COUNCIL

19 February 2025

MEDIUM TERM FINANCIAL STRATEGY AND BUDGET PROPOSALS 2025/26

Will this be a Key Decision?

Yes

Urgency

Not Applicable

Final Decision-Maker

COUNCIL

Lead Director

Mark Green, Director of Finance, Resources & Business Improvement

Lead Officer and Report Author

Adrian Lovegrove, Head of Finance

Classification

Public

Wards affected

All

Executive Summary

To consider the proposed Revenue and Capital Estimates for 2025/26, including service savings and growth, in accordance with the agreed budget strategy and in the context of the Medium-Term Financial Strategy and the Strategic Revenue Projection.

To calculate and approve the Council Tax requirement for 2025/26.

To adopt the Treasury Management, Investment and Capital Strategies for 2025/26.

Purpose of Report

Decision

The report makes the following recommendations to the Council:

1.      That the revised Revenue Estimates for 2024/25 as set out in Appendix A be agreed.

2.      That £500,000 of unringfenced government grant be transferred to the Nature Recovery Fund and £100,000 be transferred to a Devolution / Local Government Reorganisation Project Fund with the balance transferred to the Housing Investment Fund, to be used to subsidise the Council’s Quality Homes for All programme;

3.      That the Strategic Revenue Projection as set out in Appendix A be endorsed as the basis for future financial planning.

4.      That the proposed Council Tax of £301.68 Band D for 2025/26 be agreed.

5.      That the Revenue Estimates for 2025/26 as set out in Appendix A be agreed.

6.      That the Statement of Earmarked Reserves and General Fund Balances as set out in Appendix A be agreed.

7.      That the funding of the Capital Programme as set out in Appendix A be agreed.

8.      That the Capital Programme as set out in Appendix A be agreed.

9.      That the Treasury Management Strategy, Investment Strategy and Capital Strategy set out in Appendix A be agreed.

10.   That the Medium Term Financial Strategy set out in Appendix A be agreed.

11.   That it be noted that the Council’s Council Tax base for the year 2025/26 has been calculated as 68,085.5 in accordance with Regulation 3 of the Local Authorities (Calculation of Council Tax Base) regulations 1992.

12.   That it be noted that in accordance with Government guidance the yield from business rates has been calculated as £67,875,577.

13.   That it be noted that the individual parish area tax bases set out in Appendix B are calculated in accordance with regulation 6 of the Regulations and are the amounts of the Council Tax Base for the year for dwellings in those parts of the Council’s area to which a special item relates.

14.   That the Council Tax requirement for the Council’s own purposes for 2025/26 (excluding Parish precepts) is £20,540,034.

15.   That the following amounts now be calculated by the Council for the year 2025/26 in accordance with Section 32-36 of the Local Government Finance Act 1992 as amended by the Localism Act 2011:-

a)   £74,847,283 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(2) of the Act taking into account all precepts issued to it by Parish Councils.

b)   £51,182,140 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(3) of the Act.

c)    £23,665,143 being the amount by which the aggregate at 15(a) above exceeds the aggregate at 15(b) above, calculated by the Council in accordance with Section 32(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 32(4) of the Act).

d)   £347.58 being the amount at 15(c) above (Item R), all divided by the figure stated at 11 above (Item T in the formula in section 33(1) of the Act), calculated by the Council, in accordance with Section 33 of the Act, as the basic amount of its Council Tax for the year (including parish precepts).

e)   £3,125,109 being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per the attached Appendix B).

f)    £301.68 being the amount at 15(d) above less the result given by dividing the amount at 15(e) above by the tax base given in 11 above, calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates.

16.   That it be noted that for the year 2025/26 Kent County Council (KCC), the Kent Police & Crime Commissioner (KPCC) and the Kent & Medway Fire & Rescue Authority (KMFRA) have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:

17.   That, having calculated the aggregate in each case of the amounts at 15 (d), and 16 above, the Council, in accordance with Section 30 (2) of the Local Government Finance Act 1992, hereby sets out in Appendix C, the amounts of Council Tax for the year 2025/26 for each of the categories of dwellings shown.

MEDIUM TERM FINANCIAL STRATEGY AND BUDGET PROPOSALS 2025/26