Agenda item

Report of Assistant Director of Finance

 

Purpose of report

 

To consider and approve the Budget Setting for 2025/26 and MTFS 2029/30 as per the recommendations.

 

Recommendations

 

The Council resolves to:

 

1.1           Have regard to the statutory report of the Chief Finance Officer (Section 25 report) at Appendix 3 in approving recommendations 1.2 – 1.9.

 

1.2           Approve the proposed Fees and Charges schedule for 2025/26 (Appendix 7) and statutory notices be placed where required.

 

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

 

1.4           In relation to the Corporate Plan (Section 4.1) to:

 

1.4.1 Approve the Corporate Plan set out in Appendix 1.

1.4.2 Note the Internal Perspectives set out in Appendix 2.

 

1.5     In relation to the Revenue Budget Strategy (Section 4.2) and Medium-Term Financial Strategy (MTFS) (Section 4.5) to approve:

 

1.5.1   The net revenue budget for the financial year commencing on 1 April 2025, as set out in Table 4.2.1, and further analysed in the Budget Book provided at Appendix 12.

 

1.5.2   The MTFS and Revenue Budget 2025/26 (Sections 4.5 and 4.2 respectively), including the Savings Proposals and Investments included at Appendices 4 and 5, respectively.

 

1.6     In relation to Council Tax to approve:

 

1.6.1   An increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2025 of £5, resulting in a Band D charge of £158.50 per annum.

 

1.6.2   For long term empty properties, from 1 April 2025 an additional council tax premium will be charged of 100 per cent for properties empty for one year or more, replacing the current 100 per cent premium that begins after 2 years of a property being empty. All other empty property premiums will remain.

 

1.6.3   It be noted that the Council Tax Base 2025/26 was determined at the Executive meeting held on 6 January 2025:

 

a)    for the whole Council area as 59,853.6 [item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (“the 1992 Act”)]; and

 

b)    For dwellings in those parts of its area to which a Parish Precept relates as in the attached Appendix 21.

 

1.6.4   That the Council Tax requirement for the Council’s own purposes for 2025/26 (excluding Parish Precepts and Special Expenses) is £9,486,796.

 

1.6.5   That the following amounts be calculated for the year 2025/26 in accordance with Sections 31 to 36 of the 1992 Act:

 

a)    £140,304,768 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (2) of the 1992 Act, taking into account all precepts issued to it by Parish Councils and any additional special expenses.

 

b)    £124,192,690 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the 1992 Act.

 

c)     £16,112,078 being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with Section 31A (4) of the 1992 Act, as its Council Tax requirement for the year (Item R in the formula in Section 31B of the 1992 Act).

 

d)    £269.19 being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B of the 1992 Act, as the basic amount of its Council Tax for the year (including Parish Precepts and Special Expenses).

 

e)    £6,625,282 being the aggregate amount of all special items (Parish Precepts and Special Expenses) referred to in Section 34(1) of the 1992 Act as per the attached Appendix 21.

 

f)      £158.50 being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T(1(a) above), calculated by Cherwell District Council the Council, in accordance with Section 34(2) of the 1992 Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish Precept or special item relates. 1.6.6 It be noted that for the year 2025/26 the Oxfordshire County Council and the Police and Crime Commissioner for Thames Valley have issued precepts to the Council, in accordance with Section 40 of the 1992 Act, for each category of dwellings in the Council’s area as indicated below:

 

 

 

 

1.6.7   The Council, in accordance with Sections 30 and 36 of the 1992 Act, hereby sets the amounts shown in Appendix 22 as the amounts of Council Tax for the year 2025/26 for each part of its area and for each of the categories of dwellings.

 

1.6.8   The Council has determined that its relevant basic amount of Council Tax for 2025/26 is not excessive in accordance with principles approved under Section 52ZB of the 1992 Act.

 

1.7     In relation to the Capital Programme and related strategies (Section 4.3) to approve:

 

1.7.1   The Capital Bid(s) and Capital Programme at Appendices 17 and 18 respectively.

 

1.7.2   The Capital and Investment Strategy 2025/26 (Appendix 19), including the Minimum Revenue Provision (MRP) Policy.

 

1.7.3   The Treasury Management Strategy, including the Prudential Indicators, and Affordable Borrowing Limit for 2025/26 (Appendix 20).

 

1.8     In relation to reserves (Section 4.4) to approve:

 

1.8.1   A minimum level of General Balances of £7.8m as supported by Appendix 15.

 

1.8.2   The Reserves Policy (Appendix 14).

 

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

 

1.9     In relation to the Pay Policy Statement to approve:

 

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

Resolved

 

(1)          That, having due regard, the statutory report of the Chief Finance Officer and the comments of the Chief Finance Officer in respect of the proposed amendments, be noted.

 

(2)          That, subject to the following amendment, with authority delegated to the Section 151 Officer to update the budget papers to reflect the amendment, the proposed Fees and Charges schedule for 2024/25 be approved and it be noted that statutory notices would be placed where required.

·         That the proposed increase of £6 in garden waste charges in 2025/26 be delayed by one year and this increase be applied in 2026/27 as well as other planned changes and it be noted that this will reduce income in 2025/26 by £0.143m.

