The Director of Resources introduced the report which set out the Council’s Revenue and Capital budget proposals for 2025/26, the Medium Term Financial Plan (MTFP) and the Capital Strategy.  She highlighted the main changes to the draft budget set out in paragraph 2.3 of the report and said all the appendices had been updated to reflect the changes.  The Director of Resources said there were no proposed changes to fees and charges in the draft budget.  She explained that there was still some outstanding data to receive from a few parish councils in terms of the parish precepts 2025-26, but these figures would be ready for Full Council on 19 February 2025.

The Chair invited Members to ask questions and make comments and these included:

·         Considered it was unwise to ‘spend, spend, spend’ when the Council had the uncertainty of devolution;

·         clarification sought on the review of fees and charges;

·         what was the impact on the budget in terms of the Highsted Park call-in by the Secretary of State?;

·         were there penalty fees from Suez in relation to the waste contract?;

·         suggested pitch fees for children be free/not increased;

·         disappointed with the poor response to the online budget consultation;

·         in relation to paragraph 3.4 in the report, concerned with the increased National Insurance (NI) contributions and more information sought on the playgrounds reduction;

·         not happy that the Policy & Resources Committee were being asked to recommend this budget to Full Council as the Council was in a very different position this year (with a minority administration) and suggested there needed to be changes to the budget to get it agreed by Full Council;

·         information in the report said the ‘gap’ had closed, why had so many important services been impacted;

·         the budget needed to be looked at again, with a proper consultation before Full Council in a couple of weeks;

·         the Council had agreed its budget in previous years, it should be able to do so again this year;

·         suggested the Council engaged with a consultant to carry out any future consultation to achieve a better return;

·         Members need to discuss the budget in more detail before the budget Full Council meeting;

·         paragraph 3.4 in the report indicated the main savings, but these were not real savings as the Council was using its reserves;

·         it would be useful to know where savings had been made across the Council;

·         considered having an all group leaders discussion on the budget was sensible;

·         suggested the Committee delayed reaching a resolution at this meeting and that an extraordinary Policy & Resources takes place, to consider revised proposals;

·         considered there were other options where savings could be made to the budget;

·         considered reserves should not be used;

·         Councillors had a duty to residents to work together to get the budget agreed at Full Council; and

·         it was commonplace that amendments to the budget took place each year.

In response, the Director of Resources gave updates to some of the points raised: she explained that the budget reflected the provision of costs in relation to the Highsted call-in; the Suez penalties would go into the reserve fund; notice of the consultation was given to town and parish councils, the Area Committees and was advertised on social media by the Communications Team; the Government had said that NI public sector costs would be met, but this would not cover the Council’s costs.  The Director of Resources outlined areas where proposed savings could be made, which had previously been shared with group leaders.  She explained that some use of reserves was acceptable in the budget, up to c £500k.

The Chief Executive advised that in the event that the budget was not passed by 11 March 2025, the Council would be required to advise the Ministry of Housing, Communities & Local Government and this would increase the risk the commissioners setting a budget.  The Chief Executive advised that there was a requirement to deliver a balanced budget and if the Council did not do this and declared a Section 114 notice, the commissioners would look at everything which was not a statutory service.  Heads of Service could have recommended more services to ‘stop’, but this would mean the end of a lot of fundamental Council services.

There was some discussion on the timeframe of having an additional Policy & Resources Committee before the budget Full Council meeting, and also the need to consider the deadline for issuing Council Tax bills.

Further comments included:

·         Acknowledged that not proceeding with this now would impact the timelines of an additional meeting before Full Council;

·         there needed to be cross-group discussions to get an agreement in time for Full Council;

·         there was an issue with the wording of the recommendations as they currently stood;

·         suggested the recommendations within the report be amended, so the matter could be moved forward; and

·         did not support additional meetings.

At this point the meeting was paused for an informal discussion on the way forward.

The Chair moved the following addendum/amendments: 

(1)  That all group leaders worked together to identify and agree any amendments to the proposed budget.

(2)  That the Policy & Resources Committee recommends to Full Council: to approve the Administration’s 2025/26 revenue budget proposals subject to amendments.

(3)  That recommendation (3) in the substantial recommendations becomes recommendation (4) and is amended to read:  That the Medium Term Financial Plan be approved subject to amendments.

These were seconded by Councillor Lloyd Bowen and agreed by Members.

Councillor Ashley Wise proposed the substantive recommendations as set out in the report which were seconded by Councillor Lloyd Bowen and on being put to the vote was agreed by Members.

Recommended:

(1)      That all group leaders work together to identify and agree any amendments to the proposed budget.

That the Policy & Resources Committee recommends to Council:

(2)      That the Administration’s 2025/26 revenue budget proposals be approved subject to amendments.

(3)      That the proposed Council Tax Band D increase for 2025/26 to £206.64 be approved, or to the maximum allowed should the cash limit be increased.

(4)      That the Medium Term Financial Plan be approved subject to amendments.

(5)      That the Capital Strategy be approved.

(6)      That the capital programme proposals be approved.

(7)      That the additional amount of Council Tax for Parish Precepts be noted.

(8)      That the Statement (Appendix III) provided by the Director of Resources be endorsed).

(9)      That the minimum revenue provision statement be approved.

(10)   That delegated authority be given to the Director of Resources to adjust charge out rates within fees and charges as appropriate, where they are based on costs incurred and where legislation changes are made to centrally set charges in year.

(11)   That the use of reserves statement as detailed in Appendix VII to ensure reserves were valid and supported the assumptions in the MTFS be approved.