Agenda item

The Board considered a report from the Director, Finance, which outlined a recommendation to Council in respect of the Budget, Capital Programme and Council Tax for 2025/26.

 

          The Medium Term Financial Strategy (MTFS), approved at the Executive Board meeting on 14 November 2024, had identified a funding gap of around £38.1m in 2025/26, £14.5m in 2026/27, £7.3m in 2027/28 and £9.3m in 2028/29.  The Strategy had the following objectives:

 

·         Deliver a balanced and sustainable budget;

·         Prioritise spending towards the Council’s priority areas;

·         Avoid excessive Council Tax rises;

·         Achieve significant cashable efficiency gains;

·         Protect essential front line services and vulnerable members of the community; and

·         Deliver improved procurement.

 

In terms of consultation, it was noted that the Council used various methods to listen to the views of the public, and Members own experiences through their Ward work was an important part of that process.  Individual consultations were taking place in respect of specific budget proposals and equality impact assessments would be completed where necessary.

 

The Board received regular reports detailing spending in the current year against the budget. The latest report indicated that spending was forecast to be over budget in the current year by approximately £20.757m against a net budget of £149.496m.

 

The proposed revenue budget for 2025/26 totalled £183.052m; the departmental analysis of this was shown in Appendix B along with a breakdown of these changes in Appendix C.   A total of £1.349m of savings were approved by Council on 1 February 2023. Further savings of £6.876m had been proposed for 2025/26 financial year and were detailed in Appendix G.

 

Table B in the report demonstrated the Council position where it is unable to present a balanced 2025/26 budget without seeking Exceptional Financial Support (EFS) from Government. Receipts from Council Tax and Business Rates were insufficient to fund the forecast net spend for 2025/26. Council at its meeting on 4 December approved that an application for EFS be made to Government. The submission included an ask for EFS for 2024/25 £20.8m and for 2025/26 £32m.  Provisional approval for the EFS application was still awaited but it was expected to be received in late February 2025.

 

The Board was advised that the proposed budget incorporated the grant figures announced in the Local Government Finance Settlement.  It included £0.181m for the New Homes Bonus grant, an increase of £0.057m from 2024/25. The budget also included Better Care Funding of £8.614m which was unchanged from 2024/25. Additional funding for Adult’s and Children’s Social Care was announced as part of the provisional grant settlement. The 2025/26 grant allocation of £17.744m was inclusive of an additional allocation of £2.718m awarded for the forthcoming year. This funding would be included in the Council budget to help fund existing pressures within Social Care services. Table C in the report provided an updated position of grants announced at the settlement and how the allocation compared to 2024/25.

 

Further information was also provided on the budget outlook, Halton’s Council Tax, Parish precepts, Police, Fire and Liverpool City Region (LCR) Mayor precepts, the Capital Programme, Prudential Code and School Budgets.

 

Reason(s) for Decision

 

To seek approval for the Council’s revenue budget, capital programme and council tax for 2025/26

 

Alternative Options Considered and Rejected

 

A number of alternative budget proposals have been considered by the Budget Working Group

 

Implementation Date

 

5 March 2025

 

RESOLVED:  That Council be recommended

 

1)    to adopt the resolution set out in Appendix A, which includes setting the budget at £183.052m, the Council Tax requirement of £68.208m (before Parish, Police, Fire and LCR Combined Authority precepts) and the Band D Council Tax for Halton of £1,846.66;

 

2)    to approve the capital programme set out in Appendix E;

 

3)    to approve the use of Capital Receipts Strategy as set out in Appendix H;

 

4)    to approve the budget savings set out in Appendix G; and

 

5)     to approve 100% Council Tax premium being applied to properties which have been unoccupied and unfurnished for a minimum period of 12 months.