To recommend to Council the proposed 2024/25 revenue budget, Medium Term Financial Strategy and the Treasury Management Strategy. 

Opening remark by the Leader

Regarding the Budget and the local settlement, clarification was only received on 24 January in respect of the additional funding received and this will be discussed today along with the amendment to the recommendation.   

The Cabinet member for finance and corporate services introduced the report. It highlighted that the revised budget for 2024/25 was now £210m.  It was confirmed that; the central government settlement was better than expected at £2.5m; the Rural Services Delivery Grant was increased to £945,000 and the Social Care Grant for adults and children was increased to £1.835m.  The additional funds will be used to cancel the planned car parking increase; provide funding towards strategic housing activities; provide funding towards the Leominster heritage action zone; to remove the planned reduction in Library opening hours; to support Economy and Environment directorate by resourcing a funding officer; to provide funding for the community and volunteer sector; to allocate funding to Parish Councils for the lengthsmen scheme; to provide funding towards Herefordshire footpaths; to provide funding to address drainage works across the road network; add money to the financial resilience reserve and the new social care resilience reserve.

It was noted that each directorate has its own pressures and savings plan to deliver the directorate savings of £11.6m.   

The Medium Term Financial Strategy sets out the Council’s budget for 24/25 and the financial plan until 27/28.  Noted there was only a £1.9m funding gap over the medium term financial period.

Cabinet members discussed the report and it was noted to be a positive opportunity to allocate money to be used locally for the right of way footpaths, lengthsmen scheme and drainage.  Also, that the investment in the Children’s directorate will result in improved outcomes for children and families. 

Group leaders gave the views of their groups.  The additional funding announced was welcomed.  Concern was expressed regarding underfunding of public services and when progress will be made with improving the A49 and transport links to the motorway.  It was noted that there should be close monitoring over the use of contractors at the Council and caution taken with MERS.  The cancelation of car parking charges was welcomed.  It was queried what percentage of people fund their own care and what the impact will be due to the asylum seekers moving from the Three Counties Hotel and from the Talbot hotel.  It was asked that high school transport costs for families transporting children from Credenhill to Weobley are addressed.  Clarification was sought as to where funding monies have been allocated in the Budget report regarding targeted support for hard up households. 

In response to the queries it was noted that local government funding is tight and extra monies are welcomed. Regarding the A49 the Cabinet member advised the bypass will come to Cabinet in February. It was confirmed that monitoring of Council spending will be closely monitored with Cabinet portfolio holders conducting a monthly review of all expenditure and the £500 moratorium will continue next year.  ...  view the full minutes text for item 82