Agenda item

 

Report from the Strategic Director of Finance and Customer Services.

 

Recommendations:

That Cabinet recommend to Council:

1.    Approval of the Budget and Financial Strategy for 2025/26 as set out in the report and appendices, including a basic Council Tax increase of 1% and an Adult Social Care precept of 2%.

2.    Approval of the extension to the Local Council Tax Support Top Up scheme, that will provide up to £126.12 of additional support to low income households accessing the Council’s Council Tax Support scheme. It will support the most  financially vulnerable to rising household costs, through reduced Council Tax bills as described in Section 2.5.15.

 

3.    Approve the proposed changes to the Local Council Tax Support scheme as set out at 2.5.10 and proposed changes to Council Tax Premiums as set out in Section 2.5.19.

4.    Approval of the updated Medium Term Financial Strategy (MTFS) to 2027/28, as described within Section 2.6.

5.    Approval of the Reserves Strategy as set out in Section 2.8 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2024/25.

6.    To note and accept the comments and advice of the Strategic Director of Finance and Customer Services (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provides as set out in Section 2.14.

7.    To note the feedback from the public and partners following the public consultation on the Council’s budget for 2025/26 which took place from 18 November 2024 to 10 January 2025, attached as Appendix 5.

8.    Approval of the proposed increases in Adult Social Care provider contracts and for Personal Assistants as set out in Section 2.4.

9.    Approval of the proposed approach and increases in Childrens Social Care costs as set out in Section 2.4.25.

10. Approval of the revenue investment proposals set out in Section 2.7 and Appendix 2.

11. Approval of the proposed revenue savings set out in Section 2.7 and Appendix 4.

12. Approval of the Council Fees and Charges for 2025/26 attached as Appendix 7.

13. Application of the Business Rates Reliefs as set out in Section 2.10, in line with Government guidance.

14. Approval of the proposed Capital Strategy and Capital Programme as presented in Section 2.12 and Appendices 3A to 3F.

15. Approval of the Treasury Management matters for 2025/26 as set out in Appendix 9 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy.

16. Approval that any changes resulting from the Final Local Government Finance Settlement 2025/26 be reflected in the Budget and Council Tax Report to Council on 5th March.

17. Continuation of the principles and measures adopted since April 2020 to make faster payments to suppliers on receipt of goods, works and services following a fully reconciled invoice as described in Section 2.11.

 

18. Approval of the Budget allocations for the Community Leadership Fund as set out  in Section 2.9.

 

19. Approval that the Capital Programme Budget continues to be managed in line with the following key principles:

 

                        i.         Any underspends on the existing approved Capital Programme in respect of 2024/25 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2024/25 report to Cabinet.

                       ii.         In line with Financial and Procurement Procedure Rules 7.7 to 7.11 and 8.12, any successful grant applications in respect of capital projects will be added to the Council’s approved Capital Programme on an ongoing basis.

                      iii.         Capitalisation opportunities and capital receipts flexibilities will be maximised, with capital receipts earmarked to minimise revenue costs.

Consideration was given to the report submitted which proposed the Council’s Budget and Council Tax for 2025/26, based on the Council’s Provisional Local Government Finance Settlement for 2025/26, budget consultation and the consideration of Directorate budget proposals. A review of the financial planning assumptions within the Medium Term Financial Strategy (MTFS) had been undertaken.

 

The proposed Budget and Medium Term Financial Strategy reflected the Council’s priorities as set out in the Council Plan 2022-2025 and Year Ahead Delivery Plan. The development of the Budget proposals for 2025/26 and the further update of the MTFS took into account prevailing economic factors, supplier market factors, demand and complexity of care pressures, and the lasting impact of periods of high inflation during 2023/24. Following the Council’s technical MTFS updates, proposed budget decisions within this report and the impact of the Provisional Financial Settlement, the Council had been able to propose a balanced budget for 2025/26 and 2026/27 with a potential £3.2m funding gap in 2027/28.

 

In setting the proposed 2025/26 budget, Cabinet were asked to recommend to Council a 3% increase in Council Tax, made up of an increase of 1% in the Council’s basic Council Tax plus an increase of 2% for the Adult Social Care precept. The Budget also proposed a further year of a Local Council Tax Support Top-up Scheme to operate across 2025/26 to provide further support to low income working age households in the Borough to assist them in managing the impacts of the cost of living crisis and support the most financially vulnerable households.