 

(3)          That, having given due consideration, the Equality Impact Assessments of the Budget be noted.

 

(4)          That the Corporate Plan be approved and the Internal Perspectives be noted.

 

(5)          That, in relation to the Revenue Budget Strategy and Medium-Term Financial Strategy,  the following net directorate budgets, as amended, be agreed, with authority delegated to the Section 151 Officer to update the budget papers to reflect the amendments.

 

 

(6)          That, subject to the following amendments with authority delegated to the Section 151 Officer to amend the budget papers to reflect the amendments, the Medium-Term Financial Strategy and Revenue Budget 2025/2026, including Savings Proposals and Investments be approved:

·         To introduce the following service investments:

o   Heating Hardship Fund of £0.100m to support pensioners who are struggling during the cost-of-living crisis

o   Additional Homelessness Prevention Support of £0.065m.

o   £0.051m to fund a Land Drainage Officer to provide additional flood support

·         To delay service investment DPD2504 – Conservation Areas by one year, reducing costs in 2025/2026 only, by £0.020m.

·         To remove the proposed investment in the Waste Collection Partnership Working Fund of £0.150m.

 

(7)          That an increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2025 of £5, resulting in a Band D charge of £158.50 per annum, be agreed.

 

(8)          That it be agreed for long term empty properties, from 1 April 2025 an additional council tax premium will be charged of 100 per cent for properties empty for one year or more, replacing the current 100 per cent premium that begins after 2 years of a property being empty, and that all other empty property premiums will remain.

 

(9)          That it be noted that the Council Tax Base 2025/26 was determined at the Executive meeting held on 6 January 2025:

 

a)    for the whole Council area as 59,853.6 [item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (“the 1992 Act”)]; and

 

b)    For dwellings in those parts of its area to which a Parish Precept relates, Appendix 21 to the report.

 

(10)       That it be agreed the Council Tax requirement for the Council’s own purposes for 2025/26 (excluding Parish Precepts and Special Expenses) is £9,486,796.

 

(11)       That, subject to delegation to the Section 151 Officer to update the budget papers to reflect the agreed amendments to a) to reduce expenditure by £0.413m and b) to reduce income by £0.413m, the following amounts be calculated for the year 2025/26 in accordance with Sections 31 to 36 of the 1992 Act:

 

a)    £140,304,768 (subject to recalculation with a reduction of £0.413m) being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (2) of the 1992 Act, taking into account all precepts issued to it by Parish Councils and any additional special expenses.

 

b)    £124,192,690 (subject to recalculation with a reduction of £0.413m) being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the 1992 Act.

 

c)    £16,112,078 being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with Section 31A (4) of the 1992 Act, as its Council Tax requirement for the year (Item R in the formula in Section 31B of the 1992 Act).

 

d)    £269.19 being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B of the 1992 Act, as the basic amount of its Council Tax for the year (including Parish Precepts and Special Expenses).

 

e)    £6,625,282 being the aggregate amount of all special items (Parish Precepts and Special Expenses) referred to in Section 34(1) of the 1992 Act as set out in Appendix 21 of the report.

 

f)     £158.50 being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T(1(a) above), calculated by Cherwell District Council the Council, in accordance with Section 34(2) of the 1992 Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish Precept or special item relates. 1.6.6 It be noted that for the year 2025/26 the Oxfordshire County Council and the Police and Crime Commissioner for Thames Valley have issued precepts to the Council, in accordance with Section 40 of the 1992 Act, for each category of dwellings in the Council’s area as indicated below:

 

Valuation Band	Oxfordshire County Council	Police and Crime Commissioner for Thames Valley
	£	£
A	1,274.27	188.85
B	1,486.64	220.33
C	1,699.02	251.80
D	1,911.40	283.28
E	2,336.16	346.23
F	2,760.91	409.18
G	3,185.67	472.13
H	3,822.80	566.56

 

 

(12)       That the Council, in accordance with Sections 30 and 36 of the 1992 Act, hereby sets the amounts shown in Appendix 22 to the report as the amounts of Council Tax for the year 2025/26 for each part of its area and for each of the categories of dwellings.

 

(13)       That the Council has determined that its relevant basic amount of Council Tax for 2025/26 is not excessive in accordance with principles approved under Section 52ZB of the 1992 Act.

 

(14)       That the Capital Bids and Capital Programme (Appendices 17 and 18 to the report) be approved.

 

(15)       That the Capital and Investment Strategy 2025/26 (Appendix 19 to the report), including the Minimum Revenue Provision (MRP) Policy, be approved.

 

(16)       That the Treasury Management Strategy, including the Prudential Indicators, and Affordable Borrowing Limit for 2025/26 (Appendix 20 to the report) be approved.

 

(17)       That a minimum level of General Balances of £7.8m, as supported by Appendix 15 to the report, be approved.

 

(18)       That the Reserves Policy (Appendix 14 to the report) be approved.

 

(19)       That, subject to the following amendment, with authority delegated to the Section 151 Officer to update the budget papers to reflect the amendment, the Medium-Term Reserves Plan (Appendix 16 to the report) be approved:

·         Reduce the contribution to reserves by £0.189m

 

(20)       That the Pay Policy Statement, as required by the Localism Act 2010, be approved.