Decision details

Purpose: to receive an update on budget setting for 2024/25

Cabinet considered the head of finance’s report, being the budget setting update report for 2024/25. 

The report informed Cabinet of progress made in compiling a draft budget for 2024/25.  There would be inflationary pressures, hopefully balanced with increased treasury income from high interest rates.  A revenue and capital budget challenge was underway, to analyse the draft figures in detail before Cabinet would be required to recommend its draft budget to Council in February 2024. 

The government had published its draft settlement figure for South Oxfordshire at an increase of 4.63 per cent, although there was no clarity for later years.  This left uncertainty in compiling the medium term financial plan, which covered the next five years, resulting in an increasing reliance on the council’s reserves, as costs would rise with inflation and treasury income reduce as interest rates were likely to fall. 

In answer to a question about whether the council could borrow funds, members noted that the council would need to be clear what it was borrowing for, such as to support the housing delivery strategy or other major projects.  Given the council’s reliance on borrowing to fund the capital programme, all existing capital programme schemes and any growth proposals would need to comply with the requirements of the Chartered Institute of Public Finance and Accountancy Prudential Code, and also the Public Works and Loans Board from whom the council was likely to borrow in future. 

Members thanked the officer for his report. 

RESOLVED to note the budget setting report 2024/25.