Decision details

To approve for consultation the 2024-25 Draft Revenue Budget

RESOLVED

KEY DECISION

That the Executive:

a)     Approved for consultation the 2024-25 Draft Revenue Budget, which includes:

i.           an estimated net revenue budget of £371.5m (£759.6m including the Dedicated Schools Grant) as set out in Appendix A, noting that this is subject to further update and change following the publication of the provisional Local Government Finance Settlement.

ii.          a Band D Equivalent Council Tax of £1,740.22 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.

iii.         pressures of £53.4m, including adjustments for the reversal of one-off funding in 2023-24, and savings, efficiencies and income proposals of £18.5m as detailed in Appendix B.

iv.        the provisional Dedicated Schools Grant budget of £388.1m for 2024-25, pending the final settlement, as detailed in Appendix C.

v.          the draft planned use of, contribution to, and movement in, reserves as identified in paragraph 5.52, section 9 and Appendix D of the report, noting the reserves will be reviewed again after the Finance Settlement and prior to the final budget proposals, to consider the risk applying at that time.

vi.        corporate budget requirements as set out in paragraph 8.1, including a contingency sum of £4.1mas set out in paragraph 8.2.

b)    For the Dedicated Schools Grant (DSG):

i.           Noted the provisional allocations of the funding for the Schools Block, High Needs Block, Early Years Block and the Central School Services Block.

ii       Following consultation with the Schools Forum, delegated authority to the Executive Member for Children, Families, Education and Skills  in consultation with the Executive Member for Finance and Transformation, Executive Director for Adults, Health Partnerships and Housing (and Children’s Services – Interim), and the Executive Director of Finance and Performance (S151 Officer) to determine the DSG 2024-25 schools funding formula, high needs funding arrangements and the early years funding formula in line with Department for Education guidance.

c)     Noted the decision making principles of the Transformation and Efficiency Board for Children’s Services (Northamptonshire Children’s Trust) as set out in paragraphs 7.17 to 7.20 and delegates authority to the Executive Member for Children, Families, Education and Skills in consultation with the Executive Member for Finance and Transformation, the Executive Director for Adults, Health Partnerships and Housing (and Children’s Services - Interim) and the Executive Director of Finance and Performance (S151 Officer) to approve allocations from the Transformation and Efficiency funding held within the Children’s Trust budget in support of change programmes.  Investment decisions will be subject to approval following the submission of detailed business cases.

d)     Endorsed the budget consultation process as outlined at paragraphs 13.16 to 13.20 which commences following the approval of the recommendations in this report.

e)     Noted that the funding allocations are estimates only at this stage and will not be confirmed until the publication of the provisional Local Government Finance Settlement.

f)      Delegated authority to the Executive Member for Finance and Transformation in consultation with the Executive Director of Finance and Performance (S151 Officer) to amend the draft budget following the publication of the provisional Local Government Finance Settlement.

The Executive also:

a)      Noted the changes to the draft budget arising from the Provisional Local Government Finance Settlement.

b)      Approved the use of the Budget Delivery Smoothing Reserve to meet the net shortfall in funding of £0.748m arising, predominantly, from a reduction to the Services Grant.  Noting that further work will now be undertaken to look at options to meet this shortfall on a recurring basis.

Reason for Recommendations: To ensure that the Council complies with its Constitution and legislative requirements in setting the budget for North Northamptonshire Council from 2024-25.

Alternative Options Considered – This is the start of the formal budget consultation for the General Fund and any comments from the consultation, together with any changes from the Finance Settlement, will be considered as part of this process to inform the need for alternative options.