Cabinet – 2 October 2024
Medium Term Financial Plan - Scene setting
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Purpose |
For Decision |
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Classification |
Public |
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Executive Summary |
This report · Presents the latest medium-term financial plan (MTFP) of the council. · Considers the initial development of the MTFP for the General Fund and Housing Revenue Account (HRA) including the factors that will influence its delivery and that of the annual budget strategy 2025/26. · Proposes a financial strategy to support the delivery of a legally balanced budget for 2025/26. · Proposes a budget planning process and timeline for key financial reports. |
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Recommendation(s) |
Cabinet are asked to recommend to Council that the: 1. revised MTFP forecasts, as outlined within the report and appendices be adopted. 2. options identified to close the budget gap for 2025/26 and through to 2028/29 are developed further. 3. reporting timeline as set out in paragraph 74 be agreed. 4. proposed car parking fees and charges from 1 January 2025 as referenced in paragraph 48 and detailed in appendix 5 are approved. 5. proposed Keyhaven river fees and charges from 1 January 2025 as referenced in paragraph 49 and detailed in appendix 6 are approved. 6. decision to enter into an agreement with other Hampshire authorities regarding the pooling of business rates is delegated to the s151 officer in consultation with the portfolio holder for Finance & Corporate. |
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Reasons for recommendation(s) |
To comply with accounting codes of practice and best practice which requires councils to have a rolling multi-year MTFP. To provide Cabinet with the latest high-level overview of the MTFP. To present a proposed financial strategy to support the delivery of a balanced budget for 2025/26. To ensure fees and charges decisions are taken in line with the Council policy. |
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Ward(s) |
All |
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Portfolio Holder(s) |
Councillor Jeremy Heron - Finance & Corporate |
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Strategic Director(s) |
Alan Bethune – Strategic Director Corporate Resources & Transformation (Section 151 Officer) |
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Officer Contact |
Paul Whittles Assistant Director - Finance 02380 285766 paul.whittles@nfdc.gov.uk |
1. The Council’s financial strategy seeks to achieve a balanced budget through the crystallisation of efficiencies driven through Council Transformation, supported with the targeting of new and additional income generation and align available financial resources, and create additional financial resources, to deliver on corporate priorities. Financial stability over the medium-to-long term has underpinned the Council’s financial strategy, with due consideration being given to the potential implications that the Fair Funding Review, Business Rate Reset, and national rent setting policy will have on this Council. The Council has understood the need to consider its overall organisational business model in order to ensure the future protection of its services and seeks to align the financial plan to ensure delivery of key priorities as outlined in the Corporate Plan.
2. Actions need to commence on the development of future years’ budgets. To support this work, it is necessary that an assessment is made of the likely financial scenario based upon latest available information. To help support the important work of Portfolio Holders and officers in developing future plans, the future outlook and the current uncertainties are set out within this report and a prudent forecast set out through the appendices.
3. The announcement of yet another 1-year General Fund funding settlement for 2024/25 did not come as a surprise considering the norm from the previous few years. Initial suggestions from the (recently rebranded) Ministry of Housing, Communities and Local Government are that 2025/26 will be a 1-year funding settlement, with a target to issue a multi-year settlement (potentially 2 years) thereafter. With the formation of the new government in July 2024, it is highly unlikely that the long-awaited Fair Funding Review will come into effect from 2025/26. The Business Rate Retention Scheme is still under potential review within the context of the Fair Funding Review. The expectation is that this will still be based on a hard reset with partial redistribution of the national surplus, and a revised retention scheme (currently a 50% retention scheme, with the District Council retaining 40% of Business Rate growth).
Economic Commentary
4. After a period of frequent changes to the Bank of England’s base rate, increasing the rate from the historic low of 0.1% in March 2020 to 5.25%, the Bank of England’s base rate for the first time in over 4 years was reduced in August 2024 by 0.25% to its current 5% rate. Changes to the base rate can impact our investment returns and borrowing rates of interest.
5. Many mortgages at low fixed rates are continuing to be systematically re-set at higher rates at the end of their fixed rate period. Consequently, there remains increased pressures on households’ ability to afford mortgages payments and reduces disposable income which may impact some of the council’s support costs and revenue streams respectively.
6. The National Employers Pay Award offer for 2024/25 is still to be resolved (except for ‘Chief Officers’, which has been finalised). The 2024/25 approved budget (both for GF and HRA) includes adequate provision for the ‘full and final’ national employers offer, but as this has yet to be agreed by the unions, it is not known whether ultimately the level of budget will be sufficient.
7. The General Fund Medium Term Financial Plan has been populated using the most up to date information currently available covering the period to 2028/29. The effect of the Fair Funding Review and final design of the Business Rate Retention Scheme as outlined in paragraph 3, including the timing of the initial reset, and frequency thereafter of partial or full resets, and the ultimate proportion of rates to be retained by the District Council, has the potential to significantly amend the funding figures currently forecast.
8. The Housing Revenue Account section of the report sets out the specific and unique challenges faced by this ring-fenced account, and begins to introduce some of the key considerations, including rent levels, that need to be factored into the production of a balanced budget for 2025/26, and over the medium-long term.
9. The Council’s overall financial planning needs to take into account inflation and the current cost of living faced by its residents and tenants when making difficult decisions on proposed Council Tax, Rent and Fees and Charges.
