Agenda item

Recommendations:

i)               That the Executive revises the recommended Budget for 2024/25 and the MTFS for the period to 2026/27 to reflect the additional government funding as set out in paragraph 3.1.

ii)              That the Executive gives delegated authority to the Corporate Director, Resources, in consultation with the Executive Member for Finance, to make consequential changes to the report to Council relating to the Budget for 2024/25 and the MTFS for the period to 2026/27 for Council consideration on 21 February 2024.

Considered – Report of the Corporate Director – Resources following the announcement of additional funding for local government on 24 January 2024.

Councillor Gareth Dadd introduced the item, noting that this report was brought forwards following concerns that the £7.5m headroom figure originally recommended by the Executive to Full Council as part of the Budget for 2024/25 report (based on provisional local government finance settlement figures) could be breached as a result of the government announcement on 24 January 2024 of additional funding for councils for 2024/25.

Gary Fielding, Corporate Director – Resources explained that in the time between the publication of the agenda papers and the meeting taking place, the final Local Government Finance Settlement has now been received and this report is in line with the final settlement figures. Working on the basis that the funding is one-off, then if agreed by Full Council the deficit for 2024/25 reduces by £6.2m of additional government funding and the drawdown of reserves for the budget deficit over the MTFS is reduced by the same amount.

Councillor Carl Les raised the issue of Member Locality Grants and was convinced of the value of them, especially the multiplier effect that can be gained in some instances through match funding. He felt it was right to have reviewed all areas to identify potential savings, but suggested locality grants continue at the £10,000 limit for 2024/25.

In order to inform the 2025/26 budget setting process, he asked Councillor David Chance to review the Member Locality Grant guidance for match funding in order to strengthen it and try to encourage investment into environmental interests. He also asked Councillor Gareth Dadd to undertake a review of all sources of community funding (including the £50k allocated to each Area Constituency Committee), to see if they are worthwhile continuing, in order to inform the 2025/26 Budget process.

Councillor Gareth Dadd welcomed the £6.2m additional one-off funding from government, but highlighted the fundamental problem still existed in three years of a circa £47m recurring deficit. Savings and efficiencies to date, done in a way that protects the frontline services, will still need to be made. He also welcomed the pause of any reduction in the Member Locality Grants for 2024/25, but was keen that the proposed review looks at all of the financial support given to local communities in the round, rather than in isolation. He was clear that the money given out through Member Locality Grants or directly allocated to communities is taken from reserves, and it is not sustainable, hence bringing forward the amended report recommendations proposing a review in time to inform the 2025/26 Budget process.

Resolved –

i)        That the Executive revises the recommended Budget for 2024/25 and the MTFS for the period to 2026/27 to reflect the additional government funding as set out in paragraph 3.1.

ii)       In addition the savings attributed to the reduction to Member Locality Grants (CS11 of Appendix B1) is removed until such time as a review is carried out on the effectiveness of this scheme alongside other sources of community funding (including the £50k allocated to each Area Constituency Committee) with such a review being concluded in time to inform the 2025/26 Budget process. The savings reduction of £450k per annum is to be met by a corresponding use of Reserves to balance the Budget in 2024/25 and subsequent years subject to the review of the Member Locality Grants.

iii)      That the Executive gives delegated authority to the Corporate Director, Resources, in consultation with the Executive Member for Finance, to make consequential changes to the report to Council relating to the Budget for 2024/25 and the MTFS for the period to 2026/27 for Council consideration on 21 February 2024.