Issue - meetings

Cabinet, at its meeting on 15 February 2024, will consider the attached report of the head of finance on the the draft revenue budget 2024/25, and the capital programme to 2028/29.

Cabinet’s recommendations will be circulated to all members prior to the Council meeting.

Also attached is the chief finance officer’s report on the robustness of the budget estimates and the adequacy of the reserves.

The chair referred to regulations that require councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget, including amendments, and the council tax. In accordance with the regulations, he would call for a named vote on each of these matters at this meeting.

Council noted the report of the chief finance officer on the robustness of the budget estimates and the adequacy of the reserves.

Council considered Cabinet’s recommendations, made at its meeting held on 15 February 2024, on the revenue budget for 2024/25 and the capital programme to 2028/29.

Councillor Barker, Cabinet member for finance and property assets, presented Cabinet’s proposals for the revenue budget and capital programme. He moved and Councillor Powell, Cabinet member for corporate services, policy and programmes, seconded a motion to approve Cabinet’s recommendations as follows:

To

1. set the revenue budget for 2024/25 as set out in appendix A.1 to the report,

2. approve the capital programme for 2024/25 to 2028/29 as set out in appendix D.1 and D.2 to the report, together with the capital programme changes as set out in appendix D.3 and Appendix D.4 to the report,

3. set the council’s prudential limits as listed in appendix E to the report,

4. set the medium-term financial plan to 2028/29 as set out in appendix F to the report,

5. allocate £500,000 to fund the Communities Capital and Revenue grant

scheme,

6. ask officers to review the Medium-Term Financial Strategy (MTFS) at the end of the current spending review period.

In introducing the budget, Councillor Barker noted that he was presenting a budget without any cuts to services in what was a very challenging time for local authorities across the country. It was noted that part of the reason for this was due to an increase in business rate collections.

Councillor Barker highlighted to Council that the budget was £1.5m better than the forecast and that the draw on reserves was down from £3m to £1.5m, whilst the settlement from central government had remained relatively stable. He also noted certain key areas of the budget including £500,000 for the community hub, support for the Cornerstone Arts Centre and performing arts across the district, the maintenance of the previous year’s level of grant funding, decarbonisation funding, a range of grants and investments in affordable housing, and for the continued support for the Future Oxfordshire Partnership. Overall, Councillor Barker was satisfied that the council was on a firm financial footing for the upcoming year and the years beyond.

A minority of members spoke against the budget proposals. They opposed it on the grounds that it was not ambitious or transformational enough, that it did not put the environment at the heart of funding decisions as shown through the continued use of diesel vehicles, and that there were no real term increases for grants. Some members commented that future budgets would benefit from having the views of members from other political groups included in the  ...  view the full minutes text for item 72

To consider the head of finance’s report. 

Cabinet considered the head of finance’s report on the revenue budget for 2024/25 and the capital programme for 2024/25 to 2028/29.  The report brought together all the information required to enable Cabinet to recommend the budget to Council.  It also recommended the Prudential Indicators to be set by Council in accordance with the Prudential Code.  The report also contained the chief finance officer’s opinion on the robustness of the estimates and the adequacy of the council’s financial reserves.  Finally, the report included the medium term financial plan for the years 2024/25 to 2028/29. 

The Cabinet member for finance reported that Scrutiny Committee considered the budget report and was content with it; he thanked the committee for its input.  The budget before Cabinet was the result of a comprehensive effort of budgetary review and challenge by officers and members.  The council was under financial pressure due to high inflation over the past year, increasing the council’s costs.  However, interest rates had been unexpectedly high throughout the past year, bringing in more treasury income than expected.  There were no cuts to services, and a lower than previously expected draw upon reserves.  All of these factors had allowed the council to set a balanced budget.  Council tax would be increased by the maximum before a referendum was required.  The district council’s element of the Council Tax for a Band D property would be £146.24, an increase of less than 10 pence per week. 

Cabinet noted that there was uncertainty over future years’ funding from government, meaning that there could be a higher draw on reserves in the medium term. 

Cabinet welcomed the proposed budget.  It allowed the council to provide resources to deliver its corporate plan.  Members were proud of the way the council had stabilised its finances and thanked all staff for their hard work and dedication. 

RECOMMENDED to Council to:

(a)       set the revenue budget for 2024/25, as set out in Appendix A.1 to the head of finance’s report to Cabinet on 15 February 2024;

(b)       approve the capital programme for 2024/25 to 2028/29, as set out in Appendices D.1 and D.2 to the report, together with the capital programme changes, as set out in Appendices D.3 and D.4 to the report;

(c)        set the council’s prudential limits, as listed in Appendix E to the report;

(d)       set the medium-term financial plan to 2028/29, as set out in Appendix F to the report;

(e)       allocate £500,000 to fund the Communities Capital and Revenue grant scheme; and

(f)         ask officers to review the Medium-Term Financial Strategy at the end of the current spending review period. 

RESOLVED: to authorise the head of finance, in consultation with the cabinet member for finance, to make minor adjustments to the report and the prudential indicators, should they prove necessary prior to its submission to Council on 22 February 2024.