10. The report hereafter is split into 2 distinct sections before concluding as a single item. The first considers the General Fund (paragraphs 11 to 52), and paragraphs 53 to 72 considers the Housing Revenue Account.
Funding Assumptions over the Medium Term (Appendix 1)
11. Ongoing annual funding support from Central Government is still uncertain. The 2024/25 final settlement included a services grant (£28,000) and a 4% funding guarantee grant (£1.233 million). The Council also received New Homes Bonus (NHB; £22,000) in 2024/25, although the future of this funding stream is also uncertain. No further funding from NHB or services grants is currently included within the MTFP forecast. The forecast does however assume a continuation of the funding guarantee grant but at a slightly reduced amount; £1 million compared to £1.233 million in 2024/25 with further reductions thereafter.
12. At present, the base scenario for retained business rates has been prepared on the basis that a hard baseline reset will take place in 2027/28 with the loss of c£3.5 million of accumulated growth, partially offset by an assumed damping redistribution following the reset of 60% in 2027/28 totalling £2.1 million, reducing to 40% in 2028/29 and thereafter (£1.4 million). In planning for this hard reset, and in recognition of how the Business Rate collection fund can fluctuate year-on-year, the Council established a Budget Equalisation Reserve and has utilised this reserve in addressing budget fluctuations since 2017/18. Although changes to the business rate system could be implemented in isolation of the spending review, this is considered unlikely.
13. The Hampshire and Isle of Wight s151 group have been consulting on the potential to pool business rates across Hampshire for 2025/26. This would mean that Hampshire retains a greater share of the business rates generated in the county for distribution amongst its partners. Work is ongoing to determine the impact on NFDC and consequently whether we would want to be a part of this arrangement. A recommendation to delegate this decision to the s151 officer in consultation with the portfolio holder for Finance & Corporate is included above.
14. The results from the 2021 census is also likely to have an impact to future Settlement Funding Assessments (SFA) for the Council. The SFA essentially determines funding assumptions on a per head basis and is used within the core funding formulae used by the Treasury and MHCLG in determining finance settlements. The district saw a reduction in population of 0.38% in comparison to 2011. Whilst this might not appear significant, the overall increase in England was 6.56%. Whilst other areas then will see an increased funding need reflected in their SFA, the SFA for the district will decrease.
15. The 2021 census outcome was not reflected in the SFA for 2024/25 and considering the assumption of a continuation of funding support for 2025/26, this pushes the impact back a further year, to 2026/27.
16. Any form of continued funding from services grant and/or NHB built into the next funding settlement would be very welcome, although unlikely, and in any case, has the effect of reducing the % funding guarantee grant by an equivalent value.
17. The Council’s base budget for 2024/25 also includes Flexible Homelessness Support Grant and specific other homelessness prevention grants, totalling £1.051 million. For the time being, the base scenario assumes the grants will be static over the period, and in any case, at the point grants are reduced, fixed term resource positions would need to end (unless the Council takes the decision to continue and fund accordingly). Any reduction in resource in this area would be subject to evidence-based decisions based on costs of preventative measures, as against cost of statutory duty of care reactionary responsibilities.
18. In recent years, the Council has followed the central government directive that local tax should be used to support local services. As the cost of services increases, so must local taxation. The Council has no say on the setting of business rates but does have the statutory responsibility to set a level of Council Tax for the oncoming financial year. The current allowable government parameter (albeit set by the previous government) for an increase, before a referendum is necessary, is for annual Band D equivalent Council tax to increase by the greater of 2% or £5 for 2025/26 and thereafter. Each year currently assumes a £5 increase. This updated MTFP follows on from the previously established position, assuming that the Council makes use of the allowable pre-referendum increases;
19. Table 1 – Council Tax
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2025/26 |
2026/27 |
2027/28 |
2028/29 |
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£ Annual level |
204.79 |
209.79 |
214.79 |
219.79 |
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%age increase |
2.50% |
2.44% |
2.38% |
2.32% |
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£ Increase |
5.00 |
5.00 |
5.00 |
5.00 |
||
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£ Value of increase |
363,667 |
365,485 |
367,312 |
369,149 |
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20. The following graph demonstrates the base funding scenario:
Budget Requirements over the Medium Term (Appendix 2)
Pay & Price Increases
21. Increases in costs are expected to total £2.920 million over the next 4-year period.
22. The assumptions include the following areas of pay and price increases;
a. Annual Pay Award of between 2.00% - 2.5% per annum
b. Incremental progression
c. Insurance, Utilities, Fuel and Maintenance cost increases
Budget Adjustments Relating to one-off Items
23. The £1 million increase to homelessness budget in 2023/24 was reduced by a third in 2024/25 and is being forecast to reduce by a further third in each of the next 2 years (subject to close monitoring considering paragraph 5).
24. Additional removals of one-off investments in strategies and the Local Plan (funded hereafter through the reserve and increased planning income yield) total £522,000.
25. This gives a combined favourable MTFP contribution of £855,000 in 2025/26.
Waste Collection
26. Discussions have been ongoing with the County Council and the Councils across Hampshire. The County Council are proposing changes to long-standing arrangements, above the loss of recycling credit income that the Council lost (to the County) from April 2021. The proposals being outlined by the County would further reduce the Council’s recycling income. The Council is still engaging in discussions with the County Council. A financial impact of £400,000 has been allowed for within the MTFP for 2026/27 with further financial implications likely after the implementation of the new Materials Recycling Facility. Updated forecasts will be presented within future MTFP updates pending ongoing discussions with the County Council.
