Report of Executive Director (Finance and Resources) to follow

The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the draft General Fund Revenue Budget and capital investment priorities for 2024/25.

Resolved:

1. That it be noted that a detailed Medium Term Financial Strategy for 2024/25 – 2028/29 will be available for consideration in February 2024 and the draft Medium Term Financial Forecast and estimated Earmarked Reserves Balances up to 2028/29 (Annexes 1 and 2 to Appendix 1 to the submitted report), be endorsed.

2. That the draft 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 report), be noted.

3. That the appropriation of the sums to earmarked reserves totalling £7.161M (Appendix 3 to the report), be endorsed.

4. That the appropriation of the sums from earmarked reserves totalling £1.863M (Appendix 3 to the report), be endorsed.

5. That a General Fund Budget Requirement for 2024/25 of £150.074M and Council Tax Requirement of £103.495M (Appendix 4 to the report) and any required commencement of consultation, statutory or otherwise, be endorsed.

6. That it be noted that the 2024/25 revenue budget has been prepared based on using £1.000M from accumulated Collection Fund surpluses to support the core budget and to allow for a smoothing of the budget gap.

7. That a Council Tax increase of 4.99% for the Southend-on-Sea element of the Council Tax for 2024/25, being 2.99% for general use and 2.00% for Adult Social Care, be endorsed.

8. That it be noted that the position of the Council’s preceptors is to be determined:

·       Essex Police – no indication of Council Tax position 

·       Essex Fire & Rescue Services – no indication of Council Tax position

·       Leigh-on-Sea Town Council – no indication of Council Tax position

9. That no Special Expenses be charged other than Leigh-on-Sea Town Council precept for 2024/25, be endorsed.

10. That the proposed General Fund revenue budget growth due to unavoidable cost pressures of £19.035M (Appendix 5 to the report), be endorsed.

11. That the proposed General Fund revenue budget savings and income generation initiatives for 2024/25 of £14.315M (Appendix 6 to the report), be endorsed.

12. That the proposed General Fund revenue overspend reduction initiatives for 2024/25 of £2.795M (Appendix 7 to the report), be endorsed.

13. That the proposed General Fund revenue cost avoidance initiatives for 2024/25 of £1.990M (Appendix 8 to the report), be endorsed.

14. That the Dedicated Schools Grant budget and its relevant distribution as recommended by the Education Board (Appendix 9 to the report), be endorsed.

15. That the Capital Investment Strategy for 2024/25 to 2028/29 (Appendix 10 to the report) and the Capital Investment Policy (Annex 1 to Appendix 10), be endorsed.

16. That the following be endorsed:

(i) new schemes and additions to the Capital Investment Programme for the period 2024/25 to 2028/29 totalling £6.6M for the General Fund (Appendix 11 to the report).

(ii) schemes subject to viable business cases that have been identified as a priority, totalling £13.9M for the General Fund and £5.5M for the Housing Revenue Account (Appendix 11 to the report).

17. That it be noted that the proposed changes to the current Capital Investment Programme were considered for approval as part of the Financial Performance Report – Period 8 above (Appendix 12 to the report).

18. That the proposed Capital Investment Programme for 2024/25 to 2028/29 of £96.8M to be delivered by the Council and £20.1M to be delivered by Subsidiary Companies and Partners (Appendix 13 to the report) of which £45.3M is supported by external funding, be endorsed.

19. That the revised Minimum Revenue Provision (MRP) Policy for 2023/24 and Minimum Revenue Provision (MRP) Policy for 2024/25 (Appendices 14a and 14b to the report) and the prudential indicators (Appendix 15 to the report), be endorsed.

20. That the operational boundary and authorised limits for borrowing for 2024/25 which are set at £385M and £395M respectively (Appendix 15 to the report), be endorsed.

Reasons for Recommendations:

To comply with statutory requirementsand relevant Local Authority codes of practice and to ensure the draft budget proposals alignto and enable the delivery of the Councils ambition, corporate priorities and desired outcomes or to enhance the Council’s infrastructure.

Other Options:

The Local Government Act requires billing authorities to complete and approve their budgets and set a council tax before 11 March immediately prior to the start of the financial year on 1 April.

