Agenda item

The Deputy Leader / Portfolio Holder for Finance, Town Centres and Growth presented the report on the First Draft Saving Proposals for 2025/26.

The Chair invited members to make suggestions of additional savings if they had any for officers look into.

Cllr Grocott enquired about the Funding Strategy in relation to the Annual Leave Purchase Scheme and the replacement of Council Tax Support Grant with demand led contributions for Parish Councils.

The Deputy Leader expressed his support for the possibility for staff to purchase additional leave as required. About the introduction of demand led contributions, these would allow local councils to request fundings for specific projects to supplement their own budgets.

The Chair asked if there was data supporting the fact that it was mainly small parish councils making use of the Council Tax Support Grant.

The Service Director for Finance (S151 Officer) advised that £30,000 had been issued to Parish Councils, the majority of the parishes received £200-£300 and three parishes received a larger amount and therefore £10,000 had been retained so that, if any more funding was required, bids could be submitted.

Councillor Grocott stated that some Parish Council’s had more staff than others and would like to see something added in that would supplement all parish and town councils.

Councillor Waring asked for more clarity on what the funding could be used for and stated that Kidsgrove Town Council would lose £13,000 as a result of the change.

The Service Director for Finance (S151 Officer) advised that all parish/town Councils would be provided with a list of what bids could be submitted for before the end of the current financial year.

Councillor Stubbs asked when the Town Council was written to, to advise that this would be done – as budget setting had commenced.

The Service Director for Finance (S151 Officer) advised that parishes were emailed approximately one month ago to inform them that this would be withdrawn from 1 April, 2025 and that there would be £10,000 left out of the £30,000 whilst parishes were considering their precepts.

Councillor Stubbs stated that the Council were top-slicing £20,000 from the parish councils and, referring to Kidsgrove Town Council, stated that there were more people, more services and more demands. Councillor Stubbs stated that £13,000 was a lot to take away in one go and it would be a big hit to their budgets and asked why no consultation had been carried out.

The Service Director for Finance (S151 Officer) advised that there was a budget consultation which was currently live where any comments could be fed back.  Kidsgrove Town Council would be entitled to place a bid for the entire £10,000 or part thereof. 

The Deputy Leader asked Councillor Stubbs what Kidsgrove Town Council was responsible for.  Councillor Stubbs stated that the main expenditure was for the Kidsgrove Ranger and there was also the running of the Community Hall.

The Chair stated that there were a number of Committee members who were also Parish Councillors’ or lived in a parish area and suggested that this Committee could scrutinise the Policy and the way in which funding was applied.    Once the £10,000 had been applied for and disbursed this Committee may wish to scrutinise how this Council was applying the money.

Councillor Bettley-Smith asked if he should declare an interest as  Chair of Betley, Balterley  and Wrinehill Parish Council but was advised by the Chair that this was not necessary.

Councillor Stubbs asked what the ‘Extended Producer Responsibility Funding’ was.

The Service Director for Finance (S151 Officer) advised that it was a change in legislation where the manufacturers of plastic would now have to pay for the removal and clearing up of plastic.  A sum of money had been allocated by Central Government to local authorities to collect and manage it but it would be the manufacturer who was paying for it.  A letter had been received from DEFRA advising on the amount that this Authority would receive.

Councillor Stubbs  asked if the money was ringfenced or would it be a general fund.   The Service Director for Finance (S151 Officer) confirmed that it was not ringfenced.

Referring to the £103,000 saving that the merging of the facilities and property functions, coming under ‘staffing’.  How were the staffing numbers reducing.

The Service Director for Finance (S151 Officer) advised that there had been a retirement in the Service, someone had left and another person wanted to go part-time so an opportunity arose to look at the Property Team and Facilities Management Team roles.  The Capital Programme had been reducing over the last two to three years in respect of capital projects being delivered as large regeneration projects were being carried out with the help of funding.

Councillor Stubbs asked about the £50,000 reduction in the Kidsgrove Subsidy and if it was part of the Business Plan to remove it at this point.

The Service Director for Finance (S151 Officer) advised that there was agreement between Kidsgrove Sports centre and the Council to provide any subsidy within the first five years – should it be required.  However, they were doing really well and had not called on the subsidy.

The Chair proposed that a seventh recommendation be added to ask Cabinet to consider recommendations made by members.

Resolved:    1. That the first draft savings proposals as set out in Appendix A and Appendix B to the report be noted.

2. That the revised Medium Term Financial Strategy (MTFS) funding gap (Appendix C) be noted.

3. That any surplus funds identified when setting the budget to be transferred to Reserves in order to achieve future financial resilience, be noted.

4. That the commencement date of the Budget Consultation period as mid-November to mid-December 2024, be noted.

5. That the Mid-Year Capital Estimates for 2024/25 be noted.

6. That the proposed setting of Council Tax at 1.99 per cent for 2025/2026 be noted.

7. That Cabinet be asked to consider recommendations made by members.

Watch the debate here