 

In introducing the report, the Leader stated that the context for setting the budget had changed for the better since the General Election in July 2024. The Autumn Statement and Policy update, along with the Provisional Financial Settlement, had given the Local Authority sector a much needed boost in terms of the funding package available. The confirmation of £1.3bn additional grant for the sector was much needed, with £0.68bn towards Adult Social Care (£3.8m for RMBC) and £0.7bn to be provided through the new Recovery Grant allocated on a deprivation basis (meaning £8.7m of new un-ringfenced grant for RMBC). Whilst some smaller grants had been removed to support this £1.3bn national uplift, overall the funding package represented a substantial increase in Local Authority funding. The settlement represented the most significant increase in core funding in the last 15 years and the Council would be around £14m better off in 2025/26 than was expected a year ago.

 

It was noted that, although the position for Local Authority Funding had shifted positively, the Council remained committed to increasing efficiency and delivering on the priorities of residents. As such, in order to invest in key priorities, this Budget included Budget savings proposals of £2.6m aimed at increasing the efficiency of service delivery and reducing or removing spending on services that were no longer required or could be delivered differently. For example, through maximising grant funding opportunities in Children’s Services or route optimisation within Waste Management.

 

In recognition of escalating cost pressures within Adult Social Care, relating to increased complexity of care and rising demand for the service, market inflation and transitions, the Council would provide for approximately £17m of additional funding to support the delivery of Adult Social Care services. Further investment of £4.3m would also be provided to address unavoidable cost pressures in complying with Home to School Transport requirements and £1.5m for unavoidable Waste Management costs. In addition, the Budget would provide some additional investments to help support people and to support with delivering on the Council’s ambitions for the Borough with specific regard to the Council Plan aims.

In concluding, the Leader thanked all those involved in the production of the budget.

 

Councillor Alam stated that this was a responsible and prudent budget on which the public and partners had been consulted. The results of this consultation were attached at Appendix 5. Councillor Alam referenced the investment proposal that would establish the Street Safe Team to improve feelings of safety in town and village centres (paragraph 2.7.4). In order to encourage more visitors into the town centre, the first hour of parking would be free at Drummond Street, Wellgate North, Wellgate Multi Storey, Douglas Street, Unity Place, Westgate, Clifton Hall, Forge Island and Scala (Monday to Friday inclusive.) The Council was also proposing to invest an additional £100k to improve road markings on the classified road network and in estates as detailed in paragraph 2.7.15 of the report. Councillor Alam also thanked everyone involved in the budget setting process for their input.

 

Councillor Taylor expressed his support for the positive budget. He also referend the improvement to road markings. The proposed additional investment would allow the service to become proactive in identifying and addressing these issues through creation of an annual programme of road markings to be refreshed, which would be published and communicated to Councillors and the public. The Employment Solutions Team would have its funding arrangements mainstreamed which would enable a stable programme of support for residents looking to get into or stay in work.

 

Councillor Sheppard thanked all involved for their hard work on producing the budget. He referenced the investments relating to the “A Cleaner, Greener Local Environment” theme which included proposals to invest £375k in providing modern, efficient and effective plant equipment to undertake grounds maintenance and street cleansing across the borough. It was also proposed to invest £60k per year in establishing a green spaces general maintenance and repair budget. The overflow parking at Clifton Park would be improved and prices on leisure activities at Rother Valley and Thrybergh Country Parks would be frozen. Following the flooding from Storm Babet in 2023, it was proposed to invest £6m in the Catcliffe Village (River Rother) Flood Alleviation Scheme. Councillor Sheppard also referenced the additional support for residents with school uniform costs (paragraph 2.7.19) and the extension of the additional temporary resource for which assisted residents to complete the application process for Pension Credit (paragraph 2.7.20). It was also proposed that enquires take place regarding the expansion of the Food Works offer from Sheffield to Rotherham (paragraph 2.7.21).

 

Councillor Cusworth explained that, building on the existing programme, the Council would deliver a further investment of £378k as match funding into the in-house residential programme to provide additional complex needs provision for children. This built on the previous phases of development which had seen five children’s homes open with a current in house of capacity of 11 beds. Councillor Cusworth also noted that the investment throughout the budget would have a positive impact on families and children across the borough.

 

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-decision scrutiny process and the Board fully supported the recommendations. The main points of discussion centred on:

• The persistent overspend in Children and Young People’s Services (although it was noted that a number of contributing factors were outside of the Council’s control).
• The conclusion of the Pause programme and provision of support to service users following the conclusion.
• The number of children in care in Rotherham (which was decreasing due to works being undertaken.)
• The savings proposal for Waste Service Route Optimisation.
• The investment proposal for the Street Safe Team.
• The investment proposal within the Employment Solutions Team.
• The hiring of vehicles for the investment proposal relating to Street Cleansing and Fly Tipping Improvements.
• The funding model for the Food Works programme.
• Investment in Customer Services
• Investment in the Capital Programme.

