Agenda item

To approve the Council’s Final General Fund Budget 2025/26 and Capital Strategy for 2024/25 to 2029/30

The Mayor advised that Item 3 and Item 4, Final General Fund and Council Tax Setting 2025/26 and Capital Strategy 2024/25 – 2028/29 would be taken together.  Council was advised that the motion including the Formal Council Tax Resolution with the increases agreed by the County Council, the Police and Crime Commissioner and the Council’s Revenue and Capital Budgets was attached as an appendix to the report.

 

Councillor Richard Henry, Leader of the Council, introduced the proposed 2024/2025 General Fund Budget and Capital Strategy 2023/24 – 2028/29, together with final proposals for the 2024/25 Council Tax.  In his introduction, Councillor Henry was pleased to announce that the Council would be setting another balanced budget for the forthcoming year which would be key to make Stevenage an Even Better place for everyone.  He then shared a number of his highlights throughout the year including:

 

·         The General Election, resulting in a new Labour Government and a new Labour MP for Stevenage who he thanked for the work he was undertaking to support and promote the Town;

·         The Council’s agreement to support the Government’s plans for Local Government Reorganisation which would deliver real devolution both locally and across the County and the Country;

·         The commencement of a 50:50 Joint Venture agreement with MACE for the development of the former Swingate House with 261 homes along with a café at ground level known as Claxton House.  This was in addition to 561 Council homes already built with the aim to deliver 1,000 properties by 2028;

·         The expansion of Co-Space bringing a further 150 desks into the space which was also home to the UBS Banks Graduate Training Programme;

·         Working closely with the University of Hertfordshire and North Herts College to drive the Stevenage Works programme and the £1million skills programme with Sir Lewis Hamilton’s Mission 44 Charity;

·         The planned £45million development of the new Sports and Leisure Centre; and

·         The transformation of the underpasses throughout the Town.

 

Councillor Jeannette Thomas, Deputy Leader of the Council, then moved the motion, including the recommendations regarding the General Fund Budget 2025/26 and Capital Strategy 2024/25 – 2028/29 and the formal Council Tax Resolution, which had been circulated to Members.

 

Councillor Thomas highlighted the following points:

 

·         She was presenting a balanced budget with no use of any balances for next year;

·         The Council would not be cutting any services and the Commercial Strategy was bringing in income contributing to the budget;

·         The Council’s target to further reduce anti-social behaviour, including clearing up even more graffiti on council owned and managed property;

·         The launch of a brand new corporate Apprenticeship programme to boost talent, skills and work opportunities for local people;

·         The increase in Council Tax for residents in a Band D property would equate to £4.74 or for single resident properties £3.55 per week.  For residents receiving full benefit they would pay 8.5% of their Council Tax bill and for pensioners on maximum benefit the cost would be zero;

·         Councillor Thomas thanked her fellow Cabinet Members, the Overview and Scrutiny Members and the Council’s Financial Services priority Group alongside the Strategic Director and Chief Financial Officer and her Team for their work in developing the budget

 

Councillor Henry then formally seconded the recommendations from the Cabinet on the General Fund and Capital Budgets, together with the formal Council Tax resolution, as set out on the paper circulated to Members.

 

Councillor Stephen Booth, Leader of the Opposition advised that although his Group had welcomed many of the initiatives over the past 12 months which had been taken by the Council, he questioned the efficiency savings proposed, along with the assumption that the move of the indoor market would improve town centre business.  He also queried why there was no evidence to reduce the headcount which in his opinion would enable the increase to local residents to be kept at under 1.99%.  Councillor Booth thanked the Council’s Section 151 Officer for her help and advice.