27. The newly adopted Waste Strategy included some key financial assumptions around new burdens funding, the Extended Producer Responsibility (EPR) scheme and the Deposit Return Scheme, all of which will play a part in absorbing additional forecast costs, and potentially current costs of waste and recycling collection. The implementation of the EPR scheme has been delayed, and as of yet, no confirmation has been received on new burdens funding as a result of the introduction of the new national waste strategy. The working assumption within the MTFP is that new costs will be offset through new burdens funding from 1 April 2026. Transitional funding has been provided to cover the initial costs of vehicles and bins for the new food waste service, but nothing has been provided to contribute towards necessary changes to depot infrastructure to support the additional fleet and crews. To re-confirm the expected key expenditure forecasts, as included within the Waste Strategy;
a. The additional annual cost of separate food waste collection is forecast at £1.612 million
b. The reduced collection cost as a result of changing to an alternate weekly collection cycle is forecast at £342,000.
28. Resourcing within the Waste Collection service has been fairly settled to date in 2024. It is envisaged that the new service aligned to the new waste strategy will help further, as the manual loading requirement reduces.
29. Further work is required to re-base the estimates on the phased food waste collection system roll-out, and updated assumptions will be included in future Medium Term Financial Planning, following key decisions required on the programme delivery timeline.
New Budget Requirements, Alignment of Budget to Priorities and Other Matters Arising
30. The 2024/25 budget included a one-off £25,000 to fund a resident insight survey. The survey is likely to be conducted in 2025/26 and so result in a saving to 2024/25, and a continued base budget requirement for 2025/26. The MTFP thereafter reflects the 2-year nature of the survey.
31. As announced by the Leader of the Council in February 2024, an additional £40,000 has been included to support the annual Community Grant Fund activity, resulting in an overall fund balance of £350,000 for 2025/26.
32. The Council must also be extremely mindful of the budget pressures faced by the Council County, as decisions by the County in order to address their budget deficit are very likely to have a direct effect on the district. The District Council must maintain a strong position in terms of statutory responsibilities and remain mindful that the District Council has its own budget deficit and corporate plan priorities to address.
Bringing together the Funding Assumptions and Budget Requirements
33. The overall forecast deficit taking into the account the funding assumptions and necessary budget movements totals £628,000 for 2025/26, increasing to a cumulative £2.443 million by 2028/29. For valuable context, the General Fund budget set for 2024/25 was £24.536 million, so the deficit represents a gap equivalent to 10%. It is vitally important that the Council continues to pro-actively address this funding deficit and create valuable headroom for resources to be directed towards the delivery of corporate plan priorities, which will undoubtedly include difficult decisions on service delivery, Council Tax and Fees and Charges yield over the period.
34. Figure 1 – Cumulative Deficit to 2028/29
35.
Table
2 – Cumulative Budget Deficit
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2025/26 |
2026/27 |
2027/28 |
2028/29 |
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Estimated Cumulative Budget Deficit - £ |
628,000 |
112,000 |
1,488,000 |
2,443,000 |
Financial Strategy and Options Identified to Address the Budget Deficit (Appendix 3)
36. In order to address the forecast deficit to 2028/29, the Council’s financial strategy over the medium-term period extends to:
a. The development and delivery of a structured approach to Council wide Transformation. Delivering a more customer centred and cost-efficient Council, focussing on digital capability, consistency and a skilled and motivated workforce. This will include, for example;
i. digital and cost-effective corporate back-office solutions to our customers, whilst maintaining customer choice in how services are accessed
ii. Developing a programme of business and function reviews aligned to our strategic priorities and transformation design principles that will maximise outcomes, streamline processes and ensure the most appropriate, efficient and effective delivery model
iii. Providing capacity across the organisation by streamlining and joining up activities to enable the adjustment of resources to meet corporate plan priorities
iv. Identifying commercial opportunities to improve income
v. Getting best value from Council assets and considering the impact of new ways of working in refreshed people and accommodation strategies.
b. The release of accrued short-term reserve balances to assist in the damping of the Fair Funding Review (and impact this has specifically to retained business rates) as necessary,
c. The utilisation of reserve balances (and when necessary external borrowing) to invest in assets and assist in supporting a vibrant and robust New Forest Economy, whilst targeting valuable additional income,
d. Ensuring strategies developed through the corporate framework appropriately feed into the Council’s financial strategy; and
e. Investment in an approach to financial planning and spending that reflects the Council’s declaration of a Climate and Nature Emergency.
37. The options identified to close the forecast deficit include:
a. The Generation of additional investment income through the delivery of the enhanced treasury returns and Property Strategies. As well as having significant economic and social benefits, the Commercial and Residential Property Strategies combined with improved interest received are forecast to generate further net income of £350,000 by the commencement of 2028/29.
b. The Transformation Programme making a net fiscal contribution of £1.25 million towards the MTFP deficit; £1 million from process efficiencies and £250,000 from the rationalisation of the council’s accommodation.
c. A pro-active fees and charges yield programme, targeted at £1.05 million over the MTFP period.
38. It will be a significant challenge to deliver the sum of options currently identified at £2.650 million. There is plenty to be done, and difficult choices to be made to crystalise the options that will ultimately support the delivery of a balanced budget over the Medium Term.