Note: This is an Executive Function save that approval of the final budget following Cabinet on 13^th February 2024 is a Council Function

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Cox

The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the draft General Fund Revenue Budget and capital investment priorities for 2024/25.

Resolved:

1. That it be noted that a detailed Medium Term Financial Strategy for 2024/25 – 2028/29 will be available for consideration in February 2024 and the draft Medium Term Financial Forecast and estimated Earmarked Reserves Balances up to 2028/29 (Annexes 1 and 2 to Appendix 1 to the submitted report), be endorsed.

2. That the draft 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 report), be noted.

3. That the appropriation of the sums to earmarked reserves totalling £7.161M (Appendix 3 to the report), be endorsed.

4. That the appropriation of the sums from earmarked reserves totalling £1.863M (Appendix 3 to the report), be endorsed.

5. That a General Fund Budget Requirement for 2024/25 of £150.074M and Council Tax Requirement of £103.495M (Appendix 4 to the report) and any required commencement of consultation, statutory or otherwise, be endorsed.

6. That it be noted that the 2024/25 revenue budget has been prepared based on using £1.000M from accumulated Collection Fund surpluses to support the core budget and to allow for a smoothing of the budget gap.

7. That a Council Tax increase of 4.99% for the Southend-on-Sea element of the Council Tax for 2024/25, being 2.99% for general use and 2.00% for Adult Social Care, be endorsed.

8. That it be noted that the position of the Council’s preceptors is to be determined:

·       Essex Police – no indication of Council Tax position 

·       Essex Fire & Rescue Services – no indication of Council Tax position

·       Leigh-on-Sea Town Council – no indication of Council Tax position

9. That no Special Expenses be charged other than Leigh-on-Sea Town Council precept for 2024/25, be endorsed.

10. That the proposed General Fund revenue budget growth due to unavoidable cost pressures of £19.035M (Appendix 5 to the report), be endorsed.

11. That the proposed General Fund revenue budget savings and income generation initiatives for 2024/25 of £14.315M (Appendix 6 to the report), be endorsed.

12. That the proposed General Fund revenue overspend reduction initiatives for 2024/25 of £2.795M (Appendix 7 to the report), be endorsed.

13. That the proposed General Fund revenue cost avoidance initiatives for 2024/25 of £1.990M (Appendix 8 to the report), be endorsed.

14. That the Dedicated Schools Grant budget and its relevant distribution as recommended by the Education Board (Appendix 9 to the report), be endorsed.

15. That the Capital Investment Strategy for 2024/25 to 2028/29 (Appendix 10 to the report) and the Capital Investment Policy (Annex 1 to Appendix 10), be endorsed.

16. That the following be endorsed:

(i) new schemes and additions to the Capital Investment Programme for the period 2024/25 to 2028/29 totalling £6.6M for the General Fund (Appendix 11 to the report).

(ii) schemes subject to viable business cases that have been identified as a priority, totalling £13.9M for the General Fund and £5.5M for the Housing Revenue Account (Appendix 11 to the report).

17. That it be noted that the proposed changes to the current Capital Investment Programme were considered for approval as part of the Financial Performance Report – Period 8 above (Appendix 12 to the report).

18. That the proposed Capital Investment Programme for 2024/25 to 2028/29 of £96.8M to be delivered by the Council and £20.1M to be delivered by Subsidiary Companies and Partners (Appendix 13 to the report) of which £45.3M is supported by external funding, be endorsed.

19. That the revised Minimum Revenue Provision (MRP) Policy for 2023/24 and Minimum Revenue Provision (MRP) Policy for 2024/25 (Appendices 14a and 14b to the report) and the prudential indicators (Appendix 15 to the report), be endorsed.

20. That the operational boundary and authorised limits for borrowing for 2024/25 which are set at £385M and £395M respectively (Appendix 15 to the report), be endorsed.

Reasons for Recommendations:

To comply with statutory requirementsand relevant Local Authority codes of practice and to ensure the draft budget proposals alignto and enable the delivery of the Councils ambition, corporate priorities and desired outcomes or to enhance the Council’s infrastructure.

Other Options:

The Local Government Act requires billing authorities to complete and approve their budgets and set a council tax before 11 March immediately prior to the start of the financial year on 1 April.

Note: This is an Executive Function save that approval of the final budget following Cabinet on 13^th February 2024 is a Council Function

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Cox