Agenda item - DRAFT GENERAL FUND AND COUNCIL TAX SETTINGS 2024/25

To consider the Council's draft 2024/25 General Fund Budget, Council Tax Support Scheme and draft proposals for the 2024/25 Council Tax.

The Executive considered a report in respect of the Council’s draft General Fund, Council Tax Support Scheme and draft proposals for the 2024/25 Council Tax.

It was RESOLVED:

1. That the 2023/24 revised net expenditure on the General Fund of £13,272,960 be approved, as set out in Paragraph 4.10.1 of the report.

2. That the draft General Fund Budget for 2024/25 of £11,427,090 be proposed for consultation purposes, with a contribution from balances of £50,494 and a Band D Council Tax of £239.26 (assuming a 2.99% increase).

3. That the updated position on the General Fund Medium Term Financial Strategy (MTFS), as summarised in Section 4.12 of the report, be noted.

4. That the minimum level of General Fund reserves of £3,537,794, in line with the 2024/25 risk assessment of balances, as shown at Appendix C to the report, be approved.

5. That the contingency sum of £400,000 within which the Executive can approve supplementary estimates, be approved for 2024/25 (reflecting the level of balances available above the minimum amount).

6. That the 2024/25 Balancing the Budget options, as set out in Section 4.7 and Appendix A to the report, totalling £1,223,852 and £95,063 for the General Fund and Housing Revenue Account (HRA) respectively, be included into the Council’s budget setting processes for consideration by the Overview & Scrutiny Committee.

7. That the events options, as set out in Paragraph 4.7.4 of the report, be approved for 2024/25.

8. That the Growth options included in Section 4.8 of the report be approved for inclusion in the 2024/25 General Fund (£167,120) and HRA (£47,265) budgets.

9. That the pressures identified in Sections 4.2 and 4.9 of the report be noted.

10. That the use of £200,000 of Business Rates in the base budget be approved, and any gains above that be used only once realised, and be ring fenced for use to maintain the Council’s financial resilience.

11. That the use of ‘pooling gains’ of £220,000, as set out in Paragraph 4.4.7 of the report, be approved.

12. That the decisions taken on Resolutions 2 – 11 above be referred to the Overview and Scrutiny Committee for consideration, in accordance with the Budget and Policy Framework Rules in the Council’s Constitution.

13. That the Equalities Impact Assessment appended to the report in Appendix D be noted.

14. That key partners and other stakeholders be consulted and their views considered as part of the 2024/25 budget setting process.

Reason for Decision: As contained in report.

Other Options considered: As contained in report.

The Executive considered a report in respect of the Council’s draft General Fund, Council Tax Support Scheme and draft proposals for the 2024/25 Council Tax.

In the absence of the Portfolio Holder for Resources and Transformation, the Chair (Deputy Leader and Portfolio Holder for Housing & Housing Development) advised that the current context for both the Council and the wider local government sector remained very challenging. She reminded Members that the Council’s funding from central Government had reduced by over £5M since 2010 and the Council had absorbed pressures of £12M in total over that time. The report also included data from the National Audit Office which confirmed that, in real terms, the Council’s core spending power had reduced by 64.5%. Beyond this, the Local Government Association had identified that local government needed a further £4bn funding package to remain financially stable.

The Chair stated that the report presented a savings package of £1.2Million for consideration and growth of £167,000 for next financial year alongside a 2.99% increase in council tax. However, Stevenage Borough Council could only keep 11% of the council tax raised. This was the smallest share of council tax, with the rest going to the County Council and the Police. To help residents with the increase in council tax, SBC was keeping its Council Tax Support Scheme at a maximum payment of 8.5% of the council tax due for working aged claimants on maximum benefit.

The Chair explained that it was also recommended that £200,000 of business rate gains be used each year to support General Fund services, with the rest going into the business rate reserve. The February 2024 budget report would update Members on the projections for gains for the reasons set out in the report. She was pleased to report a further gain of £220,000 from Business Rate pooling, as set out in Paragraph 4.4.7 of the report.

The Chair commented that, owing to the Government’s funding formula, funding from Government was £146,000 higher than had been previously estimated. The Council was able to set a balanced budget for next year with only a small use of balances. However, looking ahead, the Council faced significant challenges in future years, including the need to find a further £1Million savings for 2025/26.

The Strategic Director (CF) commented that the Financial Settlement was still provisional, as the Government was still consulting upon it. The Police and Upper Tier authorities had more flexibility in the amount of Council Tax increases, whilst Borough District Councils were capped at a maximum rise of 3%. The £1Million savings target for 2025/26 would currently include a draw on balances of £600,000, although this figure could reduce later in 2024/25.