm (Item 279.)

To receive and consider the reports, minutes and recommendations of the recent meetings as follows:

Minutes:

The Leader presented the reports of the meetings of the Cabinet held on 10 December 2024, 7 January 2025 and 4 February 2025.

The Leader outlined the following:

It was disappointing that the housing rent error had come to light and he sympathised with all those that had been impacted.
He acknowledged the points that were raised by the member of public and where necessary the officer would look into those.
He thanked officers for their hard work and expertise which ensured that business rates continued to be managed effectively, despite the complexity and frequent changes imposed by Central Government.
Since 2013 business rates had become an ever more intricate system and today’s report reflected another set of changes outside of the Council’s control.

The Government had made a number of adjustments to the Business Rates that would, in some cases, materially alter the amount of rates due from businesses. Changes to some reliefs were ‘unfunded’ and others funded by Government via s31, an example of this would be Retail, Hospitality and Leisure Relief.
The key changes taking effect from April 2025 included:

Ø A reduction in Retail, Hospitality and Leisure Relief, which would drop from 75% to 40%. This meant businesses in those sectors would see an increase in the amount they were required to pay.

Ø Private schools would no longer qualify for Charity Relief, following changes to primary legislation.

Ø The restriction preventing councils from awarding discretionary relief more than six months after the end of the financial year had been removed, giving the Council more flexibility but without new funding to give additional relief.

Those changes could have a significant impact on some businesses, and for those that were affected, the Council would be in contact when annual bills were issued in March 2025.
These were national decisions not local ones, the government sets the rate, dictates the reliefs and decides how much funding councils received in compensation. The Council’s responsibility was to administer the system as fairly and effectively as possible.
He was pleased to announce this Council would offer open surgeries to help and support those businesses in Mid Devon from these Central Government changes.

Business Rate Tax Base (Minute 130)

The Leader MOVED and seconded by Cllr J Buczkowski:

That the recommendation of Cabinet as set out in minute 130 be APPROVED.

Upon a vote being taken the MOTION was declared to have been CARRIED.

The Leader outlined the following:

This was one of the most important decisions this Council would make each year, the approval of its budget for 2025/26.
The budget was the result of months of hard work, scrutiny and collaboration, and he thanked Officers for the dedication and professionalism throughout this process. In particular, the Deputy Chief Executive (S151) Officer and Head of Finance, Property and Climate Resilience and all of their staff, whose expertise and leadership in finance had been invaluable.
He also thanked Cabinet Members and the Cabinet Member for Governance, Finance and Risk in particular for their collective contributions despite ongoing budgetary constraints in their own portfolio areas and to all Councillors across the political spectrum including Policy Development Groups (PDG) who had made valid contributions and taken part in meaningful debate. This budget was a testament to the fiscal responsibility of this administration.
The financial pressures facing local government and the delivery of a fully balanced budget, one that protects vital services, strengthens financial resilience and continued investment in our communities.
We know Councils across the Country were struggling, years of underfunding, short term financial settlements and increasing service demands had placed immense pressure on local government. But this Council was taking control of it’s future, making tough but fair decisions providing assurance that it would continue to deliver for our residents.
The Council had set aside £2.225 million into earmarked reserves, strengthening the financial position and increased resilience for future challenges.
An additional £100,000 to help tackle climate change and assurance of proper oversight of development support for young people. Expansion of the apprenticeship scheme creating more opportunities for local young people. The continued investment in affordable housing, ensuring the social housing programme remained on track. The provision of high quality affordable homes.
Increase in leisure memberships and recycling rates had helped generate additional revenue protection for key frontline services.
Despite significant financial pressures, the Council had avoided the severe cuts seen in many other Councils and the capital budget also included a fully funded provision for the Cullompton Town Centre Relief Road, a project that had been promised for many years and would finally be delivered under this administration.
This was a budget that balanced financial prudence with ambition, an assurance to continue to improve services, support communities and prepare for the future. However, the financial outlook remained challenging.
The government's decision to cut the Rural Services Delivery Grant and Services Grant had left Mid Devon with an 18% reduction in real terms funding, yet the Council was expected to carry on delivering essential services at the same time.
Devolution and reorganisation were being pitched as a solution to the local government crisis, but the reality was they did not solve the underlying issue of underfunding.
Instead, it was seeing higher precepts at Town and Parish levels as local Councils were forced to pick up services previously funded by Central Government.
This Council strived to keep costs low for residents, but it must also ensure that the Council remained financially sustainable.
This budget included a modest £6.96 increase, 2.99% in Mid Devon’s share of Council Tax with the band D charged £239.12, and this was below inflation.

Capital Strategy and 2025/2026- 2029-2030 Capital Programme (Minute 131)

The Leader MOVED:

That the recommendation of Cabinet as set out in minute 131 be APPROVED.

The Chair MOVED in accordance with Procedure Rule 16.7:

“That the vote in respect of the MOTION shall be by Roll Call”

A roll call of Members present at the meeting was then taken.

Those voting FOR the MOTION: C Adcock, D Broom, E Buczkowski, J Buczkowski, J Cairney, S J Clist, F J Colthorpe, C Connor, L Cruwys, G Czapiewski, J M Downes, M Farrell, B Fish, M Fletcher, R Gilmour, A Glover, C Harrower, B Holdman, M Jenkins, S Keable, L Knight, F Letch, N Letch, J Lock, J Poynton, R Roberts, A Stirling, L Taylor, H Tuffin, G Westcott, A White and D Wulff

Upon a vote being taken the MOTION was declared to have been CARRIED.

Treasury Management Strategy