Agenda item

(Please note Appendix 3 is not used in this report)

Report of the Assistant Director of Finance (S151)

Purpose of report

To consider and approve the Budget Setting for 2024/25 and MTFS 2089/29 as per the recommendations.

Executive Summary

This report is the culmination of the Budget and Business Planning process for 2024/25 to 2028/29 and sets out the Executive’s proposed Business Plan, Annual Delivery Plan and related revenue budget for 2024/25, medium term financial strategy to 2028/29, capital programme to 2028/29 and all supporting policies, strategies, and information to recommend to Council.

The Council adopts a forward looking and anticipatory approach to its financial management, with the Peer Review acknowledging the Council is in a “strong position” regards its 2024/25 budget in the September 2023 Progress Review.  The Council plans for, and continues to succeed in, encouraging and facilitating economic growth across the district.  This success flows through to the Council’s finances, reflected in the level of income received from business rates and the New Homes Bonus grant. 

The Council has proactively monitored both the economic situation and Government announcements over the past 12 months and devised and implemented a budget and business planning strategy that has delivered within the constraints identified, consulting on a proposed balanced budget in November 2023.  The Council was able to identify the risk of interest rate rises at an early stage, locking in low interest rates for all of its planned borrowing requirements, meaning only new borrowing requirements will need to be taken at higher rates.

The proposed net budget for the council is £26.9m, which is a decrease of £1.4m from 2023/24.  The council plans to fund £0.6m of budget pressures and will deliver £1.8m of savings proposals and operational efficiencies as part of the 2024/25 budget.  A Band D Council Tax of £153.50 is proposed for the year which is an increase of £5 compared to 2023/24. The Capital Programme for the period 2024/25 – 2028/29 is proposed to be £40.4m. 

Recommendations           

The Executive is recommended to:

1.1      Delegate authority to the Section 151 Officer (S151), following consultation with the Leader of the Council and Portfolio Member for Finance, to complete the legal Council Tax calculations once all the information required has been received and submit a separate report to Council.

1.2      Delegate authority to the S151, following consultation with the Leader of the Council and Portfolio Member for Finance, to make appropriate changes to the Executive’s proposed budget to Council including policies and plans.

The Executive recommends to Council as follows:

1.3      Approve the proposed Fees and Charges schedule for 2024/25 (Appendix 7) and statutory notices be placed where required.

1.4      Consider and note the Equality Impact Assessments of the Budget (Appendix 8 and 8b)

1.5      In relation to the Business Plan (Section 3.1) to approve:

1.5.1   The Business Plan set out in Appendix 1.

1.6      In relation to the Revenue Budget Strategy (Section 3.2) and Medium-Term Financial Strategy (MTFS) (Section 3.5) to approve:

1.6.1   The net revenue budget for the financial year commencing on 1 April 2024, as set out in Table 3.2.1, and further analysed in the Budget Book provided at Appendix 12.

1.6.2   The MTFS and Revenue Budget 2024/25 (Sections 3.5 and 3.2 respectively), including the Savings Proposals and Pressures included at Appendices 4 and 5 respectively.

1.7      In relation to Council Tax to approve:

1.7.1   An increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2024 of £5, resulting in a Band D charge of £153.50 per annum.

1.8      In relation to the Capital Programme and related strategies (Section 3.3) to approve:

1.8.1   The Capital Bids and Capital Programme at Appendix 17 and 18 respectively.

1.8.2   The Capital and Investment Strategy 2024/25 (Appendix 19), including the Minimum Revenue Provision (MRP) Policy, and the revised 2023/24 MRP Policy (Appendix 20).

1.8.3   The Treasury Management Strategy, including the Prudential Indicators, and Affordable Borrowing Limit for 2024/25 (Appendix 21).

1.9      In relation to reserves (Section 3.4) to approve:

1.9.1   A minimum level of General Balances of £6.1m as supported by Appendix 15.

1.9.2   The Reserves Policy (Appendix 14).

1.9.3   The medium-term reserves plan described in Appendix 16.

1.10    In relation to the Pay Policy Statement approve:

1.10.1The Pay Policy Statement, as required by the Localism Act 2010, detailed in Appendix 9.

Resolved

(1)          That authority be delegated to the Section 151 Officer, following consultation with the Leader of the Council and Portfolio Member for Finance, to complete the legal Council Tax calculations once all the information required has been received and submit a separate report to Council.

(2)          That authority be delegated to the S151 Officer, following consultation with the Leader of the Council and Portfolio Member for Finance, to make appropriate changes to the Executive’s proposed budget to Council including policies and plans.

(3)          That Council be recommended to approve the proposed Fees and Charges schedule for 2024/25 and statutory notices be placed where required.

(4)          That Council be recommended to consider and note the Equality Impact Assessments of the Budget.

(5)          That Council be recommended to approve the Business Plan.

(6)          That, in relation to the Revenue Budget Strategy and Medium-Term Financial Strategy (MTFS), Council be recommended to approve:

                      i.        The net revenue budget for the financial year commencing on 1 April 2024, as set out below, and further analysed in the Budget Book.

