11
The Leader of the Council reported that this report presents the 2025/26 budget for the General Fund and Housing Revenue Account for approval including the capital programme for both. The report will be considered by Scrutiny on 11 February 2025 and recommendations will be made to Council on 20 February 2025 to inform the setting of the council tax for 2025/26.
The Leader reported that the 2025/26 medium term financial strategy was presented to Members in December 2024 and at that time set a savings/income target of £1.5million for the 2025/26 financial year, with a further £1.5million target in 2026/27 and £1 million in 2027/28. This along with a reducing reliance on the use of reserves over the short term was part of the financial strategy to produce a balanced budget for 2025/26. This was ahead of the detailed work on the service budgets and the outcome of the finance settlement. As part of the approval of the MTFS members approved savings and additional income totalling £583,500 which had been considered as part of cross party budget meetings to inform the budget.
The Leader reported that the provisional Local Government Financial Settlement for 2025/26 was announced on 18 December 2024. The final settlement is due to be confirmed in early February and any changes will be updated as part of the budget reports to Members in February. The provisional settlement followed the publication of the Local Government Finance Policy Statement 2025/26 announced at the end of November.
The Leader reported that the Council must present for approval a balanced budget each year. Despite the slightly improved finance settlement for 2025/26 above the level previously forecast the budget is reliant on the use of reserves as it would be in the medium term. This is not a sustainable position for the long term and when the outcomes of the future funding review are known this will assist Local Authorities with the longer-term financial planning for the provision of services and the MTFS will be updated accordingly.
The Leader reported that the budget report will be considered by the Scrutiny Committee ahead of approval by Council on 20 February 2025 to inform the setting of the council tax for 2025/26.
The Leader reported that the report and appendices present the detailed budget considerations for 2025/26. Whilst the report presents a budget for 2025/26 for approval only it does flag a funding gap of £1.1 million in 2026/27 for which early work will commence on addressing this gap in 2025/26 and be informed by the funding reforms for local government.
The Leader requested that Cabinet are, as detailed on page 199 of the agenda report, asked to recommend to Council:-
1) The general fund revenue budget as detailed at Appendix A, as amended;
2) The Council Tax for 2025/26 for the Borough Council tax be £192.49 (for an average Band D);
3) That the demand on the Collection Fund for 2025/26 be:
a. £6,076,332 for the Borough Council purposes;
b. £857,560 for Parish Precepts now amended following receipt of the final parish precepts;
4) The amendment to the fees and charges as outlined at paragraph 3.6 in relation to the provision of six free parking spaces limited to 30 minutes in the Great Yarmouth Marketplace Car Park be approved;
5) The reserves statement and movement on the reserves as detailed at Appendix E and within section 4 of the report;
6) The Policy framework for reserves as detailed at Appendix F;
7) The updated Capital Programme and financing for 2024/25 to 2025/26 as detailed at Appendix G and within section 6.4;
8) The new capital bid proposals at Appendix H;
9) The Minimum Revenue Provision Statement 2025/26 as included at Appendix I.
10) The housing revenue account budget as detailed at Appendix J.
11) The housing revenue account capital programme and financing for the revised 2024/25 position and 2025/26 – 2029/30 as detailed at Appendix K.
12) An increase to all housing rents of 2.7%, new Affordable Rents to be set at the lower of 80% of the applicable Open Market Rent or 130% of Local Housing Allowance, new social rents where supported to include 10% premium and service charges and other charges at Appendix L and M.
Councillor Candon reported that all residents were feeling a financial pinch in their pockets and the Council therefore had to prioritise its spending and spend its resources wisely and provide value for money. Fuel poverty in the borough was the highest in Norfolk and this situation had been made worse by the Government's removal of the Winter Fuel Payments. Councillor Candon reported that the budget had been reached via cross party working and he thanked the members concerned and the Section 151 officer and her team for the production of a sound budget.
Councillor Candon informed Cabinet that they wished to go back to grass roots and he proposed the re-introduction of the Ward Budgets at £2k per Councillor from the General Fund to allow Councillors to carry out grass root community works specific to their wards. This motion was seconded by Councillor Plant who reported that this small sum had proved to be very useful to all Councillors in the past. The Leader reported that there would be strict criteria drawn up for their use.
Councillor Wells reported that he supported the re-introduction of the Ward Budgets and informed Cabinet that lifeguard provision at our beaches was not statutory. However, as the beaches at Great Yarmouth, Gorleston & Hemsby were family friendly, lifeguard provision was paramount for their safety which in turn supported the local economy but must be justifiable and affordable for the forthcoming years and he proposed that the Council must continue to look for other funding.
Councillor Flaxman-Taylor reported that she echoed Councillor Wells' sentiments and she seconded the proposal to continue to source funding for the lifeguard provision.
Councillor Plant reported that the Council was still in conversation with GYBID in regard to the funding of lifeguard provision.
Councillor Wainwright reported that he was amazed that Cabinet had proposed to reintroduce Ward Budgets at £2k per Councillor which totalled £78k when the Council was short of funds, Ward Budgets, however useful, would add to the Council's debt.
In addition to the recommendations 1 to 12 as detailed above, Cabinet also resolved to recommend that Council consider:-
1) The re-introduction of Ward Budget of £2,000 per Councillor; and
2) That the funding for the Lifeguard Provision continues to be reviewed in order for this service to be retained.
RESOLVED:-
That Cabinet recommend to Council:-
1) The general fund revenue budget as detailed at Appendix A, as amended;
2) The Council Tax for 2025/26 for the Borough Council tax be £192.49 (for an average Band D);
3) That the demand on the Collection Fund for 2025/26 be:
a. £6,076,332 for the Borough Council purposes;
b. £857,560 for Parish Precepts now amended following receipt of the final parish precepts;
4) The amendment to the fees and charges as outlined at paragraph 3.6 in relation to the provision of six free parking spaces limited to 30 minutes in the Great Yarmouth Marketplace Car Park be approved;
5) The reserves statement and movement on the reserves as detailed at Appendix E and within section 4 of the report;
6) The Policy framework for reserves as detailed at Appendix F;
7) The updated Capital Programme and financing for 2024/25 to 2025/26 as detailed at Appendix G and within section 6.4;
8) The new capital bid proposals at Appendix H;
9) The Minimum Revenue Provision Statement 2025/26 as included at Appendix I.
10) The housing revenue account budget as detailed at Appendix J.
11) The housing revenue account capital programme and financing for the revised 2024/25 position and 2025/26 – 2029/30 as detailed at Appendix K.
12) An increase to all housing rents of 2.7%, new Affordable Rents to be set at the lower of 80% of the applicable Open Market Rent or 130% of Local Housing Allowance, new social rents where supported to include 10% premium and service charges and other charges at Appendix L and M.
In addition to the recommendations above, Cabinet also resolved to recommend that Council consider:-
1) The re-introduction of Ward Budget of £2,000 per Councillor; and
2) That the funding for the Lifeguard Provision continues to be reviewed in order for this service to be retained.