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Decision details
Revenue Budget 2024/25, and Capital Programme 2024/25 to 2026/27
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Decisions:
The Chief Finance Officer presented the draft revenue budget for 2024/25 and capital programme budget for 2024/25, to 2026/27.
The Chief Finance Officer thanked all of those involved in the budget setting process and explained that the financial situation had changed quite dramatically since the Medium Term Financial Strategy was presented to cabinet in November 2023. The general reserve was previously forecast to be exhausted over the next couple of years, but this was before any savings were agreed late last year. Financial settlement figures were received from the government in December and January. Additionally, there has been a thorough review of the budget and the use of earmarked reserves as well as a reduction in the capital programme. In all, this has resulted in an improved financial position to that previously forecast.
Financial restrictions brought in last year have also contributed to the improvement in the council’s financial position, although these are only a temporary measure.
The report proposes that council tax is increased by the maximum allowed without holding a referendum. There are also additional council tax charges being brought forward following changes to legislation in relation to second homes and empty homes.
Over the course of the Medium Term Financial Strategy the general reserve balance is now forecast to remain at around £4 million which is the recommended minimum level.
Councillor Patmore asked why no savings from the housing acquisitions programme had been identified beyond 2024/25. The Head of Housing replied that the current allocation for the programme is coming to an end and officers are looking at opportunities for extending the programme. Although officers are confident that there will be further savings going forward it is difficult to determine what they will be at this stage.
Councillor Barnett proposed approval of the recommendations, seconded by Councillor Willis subject to the following amendments:
Amendment 1. Add the following words to paragraph 104:
A special meeting of the Overview and Scrutiny Committee was held last week to discuss the budget report. It was suggested there that the savings package agreed at Full Council in December was in danger of not being delivered. In fact, the changes made to Appendix K since December are as a result of reprofiling of some savings over a longer period, and so for example the Transformation savings agreed in December will be achieved over five years rather than three, and additional income being identified (so for example £224k more for fees and charges in 24/25, and £6.8m more from capital programme savings over the next three years). The overall impact of these revisions is significantly beneficial to the council’s overall financial position.
Amendment 2. Appendix K/2b: amend 2-3 year programme to 5 year programme.
Amendment 3. Appendix K – add savings of £310,542 from the housing acquisition programme for 2025/26
RESOLVED (unanimously):
Subject to the agreed amendments above, cabinet recommends that Full Council:
(i) Approve the draft 2024/25 revenue budget (Appendix B)
(ii) Approve a 2.99% increase in the Borough Council's part of the Council Tax (Appendix C).
(iii) Approve the detailed recommendations in Appendix C, which relate to the setting of Council Tax in accordance with Sections 31 to 36 of the Local Government Act 1992 (Appendix C – to be provided/updated for full Council).
(iv) Approve the Capital Programme 2024/25 to 2026/27 (Appendix E) and that any marked with an asterisk can proceed without further reference to Cabinet or Council.
(v) Approve the proposed use of Reserves as detailed in Appendix I that can proceed without further reference to Cabinet or Council.
(vi) Approve that the budget be amended as necessary to reflect the final grant figures including Disabled Facility Grants - once received.
(vii) Full Council adopt the existing Council Tax Support Scheme subject to amendments to allowances in line with any national changes. Determination of the allowances to be delegated to the Chief Finance Officer in line with prior year practice.
(viii) The application of the current premium of 100% for all dwellings which are unoccupied and substantially unfurnished (empty dwellings) from a period of one year with effect from 1st April 2024.
(ix) The application of a premium of 100% for all dwellings which are unoccupied but substantially furnished (second homes) with effect from 1st April 2025; and
(x) That the Section 151 Officer is given delegated powers to implement the policy in line with the Council’s requirements and any guidance given by the Secretary of State or regulation.
Reasons:
1. The Council has a statutory responsibility to set a balanced Budget and Council Tax in advance of the start of the new financial year.
2. The report identifies that a balanced budget in 2024/25 can only be achieved by using £700k of General reserve funding.
3. The level of grant funding, Council Tax increases and income from fees and charges is insufficient to meet the annual increases in costs e.g. inflation, pay increases, demand pressures, in particular the costs of meeting our statutory homelessness.
4. The Council is only able to increase Council Tax by a maximum of 2.99% without a referendum.
5. The Council remains exposed to a much greater degree of volatility in terms of its income from Non Domestic Rates and expenditure in terms of Council Tax Support claims – the cost falling directly on the Council and the preceptors.
6. The Council needs to manage its Capital Financing requirements carefully to avoid unnecessary and costly interest charges. Therefore, it has been necessary to reduce the aspirations for the Capital Programme accordingly, and the council will need to continue to maximise any potential Capital receipts.
Publication date: 22/02/2024
Date of decision: 12/02/2024
Decided at meeting: 12/02/2024 - Cabinet
Accompanying Documents:
- Budget Report 2024-25 v1.2 PDF 670 KB
- Appendix A - Section 25 Notice v1.1 PDF 63 KB
- Appendicies v1.1 02.02.24 PDF 582 KB
- Appendix X - Hastings Council Tax Premiums Report PDF 163 KB
- Appendix Z - Glossary PDF 73 KB
- Hastings Council Tax Empty Homes & Second Homes Premiums Policy PDF 209 KB
- Hastings Council Tax Premiums Notice DRAFT PDF 57 KB
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