To seek Cabinet’s approval of:

(i)       the latest financial forecast / budget proposals and council tax amount for 2025/26 for recommending to Full Council;

(ii)      a delegation to the Portfolio Holder for Corporate Finance and Governance to agree the detailed budget proposals and formal draft resolutions / ‘technical’ appendices required for Full Council on 11 February 2025; and

(iii)    a delegation to the Portfolio Holder for Finance and Governance, to agree / adopt a Retail, Hospitality and Leisure mandatory business rate relief scheme for 2025/26 along with any other changes to reliefs that may be announced by the Government.

RESOLVED that Cabinet:

a)     approves the updated financial forecast, as set out in Appendix A to the Report of the Corporate Finance & Governance Portfolio Holder (A.3), along with the savings and cost pressures set out in Appendices B and C respectively that form the firm proposals for the 2025/26 budget and recommends to Full Council:-

a Band D Council Tax for district services of £199.52 for 2025/26 (a 2.99% increase), along with the associated council tax requirement of £10.674m.

b)     authorises the Portfolio Holder for Corporate Finance and Governance, to agree the ‘technical’ appendices and resolutions for the budget proposals for recommending to Full Council on 11 February 2025;

c)   authorises the Chief Executive, in consultation with the Corporate Finance and Governance Portfolio Holder, to report directly to Council in respect of the formal resolutions necessary to implement the Executive’s budget proposals including any further amendments emerging from additional information becoming available and/or notifications received from the Government; and

d)    authorises the Portfolio Holder for Corporate Finance and Governance, to agree / adopt a Retail, Hospitality and Leisure mandatory business rate relief scheme for 2025/26 along with any other changes to reliefs that may be announced by the Government.

Cabinet considered a detailed report of the Corporate Finance & Governance Portfolio Holder (A.3) which sought its approval of:

1)       the latest financial forecast / budget proposals and council tax amount for 2025/26 for recommending to Full Council;

2)       a delegation to the Portfolio Holder for Corporate Finance and Governance to agree the detailed budget proposals and formal draft resolutions / ‘technical’ appendices required for Full Council on 11 February 2025; and

3)       a delegation to the Portfolio Holder for Corporate Finance and Governance, to agree / adopt a Retail, Hospitality and Leisure mandatory business rate relief scheme for 2025/26 along with any other changes to reliefs that may be announced by the Government.

Cabinet recalled that, at its meeting held on 20 December 2024, it had considered the updated financial forecast / budget 2025/26. That updated financial forecast had been subsequently subject to consultation with the Resources and Services Overview and Scrutiny Committee, which had met on 13 January 2025, and their comments had been considered earlier on in the meeting under Minute 113 above.

It was reported that, since the Cabinet’s meeting on 20 December 2024, additional changes had been required, primarily because of new or revised information becoming available, which included the impact of the Government’s Provisional Local Government Financial Settlement announcements.

Cabinet was informed that the changes required had resulted in a reduced deficit for 2025/26 of £0.056m(0.3% of the Council’s current net budget), a change of £1.452m compared to the £1.508m deficit presented to Cabinet in December. Appendix A,along with comments set out in the Portfolio Holder’s report, provided further details across the various lines of the forecast, with the most significant change being the favourable and potentially one-off income from Business Rates via the estimated Collection Fund position at the end of this financial year. The most up to date savings schedule and cost pressure summary were set out in Appendices B and C respectively.

Members were advised that, to enable the detailed estimates along with the various resolutions / ‘technical’ appendices required for Full Council in February to be finalised, a delegation to the Portfolio Holder for Corporate Finance and Governance was included within the report’s recommendations. A further delegation was also included therein to enable a business rate relief policy, associated with the continuation of a mandatory Government relief scheme in 2025/26, to be finalised in advance of bills being printed and sent out before the start of the financial year, along with reflecting any further changes that could be announced by the Government.

It was pointed out that the budget position set out in this report would change as further adjustments were required as part of finalising the budget for presenting to Full Council on 11 February 2025, with a further delegation included in the report’s recommendations to reflect this.

