Agenda item

To consider the draft budget and approve for consultation

Consideration was given to the report of the Deputy Chief Executive – Corporate Development (S151) which requested consideration of the draft budget and approval for consultation.

The Portfolio Holder for Finance, Commercialisation, UKSPF and Levelling Up presented the report.  He referenced the challenging backdrop against which budget setting was being undertaken, and thanked portfolio holders, officers and members for the hard work and diligence that had gone into its production. 

The following points were raised:

·       The report did not clarify whether budget scrutiny would be undertaken as it normally did.  It was confirmed that this would take place.

·       The Leader raised the following points:

o   The percentage increase in the Provisional Local Government settlement had flatlined and the authority was therefore no better off. 

o   Issues around the Drainage Board levy were still to be resolved - much lobbying was being undertaken with ministers and an event had been held in London with affected MPs, sponsored by the Rt Hon Liz Truss MP and the Rt Hon Sir John Hayes MP.  Councillor Paul Redgate was thanked for his work in chairing the Special Interest Group that had been set up to address the issue.

·       The IDB levy seemed to be one of the significant issues affecting the budget, and the outcome of the work being undertaken by the Special Interest Group was critical for the future.  Was there a timescale for resolution, and would the impending General Election affect progress?

o   The Special Interest Group was pressing hard on this issue.  The Government’s stance was that a settlement had been received by affected authorities last year, and that authorities now had to look at their own budgets going forward.  However, there was and would be continued pressure on the current Government and any potential future Government to resolve the issue further.  The size of the Special Interest Group had increased from 15 to 28 affected authorities, and it was apolitical.  The work of the IDBs was acknowledged and appreciated, especially in light of recent flooding in the area and around the country.  However, a sustainable resolution had to be sought around funding going forward.

DECISION:

1)    That the Draft Budget and Medium Term Financial Strategy (MTFS) 2024/25 – 2028/29 be approved for consultation;

2)    That the intention to seek alignment of constitutional financial limits across the partnership as part of the budget setting process be noted;

3)    That the establishment of a working group to provide oversight and steer to the efficiency, transformation and savings programme supporting the 2024/25 budget and MTFS to 2028/29 be approved. The membership of the working group to be composed of the Leader, the Portfolio Holder for Finance and such other members as the Leader nominates; and

4)    That the proposal for the final budget, and all future years, to include an annual RPI uplift for all fees and charges, where applicable be noted.

(Other options considered:

·       To not commence budget consultation;

Reasons for decision:

·       To comply with the budgetary and policy framework and legislative requirement.)