The Head of Financial Services has submitted a report to propose a Medium-Term Financial Strategy and the 2024/25 Budget for consultation.

Cabinet is recommended to:

1.        Approve the 2024-25 General Fund and Housing Revenue Account budgets for consultation and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-10, noting:

a)        the Council’s General Fund Budget Requirement of £28.536 million for   2024/25 and an increase in the Band D Council Tax of 2.99% or £10.06 per annum representing a Band D Council Tax of £346.36 per annum;

b)       the Housing Revenue Account budget for 2024/25 of £51.671 million and an increase of 7.7% (£9.27 per week) in social dwelling rents from 1 April 2024 (see paragraphs 78-79) giving a revised weekly average social rent of £129.72 as set out in Appendix 5;

c)       the increase in shared ownership rental in accordance with the lease as shown in paragraph 86; and

d)      the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6;

2.         Agree the fees and charges shown in Appendix 7;

3.         Delegate authority to the Section 151 Officer in consultation with the Deputy Leader (Statutory) - Finance and Asset Management to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 18-19 of the report;

4.         Agree to the proposal to remove the 1 month 100% unfurnished empty homes discount in accordance with paragraph 25 and note the changes to other discounts approved last year by members in accordance with paragraph 20-22 from 1 April 2024; and

5.         Recommend to Council to approve the appropriation of Roken House from the General Fund to the Housing Revenue Account at a value of £1,850,000 (paragraphs 48 - 50).

The Head of Financial Services had submitted a report to propose a Medium-Term Financial Strategy and the 2024/25 Budget for consultation.

Councillor Ed Turner, Cabinet Member for Finance and Asset Management introduced the report and highlighted that costs and pressures on the Council’s budget were rising at a rate which could not be matched by income.  The Council was therefore forced into an unwelcome position with regard to some of the budget proposals, such as increases in parking charges, reductions to the Council Tax Reduction Scheme and reductions in community services and the grants budget.  Some negative responses to the consultation were therefore expected.

Councillor Turner summarised that some of the rising pressures which had had to be taken into account within the proposed budget included temporary accommodation costs, utility costs and inflationary pressures.   The anticipated returns from ODS and OXPlace were important in terms of enabling the Council to continue to deliver its priorities.  There would also be an additional c £200k per year of Council Tax income arising from the decision taken in February 2023 to implement changes to Council Tax in respect of second homes and properties empty for between one and two years.

The Financial Services team and the Cabinet Member for Finance and Asset Management were thanked for their work and for managing to achieve a budget which was balanced not only for the next year but also the next 4-5 years within a very challenging financial climate, notwithstanding that this had necessitated some very difficult decisions.

Cabinet resolved to:

1.        Approve the 2024-25 General Fund and Housing Revenue Account budgets for consultation and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-10, noting:

a)        the Council’s General Fund Budget Requirement of £28.536 million for   2024/25 and an increase in the Band D Council Tax of 2.99% or £10.06 per annum representing a Band D Council Tax of £346.36 per annum;

b)       the Housing Revenue Account budget for 2024/25 of £51.671 million and an increase of 7.7% (£9.27 per week) in social dwelling rents from 1 April 2024 (see paragraphs 78-79) giving a revised weekly average social rent of £129.72 as set out in Appendix 5;

c)       the increase in shared ownership rental in accordance with the lease as shown in paragraph 86; and

d)      the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6;

2.         Agree the fees and charges shown in Appendix 7;

3.         Delegate authority to the Section 151 Officer in consultation with the Deputy Leader (Statutory) - Finance and Asset Management to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 18-19 of the report;

4.         Agree to the proposal to remove the 1 month 100% unfurnished empty homes discount in accordance with paragraph 25 and note the changes to other discounts approved last year by members in accordance with paragraph 20-22 from 1 April 2024; and

5.         Recommend to Council to approve the appropriation of Roken House from the General Fund to the Housing Revenue Account at a value of £1,850,000 (paragraphs 48 - 50).