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 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, and

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

The total movement from the original estimate 2023/24 to the original estimate 2024/25 was a reduction in net expenditure of £35,920. 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.

RESOLVED THAT COMMITTEE:

Approve the revenue Original Estimate for 2024/25 and submit this to the Special Policy and Finance Committee.