Agenda item

Report of the Assistant Director of Finance (S151 Officer)

Purpose of report

This report sets out the capital bids, revenue savings proposals and budget pressures for Cherwell District Council for the period 2024/25 to 2028/29 and proposed Fees & Charges schedule for 2024/25.  Feedback on the savings proposals will be taken into account as part of the overall response to the budget consultation. Feedback from the Committee on the revenue pressures, capital bids and Fees & Charges will be provided to the Executive to consider in finalising its budget proposals for Council.

Recommendations

The meeting is recommended to:

1.1       Provide feedback on the capital bids, revenue savings proposals, budget pressures and Fees & Charges schedule to provide to the Executive to consider in finalising its 2024/25 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, revenue savings proposals and budget pressures and fees and charges for inclusion as part of the 2024/25 budget proposal.

(2)        That the Budget Proposals 2023/24 - 2027/28 report be noted.

The Assistant Director of Finance submitted a report which set out the capital bids, revenue savings proposals and budget pressures for Cherwell District Council for the period 2024/25 to 2028/29 and proposed Fees & Charges schedule for 2024/25.This was an opportunity for the Budget Planning Committee to consider the proposals and provide feedback to Executive to consider in finalising its budget proposals which would be presented to the 26 February 2024 Full Council meeting.

The Portfolio Holder for Finance introduced the report and advised the Committee how the budget proposals had been determined and outlined that the forecasts had been updated by Officers by using all information available at that time. The Portfolio Holder for Finance advised that a number of the grants to the Council were to be confirmed by the Government in late December so some of the prosed plans were liable to change.

The Assistant Director of Finance presented an update on the council’s Medium Term Financial Strategy (MTFS) and advised that inflation, funding assumptions, pay inflation, the delay in the business rates reset until 2025/26 and the assumption that the new homes bonus will continue on a one-year basis had been included when updating the MTFS position.

The Assistant Director of Finance advised the Committee that as the council was going through a considerable amount of transformation it needed to ensure that there were the right level of support services in the future for the organisation.

In response to questions from the Committee on the current budget and decrease in the budget over future years, the Assistant Director of Finance advised that over the lifetime of the MTFS, the council expected a decrease of £13mil in the net revenue budget and most of that figure would be taken from funding so there would be a reduction in net spend. The Portfolio Holder for Finance explained that the council’s Gross Revenue budget included income from fees and charges,

The Assistant Director of Finance also provided an update on the overall capital position advising that of the £10.484m capital bid total, £9.267m was funded from external contributions.

Executive Portfolio Holders, Corporate Directors and Assistant Directors gave an overview of the pressures, proposed saving and capital bids by service area within each directorate and answered questions from the Committee.

In response to Members’ questions regarding the future ownership of the proposed 3G sports pitch at North Oxfordshire Academy, the Assistant Director of Wellbeing and Housing Services advised that the council would own the pitch, run it and receive any income received and the contribution from the school is the land. In response to a further question regarding if Banbury United could use the proposed 3G pitch for training, the Assistant Director of Wellbeing and Housing Services advised that the Portfolio Holder for Healthy and Safe Communities was in regular contact with the Chairman of Banbury United Football Club.

Following a question from the Committee regarding how the proposed net zero capital project funds would be issued, the Portfolio Holder for Cleaner and Greener Communities advised that there would be business cases for each proposal setting out what would be achieved and that how would help achieve the goals within the Climate Action Plan. The Corporate Director of Communities explained that the Climate Action Plan was an annual plan and would therefore be reviewed annually with the proposals needing to meet the initiatives set in the Plan.

In response to a question seeking clarification on what would be included within the council’s Digital Futures Programme, the Head of Digital and Innovation advised that the council had been working on some proofs of concept to show what was possible to provide attractive solutions for savings. The Head of Digital and Innovation gave examples of projects that IT were working on and explained that these projects were to save money in the future and transform the council to provide better services.

In response to comments from the Committee regarding the proposed reduced spend on CCTV cameras across the district and who determines which were no longer needed, the Portfolio Holder for Healthy and Safe Communities advised that with new housing developments, the population shifts around and the focus on what needs to be covered by CCTV changes.

Following a question from the Committee regarding the proposed charge for the replacement of a waste bin, recycling bin or food waste caddy and if the age of a bin would be taken into consideration when a replacement request was submitted, the Portfolio Holder for Cleaner and Greener Communities advised he would speak to officers and provide a written response to the Committee.

In response to a query from the Committee regarding the increase in the cost of bulky waste charge and possible increase in fly tipping, the Portfolio Holder for Cleaner and Greener Communities advised that the proposed increase was to meet the cost of the service however the Committee’s concerns were noted.

The Portfolio for Finance advised the Committee that the council had a statutory requirement to agree a balanced budget and at this stage, proposals were being put forward for public consultation to the public. The feedback received during the consultation would be considered and the budget would be submitted to the 26 February 2024 Council meeting.

In response to a question regarding the higher cost of Local Plan examinations to the previous figure given, the Assistant Director for Planning and Development advised it had been some time since the budget had been reviewed and with submission of the new Local Plan expected to be in January 2025, this needed to be reviewed.

It was proposed by Councillor P Clarke and seconded by Councillor Wood that the meeting move into private session to consider exempt appendix 2b, Operational Efficiencies.