Agenda item

RESOLVED:

Cabinet recommended to Council that:

i)                  the updated MTFP and financial strategy, as set out in the Cabinet report and throughout appendices 1-3, are approved;

ii)                 there is a General Fund Net Budget Requirement in 2024/25 of £24,513,250, as set out in appendices 5a - d to the Cabinet report;

iii)               the New Forest District Council Band D Council Tax for 2024/25 shall be £199.79;

iv)               the council approves the formal determination (appendix 6), as required by the Levelling up and Regeneration Act 2023, to apply Council Tax premiums to dwellings occupied periodically and long-term empty dwellings, for implementation from 1 April 2025;

v)                the General Fund Capital Programme for 2024/25 of £16.579 million, as set out in appendix 7 to the Cabinet report be approved; and

vi)               the proposed fees and charges as included at appendix 8 to the Cabinet report be approved.

KEY DECISION:

Report to Cabinet and Council

PORTFOLIO:

Finance and Corporate / All

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in report.

DECLARATIONS OF INTEREST:

None

DISCUSSION:

The Portfolio Holder for Finance and Corporate presented the report detailing the budget for 2024/25.  He highlighted that there was a General Fund net budget requirement of £24.5 million and the rise of the Council Tax Band D for 24/25 to £199.79, a rise of 2.99%.  This was the maximum allowed under the current rules but was considerably below inflation.  He was delighted to be able to present a fully balanced budget and expressed his thanks to the accounts department and all officers of the Council.

He further spoke about the better than expected return on investments and a rise in the government finance settlement since the Autumn statement which had increased by £200,000 which was positive news.

The Strategic Director Corporate Resources & Transformation reported he was pleased to be in a position to present a proposed balanced budget for 2024/25.

The 2024/25 finance settlement had been good to the Council, with the funding guarantee grant being increased by the government from 3% as it appeared in the provisional settlement before Christmas, to 4% in the final settlement, equating to £200,000.  It was disappointing that the settlement was only for 1 year, which made planning difficult for the medium term creating funding cliff edges from one year to the next.  The value of the 4% funding grant for 2024/25 was £1.2 million, yet for 2025/26 that figure could be anywhere from zero to £1.2 million.  The Council would continue to support sector lobbying on this.

The Strategic Director Corporate Resources and Transformation referred to section 10 of the report, which confirmed it was his duty as the Council’s chief finance officer to comment on the robustness of estimates and adequacy of reserves.  It was his view that the budget, as prepared was financially sound and based on a reliable evidence base.  New items and changes to budgets had been appropriately costed and accounted for.  Forecast income levels were not overinflated.  Assumptions over the medium term were also based on latest expectations based on the most likely scenario for funding and cost pressures, and the Council had a sound and achievable plan to address the forecast £2.7 million deficit for 2027/28.

The general fund reserve was £3 million which was considered appropriate and proportionate.  There was an HRA reserve of £1 million, recognising this was a more reliable income base and provided the ultimate backstop support for unavoidable cost increases as they might occur in the year.

It was confirmed that 2024/25, the proposed Council Tax bill element was £199.79 for the year for an average band D property, an increase of 2.99% on the previous year.  The overall Council Tax setting paper would be presented to the Council for formal approval on 26^th February, which would include the annual charge of £199.79 as well as the precepts from the County Council, the Police and Crime Commissioner, the fire and rescue service, and the relevant town and parish council. The NFDC element was a small proportion, 9% of the overall Council tax charge.

The Portfolio Holder for Planning and Economy expressed his support to the proposed budget.  It would enable the Council to support local businesses and those looking for apprenticeships through the Apprenticeship and Skills Hub and other activities such as the mystery shopper scheme, supporting high streets and town centres.

The Portfolio Holder for Environment and Sustainability reiterated his support to a detailed and robust report and expressed his thanks to all staff.  The Portfolio Holder reported he had already spoken about waste but that he was pleased the budget included the development of a parking strategy and a fleet and infrastructure strategy which were important to deliver a modern and efficient service.  This would support the Council’s carbon reduction.  There was also continued support to deliver on the Councils Climate and Emergency Action Plan with a budget of £250,000.

A non-executive member was reassured to hear that a balanced budget for 2024/25 had been proposed.  He questioned how the New Forest residents would see service enhancements through the various Council strategies.   In response, the Portfolio Holder for Finance and Corporate acknowledged that this was detailed within the budget report.  Examples were provided with the Council seeking through the HRA to reduce the carbon footprint with more energy efficient homes, the changes in the waste collection service sought to increase the recycling rate which would benefit residents and the environment as well as the apprenticeship scheme. 

The Leader of the Council further added the proposed budget outlined Council priorities with CCTV, Community Grants, the Local Plan, a budget to support regeneration as well as optimisation of Council office space to provide an income to the Council.  The budget did a lot of things to support local residents.