 

A number of members took part in the debate on the motion and raised the following points:

 

·         The budget would ensure there were new homes built in the Town including different types of tenures of ownership for residents along with people wanting to come and live in Stevenage;

·         Assumptions within the budget relating to current inflation figures and the Union’s request regarding the staff pay award could affect the budget;

·         The increase of 2.99% would be difficult for residents to absorb during a cost of living crisis;

·         The budget demonstrated the Council’s commitment to its services including Planning, Environmental and Direct Services;

·         The vast majority of traders within the indoor Market welcomed the move to the new space;

·         Most Councils throughout Hertfordshire were increasing Council Tax by the full amount of 2.99% which was prudent and gave the best financial position for this and future years.

 

A recorded vote* was then taken on the motion, and it was RESOLVED:

 

1.            That the following be approved:

 

a.           the revised working revenue estimates for the year 2024/25 amounting to £12,251,910 and the revenue estimates for 2025/26 amounting to £10,753,540;

b.           the contribution to balances totalling £596,801 in 2024/25;

c.            the contribution to balances totalling £6,053 in 2025/26.

 

2.            That it be noted that at its meeting on 11 December 2024 the Cabinet calculated the amount of 28,571.8 Band D equivalent properties as its council tax base for the year 2025/26 in accordance with Regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992 made under Section 31B of the Local Government Finance Act 1992 as amended by Section 74 of the Localism Act 2011.

 

3.            That the following amounts be calculated by the Council for the year 2025/26 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 as  amended by Section 74 of the Localism Act 2011:

 

a.	£90,151,990	Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2)(a) to (f) of the Act, less the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3)(a) to (d)
b.	£83,111,480	Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3)(a) to (d) of the Act.
c.	£7,040,510	Being the amount by which the aggregate at 3a above exceeds the aggregate at 3b above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year.
d.	£246.41	Being the amount at 3c divided by the amount at 2 above, calculated by the Council, in accordance with Section 31B (1) of the Act, as the basic amount of its council tax for the year
e.	Valuation Bands
	A	£  164.27
	B	£  191.65
	C	£  219.03
	D	£  246.41
	E	£  301.17
	F	£  355.93
	G	£  410.68
	H	£  492.82

     

 

Being the amounts given by multiplying the amount at 3d. above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

4.   a.       That it be noted that for the year 2025/26 Hertfordshire County Council have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings shown below:

 

                 Valuation Bands

 

	Basic Amount of Council Tax	Adult Social Care Charge	2025/26 Council Tax
A	£995.18	£184.73	£1,179.91
B	£1,161.04	£215.52	£1,376.56
C	£1,326.91	£246.31	£1,573.22
D	£1,492.77	£277.10	£1,769.87
E	£1,824.50	£338.68	£2,163.18
F	£2,156.22	£400.26	£2,556.48
G	£2,487.95	£461.83	£2,949.78
H	£2,985.54	£554.20	£3,539.74

 

 

b.             That it be noted that for the year 2025/26 Hertfordshire Police Authority have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992 and amended by Section 27 of the Police and Magistrates’ Court Act 1994, for each of the categories of the dwellings shown below:

Valuation Bands

 

        A                    £ 176.67

   

B                     £ 206.11

 

C                     £ 235.56

 

D                     £ 265.00

 

E                     £ 323.89

 

F                      £ 382.78

 

G                     £ 441.67

 

H                     £ 530.00

 

      

 

5.                  That, having calculated the aggregate in each case of the amounts at 3e. and 4a. and b. above, the Council in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts for council tax for the year 2025/26 for each of the categories of dwellings shown below:

Valuation Bands

 

A	£1,520.85
B	£1,774.32
C	£2,027.81
D	£2,281.28
E	£2,788.24
F	£3,295.19
G	£3,802.13
H	£4,562.56

 

6.         To determine in accordance with Section 52ZB Local Government Finance Act 1992 that the Council’s basic amount of Council Tax for 2025/26 is not excessive in accordance with principles approved by the Secretary of State under Section 52ZC having calculated the aggregate in each case of the amounts at 3e.

 

7.         The 2024/25 revised net expenditure on the General Fund of £12,251,910 is approved as set out in paragraph 4.8.1 as summarised in Appendix B.

