To present to Council the Executive’s General Fund budget proposals for 2025/26.

Earlier on in the meeting, as detailed under Minute 105 above, Councillors P B Honeywood and S A Honeywood had each declared a Non Registerable Interest in relation to this item insofar as they had a family member who was a customer of Careline. Having previously consulted the Council’s Monitoring Officer, those Councillors remained in the meeting and took part in the Committee’s discussions on this agenda item.

 

Further to Minute 116 of the meeting of the Cabinet held on 31 January 2025, the Council considered the Executive’s General Fund budget and Council Tax proposals for 2025/26.

 

Members noted that, as highlighted in the report to Cabinet on 31 January 2025, the following adjustments had been outstanding at that time, which had now been reviewed / finalised for inclusion within the final budget proposals as necessary:

 

1.   recharges between the GF and HRA;

2.   income from Business Rates;

3.   changes emerging from the Final Local Government Finance Settlement and / or other grants / funding, which would include the final position in respect of the proposed reimbursement of the increased national insurance costs that was set out within Appendix B; and

4.   any impact from proposed fees and charges.

 

Council was made aware that, in respect of item 3. above, the Final Local Government Finance Settlement was still awaited. A recommendation had therefore been included within the report to enable the budget to be updated accordingly once confirmation was received.

 

Members were informed that the updated forecast for 2025/26, including the changes above, was set out in Appendix A. The forecast deficit for 2025/26 of £0.056m, that had been reported to Cabinet on 31 January, had been revised to an overall net surplus of £0.839m. This change had been largely due to the final figures associated with income from business rates. This had therefore negated the need to draw money down from the Forecast Risk Fund, and instead a contribution of a corresponding amount to the same fund was proposed.

 

It was reported that Appendices B and C set out the Net Savings and Cost Pressures respectively. Those remained unchanged from the same appendices considered by Cabinet on 31 January 2025.

 

Council noted that, as recommended by Cabinet on 31 January 2025, the Executive’s budget proposals set out a Band D Council Tax of £199.52 in 2025/26, an increase of 2.99% (£5.79), with a Council Tax requirement of£10.674m.

 

Members were advised that, taking into account the changes to the budget required since Cabinet had met on 31 January 2025, the total net General Fund revenue budget for 2025/26 was £17.660m, along with a General Fund capital programme totalling £0.827m.

 

It was felt that the proposed contribution to the forecast risk fund in 2025/26 as highlighted above provided additional financial flexibility when looking ahead to 2026/27 and beyond.

 

Within that context it was acknowledged that the Council needed to maximise the time that the Forecast Risk Fund provided, to identify and deliver the necessary savings to continue to support long term financial sustainability.

 

Council was cognisant that the budget recommended by Cabinet for consideration by Full Council included only the District and Parish elements of the council tax rather than those from the major precepting authorities. The formal approval of the ‘full’ Council Tax levy for the year, including the precepts from Essex County Council, Police and Fire, was delegated to the Human Resources and Council Tax Committee which was due to meet later on during February 2025.

 

The Leader of the Council (Councillor M E Stephenson) made the following budget statement:-

 

“Chairman, Members of the Council, I would like to start by acknowledging that, while these budget speeches have historically been lengthy, I will endeavor to keep mine brief this year—much to the relief of some of you, I am sure. This meeting, as always, is about the budget for the coming year, and my goal is to allow for more time for valuable discussion on one of the most important roles we, as a Council, undertake: our responsibility for financial stewardship.

 

I am pleased to lead with some positive news: the budget presented tonight is not only balanced, but also includes a surplus. For the time being, this surplus will be directed into our Forecast Risk Fund, ensuring a stable financial outlook for the years ahead. Our long-term financial planning provides us with both flexibility and security to respond to future challenges—whether these come in the form of cost pressures, structural deficits, or the delivery of our key priorities.

 

This budget also offers the opportunity to reflect on some of our collective achievements. As many of you know, I have consistently emphasised my focus on getting things done. This includes both continuing the important projects initiated by previous administrations and driving forward this administration’s new initiatives. Some of our notable successes include:

 

Spendells - our flagship homeless centre that provides a much-needed roof over the heads of 30 homeless families and contributes over £200k saving per year against our homelessness cost pressure.

 

Honeycroft - a sheltered scheme that was delivered under budget and on time. This allowed us to look after the more vulnerable residents in Tendring whilst freeing up seven council homes for much deserving families.

