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 2025 / 26 announced by the Government on 18 December 2024;

·                the revised 2024 / 25 and original 2025 / 26 General Fund Revenue Budget estimate (attached as Appendices 1, 2 and 3 to the report);

·                the proposed Council Tax increase for 2025 / 26 (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)

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 2025 / 26;

·                revised (2024 / 25) and original (2025 / 26) General Fund revenue budget estimates;

·                budget growth, savings and income generation in 2025 / 26;

·                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 2025 / 26;

·                Council Tax £6.74 increase on 2024 / 25 Band D Basic amount of £225.27;

·                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 £6.74, the maximum allowed for by the government before a referendum was required.

The Chairperson put the recommendations set out in the report to the Committee and these were duly seconded.

Councillor W Stamp requested that Officers review the colour scheme used for the Appendices to this report to make them easier to read. In response the Interim Chief Finance Officer confirmed that these changes could be made.

During the debate that ensued and in response to further questions raised, the Interim Chief Finance Officer provided the following information:

·                A strategic review of the Council’s reserves would be taking place to ensure that the Council was using them efficiently.

·                In response to a comment in his assurance statement regarding the waste and leisure contracts, Members were advised that this related to internal controls, relationships with the waste / leisure provider and to protect the Council’s finances, ensuring that performance met the intended goals.

·                In respect of the Medium-Term Financial Strategy (MTFS), medium-term was normally classed as four years and the Council’s MTFS had been set out over a four-year period.

·                The Officer provided Members with clarification regarding the income due in relation to the Leisure Contract and agreed to provide a written response providing further explanation.

The Chairperson put the recommendations set out in the report and these were duly agreed.

RECOMMENDED

(i)             that the following be approved:

(a)           the Revised 2024 / 25 and Original 2025 / 26 General Fund Revenue Budget Estimates (Appendices 1, 2 and 3 to the report),

(b)           an average Band D council tax of £232.01 (excluding parish precepts) (£6.74 increase) for 2025 / 26 (Appendix 1),

(c)           policies on the designated use of financial reserves (Appendix 4);

(ii)            that the Council maintains the current policy of a minimum general fund balance of £2,600,000;

(iii)           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.

Prior to moving onto the next item of business Members were advised that the Council’s collection rate was as follows: