Agenda item

This report provides an update on the overall preparation and proposals for the 2024/25 revenue budget, risks, financial resilience, and the impact of those proposals. It also sets out the budget proposals for the services covered by this Policy and Accountability Committee (PAC). An update is also provided on any proposed changes in fees and charges in the budget.

Corporate Budget 

Councillor Rowan Ree (Cabinet Member for Finance and Reform) introduced the item that detailed the proposals for the 2024/25 revenue budget – including the risks, financial resilience, and impact of those proposals. 

Councillor Rowan Ree noted that it had been a difficult time for local government, with central government grant reductions and high inflation, but despite the constraints, the Council had delivered a balanced budget that protected core services and continued funding for the areas that were unique to borough such as free home care, universal free school breakfasts, and the Law Enforcement Team. He said this had been achieved through ruthless financial efficiency and reforming how services were delivered. He thanked James Newman, and the finance team, officers across departments, and his Cabinet colleagues for making that possible. 

James Newman (Assistant Director of Finance) gave a presentation on the corporate budget, highlighting the following: 

·       The challenges of the operating environment including inflation, pressures on household budgets, new legislative burdens, and uncertainty around local government funding. 

·       The key objectives of the financial plan were to protect statutory services, deliver services valued by residents, ensuring people’s safety, and to be a modern and innovative Council with strong financial governance and resilience. 

·       That council tax would increase by 4.99%, but an estimated 93,000 households in the borough would not pay the full amount due to discounts and exemptions. 

Departmental Budget 

Bram Kainth (Strategic Director of Environment) gave a presentation on the department’s revenue budget 2024/25. This covered the recent achievements and budget implications relevant to this Committee. He also updated members on the future strategic budget issues. This included significant funding requirements for addressing the climate and ecological emergency.

Councillor Ross Melton thanked Councillor Rowan Ree and officers for a comprehensive report and update. He asked for further information to be provided on  the timeline for the Council’s green investment scheme, including any planned projects to be funded as part of the scheme. Councillor Rowan Ree noted that he was proud of the Council’s green investment scheme which stood out as the largest of its kind. The Council was looking to raise up to £5 million to fund climate change projects across the borough. The first tranche of the investment had been distributed and the deadline for this was 13^th February 2024. This scheme offered a low-risk  investment at 4.85% to residents and helped put measures in place to combat and mitigate climate change. This would include a range of issues such as renewable energy and measures to promote active transport.

The Chair enquired about the Council’s success rate in securing grants for climate change related initiatives. In response Bram Kainth noted that officers were committed to pursuing all available grants and regularly sought new opportunities. He noted that additional feasibility work at risk could be carried out to enhance effectiveness.

Referring to the parking services review on page 17 of the agenda pack, Councillor Jose Afonso asked about the portion of the budget revenue derived from cleaner neighbourhood fines. Councillor Wesley Harcourt (Cabinet Member for Climate Change and Ecology) explained that any income for parking was designated for specific use and could not be included in the general fund. Bram Kainth noted that the parking account figures were published annually and would be shared with the Committee upon their release. 

Action: Bram Kainth

RESOLVED:

1.       That the Climate Change and Ecology Policy and Accountability Committee (PAC) considered the budget proposals and made recommendations to Cabinet as appropriate.

2.       That the PAC considered the proposed changes to fees and charges and made recommendations as appropriate.