Decision details

To recommend for approval to Council the General Fund Final Budget 2025-26 and MTFP

RESOLVED

KEY DECISION

That the Executive endorsed the contents of the report and recommended the budget proposals on to Council for approval. This includes:

a)      the 2025-26 Revenue Budget for approval and adoption as set out in the report, which sets:

i.        a budget requirement of £827.905m including the Dedicated Schools Grant of £427.219m resulting in a net revenue budget requirement for the General Fund of £400.686m as set out in Appendix A.

ii.       a total Council Tax requirement for the Council’s own purposes of £214.835m as contained in paragraph 5.26.

iii.      an average Band D Council Tax of £1,827.06 for North Northamptonshire Council, representing an increase of 2.99% in the ‘core’ Council Tax and a further 2% for the Adult Social Care Precept, noting that a separate Council Tax Resolution Report will be presented to Council

iv.      pressures of £51.6m, including adjustments for the reversal of one-off funding in 2024-25, and savings, efficiencies and income proposals of £26.3m as detailed in Appendix B.

v.       the provisional Dedicated Schools Grant budget of £427.2m for 2025-26, as detailed in Appendix C, and summarised in paragraphs 5.48 to 5.86.

vi.      the draft planned use of, contribution to, and movement in, reserves as identified in paragraph 5.40, section 9 and Appendix D of the report, subject to the final call on reserves as a result of the Final Financial Settlement or other changes.

vii.     corporate budget requirements as set out in paragraph 8.1, including a contingency sum of £2.6m as set out in paragraph 8.2.

viii.    the Treasury Management Strategy for 2025-26 as set out in Appendix H.

ix.      the recommended Flexible Use of Capital Receipts Strategy as set out in Section 10 and Appendix J.

x.       that Council delegate authority to the Executive Director of Finance and Performance (Section 151 Officer) in consultation with the Executive Member for Finance and Transformation to agree any necessary variations to the budget prior to 1st April 2025.

xi.      that Council delegate authority to the Executive Director of Finance and Performance (Section 151 Officer) in consultation with the Executive Member for Finance and Transformation to agree the use of the following reserves which will provide the flexibility to manage the overall budget during 2025-26.

•    Transformation Reserve

•    Public Health Reserve

•    Waste Management Reserve

•    Adult Social Care Reserve

•    Smoothing Reserve

•    Business Rates Retention Reserve

b)      the forecast financial position for 2026-27 to 2028-29, noting that this will be reviewed as further information becomes available and updated as part of the budget process for 2026-27 onwards.

That the Executive:

a)      noted that the financial position has been based on the Provisional Local Government Finance Settlement announced on 18th December 2024 together with any further announcements and updates to the forecast budget position as at the date of the publication of this report;

b)      noted that, at the time of writing, the Final Local Government Finance Settlement is yet to be published and, therefore, some figures may be subject to change;

c)      considered the consultation feedback as summarised in the report and attached at Appendix E;

d)      considered the Equality Impact Screening Assessment as at Appendix F;

e)      considered the outcome from the Corporate Scrutiny Committee, as detailed at Appendix G and any separate representations to this Committee

f)       noted the legal background for setting the revenue budget and Council Tax as set out in Appendix I.

g)      delegated authority to the Executive Director for Children’s Services and the Executive Director of Finance and Performance (Section 151 Officer) in consultation with Executive Member for Children, Education and Skills and the Executive Member for Finance and Transformation to approve North Northamptonshire’s DSG budgets and Schools Funding Formula and to finalise the funding allocation for schools, in line with North Northamptonshire’s Schools Funding Formula;

h)      delegated authority to the Executive Director of Finance and Performance (Section 151 Officer) in consultation with the Executive Member for Finance and Transformation to draft the recommended budget resolution for Council in accordance with the necessary legal requirements and to take into account the decisions of the Executive and any final changes and other technical adjustments that may be required.

i)        noted the significant work that has been undertaken by the Corporate Scrutiny Committee throughout the budget process. 

Reason for Recommendations: To ensure that the Council complies with its Constitution and legislative requirements in setting the budget for North Northamptonshire Council from 2025-26.

Alternative Options Considered: The budgets have been subject to a formal budget consultation and scrutiny and the feedback has been considered as part of this process.