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 2024/25 as set out in the report and appendices, including a basic Council Tax increase of 1.5% 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 £121.96 of additional support to low income households most vulnerable to rising household costs, through reduced Council Tax bills as described in section 2.5.11-14.

3.    Approval of the updated Medium Term Financial Strategy (MTFS) to 2025/26, as described within section 2.6.

4.    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 2023/24.

5.    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 (Section 2.14).

6.    To note the feedback from the public and partners following the public consultation on the Council’s budget for 2024/25 which took place from 8 December 2023 to 14 January 2024, attached as Appendix 4.

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

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

9.    Approval of the Council Fees and Charges for 2024/25 attached as Appendix 7.

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

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

12. Approval of the Treasury Management matters for 2024/25 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.

13. Approval of the Flexible use of Capital Receipts Strategy 2024/25 (Appendix 5).

14. Approval that any changes resulting from the Final Local Government Finance Settlement 2024/25 be reflected in the Budget and Council Tax Report to Council on 28 February.
 

15. 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.

16. Approval of the Budget allocations for the Community Leadership Fund as set out in section 2.9.

17. 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 2023/24 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2023/24 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 2024/25, based on the Council’s Provisional Local Government Finance Settlement for 2024/25, budget consultation and the consideration of Directorate budget proposals through the Council’s Budget process alongside a review of the financial planning assumptions within the Medium-Term Financial Strategy (MTFS).

In recognition of escalating cost pressures within Adult Social Care, relating to inflation, transitions and rising demand for the service, the Council would provide for approximately £7.5m of additional funding to support the delivery of Adult Social Care services.

In setting the proposed 2024/25 budget, Cabinet were asked to recommend to Council a 3.5% increase in Council Tax, made up of an increase of 1.5% in the Council’s basic Council Tax plus an increase of 2% for the Adult Social Care precept. The Budget also proposed a Local Council Tax Support Top-up Scheme to operate across 2024/25 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 explained that since 2010, due to the austerity measures, the Council had needed to make and address significant reductions in funding, reductions in expenditure and services provided and deliver significant savings programmes that taken together were in excess of £200m. Throughout this period the Council had needed to make difficult decisions to ensure that vital services to Rotherham residents could be maintained along with a robust financial position to ensure sustainability of those services. Due to that work, the Council were in a relatively good position, particularly compared to many other local authorities.

The Leader highlighted the increase in resources in the customer contact centre and how this had improved the average time taken to answer calls. As such, the proposals within the budget were to make these increases permanent (as per paragraph 2.7.19.)  The Council would also introduce a 50% reduction in the current charge for residents to use its bulky waste service as part of a coordinated campaign to reduce fly tipping (as per paragraph 2.7.16.) There was also a family friendly theme to the proposed budget with baby packs being made universally available for all babies born in the Rotherham district.

Councillor Allen also highlighted the difficult financial position many local authorities found themselves in, particularly those that had had to issue S114 notices. In relation to the Housing portfolio, it was proposed that £30.5m be invested in the Council’s housing stock. It was also proposed that additional funding be given for homelessness prevention and temporary accommodation. There was also funding for the Empty Homes Officer within the Strategic Housing and Development team.

In regard to Neighbourhoods, the Council was making a series of additional investments to ensure that every neighbourhood was thriving. This included investing £2m over the next two years in a programme of public realm improvements through the Our Places fund. Councillor Allen stated that she was proud to be associated with this budget.

Councillor Alam stated that this was a responsible budget that created jobs and supported residents. It encouraged digital inclusion and was family friendly. Councillor Alam wanted to place on record his thanks to the Leader and to the Finance service for their work on the budget.

Councillor Cusworth confirmed that the money temporarily removed from the Early Help budget (370k) in 2023/24 would be returned. She also praised the baby pack initiative, which was an investment of £360,000 and praised the good financial decision making that had been done in previous years that enabled such proposals to be put forward.

