There were no apologies for absence at this meeting.

The following declarations of interest were made:

(a) Cllr Anne Jones – Minute 91 (HRA Budget and Rent Setting Report) – South Essex Homes Board Member.

(b) Cllr Sadza – Minute 91 (HRA Budget and Rent Setting Report 2025/26) – member of ACORN Tenants Union.

Report of Executive Director (Finance and Resources)

The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the General Fund Revenue Budget and capital investment priorities for 2025/26.  This item was considered by the Policy and Resources Scrutiny Committee.

Recommended:

1. That the Medium Term Financial Strategy for 2025/26 – 2029/30 (Appendix 1 to the submitted report) and the resulting Medium Term Financial Forecast and estimated Earmarked Reserves Balances up to 2029/30 (Annexes 1 and 2 to Appendix 1) and any final minor changes/updates of this strategy as required be delegated to the Executive Director (Finance and Resources).

2. That the Section 151 Officer’s statement on the robustness of the proposed budget, the adequacy of the Council’s reserves and the Council’s Reserves Strategy (Appendix 2 to the submitted report), be noted.

3. That the appropriation of the sums to Earmarked Reserves totalling £3.619M (Appendix 3 to the report), be approved.

4. That the appropriation of the sums from Earmarked Reserves totalling £2.329M (Appendix 3 to the report), be approved.

5. That it be noted that the Section 151 Officer’s intention is to replenish the specific earmarked Social Care Risk Reserves for Children’s and Adults back to a combined total of £5m for 2025/26 as part of a review of all Council reserves when finalising the 2024/25 outturn.

6. That a General Fund Budget Requirement for 2025/26 of £165.059M and Council Tax Requirement of £109.472M (Appendix 4 to the report) and, if required commencement of appropriate consultation, statutory or otherwise, be approved.

7. That it be noted that the 2025/26 revenue budget has been prepared based on using £1.400M from accumulated Collection Fund surpluses to support the core budget and to allow for a smoothing of the budget gap.

8. That a Council Tax increase of 4.99% for the Southend-on-Sea element of the Council Tax for 2025/26, being 2.99% for general use and 2.00% for Adult Social Care, be approved.

9. That the position of the Council’s preceptors, be noted:

• Essex Police – proposed Council Tax increase of 5.66%

• Essex Fire & Rescue Services – proposed Council Tax increase of 5.99%

• Leigh-on-Sea Town Council – confirmed Council Tax increase of 2.90%

10. That no Special Expenses be charged other than Leigh-on-Sea Town Council precept for 2025/26.

11. That the proposed General Fund revenue budget investment and unavoidable cost pressures of £25.050M (Appendix 5 to the report), be approved.

12. That the proposed General Fund revenue budget savings and income generation initiatives for 2025/26 of £3.590M (Appendix 6 to the report), be approved.

13. That the Dedicated Schools Grant budget and its relevant distribution as recommended by the School Forum (Appendix 7 to the report), be approved.

14. That the Capital Investment Strategy for 2025/26 to 2029/30 (Appendix 8 to the report) and the Capital Investment Policy (Annex 1 to Appendix 8), be approved.

15. That the following, be approved:

(i) new schemes and additions to the Capital Investment Programme for the period 2025/26 to 2029/30 totalling £28.3M for the General Fund and £11.9M  ...  view the full minutes text for item 90.

Report of Executive Director (Finance and Resources)

The Cabinet considered a report of the Executive Director (Finance and Resources) and Executive Director (Environment and Place) setting out the Housing Revenue Account (HRA) budget and Rent Setting for 2025/26, together with the information necessary to set a balanced budget as required by legislation.  This item was considered by the Policy and Resources Scrutiny Committee.

Recommended:

1. That an average rent increase of 2.7% on all tenancies, be approved.

2. That an average rent increase of 2.7% on shared ownership properties, be approved.

2.3. That an increase of 2.75% on garage rents for tenants and leaseholders to £15.80 per week, a rise consistent with the standard approach taken across the range of City Council’s fees and charges for 2025/26 and an increase of 20% on private garage rents to £22.15 (inclusive of VAT), be approved. All variants on a standard garage will receive a proportionate increase.

4. That the South Essex Homes core management fee at £8,275,000 for 2025/26, be approved.

5. That South Essex Homes proposals for an average decrease of 6.1% in service charges to reflect the estimated costs incurred for 2025/26, be approved.

6. That South Essex Homes proposals for an average 22.3% decrease in heating charges for sheltered housing tenants and for hostel tenants to reflect the estimated costs incurred for 2025/26, be approved.

2.7. The following appropriations be approved:

• £60,000 to the Repairs Contract Pensions Reserve.

• £4,720,000 to the Capital Investment Reserve.

• £7,237,000 from the Capital Investment Reserve.

8. That, subject to the approval of resolutions 2 to 7 above, the HRA budget for 2025/26 as set out in Appendix 1 to the submitted report, be approved.

9. That the value of the Council’s capital allowance from 2025/26 be declared as £64,983,000 as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

10. That authority be delegated to the Executive Director (Environment and Place) to submit the final bid for the Warm Homes Wave 3 bid once completed.

Reasons for recommendations:

Part of the process of maintaining a balanced budget for the HRA is to undertake an annual rent review and assessment of other service and facilities charges.  Full Council will need to approve the HRA budget and any changes to rent and other services prior to the start of the financial year.

Other Options:

There are other options available to Councillors in relation to the proposed rent and other services and facilities increases.

Note: This is a Council Budget Function and not eligible for call-in.

Cabinet Members: Cllr Collins/Cllr Jones

Report of Executive Director (Finance and Resources)

The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the Treasury Management documents.

Recommended:

1. That the Treasury Management Policy Statement 2025/26 (Appendix 1 to the submitted report), be approved.

2. That the Treasury Management Strategy 2025/26 (Appendix 2 to the report), be approved.

3. That the Annual Treasury Management Investment Strategy 2025/26 (Appendix 3 to the report), be approved.

Reasons for recommendations:

To comply with CIPFA Treasury Management Code of Practice.

Other options:

There are many options available for the operation of the Treasury Management function, with varying degrees of risk associated with them.  The Treasury Management Policy set out in the report aims to effectively control risk to within a prudent level, whilst providing optimum performance consistent with that level of risk.

Note: This is a Council Budget Function and not eligible for call in.

Cabinet Member: Cllr Collins