 

Full details on the discussion of the budget at the Overview and Scrutiny Management Board meeting held on 5 February 2025 can be found in the minutes of that meeting. A number of additional recommendations were presented by OSMB and Cabinet agreed to accept those recommendations.

 

Councillor Steele wished to place on record his thanks to the Scrutiny Officers for their help in facilitating the scrutiny on the budget.

 

The Budget and Council Tax Report would be presented for approval at the Council meeting on Wednesday 5 March 2025.

 

Resolved:

 

That Cabinet recommend to Council:

 

1. Approval of the Budget and Financial Strategy for 2025/26 as set out in the report and appendices, including a basic Council Tax increase of 1% and an Adult Social Care precept of 2%.

 

2. Approval of the extension to the Local Council Tax Support Top Up scheme, that will provide up to £126.12 of additional support to low income households accessing the Council’s Council Tax Support scheme. It will support the most financially vulnerable to rising household costs, through reduced Council Tax bills as described in Section 2.5.15.

 

3. Approve the proposed changes to the Local Council Tax Support scheme as set out at 2.5.10 and proposed changes to Council Tax Premiums as set out in Section 2.5.19.

 

4. Approval of the updated Medium Term Financial Strategy (MTFS) to 2027/28, as described within Section 2.6.

 

5. Approval of the Reserves Strategy as set out in Section 2.8 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2024/25.

 

6. To note and accept the comments and advice of the Strategic Director of Finance and Customer Services (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provides as set out in Section 2.14.

 

7. To note the feedback from the public and partners following the public consultation on the Council’s budget for 2025/26 which took place from 18 November 2024 to 10 January 2025, attached as Appendix 5.

 

8. Approval of the proposed increases in Adult Social Care provider contracts and for Personal Assistants as set out in Section 2.4.

 

9. Approval of the proposed approach and increases in Childrens Social Care costs as set out in Section 2.4.25.

 

10. Approval of the revenue investment proposals set out in Section 2.7 and Appendix 2.

 

11. Approval of the proposed revenue savings set out in Section 2.7 and Appendix 4.

 

12. Approval of the Council Fees and Charges for 2025/26 attached as Appendix 7.

 

13. Application of the Business Rates Reliefs as set out in Section 2.10, in line with Government guidance.

 

14. Approval of the proposed Capital Strategy and Capital Programme as presented in Section 2.12 and Appendices 3A to 3F.

 

15. Approval of the Treasury Management matters for 2025/26 as set out in Appendix 9 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy.

 

16. Approval that any changes resulting from the Final Local Government Finance Settlement 2025/26 be reflected in the Budget and Council Tax Report to Council on 5th March.

 

17. Continuation of the principles and measures adopted since April 2020 to make faster payments to suppliers on receipt of goods, works and services following a fully reconciled invoice as described in Section 2.11.

 

18. Approval of the Budget allocations for the Community Leadership Fund as set out in Section 2.9.

 

19. Approval that the Capital Programme Budget continues to be managed in line with the following key principles:

 

                        i.         Any underspends on the existing approved Capital Programme in respect of 2024/25 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2024/25 report to Cabinet.

 

                       ii.         In line with Financial and Procurement Procedure Rules 7.7 to 7.11 and 8.12, any successful grant applications in respect of capital projects will be added to the Council’s approved Capital Programme on an ongoing basis.

 

                      iii.         Capitalisation opportunities and capital receipts flexibilities will be maximised, with capital receipts earmarked to minimise revenue costs.

 

That Cabinet accept the additional recommendations from the Overview and Scrutiny Management Board:

 

1. That an update on progress following the implementation of Waste Service Route Optimisation programme be brought back to OSMB within twelve months.
   
   
2. That an update on the progress following the implementation of the Street Safe Team programme be brought back to OSMB within twelve months.
   
   
3. That a report be provided to OSMB within three months detailing the performance information for the Employment Solutions Team.
   
   
4. That the Leader liaises with officers regarding the ‘Free Courses for Jobs’ DfE funding allocated to the South Yorkshire Mayoral Combined Authority to consider if this could be utilised for the Employment Solutions Team and feeds back to OSMB.
   
   
5. That information be provided to the Chair of OSMB regarding the method of funding for Food Works in Sheffield.
   
   
6. That Democratic Services arrange a meeting with Councillors, Steele, Bacon, Blackham, Marshall, and Baggaley along with officers to consider the most appropriate manner to monitor the Capital Programme going forward.