Issue - meetings

Committee considered a report in relation to the Council's proposed Medium Term Financial Plan (MTFP) for 2025/26 to 2028/29 prior to it being presented to Council on 29th January. The report, covered revenue and capital expenditure for both the General Fund (GF) and Housing Revenue Account (HRA). The report included Council Tax implications, proposed HRA dwelling rent increases and the capital programme, with additional details provided in the appendices.

The revenue budget covered day-to-day operational costs, such as salaries and property maintenance, while the capital budget focused on investment in infrastructure and major equipment. Capital expenditure was set at a £10,000 threshold, with amounts below classified as revenue. The HRA was a separate, ring-fenced account, primarily funded by housing rents and used for property maintenance and debt repayments. The GF’s main income came from business rates, council tax, and government grants, with salaries being the largest expense. Both the GF and HRA required separate management of their finances.

A one-year government funding settlement was confirmed for 2025/26, with an increase in the revenue support grant and the introduction of a one-off Recovery Grant. However, reductions in government funding were expected from 2026/27, with an anticipated £5.9m cut in funding that year and further reductions thereafter. The Council had established a reserve to manage fluctuations in business rates income, which was expected to be depleted by 2028/29.

A 2.99% increase in Council Tax was proposed for 2025/26, raising £6.07 for a Band D property, which was within the referendum limit. The tax base for the district had overall increased, though some parishes had seen reductions. The proposed rent increase for HRA dwelling rents was 2.7%, in line with government regulations, with the average social rent increase being £130 annually, and affordable properties seeing an average increase of £181.48 annually.

Both the GF and HRA capital programmes were fully funded, with no new borrowing planned. Any unspent capital funds from 2024/25 would be carried forward into 2025/26.

Moved by Councillor Justin Gilbody and seconded by Councillor Rowan Clarke

RESOLVED that the report be noted.