39. The Budget Equalisation Reserve balance of £2.699 million is available to plug short term budget gaps. Use of this reserve is only a short-term fix however, as reserves can only be used once, they do not represent a long-term fix to the deficit over the period.
Council Tax Assumptions and the Application of Premiums
40. The base assumption in the MTFP is that the Council continues to apply maximum allowable discretion on Band D Council Tax increase, before the referendum limits set in. These increases over the period have the potential to generate an additional annual income of £1.466 million by 2028/29.
41. Council in February 2024 approved the formal determination as required by the Levelling up and Regeneration Act 2023, to apply Council Tax premiums to dwellings occupied periodically and long-term emptydwellings, for implementation from 1 April 2025; consequently, the MTFP includes an additional £293,000 in 2025/26. Guidance remains outstanding regarding putting these premiums into effect, but it is anticipated they will be forthcoming for April 25 implementation.
42. The MTFP assumes that the Council will look favourably on revenue raising powers made available to it by Central Government and will seek to include the positive financial impact of any legislative changes within future iterations.
Fees and Charges
43. Fees and Charges have a significant role to play in assisting the Council achieve a balanced budget, and in providing the necessary finance for service delivery and enhancements. The Council aspires to continually develop and improve front line service delivery and continues to offer more to the residents and visitors of the New Forest.
44. The Fees and Charges policy agreed February 2024 to support the MTFP assumed that growth in Fees and Charges over the period 2024/25 to 2026/27 will amount to 20% (broadly equating to 6.3% per year if annualised). Specific requirements were placed on Portfolio Holders to:
a. review their discretionary fees and charges to ensure they remain competitive, to ensure they account for increased costs in running and delivering services, and to ensure that the fee increases in 2024/25 have improved income levels as intended and will provide income growth to the Council over the 2 next financial years (2025/26 and 2026/27) equivalent to 20% across the 3 year period.
b. review their fees and charges which are the subject of cost recovery regulations, to ensure that proposed charges meet the increased costs of running services and provide for full cost recovery.
45. Fee decisions for 2025/26 for implementation from 1 April 2025 will be included within the February 2024 Budget setting report, with a decision on charges being made by the Council.
46. Fee decisions for 2025/26 for implementation after 1 April 2025 (an in-year decision), up to a cumulative 20% on the 2023/24 baseline fee will be taken as a Portfolio Holder Decision. Any proposals outside of this rate will be referred to the Council for a decision. The decisions taken by Portfolio Holder will be reported to the Council at the earliest opportunity.
47. In support of the MTFP (including matters arising) and the desire to create short-term fiscal headroom for investment in service delivery and enhancements, it is in the best interest of the Council for some increases to be frontloaded. Early action is required, and fees must look to keep abreast of inflation, and local benchmarks.
48. A recommendation to increase car parking fees and charges from 1 January 2025 is included in this report with full details contained in appendix 5. The revised fees and charges are anticipated to generate around £380,000 of additional income which will support the current in-year variation and the overall yield target included in the MTFP. The proposed prices have been determined following a benchmarking exercise against other comparable authorities.
49. A recommendation to increase Keyhaven river fees and charges from 1 January 2025 is included in this report with full details contained in appendix 6. The proposed fees for implementation from 1 January 2025 are forecast to deliver £25,000 of additional income to the 2025/26 financial year. This additional income is expected to ensure the council meets its budgeted income target for 2025/26 resolving the underlying forecasted in year pressure.
Budget Consultation
50. The Resources and Transformation Overview and Scrutiny Panel established a Financial Strategy Task and Finish group when the panel met 25 June 2024. The group is set to run between September and November. Feedback from the Group will be given to the Overview and Scrutiny panel at its meeting in November.
51. In keeping with prior years, prior to the adoption of the budget by Council in February, the panel will also receive an overview of a few specific and key variable elements within the budget, namely the asset maintenance and replacement programme, and Capital programme.
52. The Council is required to run an annual budget consultation with business rate payers. A consultation is planned take place during November / December 2024.
The Housing Revenue Account (HRA)
Budget Requirements over the Medium and Long Term (Appendix 4)
Pay & Price Increases (Medium Term)
53. Increases in costs are expected to total £2.670 million over the next 4-year period.
54. The assumptions include the following areas of pay and price increases;
a. Annual Pay Award of between 2.00% - 2.5% per annum
b. Incremental progression.
c. Fuel and Energy Cost increases
d. An increase in materials and hired services
Greener Housing (Long Term)
55. The Greener Housing Strategy 2022-2032 was adopted by the Council on 11 July 2022. While final costs are still uncertain, assuming an average £25,000 cost per property the total bill could be upwards of £125 million through to 2050. Funding for this programme of works has been factored into the forthcoming 30-year HRA Business Plan.
Housing Delivery Plan (Medium - Long Term)
56. The Council has a target to deliver 600 new affordable homes by March 2026, which represented an expectation of District Council ownership of around 50% of affordable homes supply brought forward by developers from the local plan sites. 339 NFDC owned homes have been delivered to date. External / Internal financing of this programme has been factored into the medium-term forecast, with the rent income largely offset through property maintenance and management requirements.