 

Sunspot - a scheme in Jaywick Sands, a multi-million-pound, award-winning project now complete and is now fully covering its costs two years ahead of predictions.

 

It should also be noted that by completing these projects swiftly we have minimised the rising cost that invariably happens to projects between conception and delivery.

 

That is not all that has been achieved this year as there is a significant amount of projects that are progressing well that are still in the pipeline to be delivered. These include:-

 

•            Levelling Up Fund - Carnarvon Terrace / Library in Clacton

•            Significant progress on the 15 projects within Community Regeneration Partnership Programme (‘Levelling Up’) which will make transformative investments in the District.

•            Capital Regeneration Project - Milton Road /Kingsway/ Victoria Street/ Harwich library.

•            Necessary improvements to the Clacton Leisure Centre and investments in local assets, ensuring our facilities meet the growing needs of residents.

•            Playzones in all of the towns in the District.

 

Stewardship isn’t just about counting the money and delivering exciting projects, it is also about the confidence of how we spend and getting the very best value from it and I am pleased to get a few milestones tucked away this year, and I wanted to raise two tonight;

 

•            The first is the developing and administering of a new Social Value Policy, which will allow the way we spend our money to generate additional benefits for our communities.

•            The second is the clearing of the backlog of the Council’s external audits. For the first time in years, we have a complete, signed off audit trail for the Council’s finances. I’d like to thank our outstanding officers who have worked so hard with the many demands that come from not just the three outstanding audits, but also the current audit. It is a testament to them that our backlog has been cleared and our current audit is on its way to our Audit Committee as I speak.

 

Our ability to secure external funding continues to be a key focus, and I’m proud to report success on this front as well. We have secured multiple strands of funding from the Government’s regeneration programs and beyond, including:-

 

•            Funding for improvements to our leisure centres from the Government’s Swimming Pool Fund.

•            £500k of UKSPF money to support various initiatives District-wide on top of over £1million in previous years.

•            An additional £500k of green space funding for High Street Accelerator in Dovercourt, which includes investment for open spaced landscape improvements. This is in addition to £237k secured last year for improvements in Dovercourt.

•            £40k to fund a structural survey on the Dovercourt Leading Lights

•            £200k capacity funding Long Term Plan for Towns overseen by Clacton Town Board.

•            We’re also pursuing a SALIX funding bid for over £1 million green energy solutions, aimed at replacing our ageing boilers at Clacton Leisure Centre.

 

In terms of future financial management, we’ve been proactive. Notable actions this year include:-

 

•            Waste, recycling, and street cleaning contract preparations to provide flexibility as decisions are made later in the year.

•            Investment in Council assets to avoid “ticking time bomb” scenarios due to neglect.

•            Setting aside £1 million for coastline management, which we hope will help leverage additional external funding.

•            Proactively managing cost pressures, such as the growing issue of homelessness, where we’ve allocated resources to manage the financial implications.

•            £1 million to fund a Project Delivery Unit to give much needed capacity to deliver the many ongoing projects and more may be needed if we are to complete all outstanding projects to meet the timelines set by LGR.

 

Looking ahead to the proposed General Fund Budget for 2025/26, we have made careful assumptions and managed risks to ensure a balanced budget. The savings plan will continue to be an important element in helping us continue to balance the budget in future years. Savings do not necessarily mean reductions in expenditure as they can include increases in income, which is reflected within the current plan and will be something we will continue to explore going forwards – one good example being the on-going successful management of our investments. As reflected in the savings plan, income from our treasury management activities continues to deliver a significant level of funding that remains an important part of balancing our books, with the budget for 2025/26 expecting an investment income of over £1.8 million. Unlike other councils that have proposed savings plans that are ultimately undeliverable, as shown, the savings in our plan are achievable, many of which have already been secured.

 

In terms of the overall net budget for 2025/26, it is now in surplus with a contribution being made to the Forecast Risk Fund rather than a contribution from it, which was the case in earlier forecasts.

 

This budget is supported by a 2.99% proposed increase in our share of the total council tax bill. It is always good to take the opportunity to highlight that our share of the overall bills, that will start to hit doormats in March, totals just over £199 per year for a band D property. This represents only about 10% of the overall amount payable by households and is just over 50 pence a day. I think this continues to provide excellent value for money, especially when you think of everything the Council delivers each year.

