Agenda item

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer presenting:

·                  for noting, the Provisional Local Government Finance Settlement 2024 / 25 announced by the Government on 18 December 2023;

·                  the revised 2023 / 24 and original 2024 / 25 General Fund Revenue Budget estimate (attached as Appendices 1, 2 and 3 to the report);

·                  the proposed Council Tax increase for 2024 / 25 (Appendix 1);

·                  the policy for the use of Reserves (Appendix 4);

·                  the Interim Chief Finance Officer (Section 151 Officer) statement on the robustness of budgets and adequacy of reserves (Appendix 5)

·                  for noting, the outcome of the budget survey 2004 (Appendix 6).

It was noted that the Council no longer received Revenue Support Grant funding from the Government meaning the majority of the funding for the Council’s services were from income raised by the authority.

The report and associated appendices to the report outlined the following:

·                  the latest information on the provisional Local Government finance settlement 2024 / 25;

·                  revised (2023 / 24) and original (2024 / 25) General Fund revenue budget estimates 2023 / 24;

·                  budget growth, savings and income generation in 2024 / 25;

·                  New Homes Bonus (NHB);

·                  Pension Fund deficit recovery;

·                  Essex Region Business Rates pool;

·                  an update on the interest on investments;

·                  the Council Tax requirement for 2024 / 25;

·                  Council Tax £6.52 increase on 2023 / 24 Band D Basic amount of £218.75;

·                  General Fund balance and Revenue Reserves;

·                  Medium Term Financial Strategy (MTFS);

·                  risks to the Council’s financial position.

The Interim Chief Finance Officer reported that due to the unknown impact of future changes to Local Government finance, it was proposed that the Council should take the opportunity to increase its financial base by increasing the average band D Council Tax by £6.52, the maximum allowed for by the government before a referendum was required.

In response to further questions raised, the Interim Chief Finance Officer provided the following information:

·                  there had been an issue with historic parish precepts, however a letter had been sent to all Parish Councils advising them of this.  It was highlighted that no Parish Council would be adversely affected by the issue, and it was regrettable that the error had occurred.  Members were advised that since this had occurred the Council had strengthened its checks and balances to make sure this did not happen again.

·                  Reference in paragraph 3.6.6 of the report to ‘salaries based on revised Council structure’ related to the Council breaking down its budgets by Directorate.  Detailed budgets reflected the Council’s current structure and Members were reminded that the recent changes to the Service Delivery Directorate had been designed to be cost neutral.

·                  It was clarified on the second bullet in paragraph 3.6.6 it was a hyphen and not a negative sign, staff had been made aware of the pay award for this year and assumptions for next year.  No deduction to staff pay was proposed.

·                  The New Homes Bonus was contributing to the general revenue expenditure of the Council.  This was part of the overall Local Government finance settlement, and it was the expectation of Central Government that these monies would be used to contribute to the Council’s overall revenue budget.

·                  Officers were undertaking a piece of work to ensure, as part of the Service Delivery restructure, that budgets were sitting in the correct place and information was as transparent as possible.

In response to a question regarding detailed budget lines, the Interim Chief Finance Officer advised the Committee she would have to respond to Members outside of the meeting as she did not have that information available.

Councillor M E Thompson proposed that the recommendations as set out in the report be agreed.  This proposal was duly seconded and upon a vote being taken these were duly agreed.  Councillor S White asked that it be noted she had voted against the recommendation.

RECOMMENDED that the following be approved:

(i)                the Revised 2023 / 24 and Original 2024 / 25 General Fund Revenue Budget Estimates (Appendices 1, 2 and 3 to the report),

(ii)              an average Band D council tax of £225.27 (excluding parish precepts) (£6.52 increase) for 2023 / 24 (Appendix 1),

(iii)             policies on the designated use of financial reserves (Appendix 4),

(iv)             maintain the current policy of a minimum general fund balance of £2,600,000.

(v)              that the Council gives due regard to the Interim Chief Finance Officer (Section 151 Officer) statement on the robustness of budgets and adequacy of reserves in Appendix 5.