Agenda item

Report to follow.

The Cabinet received the final 2025/26 General Fund Budget report which incorporated the finance settlement for the next year that had been announced on the 3 February 2025.

The Portfolio Holder advised that the Council had received more national insurance compensation than previously anticipated which had helped to balance the budget without making service reductions and allow the contribution of a small sum to general reserves.  She advised that the 2.99% increase on Council Tax for next year which would add an extra £7.15 per year on a band D property.  In total, this would result in a 40p per week increase for working age claimants on maximum benefit if they claimed Council Tax Support.

Members were reassured by the Strategic Director and Chief Finance officer that work had begun on next year’s budget to identify the required savings of £900k.

It was RESOLVED that the following proposals be recommended to Council on 26 February 2026:

1.    That the 2024/25 revised net expenditure on the General Fund of £12,251,910 be approved as set out in paragraph 4.8.1 as summarised in Appendix B be approved;

2.    The draft General Fund Budget for 2025/26 of £10,656,540 be 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.

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

4.    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, be approved.

5.    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).

6.    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.

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

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

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

10.That the pressures identified in sections 4.2 and 4.7 to this report be noted;

11.That the Council Tax Support scheme for 2025/26 as set out in paragraphs 4.3.8-4.3.9 be approved;

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

13.That the Equalities Impact Assessment appended to this report for the Council Tax increase (Appendix E) be noted.

14.That 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 be noted.

Reason for Decision: As contained in the report.
Other Options considered: As contained in the report.