 

Part of stewardship is having one eye on the future and the challenges that may lie ahead and for me these come in three areas:-

 

The first is the BAU, the business as usual and these incorporate items such as the rise of inflation, the increase in the cost of living, which makes even more demands on council services, reduced interest rates, which will affect treasury outcomes and volatile energy costs.

 

The second is the Government equation. I welcomed the continued commitment to our levelling up projects, and announcements around UKSPF and right to buy receipts, alongside a commitment to a multi-year settlement which will add stability in forecast predictions. We do however need to understand the significant impact from National Insurance changes, along with potential changes in and around business rates and the new homes bonus which will impact our 2026/27 financial position.

 

Lastly, but by no means the least, is the Government’s recent white paper on local government devolution, having a significant impact on our future financial planning. We are actively considering this new landscape and preparing our savings plans with a focus on identifying efficiencies, protecting services, and managing cost pressures.

 

The budget surplus for 2025/26 also provides us with some flexibility, which could be crucial in supporting the capacity required for local government reorganisation, should that occur.

 

However, despite these uncertainties, I am confident that the strong financial foundation we have built will enable us to navigate these challenges. This confidence is backed by the recent recognition from our External Auditor, whose independent view, after a long delay, assures us of the effectiveness of our financial stewardship.

 

Lastly, I want to highlight that we remain committed to supporting Town and Parish Councils. In 2025/26, we will continue to provide grant funding to offset the costs of the Local Council Tax Support Scheme, ensuring that these local councils remain financially stable and able to support our communities.

 

To conclude, this budget represents a continued commitment to sound financial management, while also allowing us to deliver on our key priorities. By adopting this budget, we will maintain our momentum in managing resources effectively, protecting services, and planning for the future. I’m confident that with the steps we’ve taken, we are in a strong position to face the challenges ahead.

 

Chairman, I present the budget for 2025/26.”

 

It was moved by Councillor M E Stephenson that the recommendations, as set out on page 18 of the Council Book, be approved.

 

In addition to Councillor Stephenson, Councillors P B Honeywood, Harris, Everett, Bray, Bush and M A Cossensaddressed the Council on the subject matter of Councillor Stephenson’s motion.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, as reflected within Council Procedure Rule 19.5 of the Council’s Constitution, a named vote on Councillor Stephenson’s motion was taken.

 

That vote resulted as follows:

 

Councillors For	Councillors Against	Councillors Abstaining	Councillors Not Present
Amos Baker Barrett Barry Bensilum Calver Casey Chapman BEM A I Cossens M A Cossens Davidson Fairley Fowler Goldman Guglielmi I J Henderson J Henderson Kotz Land Morrison Newton Oxley Placey Platt Scott Smith Steady G L Stephenson M E Stephenson Sudra Talbot White Wiggins	None	Alexander Bray Bush Codling Everett Griffiths Harris P B Honeywood S A Honeywood Keteca Skeels Thompson Turner	Doyle Ferguson

 

Councillor Stephenson’s motion was declared CARRIED and it was therefore:-

 

RESOLVED that, having had regard to the Chief Finance Officer’s (Section 151 Officer) report on the Robustness of Estimates and Adequacy of Reserves in accordance with the requirements under Section 25 of the Local Government Act 2003, and having taken account of any responses to the budget consultation process, the Council approves the 2025/26 budget proposals (based on a 2.99% (£5.79) Band D council tax increase for district services) and agrees that:

 

i)     the total General Fund net revenue budget for 2025/26 be set at £17.660m (a council tax requirement of £10.674m excluding parish precepts);

 

ii)    the General Fund capital programme be approved totalling £0.827m in 2025/26;

 

iii)    the detailed General Fund budget for 2025/26 be as set out in Appendix D to item A.1 of the Report of the Cabinet;

 

iv)   the calculation of the Council’s Council Tax requirement, Special Expenses and Parish/Town Council precepts, be as set out at Appendix F to item A.1 of the Report of the Cabinet;

 

v)    the Council Tax for District and Parish/Town Councils’ services be as at Appendix I to item A.1 of the Report of the Cabinet and that these are the amounts to be taken into account for the year in respect of the categories of dwellings listed in different valuation bands; and

 

vi)  if budget adjustments are required such as those necessary to reflect the Final Local Government Finance Settlement and the late notification of other external / grant funding, then in consultation with the Corporate Finance and Governance Portfolio Holder, the Council’s Section 151 Officer be authorised to adjust the budgets accordingly with no net impact on the overall budget or capital programme set out above.