Agenda and minutes

Councillor Woolf was elected as Chairman for the duration of the meeting.

Where a Councillor has a Disclosable Pecuniary Interest the Councillor must declare the interest to the meeting and leave the room without participating in any discussion or making a statement on the item, except where a councillor is permitted to remain as a result of a grant of dispensation.

There were none.

To scrutinise the draft General Fund and Housing Revenue Account revenue and capital budgets for 2025/26 (report of the Deputy Chief Executive  - Corporate Development (S151) enclosed).

Consideration was given to the report of the Deputy Chief Executive - Corporate Development (S151) to scrutinise the draft General Fund and Housing Revenue Account budgets for 2025/26, Medium-Term Financial Strategy/Plan and Capital Programme for 2025/25 to 2029/30.

The Deputy Chief Executive – Corporate Development (S151), the Chief Finance Officer (PSPS) and the Portfolio Holder for Finance attended for this item.

The Deputy Chief Executive – Corporate Development (S151) introduced the report and highlighted the following main points alongside a presentation provided to members at the meeting (and appended to the minutes):

·       Key dates of the 2025/26 Budget consultation and approval process;

·       Budget progress: including Internal Draining Boards (IDBs) funding and levies, National Non-Domestic Rates (NNDR1) and Council Tax Base increase;

·       Core spending power 2025/26;

·       Draft settlement 2025/26;

·       Local Government Finance Policy Statement;

·       Collection Fund;

·       Budget pressures and future risks;

·       Improvements built-in and future opportunities;

·       Fees and Charges;

·       Capital Programme 2025/26 – 2029/30 (subject to review);

·       Capital Bids Financing 2025/26 – 2029/30 (subject to review);

·       Treasury Management;

·       Reserves;

·       Efficiencies requirement;

·       General Fund Budget position considerations;

·       HRA Revenue (subject to review);

·       HRA Reserves;

·       HRA Capital Programme 2025 – 2030;

·       HRA Capital Financing (subject to review);

·       HRA budget considerations;

·       Consultation response;

·       S151’s Section 25 Statement: this was a new addition to the budget report and included at Appendix 1;

·       Future matters: looking ahead to issues affecting 2026/27.

Appendix 1 detailed the Draft Budget Setting Report 2025/26 and Section 25 Statement;

The Medium-Term Financial Strategy 2025-2023, at Appendix 1a, was circulated to members at the meeting; and

Appendix 2 detailed the results of the budget consultation process.

The Portfolio Holder for Finance thanked officers for the report and affirmed that:

·       Funding for IDBs remained a significant and growing problem for a council the size of South Holland and thereby impacted the funding available for services provided by the Council;

·       A stronger resolution had been, and would continue to be, sought from Government ministers regarding the funding of IDBs; and

·       Details were provided within the report which allowed members to scrutinise and shape the budget decisions.

Members considered the report and made the following comments:

·       Members noted that the report represented the most challenging budget presented to the committee, and that an even tougher position was anticipated for 2026/27. Members acknowledged the benefit that PSPS had brought to the council in terms of the overall budget position.

·       Members thanked the Portfolio Holder for Finance for the work he had undertaken/is undertaking as the Chairman of the Local Government Association Special Interest Group - Internal Drainage Board Levies. Members recognised this work, in seeking a resolution for the IDB issue, as highly significant for the financial health of the council and other local authorities within in the country facing the same issue.

·       Members noted that the policy of the current government, to direct funding to urban rather than rural areas, combined with the funding issue for IDBs, had contributed to the financial challenge faced by the local authority.

·       Members stressed that funding for IDBs had  ...  view the full minutes text for item 7.

There were none.