Other New Budget Requirements (Medium Term)
57. In 2022/23 the Housing Service was allocated £5.5 million over 3 years to fund fire safety works on high-risk buildings. This was supplemented by an additional £500,000 for 2023/24. Approaching the end of year 3 of this programme indications are that a further £1.0 million is required to complete known works in 25/26 with an expectation that a similar level of funding will be required in subsequent years for the medium-term. The original allocated amount was an estimated cost, and the additional financial requirement represents known expenditure to date.
58. To meet the medium-term Government target of all Council owned housing properties having an energy performance certificate rating of C by 2030, the projected cost is an additional £9.3 million on top of existing capital programmes. The programme timeline is being worked on in more detail and will be reflected in the updated 30-year HRA Business Plan, and in future Medium Term Financial planning.
59. An internal review is underway to understand increased expenditure on the turnaround of empty (void) council properties for re-letting. The outcome of this review may have medium term implications on existing budgets.
Income Assumptions over the Medium Term and their Longer-Term impact
60. Current guidelines to March 2025 allowed for rent increases of CPI (September) + 1%. This was re-introduced in 2020/21, following 4 years of annual 1% rent reductions. However, the Government stepped in for 2023/24, capping increases at 7%, as opposed to sticking to the previous policy which would have seen allowable increases of 11.1% (based on 10.1% CPI + 1%). Early indications are that CPI +1% increases will continue under the new Government and therefore increases of 3% per year have been built into the MTFP.
61. The level of proposed rent for the 2025/26 financial year will ultimately be a Council decision in February 2025, to take effect from 6th April 2025.
62. As the budget preparation cycle progresses, factors such as the number of tenants in receipt of Housing Benefits and Universal Credit, which ultimately seek to cover the cost of accommodation, as against tenant numbers who do not, will be carefully considered. At present, approximately 68% of all housing tenants receive index linked state support.
63. External factors, such as rent levels currently applied across the district within the private rental market will also be considered as social and affordable rent should fundamentally be set in the context of the wider housing market.
64. Energy and other communal costs incurred within the HRA are generally largely recovered by service charges to individual tenants.
Overall Summary and the 30 Year Business Plan
65. The forecast budget adjustments and expenditure priorities as outlined above create a potential for reduced Capital Financing Headroom within the HRA (how much the HRA revenue budget can support the financing of the Capital Development Programme), equivalent to circa £1,315,000 by 2026/27 compared with 2024/25 available resources. This will necessitate a review of the overall capital programme even before building in the impact of the greener housing programme requirements to 2050.
66. Figure 2 – Forecast Expenditure with Capital Financing Headroom
67. The Council engages with an external consultant to assist with the preparation of its 30-year HRA business plan. The 30-year business plan was summarised as part of the budget setting for 2024/25 but is under further review now that clarity has been gained on long -term major repairs, replacement programmes and decarbonisation costs. The Plan itself will come forward separately but it continues to help shape the forecasts as we look forward over the longer-term.
68. The Greener Housing Budget will need to take account of projected additional spend of over £9 million required to upgrade homes by 2030, and an additional circa. £125 million to decarbonise the stock ahead of 2050. Following recent structural changes in the housing maintenance service this decarbonisation work is being amalgamated with replacement programmes (kitchens, bathroom etc.) to gain maximum efficiencies in property upgrades. Whilst there is scope to offset some of these additional costs with grant funding there has been no announcements of future Government funding schemes beyond 2025. The Council continues to lobby the government to make significant grant funding available.
69. There are clearly significant competing demands on HRA resources at this time, whether that be regulated maintenance quality standards, health and safety compliance standards, the projected required spend of over £9 million to meet the EPC C 2030 target, the net zero carbon 2050 target, or the continued priority to deliver additional Council owned homes. In light of the significant external factors placed on the HRA, including an interest rate that has steeply risen from a 13-year average of less than 0.5% to a new level in the region of 5% and high inflation, internal discussions are ongoing to ensure the Council correctly align financial resources available and decisions taken through the Council’s decision making process, working towards the achievement of a sound budget for 2025/26 in February 2025, with the 30-year HRA Business Plan to follow.
Budget Consultation
70. New legislation regarding social housing reform is not likely to significantly impact budgets for 2025/26, although there will be a requirement to increase the training budget due to the requirement to have qualified managers and staff in key roles. However, future years spending and budgeting for the HRA will need wider review, scrutiny and consultation with tenants as part of our commitments in the Tenant Engagement Strategy.
71. The Housing and Communities Overview and Scrutiny Panel will consider the HRA Medium Term Financial Plan and the detailed 2025/26 HRA budget in January 2025.
72. The Tenant Involvement Group will consider the HRA Medium Term Financial Plan in the Autumn and the detailed 2025/26 HRA budget in January 2025.
REPORTING TIMELINE
73. It is important that the Medium-Term Financial Planning of both the General Fund and HRA supports the ambition of the Council and remains driven by the objectives set out in the Corporate Plan. The organisation must be able to support both and must remain vigilant and susceptible to change. A timeline is set out in Table 3, paragraph 74, for Overview and Scrutiny and Cabinet which supports the development of the MTFP, through to the final setting of the 2025/26 budget.
