The Head of Financial Services had submitted a report to Cabinet to present the outcome of the budget consultation and agree the Council’s Medium Term Financial Strategy for 2026-27 to 2028-29 and 2025-26 Budget for recommendation to Council.

Cabinet is asked to consider the outcome of the public consultation, agree the amendments to the Consultation Budget and recommend that Council resolves to:

·       Note the approval by Cabinet on 22 January 2025 and subsequently agreed by the Council on 27 January of an increase of 2.7% for 2025/26 (subject to any subsequent cap on increases imposed by central government) in social dwelling rents from 1st April 2025 giving an average weekly increase of £3.51 per week, and a revised weekly average social rent of £133.68 as set out in Appendix 5 based on a HRA budget as set out in Appendix 4, together with the comments in paragraphs 36-39;

·       Approve the budget in 2024-25 for the acquisition of Barton properties in the amount of £39,732,791 as referred to in paragraph 42 of this report,

·       Approve the 2025-26 General Fund and Housing Revenue Account budgets and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-9, noting:

o   a) the Council’s General Fund Budget Requirement of £30.542 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; and

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

·       Agree the fees and charges shown in Appendix 7;

·       Delegate to the Section 151 Officer, in consultation with the Deputy Leader (Statutory) – Finance and Asset Management, 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 21-23 of the report; and

·       Note the changes to council tax charges in respect of second homes premiums to be implemented on 1st April 2025, already approved by Council, as referred to in paragraphs 25-27.

The Group Finance Director had submitted a report to Cabinet to present the outcome of the budget consultation and agree the Council’s Medium Term Financial Strategy for 2026-27 to 2028-29 and 2025-26 Budget for recommendation to Council.

Councillor Turner said that they would brief, to not pre-empt the budget debate. He noted that they had given careful considerations to the financial settlement which the Council received and made some amendments accordingly. Councillor Turner said that they are sure all look forward to the further debate on this report at full council in just over a weeks’ time.

Councillor Brown reminded Cabinet that they do tend to keep debates short at Cabinet and take full debates to the meeting of full council, which was scheduled for just over a weeks’ time. 

Nigel Kennedy, The Group Finance Director, said that with the financial settlement, regarding core spending power, the Council had received slightly less than expected. He said that all district councils were facing a similar situation. The Group Finance Director added that they had received confirmation on compensation for national insurance increases and they had received slightly more than had been assumed in the consultation budget. The Group Finance Director said that there are some changes in the budget and in capital, but there are no changes in HRA. The report also includes details from the budget consultation process as well.

Councillor Brown thanked the Group Finance Director for his and his team’s work on this paper. She noted that the she welcomed the prospect of a longer-term financial settlement in future.

Cabinet agreed to consider the outcome of the public consultation, agreed the amendments to the Consultation Budget and recommended that Council resolves to:

·       Note the approval by Cabinet on 22 January 2025 and subsequently agreed by the Council on 27 January of an increase of 2.7% for 2025/26 (subject to any subsequent cap on increases imposed by central government) in social dwelling rents from 1st April 2025 giving an average weekly increase of £3.51 per week, and a revised weekly average social rent of £133.68 as set out in Appendix 5 based on a HRA budget as set out in Appendix 4, together with the comments in paragraphs 36-39;

·       Approve the budget in 2024-25 for the acquisition of Barton properties in the amount of £39,732,791 as referred to in paragraph 42 of this report,

·       Approve the 2025-26 General Fund and Housing Revenue Account budgets and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-9, noting:

o   a) the Council’s General Fund Budget Requirement of £30.542 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; and

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

·       Agree the fees and charges shown in Appendix 7;

·       Delegate to the Section 151 Officer, in consultation with the Deputy Leader (Statutory) – Finance and Asset Management, 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 21-23 of the report; and

·       Note the changes to council tax charges in respect of second homes premiums to be implemented on 1st April 2025, already approved by Council, as referred to in paragraphs 25-27.