Directorate; Net budget 2024/25 £m

Communities: 8.917

Resources: 4.314

Chief Executive: 5.355

Service Sub-total: 18.586

Corporate Costs: 4.475

Policy Contingency: 3.872

Net Cost of Services: 26.933

                    ii.        The MTFS and Revenue Budget 2024/25, including the Savings Proposals and Pressures.

(7)          That, in relation to Council Tax, Council be recommended to approve an increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2024 of £5, resulting in a Band D charge of £153.50 per annum.

(8)          That, in relation to the Capital Programme and related strategies, Council be recommended to approve:

                          i.        The Capital Bids and Capital Programme.

                         ii.        The Capital and Investment Strategy 2024/25, including the Minimum Revenue Provision (MRP) Policy, and the revised 2023/24 MRP Policy.

                        iii.        The Treasury Management Strategy, including the Prudential Indicators, and Affordable Borrowing Limit for 2024/25.

(9)          That, in relation to reserves, Council be recommended to approve:

                      i.        A minimum level of General Balances of £6.1.

                    ii.        The Reserves Policy.

                   iii.        The medium-term reserves plan.

(10)       That, in relation to the Pay Policy Statement, Council be recommended to approve the Pay Policy Statement, as required by the Localism Act 2010, detailed in Appendix 9.

The Assistant Director of Finance (S151) submitted a report to consider and approve the Budget Setting for 2024/25 and Medium Term Financial Strategy 2028/29 as per the recommendations.

In introducing the report, the Portfolio Holder for Finance explained that this report was the culmination of the Budget and Business Planning process for 2024/25 to 2028/29 and set out the Executive’s proposed Business Plan, Annual Delivery Plan and related revenue budget for 2024/25, medium term financial strategy to 2028/29, capital programme to 2028/29 and all supporting policies, strategies, and information to recommend to Council.

The proposed net budget for the council was £26.9m, which was a decrease of £1.4m from 2023/24. The council planned to fund £0.6m of budget pressures and would deliver £1.8m of savings proposals and operational efficiencies as part of the 2024/25 budget.  A Band D Council Tax of £153.50 was proposed for the year which was an increase of £5 compared to 2023/24. The Capital Programme for the period 2024/25 – 2028/29 was proposed to be £40.4m. 

The Portfolio Holder for Finance thanked all respondents to the budget consultation, the Budget Planning Committee and all members who attended the December meeting of the Committee for their review of the budget. The Portfolio Holder for Finance thanks the Assistant Director Finance (S151 Officer) and the Finance Team for their hard work on the proposed budget.

In response to a question from Councillor Hingley regarding the additional funding the Government had advised local authorities would be receiving, the Leader advised that CDC had received confirmation earlier that afternoon. The Assistant Director Finance (S151Officer) advised that the additional funding CDC would receive would be added to the contingency budget.

Resolved

(1)          That authority be delegated to the Section 151 Officer, following consultation with the Leader of the Council and Portfolio Member for Finance, to complete the legal Council Tax calculations once all the information required has been received and submit a separate report to Council.

(2)          That authority be delegated to the S151 Officer, following consultation with the Leader of the Council and Portfolio Member for Finance, to make appropriate changes to the Executive’s proposed budget to Council including policies and plans.

(3)          That Council be recommended to approve the proposed Fees and Charges schedule for 2024/25 and statutory notices be placed where required.

(4)          That Council be recommended to consider and note the Equality Impact Assessments of the Budget.

(5)          That Council be recommended to approve the Business Plan.

(6)          That, in relation to the Revenue Budget Strategy and Medium-Term Financial Strategy (MTFS), Council be recommended to approve:

                      i.        The net revenue budget for the financial year commencing on 1 April 2024, as set out below, and further analysed in the Budget Book.

Directorate; Net budget 2024/25 £m

Communities: 8.917

Resources: 4.314

Chief Executive: 5.355

Service Sub-total: 18.586

Corporate Costs: 4.475

Policy Contingency: 3.872

Net Cost of Services: 26.933

                    ii.        The MTFS and Revenue Budget 2024/25, including the Savings Proposals and Pressures.

(7)          That, in relation to Council Tax, Council be recommended to approve an increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2024 of £5, resulting in a Band D charge of £153.50 per annum.

(8)          That, in relation to the Capital Programme and related strategies, Council be recommended to approve:

                          i.        The Capital Bids and Capital Programme.

                         ii.        The Capital and Investment Strategy 2024/25, including the Minimum Revenue Provision (MRP) Policy, and the revised 2023/24 MRP Policy.

                        iii.        The Treasury Management Strategy, including the Prudential Indicators, and Affordable Borrowing Limit for 2024/25.

(9)          That, in relation to reserves, Council be recommended to approve:

                      i.        A minimum level of General Balances of £6.1.

                    ii.        The Reserves Policy.

                   iii.        The medium-term reserves plan.

(10)       That, in relation to the Pay Policy Statement, Council be recommended to approve the Pay Policy Statement, as required by the Localism Act 2010.

Reasons

This report provides information around the various building blocks that make up the proposed budget for 2024/25 and beyond, allowing members to consider and scrutinise the elements of the budget and provide advice and guidance to council to help further shape both budget setting for 2024/25 and the MTFS up to 2028/29.

Alternative options

Option 1: To reject the current proposals and make alternative recommendations.  Members will not be aware of the medium-term financial forecast or implications of alternatives if they choose to take this option.