The Corporate Resources Director and Section 151 Officer will
provide a presentation to the Committee.
Minutes:
The Corporate Resources Director (and Section 151 Officer) attended the meeting to provide a presentation on the 2024/25 Annual Budget and an update on the Medium Term Financial Strategy (MTFS).
Members were advised that the 2024/25 Annual Budget would be fully considered by Cabinet at its meeting on 19 February 2024 in readiness for its
final approval at the Extraordinary Council (Tax Setting) meeting on 4 March
2024.
General Fund Budget
Members were advised that the budget for 2024/25, as presented, had assumed a 2.94% increase to Council Tax (an anticipated additional income of £2034K for the Council) without any contribution from General Reserves.
In relation to the General Fund, savings and efficiencies had been identified from undertaking a Council wide base budget review, a Regeneration service review and a renegotiated contract with Civica for the Revenues and Benefits system.
Investments had been made in the following areas:
· Training and development – new Decision Making Accountability (DMA) Structure
· Growth in Council events
· Infrastructure Grants to Voluntary Bodies
· Asset Management – Cleaner Greener Initiatives
· Corporate Policy and Performance Review
· Corporate Communications Review
· Customer Services – Improved Accessibility.
Comparison of Borrowing against Neighbouring Authorities
Members were shown an illustration of the Council’s borrowing compared to other Nottinghamshire authorities and confirmed that the Council were very much in line with their spending in comparison.
Council’s Investment Portfolio
An update was given as to the current status of the Council’s investment portfolio and its contribution towards the Council’s total income stream.
Medium Term Financial Strategy
Committee was advised of the significant uncertainty around the level of resources which would be available to the Council beyond 2024/25. Local Government Funding Reform was due to take place during 2025/26 at the
earliest. A summary was then given of estimated expenditure, income, cumulative and annual funding gaps and inflation assumptions that could evolve and affect the Council’s finances over the next 3 years.
Housing Revenue Account (HRA) - Investments
Members were advised that investments had been made in the following areas:
· Payment of new Regulator Fee - (Social Housing (Regulation) Act 2023
· Staff Training under new Regulations
· Policy and Performance Review (HRA share)
· Corporate Communications Review (HRA share)
To conclude Members received an outline of the proposed HRA budget for 2024/25 which included provision for funding for increments and contractual inflation, any revenue implications from the proposed Capital Programme (not yet determined) and the effect of the recent Council housing rent increase of 7.7%, as determined by Cabinet on 29 January 2024.
RESOLVED that
a) the presentation from the Corporate Resources Director (and Section 151 Officer) on the 2024/25 Annual Budget and the update on the Medium Term Financial Strategy, be received and duly noted;
b) as a result of (a) above, the following comment from the Committee Members be forwarded to Cabinet/Council for consideration as part of their budget deliberations for 2024/25:-
“Having listened to the presentation and update from the Corporate Resources Director (and Section 151 Officer) in relation to the Council’s 2024/25 Annual Budget and Medium Term Financial Strategy and then having undertaken a full and robust discussion regarding the same, Cabinet be advised that the Principal Select Committee urges them to approve the Annual Budget (with the assumption of a 2.94% increase to Council Tax and without any contribution from General Reserves) in its entirety, without amendment.”