Agenda item

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.

The Chair, Councillor Jason Smithers invited Mr Chris Stanbra to address the Executive.  Mr Stanbra stated that within Revenues and Benefits there was a pressure arising from an increase in postage costs of £100k.  That was for one section only and how could that increase be justified, were there no other methods of sending out mail available?  An increase in bank charges was also showing as a pressure of £500k but there was no detail in the papers.  Moving to a different method for Minimum Revenue Provision, following the disaggregation process with West Northamptonshire has meant that council tax payers had paid over £20m extra that they need not of paid and this money could have been put to better use.

 

The Chair thanked Mr Stanbra for his contribution and invited Councillor Hakewill to address the Executive.  Councillor Hakewill stated that this was another budget of more Council Tax for less services.  He asked what would change in these proposals as a result of the scrutiny process.  The budget was a risk for everyone but decisions were made by a small group.  The report stated that the council tax increase for a Band D property was £86 for the year but this did not take into account the requirements of other authorities.  There was a blackhole in future finances.  The Reserves Strategy stated that there should be a minimum of 5% on general fund reserves but only 6% was being set aside.

 

The Chair thanked Councillor Hakewill for his contribution and invited Councillor Dorothy Maxwell to address the Executive.  Councillor Maxwell stated that within the report it stated that if the S151 Officer was considering the issuing of a S114 notice there was no requirement to notify councillors but this was concerning for transparency.  It was welcome that Free School Meal vouchers would continue for the coming year but had the Council looked at the implications if the grant was not to continue beyond next year.

 

The Chair thanked Councillor Maxwell for her contribution and gave assurances  that if the Council was ever in a position to consider issuing a S114 notice, all councillors would be informed.  The Chair then invited Councillor Lloyd Bunday, Executive Member for Finance and Transformation to introduce the report which set out the final General Fund Budget for 2025-26 and the Medium-Term Financial Plan.

 

In response to the comments made by the speakers, Councillor Bunday clarified that sending out council tax demands did cost a lot of money to ensure that the Council notified everyone who was required to pay.  The Minimum Revenue Provision was a reserve to pay down a loan when it matured and money had not been lost.  The demand led services were increasing and that would always be a risk on the budget.

 

Councillor Bunday stated that he was pleased to present the revenue budget and Medium-Term Financial Plan.  North Northamptonshire Council had bold aspirations and the budget played an important part in delivering the Big-50.  We had been able to protect frontline services without using reserves.  The draft budget had been presented on 19^th December 2024 for consultation and had also been scrutinised by the Corporate Scrutiny Committee.  We had been able to present a balanced budget for the fifth consecutive year and to demonstrate continued investment in services. There was a prudent use of reserves but everyone was reminded that they could only be spent once and plans would be needed to replenish any used reserves.  Major risks in the budget would be demand led services and the impact of employers National Insurance contributions, where a contingency of £2.6m had been set aside. 

 

The Chair stated that the budget showed that the Council was living within its means and it was important to protect the most vulnerable in society.  He acknowledged the professional team of officers who had provided support to the Executive during this process.

 

Councillor David Brackenbury thanked Councillor Bunday and the Finance team on the work undertaken to get to this stage.  The pressures of demand led services was acknowledged along with the statutory services which had to be delivered.

 

Councillor Scott Edwards highlighted the increase in SEND provision, family support and early intervention.  There was also increased support for care leavers and youth provision.  The increase in Council Tax was needed to support young people.

 

Councillor Macaulay Nichol highlighted the responsible financial management of the Administration.  He thanked members and officers for all of their efforts in producing a balanced budget.

 

Councillor Gill Mercer highlighted that free school meals, funded through the Household Support Fund, would be continuing into next year but it was not yet known if funding would continue so the Council was not able to plan ahead.  Adult Services accounted for 39% of the budget and covered our most vulnerable residents.  Inflationary pressures had to be coped with but work had taken place to predict those pressures.  Transformation was continuing to enable people to remain in their own homes for longer and to prevent them from entering care. National Insurance would be a particular risk.  We also still did not know what the public health ring-fenced budget would be.  £2m had been put in to reserves in case of another pandemic type incident.

 

Councillor Helen Howell confirmed that health and wellbeing was vital and that leisure was a tonic for people.  The more we invested in leisure the better the community would be.  The service continued to thrive and develop and she acknowledged the amazing job officers did in continuing to provide services.

 

The Chair invited the Executive Director of Finance and Performance to address the Executive.  The Executive Director thanked the Executive for their kind words in delivering a balanced budget.  This had been a complex process and it could not have been done without the support of officers and members.  There would be a challenge ahead in the future but she looked for a balanced budget across the whole of the life of the Medium-Term Financial Plan.

 

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.