Agenda item

A report was submitted which included:

(i)            progress against the 2025/26 budget preparation timetable, including a draft budget report and an updated Medium Term Financial Strategy (MTFS) to 2028/29.

(ii)           estimates of pressures and savings by committee for 2025/26 – 2028/29.

(iii)          a progress update on the Future Tandridge Programme, including a two-year savings plan, the programme risk register and a highlight report for October 2024.

(iv)          information on Council Tax and earmarked reserves.

The draft budget, which was balanced, was based on the principles agreed by Full Council in October and contained four key elements; likely funding, pressures, savings and reserves.

Attention was drawn to budget pressures of £1.2m and the two-year savings target of £1.8m. Reserves and contingencies were also highlighted, and it was expected there would be earmarked reserves of £4.7m by the end of 2024/25 along with the £3m General Fund. The Council’s reserves had seen steady improvement over the last two years. Earmarked reserves were held for specific purposes and remained below average.

The next step in the budget setting process was a Fees & Charges Workshop with Councillors in early December. The Local Government Finance Settlement was expected shortly before Christmas, and considerations may be necessary after it was received.

In response to comments on the draft budget, Officers explained:

·         the draft budget included assumptions for vacancy factors, recruitment, a level of interim staff in Planning and new Employer’s National Insurance contributions, of which 50% was assumed to be funded by the Government.

·         MyAccount savings had been built into the draft budget.

·         pressures existed in relation to a number of overheads following the closure of the Wellbeing Prescription service.

·         the £60k savings on community grants had been offset for one year, from the business rate pooling gain, to minimise the impact for community organisations on the reduction of grants.

·         the rationale for retaining ringfencing of earmarked reserves

·         the rationale for assuming the amount retained from business rates would reduce in 2026/27, based on the expectation of Government funding reform. This would be kept under review, with an explanation of the assumption included in the MTFS.

·         in relation to the possible transfer of some community assets to Parish Councils, savings had been factored into the draft budget. The Council would work with a pilot group of Parish Councils to develop a model that worked for all parties that could be rolled out to other Parishes. Officers would consider whether the Council could apply for grants as well as Parish Councils.

            R E S O L V E D – that

A)   the Draft Budget for 2025/26 and Medium-Term Financial Strategy to 2028/29, set out in Appendix A to the report and which will form the basis of reports to each Policy Committee in January, be approved.

B)   the following elements to form the basis of the budgets to be finalised during the January Committee cycle be approved:

a.    The Budget Pressures (set out in Appendix A section 6 and Appendix B of the report).

b.    The overall savings plan (set out in Appendix A section 7 and Appendix B of the report), noting that further consideration may be required pending the Local Government Finance Settlement or if any further budget pressures emerge.

C)   the gross Council Tax Base for 2025/26 be approved, determined at 39,937.0 after taking account of the Council’s agreed Council Tax Support Scheme, and the net Council Tax Base for 2025/26, determined at 39,457.7 after adjustment by 1.2% to allow for irrecoverable amounts, appeals and property base changes.

D)   the progress to-date in delivering the Future Tandridge Programme including the development of the 2-year savings plan, as set out in Appendix C to the report, be noted.