Agenda item

The Cabinet Member for Corporate Services introduced the report and stated that the budget proposals for 2024/25 presented a balanced budget with a surplus of £92,000. The report recommendations were outlined, including an increase in council tax of 3%. There was also a 3% increase in core spending power in the Local Government Finance Settlement.

Two additional recommendations were outlined by the Cabinet Member for Corporate Services, to extend the repayment date for the loan to Kent Savers from 2027 to 2032 and to utilise the £92,000 budget surplus for financial inclusion. This included £59,000 to employ a welfare officer and a dashboard for tracking low income families, and £33,000 to fund at least an additional issue of the Council magazine, Borough Insight, per annum.

The Committee welcomed the financial security of the proposed budget but stressed that there would be challenges in setting a balanced budget in subsequent years. In considering the additional proposal to fund a further issue of the Borough Insight Magazine, some Members felt that the funding could be used for other purposes. Overall, it was agreed that the magazine was an effective way of communicating with residents and should be funded where possible. 

In response to questions the Director of Finance, Resources and Business Improvement stated that:

·  The £59,000 funding allocated to financial inclusion in the additional recommendation included a digital tracker which allowed the Council to identify families at risk of financial vulnerability;

·  It was proposed that monies would be transferred from the £27 million net revenue expenditure to the Housing Investment Fund and financial inclusion;

·  The Council had saved more than anticipated, giving a budget surplus of £92,000, which was able to be spent in 2024/25, but there would be a budget gap in 2025/26; and

·  The expected income for bereavement services was predicted to decrease from £984,000 to £941,000 unlike other services which were increasing.

In response to further questions the Cabinet Member for Corporate Services stated that the £198,000 of unringfenced government grant was proposed to fund financial inclusion which included services such as community food larders.

RESOLVED to RECOMMEND to CABINET: That

1.  The outcomes of consideration of budget proposals by the Policy Advisory Committees be noted;

2.  The Budget Growth and Savings Proposals set out in Appendix A of the report, be agreed;

3.  £198,000 of the unringfenced government grant described in paragraphs 2.5 and 2.6 of the report be used for one-off support to financial inclusion and food larder services, be agreed, and that the call on on-off funding for financial inclusion by £59,000 is reduced in recommendation 15, be noted;

4.  The maximum use is of made of other residual one-off funding from other relevant council budgets to further sustain financial inclusion and food larder services, be agreed, and the position to be kept under review so that the Council can respond to changes in circumstances and future funding opportunities;

5.  The balance of the unringfenced government grant described in paragraphs 2.5 and 2.6 of the report be transferred to the Housing Investment Fund, to be used to subsidise the Council’s Affordable Housing programme, be agreed;

6.  The updated Strategic Revenue Projection set out in Appendix B of the report, be agreed;

7.  A £8.46 annual increase in Band D Council Tax for 2024/25 be recommended to Council;

8.  The Revised Estimates for 2023/24 and the Budget Estimates for 2024/25 set out in Appendix C of the report be recommended to Council;

9.  The Capital Programme set out in Appendix D of the report be recommended to Council;

10.The Treasury Management Strategy, Investment Strategy and Capital Strategy set out in Appendix E of the report be recommended to Council;

11.The projected level of General Fund balances in Appendix F of the report exceeds the agreed minimum level of £4 million, be noted;

12.The updated Medium Term Financial Strategy set out in Appendix G, be agreed;

13.The appropriate matters for decision to set a balanced budget for 2024/25 and the necessary level of Council Tax in accordance with the Local Government Finance Act 1992 and the Localism Act 2011 including the decisions made above, be recommended to Council;

14.The measures in the Regeneration and Levelling-up Act to reduce the period before charging a Council Tax premium on empty property from two years to one and to charge a Council Tax premium on second homes, be recommended to Council to be implemented from 1 April 2025;

15.It utilises the £92,000 budget surplus referenced in paragraph 2.34 for financial inclusion (Welfare Officer and dashboard for tracking low income families - £59,000) and at least one issue per annum of Borough Insight (£33,000);

16.An amendment to the repayment date for the loan to Kent Savers referenced on Page 97 from 2027 to 2032, be noted; and

17.The Finance Officers be thanked for their work on the budget.