Cabinet was made aware that based on the final proposed budget for 2025/26, the Council’s own council tax requirement was £10.674m,which was based on a 2.99% (£5.79) increase for this Council’s services, with an annual Band D council tax of £199.52.Those figures were expected to remain unchanged and therefore would be reflected in the various budget resolutions / ‘technical’ appendices proposed to be delegated to the Portfolio Holder for Corporate Finance and Governance.

Members were aware that the Council’s annual budget and the District and Parish elements of the council tax would be considered by Full Council on 11 February 2025 with approval of the ‘full’ council tax levy for the year being considered by the Human Resources and Council Tax Committee later on during February 2025.

As set out in earlier reports, despite the challenging financial and economic environment, confidence in the long-term approach to the forecast remained, which was supported by the Forecast Risk Fund. The Council continued to maintain a prudent and sustainable approach to its long-term plan, which provided the ‘platform’ against which it could consider its on-going financial position in response to the challenging economic outlook it faced.

The Deputy Leader of the Council read out the following statement:-

“Just before Christmas we received the Provisional Local Government Finance Settlement, which we briefly discussed at our Cabinet meeting on 20 December. The forecast has been updated to reflect these settlement figures along with a limited number of other changes, which are set out in the report we have in front of us today.

The biggest change we have seen since we considered the earlier forecast back in December relates to Business Rate income receivable via the Collection Fund estimates with details set out within the report. Although we await the announcement of the Final Settlement figures shortly, additional income is expected with details set out within Appendix B. Appendix B also includes additional income we expect to receive under the terms of the existing council tax sharing agreement with the major preceptors.

These changes are positive in terms of the budget for 2025/26 and ‘protect’ the Forecast Risk Fund position that in turn supports the Council from 2026/27 onwards. However, it is likely that they may be one-off in nature, which we will need to consider as part of developing the forecast during the year.

As set out within the report, there is quite a bit going on in future years, such as the Government’s review of Local Authorities needs and resources, a business rate reset and reforms to the new homes bonus to name just a few. Add this to the potential impact of Devolution and Local Government Reorganisation, forecasting over the medium to long term is becoming increasing difficult. However, we continue to have the right frameworks and processes in place to support our financial planning activities and we will continue to provide updates throughout 2025/26.

I thank the Resources and Services Overview and Scrutiny Committee for the important role that they play in our financial planning activities, and I note the item earlier on the agenda relating to their review of both the General Fund and HRA Budget proposals and their associated comments. 

In terms of the Full Council meeting in February, we will be recommending a Band D Council Tax amount of £199.52 in 2025/26, an increase of 2.99%. It is always worth highlighting that our element of the overall Council Tax bill is only around 10% and is just over 50p a day. I think this continues to represent excellent value for money especially when you think about all the things the Council does and the services it provides to residents.

As set out in the report, there are a few budget adjustments that remain outstanding, which will be finalised in readiness for reporting to Full Council on 11 February. The report to Full Council in February will therefore reflect Cabinet’s final budget recommendations for 2025/26 along with the various technical appendices to support the associated discussions and required resolutions on the night.”

Having set out and considered the latest financial forecast as part of the process of developing the budget proposals for 2025/26 for recommending to Full Council on 11 February 2025:-

It was therefore moved by Councillor I J Henderson, seconded by Councillor Barry and:-

RESOLVED that Cabinet:

a)       approves the updated financial forecast, as set out in Appendix A to the Report of the Corporate Finance & Governance Portfolio Holder (A.3), along with the savings and cost pressures set out in Appendices B and C respectively that form the firm proposals for the 2025/26 budget and recommends to Full Council:-

a Band D Council Tax for district services of £199.52 for 2025/26 (a 2.99% increase), along with the associated council tax requirement of £10.674m.

b)       authorises the Portfolio Holder for Corporate Finance and Governance, to agree the ‘technical’ appendices and resolutions for the budget proposals for recommending to Full Council on 11 February 2025;

c)   authorises the Chief Executive, in consultation with the Corporate Finance and Governance Portfolio Holder, to report directly to Council in respect of the formal resolutions necessary to implement the Executive’s budget proposals including any further amendments emerging from additional information becoming available and/or notifications received from the Government; and

d)    authorises the Portfolio Holder for Corporate Finance and Governance, to agree / adopt a Retail, Hospitality and Leisure mandatory business rate relief scheme for 2025/26 along with any other changes to reliefs that may be announced by the Government.