2.2 The draft General Fund Budget for 2025/26 of £10,753,540 is proposed for consultation purposes, with a contribution to balances of £6,053 and a Band D Council Tax of £246.41, (assuming a 2.99% Council Tax increase), as summarised in Appendix B and included in the Council tax resolution in Appendix F.

8          The updated position on the General Fund Medium Term Financial Strategy (MTFS) as summarised in section 4.10 be noted.

9.         The minimum level of General Fund reserves of £3,421,625, which is in line with the 2025/26 risk assessment of balances, as shown at Appendix C to this report, is approved.

10.       The contingency sum of £500,000 within which the Cabinet can approve supplementary estimates, be approved for 2025/26, (reflecting the level of balances available above the minimum amount).

11.       The 2025/26 Balancing the Budget options as set out in section 4.5 and Appendix A, totalling £275,907 and £29,651 for the General Fund and HRA respectively, be approved.

12.       The use of the Business Rate reserve to fund a Graduate and Apprentice scheme as set out in section 4.6 is approved for inclusion in the 2025/26 General Fund (£202,760).

13.       That a first call on underspends of £150,000 (in total from the General Fund and HRA) is approved to support the Graduate and Apprentice scheme as set out in section 4.6.

14.       That the growth bid for graffiti removal of £75,000 as set out in section 4.6 is approved.

15.       That the pressures identified in sections 4.2 and 4.7 to this report are noted.

16.       That Members approve the Council Tax Support scheme for 2025/26 as set out in paragraphs 4.3.8-4.3.9

17.       That the Section 25 Statement on Robustness of Estimates and Adequacy of Reserve as set out in Appendix D is approved.

18.       That Members note the Equalities Impact Assessment appended to this report for the Council Tax increase (Appendix E).

19.       That Members note the feedback on the budget from Overview and Scrutiny as set out in Para.4.13.1 and public consultation in Para. 4.13.2 onwards

20.      That the Final General Fund Capital Budget for 2025/26 of £52Million, as set out in Appendix C to the report, be approved.

21.      That Revisions to the 2024/25 General Fund Capital Budget for 2024/25 of £244k, as set out in Appendix C to the report, be approved.

22.      That the Final HRA Capital Budget for 2025/26 of £51.4Million, as set out in Appendix B to the report, be approved.

23.      That the forecast of resources and approach to resourcing the capital programme as outlined in the report (General fund Paragraph 4.4 and HRA paragraph 4.10) be approved.

24.      Final General Fund growth bids identified for inclusion in the Capital Strategy (paragraph 4.2, and Appendix A to the report) be approved.

25.      To enable the use of Community infrastructure levy of up to £5Million, to fund future infrastructure projects as outlined in paragraph 4.6.3. be approved.

26.      The approved capital de-minimis expenditure limit of £10,000 be noted.

27.      The approved revenue surplus in any year of up to £500K that can be allocated to the capital reserve to support capital expenditure be noted.

28.      That the comments from Council Financial Security Group set out in section 4.14 be noted.

[ *Recorded Vote on Substantive motion:

 

For – Councillors Myla Arceno, Robert Boyle, Lloyd Briscoe, Rob Broom, Jim Brown, Kamal Choudhury, Forhad Chowdhury, Nazmin Chowdhury, Peter Clark, Coleen De Freitas, Akin Elokolusi, Alistair Gordon, Richard Henry, Jackie Hollywell, Conor McGrath, Lin Martin-Haugh, Sarah Mead, Claire Parris, Ellie Plater, Tom Plater, Ceara Roopchand, Loraine Rossati, Simon Speller, Jeannette Thomas, Carolina Veres, Nigel Williams and Jade Woods - 27

 

Against – Councillors Julie Ashley-Wren, Phil Bibby, Stephen Booth, Andy McGuinness, Robin Parker and Peter Wilkins - 6

 

Abstentions – 0

 

Not present – Councillors Sandra Barr, Leanne Brady, Lynda Guy, Mason Humberstone, Anne Wells and Tom Wren - 6]