Issue - meetings

The Section 151 Officer presented a report on the Revised Budgets for the Medium-Term Financial Plan (MTFP) to provide an overview and update on the Council's approach to setting the Council Tax for the 2025/26 financial year and its connection to the broader MTFP.

The report began by reviewing the General Fund (GF) budget for 2024/25. In January 2024, the Council approved a balanced budget for the year, expecting neither a surplus nor a deficit. The March 2024 Council Tax increase resulted in a £136,000 surplus, with further adjustments, including a £420,000 reduction in salary budgets due to vacant posts and a lower-than-expected national pay award.

Planning fee income dropped by £58,000, but savings of £44,000 were made on ICT contracts. Diesel costs rose by £42,000, but interest income increased by £1 million, and the Council received an additional £601,000 from the business rates pool growth.

In the Housing Revenue Account (HRA), income fell by £373,000 due to more void properties, with a £212,000 drop in rental income. To balance the budget, £194,000 from the HRA Development Reserve was used.

Other changes included a £15,000 increase in the insurance reserve, a £162,000 reduction in energy costs and £43,000 savings on salaries. However, debt charges increased by £587,000 due to borrowing for capital projects, posing a long-term risk to HRA stability.

The 2024/25 Capital Programme was reviewed, with underspending projects moved to 2025/26 to avoid year-end underspends. At the end of 2024/25, the General Fund balance is expected to be £2.001 million and the HRA balance will rise to £2.007 million.

The National Non-Domestic Rates (NNDR) Growth Protection Reserve is expected to grow to £14.554 million. While both the General Fund and HRA are financially stable short-term, challenges remain with void properties and borrowing costs. Risks include potential changes to business rates income following the Government's December review.

The Executive Portfolio Holder for Resources noted that this report only includes data for Council Services, not for Dragonfly Development Limited.

Moved by Councillor David Bennett and seconded by Councillor Jane Yates

RESOLVED that the report be noted.