74. Table 3 – Reporting Timeline
|
Item |
Date |
Meeting |
Report |
|
1 |
21 November 2024 |
Resources and Transformation Overview and Scrutiny |
· Financial Strategy Task and Finish Group feedback |
|
2 |
26 November |
Housing portfolio holder briefing |
· Budget update |
|
3 |
4 December 2024 |
Cabinet |
· Medium Term Financial Plan (MTFP) Update |
|
4 |
16 January 2025 |
Tenant Involvement Group (TIG) |
· Budget update |
|
5 |
22 January 2025 |
Housing and Communities Overview and Scrutiny |
· Proposed Housing Revenue Account (HRA) Budget 2025/26 |
|
6 |
23 January 2025 |
Resources and Transformation Overview and Scrutiny |
· Asset Maintenance and Replacement Programme (AMR) and Capital Programme 2025/26 · Capital Strategy 2025/26 · Budget update |
|
7 |
24 January 2025 |
Audit Committee |
· Investment Strategy · Treasury Management Strategy |
|
8 |
5 February 2025 |
Cabinet |
· Capital Strategy 2025/26 · Community Grants 2025/26 |
|
9 |
24 February 2025 |
Cabinet |
· AMR and General Fund Capital Programme 2025/26 · MTFP and Budget 2025/26 · HRA Budget and the housing sector capital expenditure budget |
Corporate plan priorities
75. The Council’s Medium Term Financial Plan sets out to align the financial resources available to meet and deliver on Corporate Plan Priorities. More will be done on this as the budget preparation process evolves, heading towards the February 2025 adoption date.
Options appraisal
76. The Council’s Medium Term Financial Plan sets out to provide options in the ultimate achievement of a balanced budget. As noted, some options will be more or less palatable than others as the process evolves, but key to a sound MTFP is that decisions are taken in the context of the medium-long term, not the short-term.
Consultation undertaken
77. Internal consultation between finance officers, service managers and budget holders has informed the latest assumptions included in the report and will continue throughout this process.
78. Additional consultation with the Financial Strategy Task and Finish Group and portfolio holders will occur during September through to November 2024.
Financial and resource implications
79. This is a financial report; therefore, all financial and resource implications are contained within the body of the report.
Legal implications
80. The council has a fiduciary duty to its taxpayers to be prudent in the administration of the funds on their behalf and an equal duty to consider the interests of the community which benefit from the services it provides.
81. It is the responsibility of councillors to ensure the council sets a balanced budget for the forthcoming year. In setting, such a budget councillors and officers of the council have a legal requirement to ensure it is balanced in a manner which reflects the needs of both current and future taxpayers in discharging these responsibilities. In essence, this is a direct reference to ensure that Council sets a financially sustainable budget which is mindful of the long-term consequences of any short-term decisions.
82. As a billing authority, failure to set a legal budget by 11 March each year may lead to intervention from the Secretary of State under section 15 of the Local Government Act 1999. It should however be noted that the deadline is, in reality, the 1 March each year to allow sufficient time for the council tax direct debit process to be adhered to.
Risk assessment
83. None at this stage.
Environmental / Climate and nature implications
Equalities implications
85. None at this stage.
Crime and disorder implications
86. There are no direct implications regarding crime and disorder as a result of this report.
Data protection / Information governance / ICT implications
87. There are no direct implications regarding data protection, information governance or ICT as a result of this report.
|
Appendices
Appendix 1 – Medium Term Financial Plan 2025-2029 - Summary of Resources
Appendix 2 – Medium Term Financial Plan 2025-2029 - Summary of Budget Requirement
Appendix 3 – Medium Term Financial Plan 2025-2029 – Options Identified to Close Budget Shortfall
Appendix 4 – Housing Revenue Account Medium Term Financial Plan 2025-2029 - Summary of Budget Requirement 2025/26-2028/29
Appendix 5 – Car Parking Proposed Fees and Charges from 1 January 2025
Appendix 6 - Proposed Keyhaven river fees and charges from 1 January 2025 |
Background Papers:
Cabinet 21 February 2024 – Budget Reports 2024/25
Housing Revenue Account Budget and the Housing Public Sector Capital Expenditure Programme 2024/25
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APPENDIX 5 – CAR PARKING FEES AND CHARGES
NOTICE OF VARIATION OF CHARGES: OFF STREET CAR PARKING PLACES
NEW FOREST DISTRICT COUNCIL
DISTRICT OF NEW FOREST (OFF-STREET PARKING PLACES) ORDER 2005, AS AMENDED
NOTICE OF VARIATION
VARIATION OF CHARGES: OFF-STREET CAR PARKING PLACES
This Notice is given under Section 35C of the Road Traffic Regulation Act 1984, and varies the charges in off-street amenity parking places.
The varied charges will come into effect on 1st JANUARY 2025 as indicated below.
