Agenda item

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 budget discussions. 

However, the majority of members supported the budget proposals. As it was a budget with no cuts to services in a time where other local authorities were struggling with their finances, members commended the budget and thanked the officers for their support. Specifically, members welcomed the micro and small enterprise grants which would provide support for small business, and they noted that one of the reasons for the increased business receipts was due to the success of small businesses across the district. Members also praised the inclusion of funding for local arts and culture, continued support for the community hub, funding for decarbonisation efforts, and the investments planned for leisure centres. The inclusion of funding for homelessness prevention and affordable housing was also mentioned as members were proud of the support that the council provided in this area and indicated that these services would likely be increasingly needed moving forward. It was also highlighted that the council remained the seventh lowest taxing district in country and that the budget showed how they were providing value for money.

Overall, as members were satisfied with the relatively strong position of the council’s finances, and with the proposed areas of allocated funding, they agreed that the budget and capital programme should be approved.

In accordance with regulations requiring councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget, the Chair called for a recorded vote which was carried with the voting being as follows:

RESOLVED: to

1.       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;

2.       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;

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; and

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