Agenda item

Budget setting 2025/26 update

To consider the report from the head of finance.

Minutes:

Cabinet received the budget setting 2025/26 update report, from the head of finance. The report provided Cabinet with an update of the progress made to date in preparing the proposed revenue budget for 2025/26 and the capital programme for 2025/26 to 2029/30. It also reported on the funding issues that needed to be considered when council sets a revenue budget and capital programme in February 2025.

 

The cabinet member for finance introduced the report on the revenue and capital budget preparation, which built upon the budget scene setting report Cabinet considered in October 2024. It was confirmed that whilst most the base budget exercises were complete, some minor updates were expected before the final budget would be published in February. A broadly balanced budget proposal was expected, although this wouldn’t account for potential discretionary changes, such as council tax increases or savings measures. It was reported that the government had confirmed that there would be no reduction in core revenue spending power, assuming that council tax would be increased by £5. Additionally, investment income was higher than previously expected, which would increase the amount in reserves for future years. The cabinet member also mentioned the potential impact of new packaging regulations, which could provide additional income for the council in the short term.

 

During discussion, it was confirmed that the council would continue with a five-year medium-term financial plan (MTFP). Cabinet raised concerns regarding the impact of the government’s white paper on devolution and whether the council should reassess its assumptions, such as the council tax increase, given the uncertain future. It was noted that the white paper was a proposal at that stage and the full implications were yet to be determined and fiduciary duties on members and statutory duties on officers, remain in place.

 

RESOLVED: that cabinet note the report.

Supporting documents: