To approve the 2024/25 draft budget for consultation.  This report provides an estimated funding position, based on information known to date, and sets out the key pressures and the savings proposals for each Directorate.

The Cabinet member for finance and corporate services introduced the report and highlighted that Cabinet inherited a funding gap between estimated income and planned expenditure of £28.8m which has been reduced to zero and a balanced budget has been achieved.   

The revenue budget is a draft and will be subject to consultation with council members, council’s scrutiny committees, businesses and the public.

This draft revenue budget totals £205.2m for 2024/25 which includes a 4.99% increase in Council Tax and the current estimate of central funding, due to be announced in December 2023.

The base budget for 2024/25 is proposed to fund identified budget pressures of £43.3m which have been offset through savings and efficiencies of £19.5m together with mitigations of £7.9m to enable us to deliver a balanced budget of £205.2m. 

The forecasts for inflation and Consumer Price Index were noted. 

The increase in the national living wage for individuals over 21 from 1 Apr 2024 has been considered as part of this draft budget.

It is the council’s plan to implement the maximum 4.99% increase in council tax for 2024. If additional funding is identified in the provisional settlement then cabinet will review what to do with the surplus.

The draft revenue budget is proposed for each directorate at paragraph 16.  The breakdown is detailed at Appendix B with a total budget of £205.170m with details of how it is funded. 

Paragraph 17 shows a summary of the unfunded pressures of £43.3m by directorate. It is proposed that the £4m all ages social care budget approved in the 2023/24 budget is applied to the Community wellbeing directorate in 2024/25 to fund demand and cost pressure in adult social care.

Noted that each Directorate has key budget pressure and highlighted pressures within the Community Wellbeing directorate and Children’s and Young People.   Paragraph 21 outlines how the savings are planned over the three years period and will enable a reduction of the base budget by 31 March 2027.

Highlighted there will be a small increase in parking charges in the Economy and Environment directorate (following the deferred savings targets).  

Noted that Corporate Services will deliver their savings through a review of services, business support functions across the council and a review of the management structure.

Totals savings of £19.5m are proposed comprising of £11.6m of directorate savings and a further £7.9m of council wide savings, details are within Appendix A.

Noted that outstanding information expected to have an impact on the proposed budget for 2024/25 and the Medium Term Financial Strategy will include, the provisional and final local government finance settlement for 2024/25, the outcome of the public consultation and recommendations from the scrutiny management board. 

Confirmed that cabinet will propose the 2024/25 revenue budget for recommendation to council at its meeting on 25 January 2024.  Council will meet to approve the 2024/25 revenue budget and supporting appendices at its meeting on 9 February 2024.

No points were raised by cabinet members. 

Group leaders gave the views of their groups.  Queries were raised regarding cost of school transport, increase in parking charges, charging for welfare support, reducing Balfour Beatty’s services and how much information has been shared during the consultation process. Concerns were expressed regarding the impact of the voluntary resignation process, that the risks were not rated appropriately, the impact of the proposed savings with carers packages, effect of reducing library hours and that the figures were too optimistic.  Further information was requested regarding Hoople’s service level agreement, that the booking system at the Waste and Recycling Centre would remain and clarification sought regarding the £4m reserves to fund in year expenditure within Economy and Environment.  

In response to the queries it was noted that a full response would be provided regarding school transport costs.  Also, the increase in parking charges was 20p, 10p per year from the deferred increase.  It was confirmed that charging for welfare benefit support refers to charging the NHS, not individuals, for the advice and support provided to NHS patients which is currently provided for free. The quality of the roads will not be effected by the reduction of Balfour Beatty savings and advised there is a capital programme to ensure more money is spent on roads. Regarding the public consultation it was confirmed that this is ongoing and continues until 31 December 2023.  It was clarified that key services won’t be effected as a result of the voluntary resignation scheme and it is there for those that can benefit from it.  In respect of the risk rating regarding care, confirmed this was not registered as high due to extra funding being in place for both directorates. Assurances were provided that the figures stated can be delivered.  It was confirmed that the Service Level Agreement with Hoople will be renegotiated to gain savings. Lastly, the comments regarding waste management and recycling centres were noted and advised this is a consultation and the budget is draft, all comments are welcomed.

The draft proposals were unanimously resolved that Cabinet:

a)    approves the 2024/25 draft revenue budget, which includes the key pressures and savings proposals for each Directorate, for consultation with Members, the council’s relevant scrutiny committees, business rate payers and the public; and

b)    acknowledges that until the Local Government Finance Settlement is published in late December 2023, the funding assumed in the draft 2024/25 budget is an estimate of expected funding.