Agenda item

Purpose Of Report

1.            The Council must set a balanced budget for 2024/2025. The draft revenue and capital budget proposals are summarised in this report.

Recommendation

2.            Cabinet is recommending to Council that it:

                        i.         approves a 2.99% increase in Hart District Council’s Band D Council Tax Charge for 2024/25,

                       ii.         agrees changes to fees and charges for 2024/25 in line with the principles set out in this report, and approves the full schedule included at Appendix 4,

                      iii.         approves the draft Revenue Budget for 2024/25 as summarised in paragraph 15 and Appendix 1, incorporating the baseline net service cost variations included at paragraph 17 and Appendix 1,

                     iv.         approves the Capital Bids as detailed in Appendix 2,

                       v.         approves the Medium-Term Financial Strategy as set out in Appendix 3,

                     vi.         notes the emerging pressures and risks set out in the report and the S151 Officer’s intention to undertake a mid-year review of detailed budgets

                    vii.         approves the continuation of the capital receipt flexibility strategy detailed in the report under the Direction issued by the Government early in 2022.

                   viii.         approves not to change the Council’s existing Council Tax Support Scheme other than the required statutory uprating,

The Portfolio Holder for Finance, introduced the budget for 2024/25 and Members noted the following points:

·         A balanced budget has been submitted which contains significant additional investment (£418K) in existing services.

·         The budget enables a strong position to face the challenges of inflationary pressures, reductions in government funding, waste recycling credits waste contract changes ahead.

·         The contributions to a budget pressure fund to enable investment in cost saving initiatives and revenue generation to prepare for the difficult future ahead.

·         The recommendations were outlined.

Councillor Blewitt left at 19.39 returning at 19.42.

Members thanked everyone involved in preparing the budget for their hard work.

Councillor Radley proposed. Councillor Neighbour seconded.

Members discussed:

·         Revenue increase: an increase in central government funding received, increase in interest rate returns on investment, increase in Leisure Centre management fees, and an increase in council tax (approx. £1.5M).

·         Support for the freezing of car park and green waste disposal charges and CCTV investment.

·         Clarity on projects allocated against the Climate Change funding allocation and the need for a fully costed Climate Change Plan.

·         The geographical spread of recent UK Shared Prosperity Funding allocations.

·         Proposed planning service improvements.

·         Forward projection of Council finances, the there-year forecast and the implications of this on reserves and future council tax rates.

·         An increase in staffing costs.

·         Funding for flood alleviation schemes in Crondall and Mill Lane in North Warnborough.

·         Environment Agency Report on proposed natural flood risk management.

Councillor Dorn proposed an amendment to the budget. Cllr Kennett seconded.

That £30K be allocated for the North Warnborough Flood Alleviation works in response to the Environment Agency report.

Councillor Dorn proposed that the funding be provided by reducing by £10K funding allocated to Whitewater SANG, £10K allocated to the Kingsway Flood Alleviation scheme and £10K from existing Environment Agency grant allocation.

Members queried where the funding should be taken from to enable a balanced budget to be passed.

Members were advised that the Environment Agency grant was not suitable, funds must be allocated from a specific budget.

Councillor Dorn clarified the amendment:

That £30K be earmarked for the North Warnborough Flood Alleviation works. The funding to be provided by a reduction of £15K each in allocated funding for works at Whitewater SANG and the Kingsway flood alleviation scheme.

Members debated the motion noting:

·         The Environment Agency are the lead authority for flooding works, they are expected to deliver a report shortly on the issue and that they have a mechanism to fund this type of scheme.

·         Any scheme proposed by the Envionment Agency will be considered at Cabinet for funding later if required.

·         Historically monies had been allocated to address flooding which then was unable to be spent due to the Envionment Agency not supporting the schemes.

·         Funding should not be removed from other vitally needed schemes to fund this scheme.

·         Concerns around delays in the delivery of Environment Agency schemes after funding agreements have been made, referencing flood alleviation schemes in Phoenix Green.

A recorded vote was taken on the amendment:  

For:  Butcher, Dorn, Farmer; Forster; Kennett, Southern; Wright (7)

Against: Axam; Bailey; Blewett; Butler; Clarke; Coburn; Cockarill; Collins; Crisp; Davies; Delaney; Harward; Makepeace-Browne; Neighbour; Oliver; Quarterman; Radley; Smith; Thomas; Worlock. (20)

Abstain:  None.

The amendment was therefore defeated.

Members then debated the substantive motion.  Members discussed:

·         The reporting schedule to members against the Climate Change plan, noting delays in costings beyond Hart’s control.

·         Delays in central government clarification of future funding schemes such as New Homes Bonus and the Fair Funding Formula.

·         Increase in salaries due to nationally agreed pay increases and that many roles are fully funded fixed-term project posts directly funded by government grants. Additionally, the in-housing of several departments (Finance and Reception) from Capita.

A recorded vote was held on the substantive motion.

For:  Axam; Bailey; Blewett; Butler; Clarke; Cockarill; Collins; Crisp; Davies; Delaney; Harward; Makepeace-Browne; Neighbour; Oliver; Quarterman; Radley; Thomas (17)

Against: Butcher; Coburn; Dorn; Farmer; Forster; Kennett; Southern; Worlock; Wright (9)

Abstain: Smith (1)

DECISION  

Cabinet is recommending to Council that it:                        

i.       approves a 2.99% increase in Hart District Council’s Band D Council Tax Charge for 2024/25,                       

ii.       agrees changes to fees and charges for 2024/25 in line with the principles set out in this report, and approves the full schedule included at Appendix 4,                      

iii.      approves the draft Revenue Budget for 2024/25 as summarised in paragraph 15 and Appendix 1, incorporating the baseline net service cost variations included at paragraph 17 and Appendix 1,                    

iv.      approves the Capital Bids as detailed in Appendix 2,                       

v.      approves the Medium-Term Financial Strategy as set out in Appendix 3,                     

vi.      notes the emerging pressures and risks set out in the report and the S151 Officer’s intention to undertake a mid-year review of detailed budgets

vii.     approves the continuation of the capital receipt flexibility strategy detailed in the report under the Direction issued by the Government early in 2022.                   

viii.    approves not to change the Council’s existing Council Tax Support Scheme other than the required statutory uprating.