To set out the Executive’s initial budget proposals for 2025/26 in respect of both the General Fund (GF) and Housing Revenue Account (HRA) for scrutiny by the Committee in accordance with the provisions of Budget and Policy Framework Procedure Rule 3 of the Council’s Constitution.

The Committee scrutinised the Executive’s initial budget proposals for 2025/26 in respect of both the General Fund (GF) and Housing Revenue Account (HRA) for in accordance with the provisions of Budget and Policy Framework Procedure Rule 3 of the Council’s Constitution.

 

Members were aware that reports relating to the Executive’s initial GF and HRA Budget proposals for 2025/26 had been considered by Cabinet on 20 December 2024, with the comments of the Committee now requested as part of developing the Executive’s final budget proposals for presenting to Full Council in February 2025.

 

The following sets out each report in turn:

 

1)       Appendix A - Updated General Fund Financial Forecast / Budget 2025/26

 

At its meeting on 20 December 2024 (Minute 98 referred), Cabinet had:-

 

“RESOLVED that –

 

a)       the updated Financial Forecast and proposed budget position for 2025/26, as set out in item A.5 of the Report of the Corporate Finance & Governance Portfolio Holder and its appendices, be approved; and

 

b)       the Resources and Services Overview and Scrutiny Committee’s comments be requested on this latest financial forecast and proposed position for 2025/26.”

 

2)       Appendix B - Updated Housing Revenue Account Business Plan and Budget Proposals 2025/26

 

At its meeting on 20 December 2024 (Minute 104 referred), Cabinet had:-

 

“RESOLVED that -

 

(a)     the updated HRA 30-year Business Plan, which includes the proposed revised position for 2024/25 along with budget proposals for 2025/26, be approved; and

 

(b)     the Resources and Services Overview and Scrutiny Committee’s comments be requested on this latest HRA financial forecast.”

 

The Committee recalled that, at its meeting held on 17 December 2024 (Minute 67 referred), Members had considered, inter alia, the Committee’s approach to budget scrutiny at this meeting and it had been resolved:-

 

(c)     “agrees that its approach to budget scrutiny to be undertaken at its meetings on Monday, 6 January (informal) and Monday, 13 January 2025 in respect of the draft General Fund and draft Housing Revenue Account budgets for 2025/26 and beyond will be as follows:-

 

(1)     at its informal meeting on 6 January, the Committee will receive a presentation from the Director (Finance and IT) on the latest budget position and will then look to decide which Portfolio Holders will be required to appear before the Committee on 13 January;

(2)     on 13 January, the Committee will consider the highlights and general overview of the budget but will particularly focus on how costs are built from the ground upwards with an eye to the implications of LGR;

(3)     that the meetings on 6 January and 13 January will both commence at 7.00 p.m.; and

(4)     that the members of the Cabinet be requested to hold the evening of Monday 13 January 2025 in their diaries in case they are required to appear before the Committee.”

 

At the informal meeting of the Committee held on 6 January 2025 Members had decided that the following members of the Executive would be required to appear before the Committee:-

 

Councillor Mark Stephenson (Leader of the Council and the Portfolio Holder for Corporate Finance & Governance);

 

Councillor Andy Baker (Portfolio Holder for Housing & Planning);

 

Councillor Gina Placey (Portfolio Holder for Partnerships); and

 

Councillor Adrian Smith (Portfolio Holder for the Environment & ICT).

 

At that informal meeting, the Committee had also agreed a set of questions that would be put to the aforementioned Portfolio Holders. Those questions had been duly circulated to those Portfolio Holders and formal answers obtained. Those questions and answers were as set out in the Appendix to these Minutes. At the meeting Committee members asked supplementary questions. Those supplementary questions and the responses thereto were indicated in red in the Appendix.

 

Following the question-and-answer session the Portfolio Holders were thanked for their attendance.

 

The Committee then proceeded to determine whether it had any comments or recommendations it wished to make or put forward to the Cabinet.

 

Councillor M A Cossens moved and Councillor S A Honeywood seconded that:-

 

(a)     the Committee has recorded that it felt that it was not in a position to comment on the robustness of the budget plans for 2025/26 and beyond and, in this regard, it noted that:

 

(i)       in respect of the General Fund, the Forecast Risk Fund (used to smooth deficits in particular years) would be exhausted within 2028/29 and (as at the day of the meeting) there were no specific plans to address the full savings/income generation necessary up to that point to support a balanced budget from that point; 

(ii)     in respect of the Housing Revenue Account, there were not the written plans to move it to a sustainable position; and

 

(b)     Cabinet be informed of the above and requested to address the issues raised.

 

Councillor Bensilum then moved and Councillor Steady seconded that Councillor Cossens’ motion be amended by the addition of a sub-section (iii) to paragraph (a) to read as follows:-

 

(iii)    through the papers submitted and statements made to the Committee, it was understood that plans to address (i) and (ii) were being worked upon;

 

In accordance with the provisions of Council Procedure Rule 16.6, Councillor Cossens, with the consent of Councillor S A Honeywood, altered his motion to incorporate the text of Councillor Bensilum’s amendment.

 

Councillor Cossens’ motion, as altered, was put to the vote and it was unanimously:-

 

RESOLVED that -

 

(a)     the Committee has recorded that it felt that it was not in a position to comment on the robustness of the budget plans for 2025/26 and beyond and, in this regard, it noted that:-

 

(i)       in respect of the General Fund, the Forecast Risk Fund (used to smooth deficits in particular years) would be exhausted within 2028/29 and (as at the day of the meeting) there were no specific plans to address the full savings/income generation necessary up to that point to support a balanced budget from that point;

 

(ii)     in respect of the Housing Revenue Account, there were not the written plans to move it to a sustainable position;

 

(iiI) through the papers submitted and statements made to the Committee, it was understood that plans to address (i) and (ii) were being worked upon; and

 

(b)     Cabinet be informed of the above and requested to address the issues raised.