Agenda item

The Portfolio Holder for Resources Councillor Clive Moesby presented a report on the Medium Term Financial Plan (MTFP) for 2024/25 to 2028/29. 

 

Councillor Clive Moesby advised that the report set out budgets and sought approval in respect of the current budget 2024/25 for the General Fund MTFP 2024/25 to 2028/29.  The report provided details of the General Fund attached at Appendices 1 and 2, Housing Revenue Account (HRA), details of which were attached to the report at Appendices 3 and 4 and the Capital Programme, details of which was attached to the report at Appendix 5.

 

The report had already been considered by Finance and Corporate Overview Scrutiny Committee on 28^th November 2024 and by Executive on 2^nd December 2024.

 

In particular, the financial projections were provided for:

 

·                 2024/25 Current Budget Position – this was the current year budget, revised to take account of changes during the financial year which would end on 31^st March 2025.

 

·                 2025/26 Original budget – this was the proposed budget for the next financial year, on which the Council Tax would be based and would commence from 1^st April 2025.

 

·                 2025/26 Original budget – this included proposed increases to rents and fees and charges for the next financial year for the Housing Revenue Account.

 

·                 2026/27 to 2028/29 Financial Plan – in accordance with good practice the Council agreed its annual budgets with the context of the MTFP which included projections for the next three financial years.

 

Councillor Deborah Watson stated that she was pleased with the creation of a new Portfolio Holder for Devolution it as disappointing that no changes had been made to the Council’s financial plans following the Government’s announcement on Devolution.  This was a missed opportunity to make full preparations but also ensure that best use was made of existing funding for residents and not propose an increase to the council tax. Clarity was sought on what would happen if the Council did not maintain its reserves considering the proposed local government reorganisation?

 

The Portfolio Holder for Resources stated they had a statutory duty maintain reserves and it would be retrograde step not to increase council tax as services still had to be delivered.

 

The Section 151 Officer confirmed that there was no detailed information available relating to the devolution proposals and the MTFP had to be produced based on the information available.  They had a statutory duty to deliver a balanced budget and to maintain reserves.

Councillor Deborah Watson asked what would happen to the Council’s reserves at the point Bolsover District Council no longer existed?

 

The Portfolio Holder stated that once more information became available Council would be informed.  They had a duty to continue to deliver services and to maintain reserves until such time it was dissolved or merged into a unitary authority.

 

Councillor Carol Wood stated that whilst there was no information available as to reorganisation proposals, some adjacent councils had significant debt, for example Derbyshire County Council. Bolsover had reserves and had built council houses and it would be a few years before there would be clarity on the future.  She stated that the Council should ensure that its reserves were used for the pipeline to build council houses and not lost into a pit of debt for other authorities.

 

Councillor Clive Moesby reiterated that the Council had to deliver a balanced budget, maintain its levels of reserves in order to be financially viable and continue to deliver services.

 

Councillor Tom Kirkham asked whether the Council had incurred any liability for its loan to Elmton With Cresswell Parish Council?  The Section 151 Officer confirmed that the loan was to the Parish Council and unsure at this time where the liability sat.  A meeting was scheduled with the interim Parish Clerk and DALC the following week.

 

Councillor Tom Kirkham sought clarity as to why the Housing Revenue Account (HRA) had decreased by £1m and the Section 151 Officer advised that this was the assumption for voids.

 

Councillor Tom Kirkham queried the £170k costs for staffing approved by the Dragonfly Board and asked if this had been considered by the Dragonfly Shareholder Board?  The Section 151 Officer confirmed that it had been taken to the Dragonfly Board but not the Dragonfly Shareholder Board which was why it had been added to the MTFP for approval.

 

Councillor Will Fletcher asked how the council would fund any increased costs for the Crematorium given the challenges being faced and how would this impact the MTFP?  It was confirmed that the crematorium was being funded by borrowing so would have to be met through increased borrowing.

 

Councillor Watson stated, in her capacity as Chair of the Dragonfly Board, that it was difficult to see how there could be an overspend when there had been savings on staffing.  There was a lot of misinformation and misunderstanding in the Council about Dragonfly which needed to be resolved.  The S151 Officer confirmed that the outturn data for 2023/24 had been provided and this report deals with a different year.  The £170k was for salaries which had been increased but had not come back to this Council to be allocated in the General Fund therefore not included in the budget.  The overspends and underspends had been netted off and the Section 151 Officer was confident that the information provided was accurate.

 

Moved by Councillor Clive Moesby and seconded by Councillor John Ritchie

 

A recorded vote was taken in accordance with the Local Authorities (Standing Orders)(England) (Amendment) Regulations 2014.

 

For the motion - 26

 

(Councillors Bennett, A Clarke, R Clarke, Davis, Dooley, Hales, Haywood, Hinman, Jeffery, Kane, King, Kirkham, Moesby, Munro, Peake, Renshaw, Ritchie, Smith, Stevenson, Tait, Taylor, Tite, Turner, Wapplington, Wilson and Yates)

 

Against the motion - 6

 

(Councillors Fletcher, Fox, Gilbody, Walker, Watson and Wood)

 

Moved by Councillor Clive Moesby and seconded by Councillor John Ritchie

RESOLVED (1) that in the view of the Section 151 Officer, that the estimates

          included in the Medium-Term Financial Plan 2024/25 to 2028/29 were robust and that the level of financial reserves whilst at minimum levelsbe accepted.

 

  (2)    That officers report back to Executive and to the Finance and Corporate Overview Scrutiny Committee on a quarterly basis regarding the overall position in respect of the Council’s budgets.

 

GENERAL FUND

 

  (3)    A Council Tax increase of £6.07 be levied in respect of a notional Band D property (2.99%).

 

  (4)    The Medium-Term Financial Plan in respect of the General Fund as set out in Appendix 1 of this report be approved as the Revised Budget 2024/25, as the Original Budget in respect of 2025/26, and the financial projection in respect of 2026/27 to 2028/29.

 

  (5)    That any further under spend in respect of 2024/25 be transferred to the Council’s General Fund Reserves.

 

  (6)    On the basis that income from Planning Fees may exceed £0.500m in 2024/25, the Head of Paid Service in consultation with the Leader be granted delegated powers to authorise such additional resources as are necessary to effectively manage the resultant increase in workload.

 

HOUSING REVENUE ACCOUNT

 

  (7)    That Council increases its rent levels by 2.7% to apply from 1st April 2025.

 

  (8)    That the increases in respect of other charges as outlined in Appendix 4 Table 1 be implemented with effect from 1st April 2025.

 

  (9)    The Medium-Term Financial Plan in respect of the Housing Revenue Account as set out in Appendix 3 and 4 of this report be approved as the Revised Budget in respect of 2024/25, as the Original Budget in respect of 2025/26, and the financial projection in respect of 2026/27 to 2028/29.

 

  (10)  That under spends in respect of 2024/25 to 2028/29 be transferred to the HRA Revenue Reserve.

 

CAPITAL PROGRAMME

 

  (11)  That the Capital Programme as set out in Appendix 5 be approved as the Revised Budget in respect of 2024/25, and as the Approved Programme for 2025/26 to 2028/29.