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1. AMENITY PARKING PLACES – NEW OFF-SEASON TARIFF CHARGES AND PERIOD SITUATION OF PARKING PLACES |
CURRENT CHARGE FOR PERIOD 1 JANUARY TO 31 MARCH/ 1 OCTOBER TO 31 DECEMBER |
PROPOSED CHARGE FOR PERIOD 1 JANUARY TO 31 MARCH/ 1 OCTOBER TO 31 DECEMBER |
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Lymington Keyhaven |
Town Quay (short stay) Keyhaven (short stay), Ancient Highway |
Up to 1 hour £1.00 Up to 2 hours £3.00 Up to 3 hours £5.00 |
Up to 1 hour £1.50 Up to 2 hours £3.10 Up to 3 hours £5.20 |
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Lymington |
Bath Road |
Up to 1 hour £1.00 Up to 2 hours £3.00 Up to 4 hours £5.00 Up to 6 hours £7.00 Up to 24 hours £11.00 Up to 48 hours £17.00 Up to 72 hours £23.00 |
Up to 1 hour £1.50 Up to 2 hours £3.10 Up to 4 hours £5.20 Up to 6 hours £7.30 Up to 24 hours £11.40 Up to 48 hours £17.60 Up to 72 hours £23.80 |
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Keyhaven Lymington |
Keyhaven Road Town Quay (long stay) |
Up to 1 hour £1.00 Up to 2 hours £3.00 Up to 4 hours £5.00 Up to 6 hours £7.00 Up to 20 hours £11.00 |
Up to 1 hour £1.50 Up to 2 hours £3.10 Up to 4 hours £5.20 Up to 6 hours £7.30 Up to 20 hours £11.40 |
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Barton-on-Sea Calshot Milford-on-Sea |
Marine Drive (East), Marine Drive (West), Marine Drive 3 Areas north of Jack Maynard Road on either side of B3053, Areas adjoining south side of Jack Maynard Road, Areas adjoining north side of Jack Maynard Road to the west of Calshot Activities Centre Hordle Cliff (East), (known as “Paddy’s Gap”), Hordle Cliff (West), Area of land on the north-east side of Hurst Road (known as “Sturt Pond”), Hurst Road (East), Hurst Road (West), Taddiford Gap
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Up to 1 hour £1.00 Up to 2 hours £3.00 Up to 4 hours £4.00 Up to 6 hours £5.50 Up to 20 hours £9.00
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Up to 1 hour £1.50 Up to 2 hours £3.10 Up to 4 hours £4.20 Up to 6 hours £5.80 Up to 20 hours £9.30
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2. AMENITY PARKING PLACES – NEW ON-SEASON TARIFF CHARGES AND PERIOD SITUATION OF PARKING PLACES |
CURRENT CHARGE FOR PERIOD 1 APRIL TO 30 SEPTEMBER |
PROPOSED CHARGE FOR PERIOD 1 APRIL TO 30 SEPTEMBER |
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Lymington Keyhaven |
Town Quay (short stay) Keyhaven (short stay), Ancient Highway |
Up to 1 hour £1.00 Up to 2 hours £4.00 Up to 3 hours £6.00 |
Up to 1 hour £1.50 Up to 2 hours £4.20 Up to 3 hours £6.30 |
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Lymington |
Bath Road |
Up to 1 hour £1.00 Up to 2 hours £4.00 Up to 4 hours £6.00 Up to 6 hours £8.00 Up to 24 hours £12.00 Up to 48 hours £18.00 Up to 72 hours £24.00 |
Up to 1 hour £1.50 Up to 2 hours £4.20 Up to 4 hours £6.30 Up to 6 hours £8.30 Up to 24 hours £12.40 Up to 48 hours £18.60 Up to 72 hours £24.80 |
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Keyhaven Lymington |
Keyhaven Road Town Quay (long stay) |
Up to 1 hour £1.00 Up to 2 hours £4.00 Up to 4 hours £6.00 Up to 6 hours £8.00 Up to 20 hours £12.00 |
Up to 1 hour £1.50 Up to 2 hours £ 4.20 Up to 4 hours £6.30 Up to 6 hours £8.30 Up to 20 hours £12.40 |
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Barton-on-Sea Calshot Milford-on-Sea |
Marine Drive (East), Marine Drive (West), Marine Drive 3 Areas north of Jack Maynard Road on either side of B3053, Areas adjoining south side of Jack Maynard Road, Areas adjoining north side of Jack Maynard Road to the west of Calshot Activities Centre Hordle Cliff (East), (known as “Paddy’s Gap”), Hordle Cliff (West), Area of land on the north-east side of Hurst Road (known as “Sturt Pond”), Hurst Road (East), Hurst Road (West), Taddiford Gap
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Up to 1 hour £1.00 Up to 2 hours £4.00 Up to 4 hours £5.00 Up to 6 hours £6.50 Up to 20 hours £10.00 |
Up to 1 hour £1.50 Up to 2 hours £4.20 Up to 4 hours £5.20 Up to 6 hours £6.70 Up to 20 hours £10.40 |
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3. TOWN AND VILLAGE PARKING PLACES – NEW TARIFF CHARGES AND PERIOD SITUATION OF PARKING PLACES |
CURRENT CHARGE FOR PERIOD 1 JANUARY TO 31 DECEMBER |
PROPOSED CHARGE FOR PERIOD 1 JANUARY TO 31 DECEMBER |
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Beaulieu Burley Fordingbridge
Hythe
Lymington
Lyndhurst New Milton
Ringwood
Totton
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Village Centre Village centre Roundhill A338 Slip Road Jones Lane New Road Barfields Cannon Street East Cannon Street West Emsworth Road Gosport Street Southampton Road St Thomas Street Town Hall High Street Crossmead Avenue Elm Avenue Spencer Road North Spencer Road South Blynckbonnie Furlong Civic Centre Elingfield Rumbridge Street Westfield Road Winsor Road |
Up to 1 hour £1.00 Up to 2 hours £3.00 Up to 3 hours £3.50 Up to 4 hours £4.00 Up to 5 hours £5.00 Up to 20 hours £8.00 |
Up to 1 hour £1.50 Up to 2 hours £3.10 Up to 3 hours £3.70 Up to 4 hours £4.20 Up to 5 hours £5.20 Up to 20 hours £8.30 |
