Decision details

The Director of Resources and Deputy Chief Executive submitted a report asking Committee to agree the draft revenue budget for 2024/25 for this Committee for consideration at the Special Policy and Finance Committee.

The forecast in September predicted a budget gap of £877k in 2024/25, £2.261m in 2025/26 and £2,740m in 2026/27. Since the forecast was prepared the Government’s Policy Statement on Local Government Finance had been published on 5 December 2023, announcing that all local Councils would receive an increase in Core Spending Power the following year of 3% by continuation of the One-Off Funding Guarantee.

Since the forecast was prepared, the Council had seen further cost increases particularly due to inflation and energy costs. The difference between the original estimate of 2023/24 and the adjusted estimate of 2022/23 was a further increase in net expenditure of £705,710 after allowing for transfers from earmarked reserves. This meant that the total movement from the true Original Estimate of 2022/23 to the Original Estimate of 2023/24 was £1,130,340 or £1,101,220 after movements in earmarked reserves. The Policy Statement also announced that:

·       New Homes Bonus Allocations would continue for 2024/25

·       Rural Services Delivery Grant would continue for 2024/25

·       Revenue Support Grant (RSG) would increase in line with CPI with no

negative RSG

·       Business rates would not be reset and Business Rate Pooling would continue

·       A Council tax referendum principle of up to 3% or £5 for district councils

Detailed information on the individual budget areas under the Committee were included in the report, along with the movements from the 2023/24 Original Estimate to the draft Original Estimate for 2024/25, with comments on the main variances.

Members thanked Officers for the detailed report.

RESOLVED THAT COMMITTEE:

Approve the revenue Original Estimate for 2024/25 and submit this to the Special

Policy and Finance Committee.