Agenda, decisions and minutes

Members are asked to declare any interest and the nature of that interest which they may have in any of the items under consideration at this meeting.

There were no declarations of interest.

To confirm as a correct record the minutes of the meeting held on 29 October 2024.

The minutes of the meeting held on 29 October 2024 were agreed as a correct record and signed by the Chairman.

To receive communications from the Chairman.

There were no Chairman’s announcements.

The Chairman to advise whether they have agreed to any item of urgent business being admitted to the agenda.

There were no items of urgent business.

Report of Assistant Director of Finance (Section 151 Officer)

Purpose of report

To report to the committee the council’s performance, risk, and financial positions at the end of the financial year 2024-2025.

Recommendations

The Budget Planning Committee resolves:

1.1       To note the contents of this report.  

Resolved

(1)        That the report be noted.

The Assistant Director of Finance (Section 151 Officer) submitted a report to report to the Committee the council’s financial positions at the end of the financial year 2024-2025.

In introducing the report, the Portfolio Holder for Finance, Property and Regeneration advised the Committee that the Council’s outturn position for 2024/25 was currently an overspend of £0.248m. The forecasted overspend was due to variations across Legal, Democratic and Elections and Procurement, Planning and Development, Property and Environmental. The Portfolio Holder for Finance, Property and Regeneration advised that the Corporate Leadership Team had agreed that a budget oversight group would meet with service managers each month to agree in year mitigation plans and further strengthen budget management and forecasting.

In response to a question from the Committee regarding the costs of planning appeals that the Council may incur as a result of losing a planning appeal and occurring costs from the appellant, the Portfolio Holder for Finance, Property and Regeneration advised that the Planning Committee made decisions on applications within it’s terms of reference at committee meetings,  however officers would  work with Planning Committee members and give training so decisions made at Planning Committee were less likely to incur costs at appeals.

Resolved

(1)      That the report be noted.

Report of Assistant Director of Finance (Section 151 Officer)

Purpose of report

This report sets out the capital bid, investments, efficiencies and income changes for Cherwell District Council for the period 2025/26 to 2029/30 and proposed Fees & Charges schedule for 2025/26. 

Recommendation

The Budget Planning Committee resolves:

1.1    To provide feedback on the capital bid, investments, efficiencies and income changes and the Fees & Charges schedule to provide to the Executive to consider in finalising its 2025/26 budget proposal.

Resolved

(1)        That, having given due consideration, Executive be advised that the Budget Planning Committee have no feedback, comments or recommendations in relation to capital bids, investments, efficiencies and income changes and fees and charges for inclusion as part of the 2025/26 budget proposal.

(2)        That the Budget Proposals 2025/2026 - 2029/30 report be noted.

The Assistant Director of Finance (S151 Officer) submitted a report that set out the capital bid, investments, efficiencies and income changes for Cherwell District Council for the period 2025/26 to 2029/30 and proposed Fees & Charges schedule for 2025/26.

The Portfolio Holder for Finance, Property & Regeneration introduced the report and advised that the Council had identified that there was a budget gap in future years and recognised that funding would be significantly reduced. This was primarily due to the anticipated business rates reset, changes to new homes bonus grant and the fall out of one-off funding that had been provided in recent years. The Council was anticipating that the business rates reset and fall of funding will not take place until at least 2026/27.

The Portfolio Holder for Finance, Property & Regeneration advised that the Council had identified where investment was required across council services to meet external challenges like the impact of the cost-of-living crisis on homelessness and temporary accommodation.

The Assistant Director of Finance presented an update on the council’s Medium Term Financial Strategy (MTFS). The Committee was advised that the main change to the MTFS that was set in February 2024 was a change to the Business Rates reset from Government which was not expected to take place in 2026/27 and would be phased in over a 3 year period. It had been assumed in February 2024 that the reset would take place in 2025/26.

The Assistant Director of Finance advised the Committee of the draft budget proposal risks and highlighted that it was expected that core funding would be allocated as it was in 2024/25 so the major grants would be distributed on the same basis. However, the Government’s Finance Policy Statement advised that there would be a minimum increase of 0% for any local authority as part of their core spending power of which was a tweak made after the Council’s Budget consultation was launched. It was expected more details would be issued with the draft local government finance statement, expected to be published on 19 December 2024.

In response to a question from the Committee in relation to the assumption of inflation being at 2%, the Assistant Director of Finance advised that it was a forecast however inflation has come down to around 2% and this was the Government’s long-term target for inflation.

In response to Members’ questions regarding the drop in the Council’s spending budget shown in the latest position in the MTFS from £28.111mil in 2025/26 to £16.650mil in 2029/30, the Portfolio Holder for Finance, Property & Regeneration advised that the Council was currently undertaking a transformation programme and other projects with officers to ensure that the Council could meet the budget for that year. The Portfolio Holder for Finance, Property & Regeneration also advised that the Council was waiting for definite figures from Government and dates for changes, for example the business rates reset which may have an effect on the budget at a different time than currently expected.

Following a question from the Committee  ...  view the full minutes text for item 29.

To review the Committee Work Plan.

Resolved

(1)        That the update on the Committee Work Plan update be noted.

The Committee considered it’s work plan and had no queries or additional items for the Committee Work Plan.

Resolved

(1)      That the update on the Committee Work Plan update be noted.