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Brockenhurst |
Brookley Road |
Up to 1 hour £1.00 Up to 2 hours £3.00 Up to 3 hours £3.50 Up to 4 hours £4.00 Up to 5 hours £5.00 Up to 8 hours £6.00 |
Up to 1 hour £1.50 Up to 2 hours £3.10 Up to 3 hours £3.70 Up to 4 hours £4.20 Up to 5 hours £5.20 Up to 8 hours £6.30 |
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Milford on Sea |
Sea Road |
Up to 1 hour £1.00 Up to 2 hours £3.00 Up to 3 hours £3.50 Up to 4 hours £4.00 Up to 5 hours £5.00 Up to 6 hours £5.70 Up to 7 hours £6.40 Up to 8 hours £6.50 Up to 9 hours £7.00 Up to 20 hours £10.40 |
Up to 1 hour £1.50 Up to 2 hours £3.10 Up to 3 hours £3.70 Up to 4 hours £4.20 Up to 5 hours £5.20 Up to 6 hours £5.90 Up to 7 hours £6.60 Up to 8 hours £6.70 Up to 9 hours £7.30 Up to 20 hours £10.80 |
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New Milton |
Osborne Road |
Up to 1 hour £1.00 Up to 2 hours £3.00 Up to 3 hours £3.50 Up to 4 hours £4.00 Up to 5 hours £5.00 Up to 6 hours £6.00 |
Up to 1 hour £1.50 Up to 2 hours £3.10 Up to 3 hours £3.70 Up to 4 hours £4.20 Up to 5 hours £5.20 Up to 6 hours £6.30 |
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NEW FOREST DISTRICT COUNCIL
DISTRICT OF NEW FOREST (OFF-STREET PARKING PLACES) ORDER 2005, AS AMENDED
NOTICE OF VARIATION
VARIATION OF CHARGES: OFF-STREET CAR PARKING PLACES
PARKING CLOCKS
This Notice is given under Section 35C of the Road Traffic Regulation Act 1984, and varies the charges for parking clocks.
The varied charges will come into effect on 1 JANUARY 2025.
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TYPE OF CLOCK |
CURRENT CHARGE £
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NEW CHARGE £ |
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District-wide Parking Clock (long stay) – annual (valid in parking places listed at both A and B below)
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1 January to 31 December or part thereof |
220.00 |
230.00 |
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District-wide Parking Clock (long stay) – three-monthly (valid in parking places listed at both A and B below)
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1 January to 31 March or part thereof; 1 April to 30 June or part thereof; 1 July to 30 September or part thereof; 1 October to 31 December or part thereof
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65.00 |
70.00 |
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Shoppers’ Parking Clock – annual (valid in parking places listed at A below)
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1 January to 31 December or part thereof
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40.00 |
45.00 |
PARKING PLACES TO WHICH THIS NOTICE RELATES
A. Beaulieu; Brockenhurst Brookley Road (short stay), Brookley Road (long stay); Burley; Fordingbridge Round Hill (short stay), Round Hill (long stay) and A338 Slip Road); Hythe Jones Lane (short stay), Jones Lane (long stay), New Road (short stay), New Road (long stay), Lymington Barfields, Cannon Street East (short stay), Cannon Street East (long stay), Cannon Street (West), Emsworth Road, Gosport Street (short stay), Gosport Street (long stay), Southampton Road, St Thomas Street (short stay), St Thomas Street (long stay), Town Hall (area allocated for seven day public parking), Town Hall (area allocated for Weekends and Bank/Public holiday public parking); Lyndhurst High Street (short stay), High Street (long stay); Milford-on-Sea Sea Road (short stay), Sea Road (long stay); New Milton Crossmead Avenue, Elm Avenue (short stay), Elm Avenue (long stay), Osborne Road (short stay), Osborne Road (long stay), Spencer Road North, Spencer Road South); Ringwood Furlong (South), Furlong (North West), Furlong (North East), Blynkbonnie (short stay), Blynkbonnie (long stay); Totton, Civic centre, Elingfield , Westfield Road (short stay), Westfield Road (long Stay), Winsor Road , Rumbridge Street (Mon to Fri only)
B. Barton-on- Sea Marine Drive (East), Marine Drive( West), Marine Drive 3); Calshot Areas North of Jack Maynard Road on either side of B3053, Areas adjoining South side of Jack Maynard Road, Area adjoining North side of Jack Maynard Road to the west of Calshot Activities Centre); Keyhaven (Keyhaven Road), Keyhaven Ancient Highway (short stay); Lymington Bath Road, Town Quay (short stay), Town Quay (long stay); Milford-on-Sea Hordle Cliff (East) (“ Paddy’s Gap”), Hordle Cliff (West), Area of land on North-East side of Hurst Road (“Sturt Pond”) , Hurst Road (East), Hurst Road (West), Taddiford Gap).
All parking clocks are valid subject to the terms and conditions contained in the District of New Forest (Off-Street Parking Places) Order 2005 (as amended).
The conditions on which parking is permitted are set out in the District of New Forest (Off-Street Parking Places) Order 2005 (as amended).
All charges are subject to the maximum waiting times advertised in individual car parks.
The hours during which charging applies will not change.
The
amounts for Penalty Charges, Discounted Penalty Charges (if paid
within 14 days), and Penalty Charges not paid, will not
change.
