Issue - meetings

2024/25 Revenue Budget, Capital Programme and Medium-Term Financial Strategy Report

Purpose

The purpose of this report is to present the budget for 2024/25.

Recommendations

That Council resolves to approve:

1. the Medium-Term Financial Strategy set out in Annex B

2. the Savings and Transformation items for inclusion in the budget, set out in Annex C

3. the Council Tax Requirement of £6,596,721 for this Council

4. the Council Tax level for Cotswold District Council purposes of £153.93 for a Band D property in 2024/25 (an increase of £5)

5. the Capital Programme, set out in Annex D

6. the Annual Capital Strategy 2024/25, as set out in Annex E

7. the Annual Treasury Management Strategy and Non-Treasury Management Investment Strategy 2024/25, as set out in Annex F

8. the Strategy for the Flexible use of Capital Receipts, as set out in Annex H

9. the balances and reserves forecast for 2024/25 to 2027/28 as set out in Section 6 of the report.

10. the Council Tax Support scheme recommended by Cabinet summarised in paragraphs 7.29 and 7.30 of this report

Additional documents:

Minutes:

The purpose of the report was to present the budget for 2024/25

The Chair introduced this item by reminding Members and the public watching that the Budget Council Protocol was attached to the document pack and would be followed in setting the Council’s budget.

The Deputy Leader and Cabinet Member for Finance, Councillor Evemy, was then invited to propose the administration’s budget. In doing so, he outlined the following points:

In this first budget of the second term of the Liberal Democrat administration, the Council would seek to build upon the previous work of investing in the District and rebuilding the Council’s finances.
A number of councils across the country of all political colours such as Birmingham City and Thurrock, had had to declare S.114 notices due to the financial pressures faced. Whilst it was affirmed that Cotswold District Council was not close to a S.114 notice declaration, there was a budget gap over the medium term that needed to be closed.
In 2026/27 changes to central government funding would add to the pressures faced by the Council and action needed to be taken now.
Council officers, Publica and Ubico had worked with the administration to reduce the deficit faced and in doing so had had to make difficult choices.
There would be £1.25 million in savings made to reduce the pressure on reserves, which included £500,000 a year in waste collection changes, and £125,000 through the changes to contact centre opening hours. There would also be £2 million of revenue increases from fees and charges.
The Council was projecting surpluses in the coming 2 years of £516,000 and £324,000 to replenish the Council’s reserves. Furthermore, it was noted at paragraph 6.25 that allocations from the final local government settlement of £118,000 be allocated to a Workforce Planning Reserve to support the Council’s priorities.
Reserves originating from the sale of housing stock to Fosseway Housing Association in 1997 had been depleted over time and could no longer be relied upon to sustain the Council’s finances.
The Council had removed the need for external borrowing to fund capital programme through the use of the Community Municipal Investment providing capital for the installation of electric vehicle charging points and Solar PV panels for the Council Offices.
The approach of the Council in the face of financial pressures centred around efficient service delivery, increasing income to compensate for lost funding, utilising external funding and protecting the most poor and vulnerable members in the District.
The focus on rebuilding the finances was supplemented with the work through council officers such as Crowdfund Cotswolds and the Green Economic Growth strategy which support communities and the local economy.
The Budget Consultation recorded 542 responses allowed residents to provide their views on the proposals including changes to parking fees which included Sunday charging. It was recognised that whilst the changes to parking may not have been popular, they were necessary as part of the overall budget to sustainably fund services within the District.
Cabinet had agreed the ... view the full minutes text for item 21

Meeting: 01/02/2024 - Cabinet (Item 232)

Webcast for 01/02/2024 - Cabinet

232 Budget and Medium Term Financial Strategy 2024/25 PDF 985 KB

Purpose

The purpose of this report is to present the budget for 2024/25.

Recommendations

That Cabinet resolves to recommend to Council to approve:

the Medium-Term Financial Strategy set out in Annex B
the Savings and Transformation items for inclusion in the budget, set out in Annex C
the Council Tax Requirement of £6,596,813 for this Council
the Council Tax level for Cotswold District Council purposes of £153.93 for a Band D property in 2024/25 (an increase of £5)
the Capital Programme, set out in Annex D
the Annual Capital Strategy 2024/25, as set out in Annex E
the Annual Treasury Management Strategy and Non-Treasury Management Investment Strategy 2024/25, as set out in Annex F
the Strategy for the Flexible use of Capital Receipts, as set out in Annex H
the balances and reserves forecast for 2024/25 to 2027/28 as set out in Section 6 of the report.

Cabinet is recommended to approve delegation to the Council’s Deputy Chief Executive, in consultation with the Deputy Leader and Cabinet Member for Finance to:

Agree changes to the General Fund Summary arising from the Local Government Finance Settlement and the Business Rates Retention Scheme estimates prior to submission to Council.
Agree any changes to the General Fund Summary arising from the recommendations to Cabinet made within the Report of the Overview and Scrutiny Committee’s Public Conveniences Review Group

Additional documents:

Minutes:

The purpose of the report was to consider recommending to Full Council the 2024/25 Budget and Medium Term Financial Strategy.

