Agenda item

The Deputy Leader / Portfolio Holder for Finance, Town Centres and Growth introduced the report on the Draft Revenue and Capital Budget for the year 2025-26 and 5-year Medium Term Financial Strategy 2025-30.

 

The Chair thanked officers for considering comments raised by members at the previous meeting of the Committee.

 

Cllr Stubbs asked what was the basis of Appendix 1 Income I2 figure in relation to increased demand, pricing and permits for the new car park.

 

The Deputy Leader advised that the new car park would be much better than the previous one and the Finance Business Manager (Deputy S151 Officer) confirmed that the figures had been agreed to ensure the feasibility of the project. The budget was required for a safe car park open 24 hours a day which would likely bring more people in and attract more business around.

 

Cllr Stubbs raised the case of the new car park in Stoke-on-Trent which costed a lot of money and did not attract as many people as expected.

 

The Deputy Chief Executive responded that the car park referred to had been built as an additional facility without closing existing ones. The situation was different in Newcastle where the closure of the Midway would prompt people to use the new car park instead. Charges would be paid in the afternoon and into the evening to cover running costs.

 

Cllr Stubbs asked what was the basis of Appendix 1 Income I6 figure in relation to fix penalty notice for fly tipping.

 

The Finance Business Manager (Deputy S151 Officer) advised that this was based on actual money currently received – the target of £5,000 being indeed largely met with a current income of over £10,000. Revisiting the target to a higher figure would be worth considering in the coming year.

 

Cllr Stubbs enquired about the Staffing Related Efficiency S2 vacancy factor figure and how come this was even considered in a funding strategy.

 

The Deputy Leader expressed his support to the Finance team and their thorough work in taking into account existing sources of savings.

 

The Finance Business Manager (Deputy S151 Officer) stated that vacancies had been measured and ranged from 7% to 10%. The 3.5 to 4% retained was a low estimate of what to be expected for the year ahead.

 

Cllr Stubbs appreciated the response although reiterated his feeling of discomfort at vacancies being taken for granted.

 

Cllr Stubbs asked if the G5 item on the replacement of the Council Tax Support Grant with demand led contributions for parish councils would be in place at the start of the new financial year.

 

The Deputy Leader referred to the civic pride which was rolled out in October 2024 giving an opportunity for local councils to start delivering their own civic pride projects. The fund would provide a flexible resource for activity which enhancing the local area under the Civic Pride outcomes of making places cleaner, friendlier and safer. It was designed as an annual process to ensure that the Borough Council could direct funds to activities which met local needs and it would be based on a per Ward member allocation of £500. It was expected that Ward members would be consulted when groups develop their plans and was similar to the two schemes run by the County Council.

 

Cllr Stubbs felt that anyone having the opportunity to apply for those fundings meant a direct loss for parish councils passed on to tax payers.

 

The Deputy Leader said a guidance would be provided defining who and which projects would be eligible.

 

Cllr Waring wondered if it would be required to apply through Civic Pride to access the funds or if there would be other opportunities later in the year.

 

The Deputy Leader confirmed it would be for civic pride projects and that further information would come by the time the budget would be submitted.

 

Cllr Stubbs commented that parish councils were currently in the process of setting their budget and not having access to the information yet may be problematic.

 

The Finance Business Manager (Deputy S151 Officer) advised that parish councils had been informed in December that the Council Tax Support Grant would not be payable and that a new scheme would be communicated in due course.

 

Cllr Stubbs commented that the scheme seemed to have changed since the letter was sent and asked on a separate note about the £30,000 Borough wide review of the claimant’s discount.

 

The Finance Business Manager (Deputy S151 Officer) responded that this was a single person discount review for the Council Tax undertaken every four or five years to identify people who were claiming the discount.

 

Cllr Stubbs wondered if this shouldn’t be submitted to the Committee for it had the potential to be intrusive.

 

The Finance Business Manager (Deputy S151 Officer) advised that it was a County wide review and would be monitored by the Council regardless.

 

The Chair commented that most of the lines items in appendix 1 had been presented to the Committee at the previous meeting and there were talks of the government abolishing the single person discount across the board.

 

Cllr Crisp said the parish councils were in the process of adopting their own budget for the year ahead and had noted the removal of the Council Tax support grant.

 

The Chair confirmed that while the scheme would no longer be available there would be a competitive process in place to allocate the related fundings which had been doubled up. This would benefit non parishes areas but also meant parish councils may end up getting as much money as they were expecting to. The Committee would be scrutinizing how it operate and have the opportunity to assess the situation.

 

Cllr Waring reiterated the need for the information as early as possible so that parish councils could apply in good time and asked if the new scheme was intended to go forward on a yearly basis.

 

The Deputy Leader answered that the scheme was still being worked on but could potentially go on long term.

 

The Chair thanked officers for the work put into preparing the report.

 

Resolved:    1. That the progress on the completion of the Revenue (Appendix 1) and Capital Budgets (Appendix 4) be noted.

 

2. That the updated Medium Term Financial Strategy 2025/26 to 2029/30 (Appendix 2) be noted.

 

3. That the strategy for ensuring a balanced revenue outturn position for 2024/25 be noted.

 

4. That the calculation of the Council Tax base and the Council Tax increase to be proposed for 2025/26 of 1.99% per Band D equivalent property be noted.

 

5. That the risk assessment at Appendix 3 and the Section 151 Officer’s recommendation on the level of reserves and contingencies provisionally required to be maintained in 2025/26 be noted.

 

6. That the draft Capital Strategy (Appendix 5) for 2025/35 be noted.

 

7. That the draft Treasury Management Strategy (Appendix 6) for 2025/26 be noted.

 

8. That the draft Investment Strategy (Appendix 7) for 2025/26 be noted.

 

9. That the draft Commercial Strategy (Appendix 8) for 2025/26 be noted.

 

10. That the Asset Management Strategy (Appendix 9) for 2023/28 be noted.

 

Watch the debate here