Councillor Sheppard also praised the very positive budget. Investments would be made in relation to Principal Towns Cleansing, including the addition of three mechanical sweeper posts and associated equipment. Following the devastating floods in October, through the Budget proposals, a further £9.8m would be invested in flood defences to make the borough more resilient to a changing climate. Following the completion of the Section 19 report into the October floods, consideration would also be given to what measures were required to protect the Catcliffe community from the devastating impacts of flooding. Tree service improvements would also be funded, including a new apprentice role. It was also proposed that improvements works be funded at Thrybergh Country Park and Clifton Park Water Splash.

Councillor Lelliott referenced the fees and charges, particularly in light of the development in the town centre. The parking charges in the town centre were exempt from the uplift along with taxi licensing fees. There was investment proposed for the Biodiversity Net Gain Policy. There was also a substantial pot of funding for strategic acquisitions.

Councillor Roche highlighted the significant pressures that were being experienced within Adult Social Care that were outside of the Council’s control. There was therefore a need to recognise the escalating demand and

market costs within the budget, relating in particular to inflation, transitions

and rising demand for adult care. This required the Council to provide for

around £7.5m additional funding for the delivery of Adult Social Care services in 2024/25 in addition to the £12.4m provided in the 2023/24 Budget. The additional social care resources provided within the Finance Settlement for 2023/24 were welcomed, but the level of additional funding still fell well short of the national social care funding gaps as calculated by the Local Government Association. Further, the Public Health Grant allocation for 2024/25 was confirmed following the 2023/24 Final Local Government Settlement as £18.004m. This amount had not been adjusted as part of the 2024/25 Provisional Local Government Settlement nor had it increased for a number of years.

Councillor Roche highlighted the positives in relation to the Castle view development, the Better Care Fund and the partnership working across Adult Care. He also thanked the teams involved.

During the meeting, the S151 officer provided an update to the report:

·       The final Local Government Finance Settlement had been announced and totalled £470,000. The proposal was that the amount of reserves that were supporting the risks within the budget be reduced by that amount.

·       Fees and Charges Schedule – the hot water charge should have increased by 6 pence to £1.07 and the cooking gas charge should have increased by 13 pence to £2.23. This was in line with the general uplift of fees and charges.

It was confirmed that these updates would be incorporated into the final report that would be presented to Council on 28 February 2024.

The S151 Officer also confirmed that she was very comfortable with the budget that had been proposed. It covered the risks and the Council did not have to take any reactive measures. There were some funding gaps expected in future years but there was no need to react to those within this budget.

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-decision scrutiny process. The Board fully supported the recommendations. They were supportive of the baby packs, the proposals for homelessness prevention and the restorative hate crime service. Concerns were raised regarding the expected end of the Household Support Fund.

Resolved:

That Cabinet recommend to Council:

1.    Approval of the Budget and Financial Strategy for 2024/25 as set out in the report and appendices, including a basic Council Tax increase of 1.5% 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 £121.96 of additional support to low income households most vulnerable to rising household costs, through reduced Council Tax bills as described in section 2.5.11-14.

3.    Approval of the updated Medium Term Financial Strategy (MTFS) to 2025/26, as described within section 2.6.

4.    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 2023/24.

5.    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 (Section 2.14).

6.    To note the feedback from the public and partners following the public consultation on the Council’s budget for 2024/25 which took place from 8 December 2023 to 14 January 2024, attached as Appendix 4.

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

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

9.    Approval of the Council Fees and Charges for 2024/25 attached as Appendix 7.

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

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

12.Approval of the Treasury Management matters for 2024/25 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.

13.Approval of the Flexible use of Capital Receipts Strategy 2024/25 (Appendix 5).

14.Approval that any changes resulting from the Final Local Government Finance Settlement 2024/25 be reflected in the Budget and Council Tax Report to Council on 28 February.

15.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.

16.Approval of the Budget allocations for the Community Leadership Fund as set out in section 2.9.

17.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 2023/24 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2023/24 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.

18.The following updates were provided during the Cabinet meeting, and it was agreed that these would be incorporated into the final budget report for Council:

·       The final Local Government Finance Settlement had been announced and totalled £470,000. The proposal was that the amount of reserves that were supporting the risks within the budget be reduced by that amount.

·       Fees and Charges Schedule – the hot water charge should have increased by 6 pence to £1.07 and the cooking gas charge should have increased by 13 pence to £2.23. This was in line with the general uplift of fees and charges.