The Deputy Leader and Cabinet Member for Finance, Councillor Evemy introduced the report and outlined the following points:

It was outlined that the indicative position with the fairer funding review was currently £5 million gap in 2026/27.
It was noted that there had been a number of Section 114 Notices declared by local authorities who were unable to obtain a balanced financial budget due to financial and service delivery pressures.
It was reaffirmed that there was no immediate risk to the Council of a Section 114 Notice but action needed to be taken now.
It was highlighted that there were upcoming pressures for the Council around areas like homelessness.
It was noted that the proposals would increase the average Council Tax Band D precepts by £5 a year.
It was noted that the Publica Review had been identified as one of the larger risks which the Council needed to manage through the Budget with £500,000 allocated to support the transition. It was outlined in Paragraph 1.18 that the key focus for services transferred back to the Council would be efficiency and cost-effectiveness.
It was noted that at this stage the cost of providing services throughout the transition from Publica to the Councils had not been changed other than accounting for inflation.
It was outlined in table ES1 that the Budget would seek to put £500,000 back into the reserves to ensure these were replenished ahead of the funding challenges in 2026/27.
On the Capital Programme it was noted that the capital allocation would be rolled over into next year for Leisure & Communities and for Environment as the work was still ongoing.
It was outlined there was no borrowing projected other than the Community Municipal Investment Bond that had met its investment target.

The Leader noted that this proposed Budget would be considered at the Full Council meeting on 21 February where there would be opportunity to discuss the measures within.

RESOLVED: That Cabinet AGREED to recommend to Council to approve:

1. the Medium-Term Financial Strategy set out in Annex B

2. the Savings and Transformation items for inclusion in the budget,

set out in Annex C

3. the Council Tax Requirement of £6,596,813 for this Council

4. the Council Tax level for Cotswold District Council purposes of

£153.93 for a Band D property in 2024/25 (an increase of £5)

5. the Capital Programme, set out in Annex D

6. the Annual Capital Strategy 2024/25, as set out in Annex E

7. the Annual Treasury Management Strategy and Non-Treasury

Management Investment Strategy 2024/25, as set out in Annex F

8. the Strategy for the Flexible use of Capital Receipts, as set out in

Annex H

9. the balances and reserves forecast for 2024/25 to 2027/28 as set

out in Section 6 of the report.

Cabinet APPROVED the delegation to the Council’s Deputy

Chief Executive, in consultation with the Deputy Leader and ... view the full minutes text for item 232

Meeting: 30/01/2024 - Overview and Scrutiny Committee (Item 38)

Webcast for 30/01/2024 - Overview and Scrutiny Committee

38 Budget and Medium Term Financial Strategy 2024/25 PDF 963 KB

Report to follow

Recommendation

That the Overview and Scrutiny Committee scrutinises the report and agrees any recommendations it wishes to submit to the Cabinet meeting on 1 February.

Invited

Councillor Mike Evemy, Deputy Leader and Cabinet Member for Finance

David Stanley, Deputy Chief Executive and Section 151 Officer

Additional documents:

Minutes:

The Deputy Leader (as the Cabinet Member for Finance) introduced the item and outlined the Council’s financial position. Following debate at the Full Council meeting in November the Council resolved to request a budget with a surplus, which the Deputy Leader stated was reflected within the budget.

The Deputy Chief Executive (Section 151 Officer) added that they were still awaiting the final Local Government settlement, which was due in February.

Members discussed the report, and asked questions of the Cabinet Member and Deputy Leader, during which the following points were raised;

The risks outlined in the report, and how this related to the Publica review. The Deputy Leader stated that the assumption was that there was no update in the cost of services for the 2024/25 financial year, but that the Committee would be updated if this were to change.
Members highlighted the value of member training on financial matters, and the Deputy Chief Executive took the opportunity to remind Members of the upcoming briefing on the Budget the following week.
Members also discussed that other authorities had been able to charge more council tax following a referendum, but the Deputy Leader stated this would be too risky due to a cost of £200,000 to hold a referendum with no guarantee on income. It was also stated that the Council had lobbied the Government through the LGA for a raising of the council tax limit without a referendum requirement from £5 to £10 (for a band D property), but this had been declined.
Some minor typographical and syntax errors were noted. It was confirmed that they would be addressed.
Members discussed that the only tools available to the Council to achieve a balanced budget were to increase charges and cut spending on services, the Deputy Leader stated that it was important to look at ways to reduce cost through efficient delivery, and take difficult decisions as early as possible to maximise income. However, there was still an expected funding gap between spending and Government funding in future years, which is why the Council required a surplus in the coming financial year.
Efficiencies through better use of technology were also discussed, which various service areas such as planning were exploring.
Members asked for further detail on the environmental spending, which the Deputy Chief Executive stated could be found in Annex D of the report.
Members also asked about further investment of £1.2million into leisure centres which was being made, noting that the service had been contracted to a new provider. It was stated that this was for refurbishment and improvement to these, such as structural improvements and roof works.

The Chair recognised the work of Officers and Members and thanked them.

RESOLVED: To note the report.

Issue - meetings

2024/25 Revenue Budget, Capital Programme and Medium-Term Financial Strategy Report

Meeting: 21/02/2024 - Council (Item 21)

Meeting: 01/02/2024 - Cabinet (Item 232)

Meeting: 30/01/2024 - Overview and Scrutiny Committee (Item 38)

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