The Head of Financial Services had submitted a report to propose a Medium-Term Financial Strategy and the 2025/26 Budget for consultation.

Cabinet is recommended to:

1.    Approve the 2025-26 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 £29.678 million for   2025/26 and an increase in the Band D Council Tax of 2.99% or £10.36 per annum representing a Band D Council Tax of £356.72 per annum assuming it is confirmed that the authority is able to do so (see para 14 below) 

b.    The Housing Revenue Account budget for 2025/26 of £54.810 million and an increase of 2.7% (average of £3.51 per week) in social dwelling rents from 1 April 2025 (see paragraphs 76-78) giving a revised weekly average social rent of £133.68 as set out in Appendix 5

c.     The increase in shared ownership rental in accordance with the lease as shown in paragraph 79-80

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 to the Section 151 Officer in consultation with the Board Member for Finance and Assets the decision to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 23-24 of the report.

The Head of Financial Services had submitted a report to propose a Medium-Term Financial Strategy and the 2025/26 Budget for consultation. Councillor Turner presented the report and its findings with reference to an amended circulation of documentation provided. He thanked officers for their work on the fast-moving matter considering recent Government funding changes. As such, he noted the discrepancy between the ‘potential support’ committed to by Government, and the materialisation of these funds; local governments will need to be assertive in accessing this money. He explained that the aim of the strategy is to deliver services properly and efficiently in a context where resources are more constrained. Due to Covid it is expected that reserves will be drawn on for a couple of years but that changes to business rates could tighten the budget in the future. Furthermore, by planning more than one year ahead, negative events in the future could be reduced and risks mitigated to some extent by ensuring dividends, such as those from ODS and OX Place. Overall, Councillor Turner explained intentions to run the Council in a progressive way which maintains services and insources work. 

Councillor Brown thanked Councillor Turner and the relevant officers.  

The Head of Financial Services highlighted the benefits of having a 4-year balanced plan which has been achieved by using £5.5m of reserves and the reliance on the two companies to produce £19m in dividends over the next few years. However, he also noted uncertainty around the Government’s budget announcement and the lack of clarity this offered. He cautioned that although the plan is positive, care must be taken to ensure and maintain income streams.  

Councillor Brown thanked The Head of Financial Services and officers and noted that suggestions or questions regarding the report should be saved until the next meeting of Council. 

Councillor Munkonge queried how the reform to business rates, if it goes ahead, would impact small businesses, and asked who is lobbying for this reform. Councillor Turner advised that the matter is complex and includes changes such as the business rate reset which will affect council income rather than small businesses, and the fairer funding changes which will impact how business rates are allocated. There will be Government consultation on other changes to business rates and he committed that Oxford City Council will respond, as well as the LGA. The Head of Financial Services committed to sharing the draft response to the Government consultation with the Council.  

Councillor Hollingsworth referred to paragraph 42C in the report relating to car parking and the closure of Oxpens car park. He asked whether any other car parks will be closed, specifically Worcester Street. The Head of Financial Services explained that any changes on Worcester Street would fall outside the timeframe of this budget. 

Cabinet agreed to  

1.    Approve the 2025-26 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 £29.678 million for 2025/26 and an increase in the Band D Council Tax of 2.99% or £10.36 per annum representing a Band D Council Tax of £356.72 per annum assuming it is confirmed that the authority is able to do so (see para 14 below) 

b.    The Housing Revenue Account budget for 2025/26 of £54.810 million and an increase of 2.7% (average of £3.51 per week) in social dwelling rents from 1 April 2025 (see paragraphs 76-78) giving a revised weekly average social rent of £133.68 as set out in Appendix 5. 

c.     The increase in shared ownership rental in accordance with the lease as shown in paragraph 79-80.

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 to the Section 151 Officer in consultation with the Board Member for Finance and Assets the decision to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 23-24 of the report.